The Green Deal is a Coalition initiative that formed part of 2011’s Energy Act. In the quest for business energy solutions
, this idea is as simple as it is laudable. The financial aspect of the deal provides an assurance that any upfront cost to a business incurred by implementing energy efficiency measures will be offset by ultimate savings in energy bills. In essence, after an initial assessment, recommendations are made as to possible energy efficiency improvements, predicting likely energy savings. Finance will be provided to make those improvements, and repayments will feature as a separate item on the energy bill, offset by those ultimate long-term savings in energy costs.
The Green Deal will be of interest both to companies looking to implement business energy solutions to increase efficiency, and indeed to companies who might be able to gain business from the actual delivery of Green Deal improvements. Companies such as builders and insulation firms can apply to become both assessors and providers of The Green Deal, which covers both commercial and domestic premises and covers 45 different improvements. Once authorised, the companies who do become part of the implementation process will be able to display the Green Deal Quality Mark. It is hoped that by 2015, the scheme will support up to 60,000 jobs in the insulation industry alone.
Registration for The Green Deal has now opened, and as of this month, the government has made £7 million available to The Green Deal Finance Company, in readiness for the implementation of the programme in the early months of 2013. The Green Investment Bank is also looking to put further money into the pot, with investment of up to £300 million anticipated.
Of course the long term aim of the Green Deal is to make the UK’s businesses more energy efficient, thereby slashing carbon emissions in line with the government’s own targets, as set out in the Climate Change Act of 2008. And if everyone wins, then it seems The Green Deal is one worth shaking on.