Understanding the Green Deal Scheme for Energy Efficiency in the UK
The Green Deal is a national retrofit energy efficiency scheme introduced in the UK under the Energy Act 2011. It aims to provide energy efficiency measures to homes and businesses through loans collected via energy savings. Accredited advisers, installers, and providers play key roles in assessing properties, installing measures, and offering green deal plans. The scheme operates based on the Golden Rule, where energy savings must exceed installation costs. Eligible measures include heating systems, ventilation, air conditioning, and building fabric improvements. Repayments are tied to the property and continue even with changes in occupancy until completion. The initiative also involves the Energy Company Obligation (ECO) to enhance energy efficiency further.
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Presentation Transcript
The Green Deal Alan Broadbent Group Manager - Housing and Programmes
Agenda Background and Context. Background What is Green Deal Green Deal Terms The Golden Rule Eligible measures How it will work Property assessment Agreement of Green Deal/Repayment Green Deal Terms Repayments and moving on Energy Company Obligation Green Deal and Landlords
Background and Context The Energy Act 2011 make provisions for the introduction of a national retrofit energy efficiency scheme now known as the Green Deal. 2012 should also see the introduction of a new Energy Company Obligation (ECO) which will replace: CESP: Community Energy Saving Programme (end 31/10/12) CERT: Carbon Emissions Reduction Target (end 31/12/12) Autumn 2012 should see the planned launch of the Green Deal.
What is the Green Deal? A scheme to provide energy efficiency measures to homes and businesses throughout the UK. A loan that will be collected through savings made from the energy measures installed. Repayment will be through a charge fixed to the energy meter and will stay tied to the property even with a change of occupancy until the Green Deal has finished. When the energy measures are decided the Golden Rule must apply.
Green Deal Terms Advisers - Accredited advisors, will provide an assessment of properties and recommend measures which meet the golden rule Installers - Independent or linked to providers, installers could be hired by large energy companies, or be a local tradesperson Providers - Green Deal Providers would be responsible for offering a full package of accredited advisers and installers in the form of a green deal plan
The Golden Rule The Golden Rule : the potential energy savings of each measure must match or exceed the costs of installing the measure. The period of repayment should be less than the expected lifespan of the efficiency measures installed.
Eligible Green Deal Measures Heating, ventilation and air conditioning 1. Condensing Boilers 2. Heating controls 3. Under-floor heating 4. Heat recovery systems 5. Mechanical ventilation (non-domestic) 6. Flue gas recovery devices Building Fabric 7. Cavity wall insulation 8. Loft Insulation 9. Flat roof insulation 10. Internal wall insulation 11. External wall insulation 12. Draught proofing 13. Floor insulation 14. Heating system insulation (cylinder, pipes) 15. Energy efficient glazing and doors Lighting 16. Light fittings 17. Lighting controls Water heating 18. Innovative hot water systems 19. Water efficient taps and showers Microgeneration 20. Ground and air source heat pumps 21. Solar thermal 22. Solar PV 23. Biomass boilers 24. Micro-CHP
How will it work? (overview) Repayment change of occupancy Property Assessment Green Deal Provider Finance Installation Of measures
Property Assessment Undertaken by an accredited assessor: Determine the construction and fabric of the building Assess how the occupants use the building Provide the property with an up-to-date Energy Performance Certificate (EPC) Provide the Owner and Provider with the required information to arrange Green Deal Plan
Agreement of Green Deal Following the assessment the Provider would review the assessment findings and offer the customer a Green Deal plan (this would include the finance plan) Owner must consent to the proposed offer If accepted the Provider would: Arrange finance for the Green Deal Arrange the installation of energy efficiency measures Ensuring measures are carried out by an authorised Green Deal installer Ensuring all obligations are met in relation to Green Deal plans
Repayments and change of occupancy The Green Deal will be linked to the property and repaid through the energy bill The Utility Company will be responsible for passing on the Green Deal saving to the Provider There will be no restrictions on residents switching energy suppliers If the property is sold or rented out whilst the Green Deal is still active the new occupier will pay the Green Deal loan back through their utility bill All new occupants must be made aware of any existing Green Deal s on a property and must accept the repayment conditions
Energy Company Obligation (ECO)? It is an obligation on the energy suppliers to support home energy efficiency It will build on the existing strengths of CERT and CESP schemes There will be households for whom Green Deal finance is not suited ECO is to integrate with the Green Deal and will focus on hard to treat properties, poor and vulnerable households Social Housing will be excluded (based on current plans)
Green Deal & Landlords The Green Deal overcomes the spilt incentive in the rented sector whereby previously it was the landlord who paid for the energy efficiency improvement but the tenant who benefitted from lower bills. Under the Green Deal, landlords will be able to make energy efficiency improvements without having to pay for them upfront. The Government has pledged to work with the private rented sector to encourage uptake of energy efficiency measures through the Green Deal.
Green Deal & Landlords From April 2016, domestic landlords should not be able to unreasonably refuse requests from their tenants for consent to energy efficiency improvements, where financial support is available, such as the Green Deal and/or the Energy Company Obligation (ECO) From April 2018, all private rented properties (domestic and non-domestic) should be brought up to a minimum energy efficiency standard rating, likely to be set at EPC rating E .
Useful Information Sources Department for Energy Climate and Change Green Deal www.decc.gov.uk/en/content/cms/tackling/green_deal/gr een_deal.aspx Green Deal: Private Rented Sector (PRS) www.decc.gov.uk/en/content/cms/tackling/green_deal/gd _industry/private_rented/private_rented.aspx
What does KMBC have to offer? Cosy Knowsley - new partnership under CERT funding British Gas official KMBC partners. Offer includes: Cavity Wall insulation at No Cost Loft Insulation at No Cost (for virgin lofts. For top ups a 145 charge will apply. Additional costs may apply for excess meterage, scaffolding, loft clearance To arrange a survey - freephone: 0800 622 415 Kirkby CESP Scheme in partnership with Wetherby Building Systems Aimed at designated area, and Hard to Heat Housing No Fines construction To check if your property is located in the designated area email simon.rugen@knowsley.gov.uk
