Green Deal - Is it still attractive?
All businesses are seeing their energy costs rise, but the smaller ones are being particularly squeezed and are expected to see price increases of 15 per cent by the end of 2012, according to research commissioned by Make It Cheaper from the Centre for Economics and Business Research.
On the positive side, however, The Carbon Trust estimates that SMEs could, however, cut their energy costs by 20 per cent through energy efficiency measures. And the Green Deal, being launched later this year by the Government, should help businesses realise these savings.
Potentially, the Green Deal could see 14 million homes and businesses retrofitted by 2020; a huge challenge, but also a big opportunity for accredited advisors, installers and the manufacturers of the materials that will be needed to bring poorly insulated and energy-hungry homes and businesses up to modern standards. To deliver at this level will require massive commitment from the supply chain, in particular those companies who are gearing up to undertake the retrofitting. The scale of the task is enormous and those involved will only launch themselves into it if they can be confident that the scheme will work.
The idea behind the Green Deal is to enable business owners – as well as homeowners – to gain access to upfront capital, expected to be capped at about £10,000, in order to complete energy efficiency measures, such as insulation, draught-proofing and lagging. Other measures such as green technologies and water efficiency are also likely to be funded with the help of the Green Deal.
However many people in the property and construction industry feel that the Government is very keen to support the Green Deal through a regulatory regime that makes life easier for itself , and harder for builders, plumbers and the construction industry all-round.
Peter Knight, director of Manchester-based property and construction management company Knight Site Solutions, said: “There is a huge amount of time, energy, resource and expertise being expended on the Green Deal both on behalf of the Government and the industry to get it into a position where as a concept and as a process, it actually works. This is not without difficulties because it is such an enormous task.
This is a flagship policy, and as such, the industry should really be behind it to support it and understand how to make it work to the best effect of not only the industry but, more importantly, the end-consumer.”
Property Aspects appreciate the assistance from Peter Knight of Knight Site Solutions in compiling this article.