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Abundance of Green Deal Opportunities: Are you ready?

Posted on: 2012-12-16 15:59:57

 

The Green Deal was launched in October 2012 with the first wave of customers to be signed up from the 28th January 2013.

Green Deal is a scheme for UK existing domestic and non-domestic properties.  It is designed to finance all or part of a package of energy efficient ‘measures, products and systems’ which are proven to raise the energy performance of a building and classed as eligible for Green Deal finance, including subsidies under the new Energy Companies Obligation.

Green Deal Providers will offer incentives to customers of low interest loans with no up-front costs to be paid back through a charge on electricity bills.  Loans will be calculated on estimated energy bill savings likely to result from installing measures.  The ‘Golden Rule’ caps repayments and will be collected by electricity companies on behalf of the Green Deal Provider.  The loan will stay with the property and will be taken on by any subsequent utility bill payer.

To deliver the Green Deal, the supply chain will need to gear up to a sufficient capacity.  To put this into perspective, there are 6 million households with insufficient insulation; 6 million homes without full double glazing; and 70% of homes without a full set of heating controls.  Green Deal Providers will encourage a whole house approach by installing multiple measures at one time which will expand supply chain capacity to deliver installations in millions of homes.

In order for SMEs to gain a competitive advantage, they need to re- align their business and develop new skills.  A number of business models will evolve; for example, those who will deliver every part of the Green Deal in-house; those who wish to specialise in one function only; and those who wish to partner with other specialist organisations.

Green Deal has consumer protection and robust standards to ensure it operates effectively to enhance customer confidence.   The framework will be supported by a pool of certified organisations which will provide Green Deal Advisor services and the installation of measures. For installers, a robust certification is required to undertake retrofit refurbishments, not only for Green Deal financed work but also under the Energy Company Obligation for hard to treat properties, low income and vulnerable households.  However, there are a number of perceived barriers to entering the market for the SME sector. 

Phyllis Boardman of Green Deal Consortia Ltd has been working to shape policy for SMEs to ensure their market share.  An example of her work is the Green Deal Consortia (www.greendealconsortia.co.uk) which is an SME-led model designed to deliver Green Deal work for a partner funders and Green Deal Providers. 

Another challenge for SMEs, in particular sole traders and micro-SMEs, is the PAS 2030 standard for installers.  To embed the standard into a business requires the implementation of a core management system together with additional requirements per measure to be installed.  To overcome this onerous task, Phyllis has designed, in simple format, a suite of documents which acts as a fast-track, affordable, achievable and streamlined means of compliance.

The consortia Accreditation Toolkit (CAT), a web based tool (www.greendealconsortia.co.uk) secures consistency between installations, operatives and surveyors and enables assessment of competences to ensure minimum standards.  The CAT also communicates standards effectively from within an organisation right through to customers, Green Deal Providers and certification bodies including employees and sub-contractors. 

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Phyllis Prior-Boardman BSc (Hons) CIHCM
Executive Director
Green Deal Consortia Ltd
Wigan Investment Centre
WN3 5BA
Tel: 08435 065285
Mob: 07912 789186