New Green Deal
The Green Deal is a new government initiative aimed at curbing current UK greenhouse gas emissions. Intended to be introduced as of August 2012, the government hopes that it will encourage consumers to conduct energy improvements on their properties. Through the mass uptake of this new scheme, the government are hoping the UK will become a world leader in reducing energy consumption.
Forming part of the Energy Bill 2010-2011, it is hoped that the new scheme will be the government’s flagship policy on climate change. Although currently in the design process, it has been outlined that the new scheme will permit the installation of energy efficiency measures without any upfront cost to the property owner.
The foundation on which funding will be provided within the new scheme is ‘The Golden Rule’. The Golden Rule is a criterion that must be fulfilled in order for funding to be approved. It states that any planned improvements to the property should not exceed the total savings that could be made from new improvements. It also entails that the repayments should not exceed the life expectancy of any new improvements made to a property.
The first step in obtaining funding in the new scheme is to have a Green Deal Assessor inspect a property thoroughly. The Green Deal assessor will be able to identify where a property is underperforming, in terms of energy efficiency, by completing and reviewing an Energy Performance Certificate (EPC). Once an assessor has reviewed the EPC they will then be able to recommend potential new improvements that can be made to the property. The assessor will also advise customers on reducing energy consumption and changing day-to-day habits.
Upon receipt of the EPC, customers are then free to contact a Green Deal Provider. Green Deal Providers are the only body that will be able to sanction Green Deal Finance. Under the new scheme Green Deal Providers will be able to advise customers on what measures will be financially suitable and offer them a package tailored to their needs. Green Deal Providers will also have to include information on expected savings, the cost of repayments and the length in which repayments will be made. Once Green Deal Finance has been established with the provider, customers are then able to contact a Green Deal Installer.
Under the new Green Deal, tradesmen from a variety of trades must be made available to install the required energy efficiency upgrades. These tradespeople will be known as Green Deal Installers. Green Deal installers will not only conduct the installation but also be responsible for ensuring that all installations meet relevant guidelines and standards. All Green Deal installers will have to be registered to a new accreditation structure that will be introduced; this will be marketed as the ‘Green Mark’.
Almost any UK household will be able to take advantage of the new scheme, including tenants, who will be able to request their landlords undertake energy efficiency measures. The UK government also plan to introduce a new peice of legislation allocating local authorities the power to force landlords, of significantly underperforming homes, to sign up to the new Green Deal.
For more information on The Green Deal please visitwww.blcpropertyservices.com/the-green-deal