by Brianna Crandall — August 27, 2012—British business owners and facilities managers should take note of new developments in the U.K.’s Green Deal program, the market-led framework set up by the Energy Act 2011 that allows individuals and businesses to make energy efficiency improvements to their buildings at no upfront cost. Central to the Green Deal is a finance mechanism that allows access to the financing needed for the improvements with repayment, in installments, attached to the electricity bill.
The U.K.’s Department of Energy and Climate Change (DECC) has offered a £7 million loan to The Green Deal Finance Company (TGDFC) that will allow TGDFC to continue developing its offer of low-cost finance, expected to be available early in 2013. Green Deal Providers will be able to access finance through TGDFC, enabling them to offer low-cost finance packages to consumers upgrading under the Green Deal.
The Green Deal is also being considered as an early candidate for the use of infrastructure guarantees, demonstrating the government’s commitment to working with the private sector to provide finance at a low but sustainable cost to Green Deal customers. Infrastructure guarantees will provide guarantees for major U.K. infrastructure projects and could potentially support up to £40 billion of investment.
From August 8, the register for Green Deal Providers, Assessors and Installers is also open. The register will give the seal of approval to businesses that successfully go through the Green Deal authorization process.
All authorized Green Deal Providers, Assessors and Installers will have to display the new Green Deal Quality Mark to demonstrate they comply with the required Green Deal standards. DECC considers this to be vital for protecting customers from any unauthorized traders. Only registered and authorized businesses will be able to use this mark.
Businesses wishing to become Green Deal Providers can apply directly online to become authorized, while accredited certification bodies will be able to submit the details of Assessors and Installers to be authorized. New guidance is available on the DECC Web site that clearly explains what is required to get the Green Deal Quality Mark and to become an authorized Provider. This complements existing guidance setting out how to become an authorized Assessor or Installer.
The Green Deal is expected to open up the energy efficiency market, empowering new players, including small and medium-sized businesses, to enter and innovate. The Green Deal initially covers 45 different improvements for domestic and non-domestic buildings and is expected to support up to 60,000 jobs in the insulation sector alone by 2015.
