Document Preview: The Green Deal

2degrees Sustainability Essentials

The 2degrees Sustainability Essentials Series provides the necessary guidance to a range of topics, for sustainability professionals looking for an easy-to-use guide, companies at the start of their sustainability journeys, or for 2degrees members who are new in their roles. Think of it as a short course to sustainability issues. This document highlights what you need to know about the UKs Green Deal initiative and why its important for local government.

Contents
Definitions ........................................................................................................................................................ 2 What is the Green Deal? ............................................................................................................................. 3 Why is the Green Deal important to sustainability? ......................................................................... 4 What does the Green Deal mean for householders? ....................................................................... 4 What does the Green Deal mean for businesses? .............................................................................. . Improvers....................................................................................................................................................... . Providers ........................................................................................................................................................ . What does the Green Deal mean for local authorities? .................................................................... . Major challenges in rolling out the Green Deal ................................................................................... . What are the next steps? .............................................................................................................................. . The three steps to securing Green Deal finance .................................................................................. . Green Deal Timeline ....................................................................................................................................... . For more information .................................................................................................................................... . On 2degrees ................................................................................................................................................. . Other Documents ....................................................................................................................................... . Organizations ............................................................................................................................................... .

Updated September 23, 2011

Page | 1

Document Preview: The Green Deal

2degrees Sustainability Essentials

Definitions

Green Deal Provider The role of the Green Deal Provider is to offer a Green Deal plan to customers to enable them to finance the work recommended by the Accredited Adviser and undertaken by an Accredited Installer. These functions might be done in-house by the provider, or shared amongst other organisations, but the customers contractual relationship is with the provider. The offer from the Green Deal Provider will specify the total cost, the charge to be attached to the energy meter and the length of the repayment period. Green Deal Plan The Green Deal Plan includes the financial and contractual agreement between the Green Deal Provider and Improver and arranging an accredited advisor and installer. Improver This is the household, business or organisation whose property is being upgraded. Accredited Advisor This is the person who assesses the property and recommends energy saving opportunities from a list of approved measures. They might also make recommendations on energy-saving behaviour. Accredited Installer This is the contractor installing the measures recommended by the Accredited Advisor. They could belong to the Green Deal Provider or be an independent approved contractor. The Golden Rule The expected financial savings from the measures must be equal to or greater than the costs (including the measures, labour costs and financing costs) attached to the energy bill and the length of the payment period should not exceed the expected lifetime of the measures.

Updated September 23, 2011

Page | 2

Document Preview: The Green Deal

2degrees Sustainability Essentials

Energy Company Obligation (ECO) At the moment, the Governments principal tools for driving uptake of energy efficiency measures are the energy company obligations: Carbon Emissions Reductions Target (CERT) and Community Energy Saving Programme (CESP). The government has committed to replacing these programmes when they expire at the end of 2012 with a new Energy Company Obligation (ECO). The obligation will be restructured to bring it up to date and enable it to function alongside the Green Deal finance market. The ECO will be focused on those households who need support over and above the Green Deal. It will provide measures which help the most vulnerable low income households and also offer support to the expensive to treat properties, such as those with solid walls.

What is the Green Deal?

The Green Deal is the UK governments initiative to kick-start the green refurbishment revolution. The program will encourage both homeowners and businesses to upgrade the energy efficiency of their buildings at no up-front cost. These improvements will be offered by private firms who will then recoup the capital cost, together with an interest charge, over a period of time through the resulting savings on the occupants energy bills. What measures can be installed hasnt yet been finalized and will depend on the particular building, but the list is likely to include everything from loft and cavity wall insulation through to lighting controls and micro generation technologies. For a more comprehensive outline of the measures put forward see the UK Department of Energy and Climate Change (DECC) publication: What measures are covered by the Green Deal? The main criterion is that they must be able to pay for themselves.

Updated September 23, 2011

Page | 3

Document Preview: The Green Deal

2degrees Sustainability Essentials
The aim is for the Green Deal to be available from the autumn of 2012.

Why is the Green Deal important to sustainability?

The UK has some of the oldest housing stock in the developed world. Half of homes are more than 50 years old and theyve got the energy efficiency to match. Our 25 million plus existing homes account for about 27% of the UKs carbon emissions. Non-residential buildings dont fare much better, they are responsible for 18% of UK carbon emissions. Given that the vast majority of these buildings will still be here in the next 50 years, it is crucial that the energy efficiency and carbon emissions of these buildings is tackled if the UK is to meet its carbon reduction targets.

Our 25 million plus existing homes account for about 27% of the UKs carbon emissions.

What does the Green Deal mean for householders?

There are a number of barriers that have traditionally dissuaded householders from installing energy efficiency measures. These include the up-front cost of the measures, the length of time required for them to pay back, and the time and effort needed to plan and carry out the work. Added to this, there is currently a lack of widespread awareness of the benefits of improving the energy efficiency of homes, although this is likely to change with rising energy prices. The Green Deal aims to remove these barriers. By making investments possible at no up-front cost, the government believes it increases the incentive for owner-occupiers, tenants and landlords to take action.

Updated September 23, 2011

Page | 4

Document Preview: The Green Deal

2degrees Sustainability Essentials

You have come to the end of the 2degrees Sustainability Essentials Preview of; The Green Deal If youre not yet a member of 2degrees but would like to access the rest of the document today Click Here to Sign Up >> (membership is free and only takes a few minutes)
About 2degrees 2degrees is the worlds largest community for sustainability. We offer networking, content and bespoke intelligence to over 16,000 public and private sector members, from 6,000+ organizations and 100+ countries around the world. As a managed community, we actively bring together our qualified business leaders, policy experts and academics in support of a shared goal: to accelerate the delivery of solutions to sustainabilitys most pressing challenges.

Updated September 23, 2011

Page | 5