The_Green_Deal .. Herts Council PPT
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Transcript of The_Green_Deal .. Herts Council PPT
Agenda
• Background and where are we now?
• Summary of Green Deal
• Customer Journey
• The rented sector
• Key players in delivery
• The operational model
• Is it all good news?
• What can we do?
Background and context� The Energy Bill included a provision to create a
framework for a national energy efficiency retrofit scheme – Green Deal.
� Warm Front, CERT and CESP ending and fuel poverty is increasing.
� The Bill also included a provision for a new Energy Company Obligation (ECO).
� Pressure on central funding – could be no funding!
� Too many schemes and a legacy of barriers
What is Green Deal?• A scheme to improve the energy efficiency of homes
and businesses in the UK!• A ‘loan’ scheme with no up-front costs and re-paid
through energy savings.• Repayment through a charge on the energy bill –
finance ‘tied’ to the energy meter and stays with the ‘property’ - even with a new occupant
• A market mechanism, funded through private capital.• A ‘one stop shop’ route to other schemes. • Measures chosen through a ‘Golden Rule’
Progress so far
• Dec 2010 – Introduced to Parliament
• Now – informal consultation
• Sept 2011 – Secondary legislation
• Sept 2011 – Spring 2012 formal consultation
• Sept 2012 Launch
• It’s very early days but things are gathering pace
The ‘Golden Rule’
• The cost of the loan repayments will always be lower than the expected fuel bill savings
• The repayment period will always be less than the expected life of the measures.
Example
Measure = £1000
Lifetime savings = £1200 - Yes – Green Deal finance Lifetime savings = £800 - No – referral to ECO or other
Householder in fuel poverty - No – referral to ECO or other
Customer Journey
Marketing and sign up
Home Assessment
InstallationMeasures
and finance plan agreed
Change of tenancy
Repayment
Marketing & Sign-up
• National marketing and publicity
• Retailers, DIY, supermarkets, home improvements
• Estate agents, EPC assessors?
• Independent advice and sign-up?
• Local Authorities?
Home assessment
• Individual assessments (home visits) are necessary• Measures, advice, finance plan• Codes of practice• Local knowledge needed• Local authority involvement?• An iterative process?
Finance plan
• Only the Green Deal plan will finance thru the energy bill
• The Provider/Assessor to make the offer• Consent is needed by the ‘owner’• It is effectively a loan – a charge – with interest• There are implications for non-payment• A ‘bundled’ package is being considered
Installation
• High level of certification and warranty
• Green Deal brand and Quality Mark
• Very short timeline for installation
• Co-ordination of the ‘wider’ Green Deal package
• Referral to EPC
Repayments & Moving on
• A charge on the energy bill
• No restriction to switching supplier
• Charge passes to new occupant
• The new occupant must agree/accept
• The EPC is the main vehicle for disclosure
• The option to ‘re-negotiate’ is being considered
The rented sector
• Not straightforward
• Half properties are not a decent home standard
• Private rent likely to be 4 times colder than social rent
• So landlords given to 2013 to see how they respond but regulation will be a last resort
• Complications due to multi-tenure
Key players in delivery
Scheme
Provider &
Partners
Marketing &
sign-up
Assessors
Installers Funders
Funding
Vehicle
Energy
Company
EPC Process
Independent
Advice
Is it all good news?
• Some concerns about the role of dominant retail players• Interest rates (2% - 6%)• Council tax rebates and cuts in stamp duty• 100,000 new jobs (Chris Huhne)• Paybacks are determined by the cost of the measure• ‘Re-bound’ effect estimated at 15% - evidence is 40%• Rises in energy bills• Fuel poverty• New occupants with different consumption patterns
What’s needed?
• All the components in the delivery model• Secondary legislation (Autumn 2011)
– Bill payment process– EPC process– Consumer Credit Act process
• Green Deal brand, kite marks, warranties etc • A great deal more clarity from DECC• Energy Company Obligation (2013?)
What can be done now?
• Understand, discuss and explore partnerships
• Joint communication and dialogue
• Design and run a ‘pilot’ scheme
• A full Green Deal in parallel with the legislative process