What is the Green Deal?
The Energy Bill received Royal Assent and became the Energy Act 2011 on the 18 October 2011.
The Energy Act provides for a step change in the provision of energy efficiency measures to homes and businesses, and makes improvements to legislative frameworks to enable secure low-carbon energy supplies and fair competition in the energy markets. The Energy Act includes provisions on:
The Green Deal
- Creating a new financial framework that enables the provision of fixed improvements to the energy efficiency of households and non-domestic properties, funded by a charge on energy bills that avoids the need for consumers to pay upfront costs.
The Private Rented Sector
- From April 2016, private residential landlords will be unable to refuse a tenant's reasonable request for consent to energy efficiency improvements where a finance package, such as the Green Deal and/or the Energy Company Obligation (ECO), is available.
- Provisions in the Act also provide for powers to ensure that from April 2018, it will be unlawful to rent out a residential or business premise that does not reach a minimum energy efficiency standard (the intention is for this to be set at EPC rating 'E').
Energy Company Obligation (ECO)
The Act amends existing powers in the Gas Act 1986, Electricity Act 1989 and the Utilities Act 2000 to enable the Secretary of State to create a new ECO that will:
- Take over from existing obligations to reduce carbon emissions (the Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP)), which expire at the end of 2012.
- Work alongside the Green Deal finance offer by targeting appropriate measures at those households likely to need additional support – in particular those containing vulnerable people on low incomes and in hard-to-treat housing.
Green Deal Summary
The Green Deal is the Government’s flagship energy policy which intends to reduce carbon emissions cost effectively with a Green Deal financial mechanism eliminating home and business owners needing to pay upfront for energy efficiency measures, instead provides reassurance that the improvements are covered by energy bill savings.
The UK needs to become more energy efficient to reduce emissions affecting the climate change, therefore the Green Deal policy under the Energy Act 2011 aims to retrofit 14million homes by 2020 which proposes to cut CO2 emissions in housing by 29% and 13% in workplaces.(Source DECC).
All households and businesses will be entitled to an energy efficiency assessment, carried out by a certified Green Deal Advisor, following assessment, consumers may be offered energy efficiency improvements at no up-front cost. Certified Green Deal Installers will install the measures to the highest quality assured standards to ensure the energy efficiency measures deliver genuine carbon and energy bill savings, with the confidence that the advice, products and service received is from reliable and accredited sources.
To assist in the promotion and launch of the Green Deal, the Department of Energy and Climate Change (DECC) and United Kingdom Accreditation Service (UKAS) have enabled a pilot scheme under Green Deal Scheme EN 45011, of which Stroma Certification are participating. The Green Deal frameworks falls under the Energy Performance of Buildings Directive (EPBD) Scheme, which is in receipt of an approval letter from the Secretary of State of the Department of Communities and Local Government (DCLG), which accredits energy assessors in England and Wales.
The role of a Green Deal Advisor (GDA) will be to carry out a Green Deal qualifying assessment and produce a Green Deal Advice Report (GDAR) that explains the findings and recommendations. This will be a pre-requisite for any person who wishes to obtain Green Deal Finance in order to pay for the installation ofenergy efficiency measures at their property.
Stroma Certification Ltd. provides software tools, training and certification schemes to assist the industry in embracing the Green Deal path from Green Deal Advisors, Installers and Providers.
Message From Greg Barker, Minister of State
Greg Barker introduces the Green Deal consultation 23 November 2011. More information >>
Green Deal Newsletter
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