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The Energy Act 2011 has introduced the “Green Deal” - a means for households and
businesses to obtain easily accessible finance to implement energy efficiency improvements
and pay for them using the energy savings delivered via the Energy Company Obligation
(ECO).
Click here to access the Department of Energy and Climate Change website and documents.
The Energy Act 2011 has provided a mechanism by which property owners and businesses
can obtain finance for improvements to buildings without the usual, large, capital
outlay that acts as a deterrent to making these improvements.
The “Green Deal”, as it is referred to, has a multi-layered approach: First, the
assessment of a property to determine what sort of energy improvements might be possible
and whether those improvements would deliver the financial return required in order
to pay for them. Secondly, the use of a contractor capable of installing the recommended
improvements at a price and to a quality standard that will ensure the financial
return is deliverable. Finally, an agreement with the energy companies that, under
the ECO scheme, the cost can be paid back through their billing system from reductions
in energy usage realised.
This is a great idea and could be a real boost to businesses in the assessment, supply
and installation sector, but it depends on a number of diverse organisations communicating
effectively and having systems and processes that deliver a high standard of customer
service and minimal hassle. Imagine: The self-employed assessor uses their software
to identify potential improvements (one hopes to greater effect than the current
DEC assessors) and then recommends a local firm of builders who can source the equipment
and install it. Two potential issues spring to mind: Firstly, how realistic will
the potential energy savings be? What factors and assumptions go into the algorithm?
Secondly, what guarantee will there be over the builder/installer’s competence?
It is also necessary to arrange with the energy company used by the household to
bill at their previous energy usage level and deduct the difference between the new
and old levels of usage and accrue that against the capital cost of installation
etc. Knowing the absolute nightmare that are energy companies’ tariffs, billing
and switch-over processes and systems, what chance of that not going wrong?
e-mel can offer a management process to ensure these elements all work together smoothly.
