The Green Deal – Huge Energy Savings for Business?
At the beginning of 2013, the UK’s energy legislation changed dramatically with the introduction of the Green Deal. Since then, thousands of business owners have been working to maximize their eligibility for the scheme, which fundamentally pays for the installation of energy saving and carbon reducing technologies in the workplace.
It works by the Government lending money to pay for energy saving measures, while the repayments are made in lieu of the initially larger energy bill. Simply, if your monthly energy bill was $1,000 before savings reduced it to $800, a monthly repayment of $100 would mean your company would be saving money on energy bills while simultaneously repaying the Green Deal interest rate.
Another interesting facet to the Green Deal repayments is that they remain associated with the property and not with the individual who initially signed the contract. This allows the loan to be taken out with limited liability for future proprietors and means the repayments are in pursuit of finalizing an investment as opposed to settling a repayment.
If the Green Deal is something you think business can benefit from, the property will be subject to an assessment from a Green Deal Assessor. These professionals will consider a number of factors that affect how much funding your business will get and the type of work necessary to achieve the projected savings.
The Green Deal is an intelligent redesign of the existing Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Program (CESP), which is presided over by the Green Deal Registration and Oversight Body. This gives the Green Deal a strong legislative backbone that guarantees the delivery of fair, arbitrated finance and a repayment structure within the original cost-saving remit. The Green Deal Plan is the contractual binding of this agreement between your company and the Green Deal Provider, which is essential for your legal management of the scheme.
This is because it is private-sector firms undertaking the assessment and installation of the Non-Domestic Green Deal. These companies are called Green Deal Providers, and offer a wide range of services relating to the Green Deal at large, acting as Green Deal advisors and experts in providing sustainable design for your business.
Because of the nature of the business environments in which this scheme is targeted, additional areas are also covered such as the finance of lighting, mechanical ventilation and heat recovery measures. Meeting the criteria is a victory in itself, but there’s also the added incentive of the “early bird.”
Quite simply, the earlier you apply, the more Green Deal cashback you will receive once your improvements have been completed. So if you are interested in cutting the energy bills of your business while building for a sustainable future, consider how your business can benefit from the Green Deal.
Inteb Sustainability are energy consultants providing energy saving expertise and a clear vision for building a sustainable future in the property market. Author: Ross Carroll