More than ten per cent of businesses are already planning to take advantage of a new scheme encouraging investment in energy-saving measures, according to research.
The Green Deal, launched by Deputy Prime Minister Nick Clegg on 28 January, offers businesses and households the opportunity to pay for work to reduce their energy costs via their electricity bills.
Under the initiative, a Green Deal assessor will visit the business premises or home to carry out an assessment, discuss energy use and recommend appropriate energy-saving measures, indicating whether these would pay for themselves through lower energy bills.
Following an assessment, expected to cost around £100, the business or householder will then seek quotes for the recommended improvements from Green Deal providers. They can source as many quotes as they wish and do not have to go ahead with all the recommendations.
A Green Deal plan – the contract between the client and the provider – will set out the work that will be done and the repayments, including the fixed interest rate. Once the plan is agreed, the provider will arrange for the improvements to be made by a Green Deal installer, with repayments automatically added to the electricity bill.
For customer reassurance, Green Deal assessors, providers and installers have to meet specific Green Deal standards to be authorised to operate under the Green Deal and will be able to display a Green Deal Approved quality mark.
According to research carried out by electrical installation supplies distributor RexelUK, 12 per cent of business owners planned to take advantage of the Green Deal. When asked which energy efficient measures they would be investing in:
- 18 per cent said LED lighting
- 10 per cent said window glazing
- nine per cent said insulation or draught proofing
- and one per cent said biomass boilers with the same percentage opting for automated systems and controls.
Under the scheme’s “Golden Rule”, Green Deal payments must be less than the future savings on energy bills as a result of the investment. Repayments can be spread over periods of up to 25 years with a maximum interest rate of 6.92 per cent.
Link: Green Deal information