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The green deal:
what you need to know
The measures introduced by the
Green Deal are intended to tackle
the fact that collectively homes
and businesses across the UK waste
approximately £3 billion of energy
every year. The Green Deal framework
will be in place from October and
although The Department of Energy
and Climate Change (DECC) indicated
that it would initially apply only to
households, the Government has
confirmed that Green Deal energy
efficiency financing will be open to
businesses from the autumn.
Suitability for the scheme will be
assessed on a calculation, known as the
golden rule, which essentially means
that the predicted savings from energy
efficiency improvements to a property
must equal or exceed the cost of
installation.
The Government believes that the
Green Deal scheme and its offer of
energy efficiency upgrades at no upfront
cost, with loans repaid through a small
levy on energy bills over a number of
years, could appeal to large numbers of
businesses, too. Whilst Green Deals in
the non-domestic sector are expected
to be shorter, to reflect payback in line
with lease length, the initiative will help
companies reduce their energy costs
as well as meet CRC Energy Effi ciency
Scheme obligations.
Brian Smithers, business
development director at Rexel UK,
The Green Deal is the flagship
Government initiative to
improve the energy efficiency
of British properties. The
scheme enables individuals to
borrow up to £10,000, which
they can pay back through their
energy bills over up to 25 years.
expects uptake for the Green Deal to
skyrocket in 2013.
“There has been a lot of confusion
around the Green Deal and what it
means for consumers, businesses and
the energy industry. The main reason
people are confused about the Green
Deal is that the details have not yet
been clarified yet. But what we do know
is that it is now law and it will be in
place before the end of the year,” he
said.
“To put it simply, to meet the UK’s
carbon reduction targets by 2050, we
would need to improve one home
every minute, equating to 26 million
refurbished energy-efficient homes by
2050. The Green Deal is undoubtedly
a step in the right direction and will
help the Government to achieve these
targets. It includes some very good
initiatives particularly around supporting
small to medium sized businesses, and
bringing nearly five million homes out of
fuel poverty.”
He added: “To support these
initiatives, the industry has a role to play.
There is a massive lack of knowledge
and we, the industry, need to do more
to educate ourselves, our customers and
the public about why the Green Deal
is important and how it will benefit
the whole country both in financial
terms and the significant environmental
benefits it brings.”
n
BSI is developing a Kitemark for
Energy Efficient Buildings to certify
Green Deal products, advisors and
installers. The new Kitemark is intended
to enhance understanding of the
initiative and reassure homeowners
about the quality of Green Deal
suppliers.
www.rexel.co.uk
www.bsigroup.co.uk
Solar power attracted more investment
than wind power for the first time in
2011, GlobalData claims in a new report
(
Investment Trends in the Renewable
Industry
).
According to 2011 figures, investments in solar
power accounted for 49% of the $209 billion
global renewable energy industry, compared to
34% for wind. Biopower, geothermal and small
hydro investments made up the remaining 17%.
GlobalData attributes solar’s popularity to
increased investment in developing nations
across North Africa and Asia and last year’s
overproduction of PV modules, which lowered
prices, vastly increased capacity installations
and caused the cost of generation to approach
grid parity in certain locations.
In a separate report (
Medium-Term Renewable
Energy Market Report 2012
), the International
Energy Agency (IEA) predicts that over the
next five years, global power generation from
hydropower, solar, wind and other renewable
sources will increase by 40% to almost 6400
terawatt hours (TWh).
www.globaldata.com
Solar in the UK
The Government has long maintained that solar tariff
subsidies need to be reduced to reflect the lower costs of
installing solar panels and claims that the 16p rate should
give a return on investment of more than 6% for a typical
solar installation.
One company that has seen a surge in businesses turning
to solar panels to cut down their energy bills is Burnley-based
Solarlec. The firm, which offers large scale solar photovoltaic
panel systems for businesses of all sizes across the UK, has
experienced a 50% rise in installations in June compared to
the same time last year.
The company believes fears over rising energy bills are
behind businesses’ decision to go solar. Solarlec director Ged
Rowbottom said: “Incorporating solar panels into your business
energy plan will not only cut costs and generate an impressive
tax-free return on your investment through the government
feed-in tariff, they will also put you ahead of the competition
by boosting your eco credentials and minimising your carbon
footprint.”
The Government feed-in tariff, which pays
consumers and businesses to produce their
own renewable energy, will fall to 16 pence
per KW hour from 21p on 1 August. Earlier this
year, the tariff was reduced from 43p to 21p.
Sunny outlook for solar
Energy Efficiency