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TOPIC: How and when will the Green Deal be available for businesses?

How and when will the Green Deal be available for businesses? 1 month ago #1

The government has sought to positioning the Green Deal as an almost exclusively domestic scheme, but it is still in open discussions about businesses and corporate properties participating, surely that offer is the quickest means of delivering deep cuts in greenhouse gas emissions?
When the plans are finalised who will be undertaking the assessments as it will be significantly more difficult than it is for households?
Last Edit: 1 month ago by Daniel Smith.

Re: How and when will the Green Deal be available for businesses? 1 month ago #2

The Green Deal will officially launch on October 1 2012, but only for Green Deal assessments or for those consumers with the money to pay upfront for the work to be carried out and those benefiting from the Energy Company Obligation (ECO - energy efficiency upgrades for low income and hard to insulate homes).

Both Buiness and Domestic cusotmers will have to wait until 28th January 2013 until the Secondary Legislation comes into force in order to access Green Deal Finance.
www.legislation.gov.uk/uksi/2012/1661/pdfs/uksi_20121661_en.pdf

The process for assessment for non-domestic properties will be similar to that for domestic properties, but they will be carried out by Green Deal Advisors with the relevant qualifications and certification for businesses:
www.decc.gov.uk/en/content/cms/tackling/...visors/advisors.aspx

You can find out more about how the Green Deal will work for businesses here:
www.decc.gov.uk/en/content/cms/tackling/...t/gd_nondomcust.aspx

Or find out more on the Energy Saving Trust website: www.energysavingtrust.org.uk/Take-action...Obligation-ECO#apply

Re: How and when will the Green Deal be available for businesses? 1 month ago #3

The Green Deal has already seen huge delays for the domestic market and the chances of the deal being available commercially under the suggested time frames are low.

However, private funds have come up with an approach more flexible than the Green Deal and available today.

Solar Selections is currently associated with a fund looking for sites (Public or Private) spending over £30,000 per annum on electricity and gas/oil. The fund is prepared to incur the cost of any viable energy efficiency measures suitable for a given site, e.g. Solar PV, Biomass, LED lighting, etc. In return the fund takes any Feed-in Tariff (FIT) and Renewable Heat Incentive (RHI) payments or they will simply take a cut of the energy savings experienced (monitored by a third party). The discussed site will benefit from reduced electricity and heating bills from day 1.

After 10 years the fund steps aside and all incentives are retained by the site. This pay as you save model is an ESCO (Energy Saving Contract) and the repayments are in the form of service fees NOT asset based finance. This means that there is no impact on the balance sheet and the party is not applying for a loan or any other type of finance. In addition there is no roof rental arrangement.

It is worth noting that the Public sector can receive an initial energy performance survey from the fund at no cost.

Please contact Solar Selections for more information 0844 567 9835 or visit www.solarselections.co.uk
Last Edit: 4 weeks, 1 day ago by Jarrah Harburn. Reason: hyperlink would not setup correctly

Re: How and when will the Green Deal be available for businesses? 3 weeks, 2 days ago #4

The Attorney General's Office is a small '70's office block which houses a staff of around 40-odd and we share two floors with another tiny department (the Office for Budget Responsibility). The building is leased so we're not in a position (either financially or as owners) to make huge changes like installing greener lighting systems, greener central heating or even change the windows!

I chair a 'green group' of about 10 or so people from both the AGO and the OBR - and we look at ways to reduce our energy use (in accordance with targets set by the Government) - we've so far reduced our water usage by fixing leaks in the toilets (the cisterns were actually walled in behind tiles so we had to get hatches punched through!) and we've reduced our electricity by installing switches on our water heaters and coolers which are now being switched off every night and we get people interested in green volunteering (we recently spent a morning with Thames 21 - a charity which cleans up the banks of the Thames). So that's the kind of thing that we're up to - I realise it's very small scale compared to some of the talks you'll be organising, but I hope it gives you a picture of where we're at.

Re: How and when will the Green Deal be available for businesses? 3 weeks, 2 days ago #5

Agreed, the opportunity for carbon savings and, in turn, bottom line savings for UK PLC from addressing the energy performance of commercial buildings in the UK is large. However, from the engagement Regenerate Pennine Lancashire and Procure Plus have had with potential GD providers and energy companies, their focus does appear to be on the domestic sector. This is primarily due to reducing carbon emissions from housing being critical to discharging the Energy Company Obligation targets that energy companies have. As such, there is an emphasis on gearing up their supply chains, including assessors affiliated to or directly employed by a GD Provider, to tackle Green Deal assessments and installs on peoples homes.

There are questions to be answered about the role of 'independent' Green Deal assessors, not directly linked to a GD Provider, operating in the domestic sector as numerous potential providers have already stated that if they were funding a GD loan, they would undertake their own assessment regardless of an existing completed GD assessment. Are home owners really going to pay for their own independent assessment when the GD Provider is effectively going make them pay for a second assessment via the GD loan?

Taking this into account, the commercial sector probably offers the best opportunity for independent assessors as the main GD players gaze is fixed on the domestic sector, although the above scenario wont be completely avoided.

Re: How and when will the Green Deal be available for businesses? 3 weeks, 1 day ago #6

The Green Deal appears to be a better prospect for businesses than for the domestic sector, as businesses are most used to looking at the bottom line and will be able to grasp the complexities of Green Deal far more easily. The difficulty in the commercial sector is as suggested getting super-surveyors who are qualified and experienced enough to complete Green Deal assessments on a wide variety of commercial operations.

The domestic sector will be swept through with ruthless efficiency and those unable to engage with its complex processes, procedures, terms and conditions will disengage completely from energy efficiency and the Green Deal will become the pursuit of the upwardly mobile. The ECO part of Green Deal will fail to reach those in need if it is not simplified considerably and not a 100% grant offering.

Re: How and when will the Green Deal be available for businesses? 3 weeks, 1 day ago #7

DECC have confirmed that the non-residential Green Deal will launch at the same time as the domestic Green Deal (previously there had been rumours that the non-dom GD would be delayed by up to 6 months). The non-residential side of GD has been somewhat underrepresented at the four ministerial GD advisory fora. There is an appreciation that given the complexities of tenure, building services and administration, assessments for larger commercial properties will typically be done by a building surveyor or qualified non-domestic energy assessor, while small shops or offices could be treated like a domestic property. I definitely heard the argument that small businesses could improve their premises under the domestic Green Deal, but I’m not sure how this would work administratively.

Re: How and when will the Green Deal be available for businesses? 2 weeks, 6 days ago #8

The government has sought to positioning the Green Deal as an almost exclusively domestic scheme, but it is still in open discussions about businesses and corporate properties participating, surely that offer is the quickest means of delivering deep cuts in greenhouse gas emissions?
When the plans are finalised who will be undertaking the assessments as it will be significantly more difficult than it is for households?

There is still a lot of doubt surrounding this issue. Assessments present substantial challenges in the commercial sector. For a good overview of the debate see: www.andrew-cooper.com/pdfs/The_Green_Dea...mercial_property.pdf

Re: How and when will the Green Deal be available for businesses? 2 weeks, 3 days ago #9

The assessment of potential savings from energy efficiency improvements is paramount for the Green Deal as it will determine the investment. It’s more difficult and complex to assess non domestic properties. Therefore, qualification and certification of the Green Deal Advisor is a major issue.

Green Deal Providers have to propose an offer which respects the golden rule and with an estimated assessment of savings, they will not be able to propose competitive deals. Moreover, non-domestic customers have other options to finance energy efficiency measures.

The Green Deal seems to fit more to the domestics/households market. The main incentive for businesses is the “no upfront cost” but will it be enough?

Re: How and when will the Green Deal be available for businesses? 2 weeks, 1 day ago #10

I've been looking more at the domestic market, and one of the biggest problems seems to be the interest rate on any Green Deal finance scaring people away. Is that going to be any different for businesses who are only interested in the bottom line?

Re: How and when will the Green Deal be available for businesses? 1 week, 2 days ago #11

How would ‘green deal’ help the low-income communities? We are currently working for ‘food or heating’ families, as they cannot afford heating, so how can we help these ‘zero carbon families’?

Re: How and when will the Green Deal be available for businesses? 1 week, 2 days ago #12

Feifei, for low-income households and communities, the Energy Company Obligation (ECO) will be more relevant than Green Deal itself, although DECC envisage the two to go hand-in-hand to some degree. Under ECO, there are now three strands, two of which focus on low-income and vulnerable households and communities - the "affordable warmth" target (official title in legislation: "home heating cost reduction obligation") and the carbon saving communities.
Also see the the Deputy Prime Minster's announcement from April: http://www.decc.gov.uk/en/content/cms/news/dpm_eco/dpm_eco.aspx.
May I point out however that your post is slightly off-topic as the question above this thread is "How and when will the Green Deal be available for businesses?". Nevertheless I hope to have helped you with this reply.
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