Is the green deal a good deal for SME's

The voice of construction SMEs

Is the Green Deal a good deal for SMEs?

23 November 2011


Introduction

•The Climate Change Act 2008 sets a legally binding target to reduce greenhouse gas emissions in the UK by at least 80% from 1990 levels by 2050

•Buildings contribute approximately 40% of the UK's total emissions

•The coalition government's aspiration is to be the 'greenest government'

•85% of our existing buildings will still be standing in 2050

•The FMB research document 'Transforming Our Existing Housing' revealed that the retrofit market is worth at least £3.5 billion every year


Green Deal Background

•A new Government initiative arising from the Energy Act 2011 to enable consumers to improve the energy efficiency of their homes and businesses at no upfront costs

•The Green Deal, is at the heart of the government's carbon reduction strategy and has been described by ministers as the biggest home improvement programme since the second world war

•Due to commence in October 2012


Green Deal Overview

•Costs will be paid back through the consumer’s electricity bill

•The repayment agreement will be tied to the property not the person

•The Golden Rule must be met

•A Green Deal Code is in development and all parties must operate in accordance with the Code.


The Golden Rule

For the Golden Rule to be met the expected saving from the improvement measure must be equal to or greater than the cost of the measure


Green Deal Measures

Building fabric measures

• Cavity wall insulation• Loft insulation• Flat roof insulation• Internal wall insulation• External wall insulation• Hybrid wall insulation • Draught proofing• Floor insulation• Heating system insulation (cylinder, pipes)• Energy efficient glazing and doors


Green Deal Measures

Heating, ventilation and air conditioningmeasures

• Condensing boilers• Heating controls• Under-floor heating• Heat recovery systems• Flue gas recovery devices• Gas-fired Warm air Heating• Electric Storage Heaters

Lightingmeasures

• Lighting fittings• Lighting controls (non-domestic)

Microgenerationmeasures

• Ground and air source heat pumps• Solar thermal• Solar PV• Biomass boilers• Micro-CHP• Micro-wind


How will the Green Deal operate?


The Green Deal Provider

Green Deal Provider

Accredited Adviser

Consumer Energy Supplier

Certificated Installer

Green Deal Oversight Body


The Green Deal Installer

Green Deal

InstallerGreen Deal

Provider

Accredited Green Deal Installer

Certification Body

Consumer

Direct Labour

Sub-ContractLabour

Green Deal Oversight Body


PAS 2030

•Clause 4 - Installation process

•Clause 5 - Process management

•Clause 6 - Service provision

•Clause 7 - Claims of conformity

•Annex A to Z - Measure specific requirements including competence requirements


PAS 2030 Competence

•PAS 2030 has requirements relating to:

‒ surveyor competence

‒ operative competence

‒ currency of competency

‒ competence ratio

•PAS 2030 gives routes to demonstrating competence

•PAS 2030 and compatibility with competence requirements for Building Regulations CPS and the MCS


Suggested Green Deal Business Models

•Source:


The FMB Building Regulations Competent Person Scheme and the Green Deal

•The FMB Building Regulations CPS application is in development with a target for the scheme to be authorised by end of April 2012

•Initially focussing upon insulation, glazing and roofing types of work

•A longer term aim to extend the scope of the scheme to other types of building work

•The FMB is also considering an application to UKAS for accreditation to operate a Green Deal Installer Certification service


Is the Green Deal a good deal for SMEs?

•Your questions please

•Discussion

Is the green deal a good deal for SME's

Business

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