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Green Deal and Sustainability

Posted on: 2011-10-10 17:45:47

Green Deal News

Green Deal and sustainability will have a massive impact on the construction industry over the next decade and according to predictions will create jobs to install energy efficiency measures for 100,000 people by 2017.  Sustainability is not just about reducing carbon emissions, but will make homes and SMEs more energy efficient in response to an over reliance on fossil fuels.

The Green Deal has passed the committee stage and is due for launch in October 2012.  The initiative will give incentives to be paid back through savings on energy bills.

The government will ensure that small and medium size contractors will be able to take up opportunities, but they must start to prepare now. 

What can be installed?

The list is not yet definitive and will change as the initiative evolves over time to include emerging innovative products.   

Smart Meters

Cavity Wall Insulation

Loft Insulation

Solid Wall Insulation

Ground Source Heat Pumps

Air Source Heat Pumps

Biomass Boilers

Solar Thermal and PV

 The Green Deal

Green Deal assessors will evaluate a property and provide a number of informed options which will meet the ‘Golden Rule’.  This ensures that the cost of repayment will not exceed the energy savings achieved over the period of repayment. The Golden Rule may also involve private funding so that upgrading efficiency may be made in combination with general improvements.  The assessor will specify the measures and the homeowner will be able to choose an accredited installer to carry out the work.  There are 2 types of installers which may be used:-

Local SME - subcontracted to a Green Deal provider or one that will act independently to obtain finance.

Major energy company or retailer – such as one of the Big Six energy companies or major retailers such as B&Q, Tesco etc. who will have access to finance


UKAS will be the accrediting body for Green Deal assessors.  A robust standard will ensure the quality and independence of the assessments. In addition, there will be a Code of Practice which must be signed up to in order for the assessor to carry out the assessments.

The Publicly Available Specification (PAS 2030) has been released in draft format for consultation.  This covers the installation of energy efficiency measures under Green Deal and will provide a standard method of assessing Green Deal installers for all the measures.   UKAS will accredit certification bodies so that members of these bodies will be entitled to operate under the Green Deal.  This will ensure quality and drive standards, cutting out ‘cowboy’ installers who have blighted the sector in recent years.


Large Green Deal providers will arrange finance for homeowners with the energy companies responsible for collecting the repayments.   Homeowners can also use other forms of finance such re-mortgaging to cover the upfront costs.

The Energy Company Obligation (ECO) will set targets for domestic energy efficiency improvements which energy suppliers are required to meet. Its focus will be needs of low income and vulnerable households, and those properties which are more to expensive improve. 

The Green Deal Finance Company (TGDFC) was launched on 2nd October 2011 and is a standalone finance vehicle providing finance in the capital markets from the cheapest sources of finance.  GDFC will underpin the Green Deal’s finances and will be accessible by all Green Deal Providers to:

For the full article from Competitive Advantage, click here: