The Green Deal
October 2012 sees the roll-out of the biggest energy efficient project undertaken in the UK. It's set to change the way the nation thinks and manages it's energy efficiency.
So what is the government attempting to solve with this? The answer to that question obviously depends on who you ask. If it's "environmental issues" then my guess is that the Green Deal project would have been implemented long before now. If we are concerned about the "energy crises" well, that's been with us since the 1970's in one form or another. How about the rising cost of energy! Most likely, as when our pockets feel the pinch that's usually when most of us squeal the loudest.
The "cry" is usually in terms of the addressing the government with the question, "what are you going to do about it?" Well, now the time has come when the government are indeed doing something about it, or so it seems. In a way it's quite admirable how they have managed to organise the Green Deal whereby they can take all of the credit whilst passing the job on to commercial interests to not only carry out but also oversee and administer.
The Green Deal allows energy bill-payers to borrow up to £10,000 to use on energy saving measures to be carried out in their home that will reduce their energy bill. The loan is given based on what is termed as "The Golden Rule" which is that the repayments should not exceed the savings made by the implementation of the work. Also, the loan term shall not extend beyond the lifetime of the energy saving measures undertaken. Seems a good idea so far.
A whole industry is set to evolve in order to facilitate the carrying out of the many functions required for this project. Thereby, job creation is yet another positive outcome. The DECC has structured the Industry into certain categories which include:
- Advisers: who will carry out surveys on the property and determine what has to be done;
- Installers: who will carry out the work;
- Green Deal Providers: who will arrange the work to be carried out, and helps with arranging finance, extra consumer protection, warranties and customer complaints.
- Financiers: who will offer the special Green Deal Finance package.
- Energy Companies: who then collect the repayments via the energy bill (quite a good idea I thought. It makes the loan almost invisible.