Green Deal? What’s the
What does the government’s latest environmental scheme mean for building services contractors, and can it really deliver? Paul Reeve and Bill Wright tackle key questions from ECA members
What is the Green Deal? The Green Deal is a government initiative, sponsored by the Department of Energy and Climate Change (DECC), to encourage the installation of energy effi ciency and renewable energy measures in buildings to reduce carbon emissions (which come from burning fossil fuel to provide energy, either in the building (gas) or at power stations).
How does it work? The Green Deal enables domestic and non-domestic property owners to obtain a loan to install a range of energy effi ciency measures, but the loan is on the property. It is paid back through the electricity bill, and repayments pass on to any future owner/occupiers of the building.
What is the ‘Golden Rule?’ The loan has to meet a ‘Golden Rule’, which means that the reduction in the energy bill for the building must exceed the repayments on the loan so that there is a saving due to installing the chosen effi ciency or renewable energy measures.
What measures does it cover? DECC has produced a list of more than 45 measures that are eligible for the Green Deal scheme. These include cavity wall insulation, loft insulation, boiler controls, lighting, solar photovoltaic (PV) and many other systems.
What is the Energy Company Obligation? The Energy Company Obligation (ECO) is a funding stream from the energy supply companies for measures that do not meet the requirements of the Green Deal, such as external wall cladding. The ECO is around £1.3bn per year.
When does the Green Deal arrive? The Energy Company Obligation scheme will start on 1 October 2012, but the Green Deal itself is scheduled to
30 ECA Today September 2012 About the authors
Bill Wright Bill Wright is the ECA’s head of Energy Solutions.
Paul Reeve
Paul Reeve CEnv is the ECA’s head of Business Policy and Practice.
start on 28 January 2013 for both domestic and non- domestic buildings.
What is a Green Deal Provider? The Green Deal Provider (GDP) is an organisation which is at the hub of the Green Deal scheme. Once an assessor has carried out a survey of the property, the customer can then pass that survey to a GDP to obtain a quotation for the energy effi ciency measures detailed. If the quote is accepted, then the GDP will arrange the fi nance and organise the work to be carried out. They will pass details of the loan to the customer’s electricity supplier for incorporation into their electricity bill. The GDP is also responsible for arranging all necessary guarantees of equipment and workmanship.
What does an assessor provide? The assessor carries out an energy assessment of the property and provides a written report with a list of recommendations of energy effi ciency measures that may be taken out under the Green Deal. The customer can than pass this to a GDP for action. The assessor, although classed as independent, may be employed by a GDP. In this case, the assessor has to declare who they are employed by and still provide an assessment which could be passed to other GDPs for action.
Who pays the assessor? This has still to be resolved. Some GDPs will employ their own assessors, in which case they must declare their connection with the GDP, as described above. DECC has stated that truly independent assessors must be paid but, at present, no process has been detailed for this.
Is an Energy Performance Certifi cate (EPC) required? As part of the assessment process, the assessor will have to provide an Energy Performance Certifi cate (EPC) for the property, if one is not already available. If work is carried out, then another EPC will be required on completion of the work.
SHUTTERSTOCK / TELNOV OLEKSII
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