Dr Kevin Ley, Redland Technical Manager, investigates The Green Deal
The Green Deal is now live: consumers can now access finance to have improvement works carried out and the race to make millions of homes more energy efficient by 2020 has begun.
But what is the scale of the potential work?
This policy was a manifesto commitment for the Government and it is committed to making it work. Some estimates suggest that the Green Deal market will be worth as much as £9 billion.
There is no doubting the scope for improvement. The UK has 26 million homes, 50% of which are over 50 years old and 20% of which are over 100 years old. It’s also a fact that 80% of the homes that we will occupy in 2050 have already been built and will need work to improve their energy efficiency.
The Department of Energy and Climate Change has started to promote Green Deal to homeowners with initial advertising appearing in national press. A recent YouGov poll suggests that over a third of the public is aware of the Green Deal barely three weeks after its launch. Demand is set to grow fast.
How Green Deal finance will actually translate into actual building projects is quite complicated. The chain works like this:
Once a householder has found out about Green Deal, their first action is to call in an accredited and fully trained assessor to assess their property. This assessor creates a report detailing which measures are best for that home from a list of pre-approved technologies.
Armed with this report the homeowner can apply for finance to have the work carried out with no upfront cost. The measures must be installed by a Green Deal accredited installer.
Once installed, energy suppliers collect payments on electricity bills. The idea is that the repayment is covered by the cost of energy saved – so the whole exercise is cost-neutral for the homeowner. Importantly, the liability for the payments stays with the property rather than the individual.
There will be a huge volume of work tied up in Green Deal, but contractors can only capitalise on the opportunity if they are accredited Green Deal installers.
The accreditation process is designed to ensure that contractors doing Green Deal work are reputable companies doing good quality work. Redland Select members who are also Competent Roofers have already passed this scrutiny so will automatically quality as a Green Deal installer.
Merchants are likely to benefit from increased turnover once householders start to commission work under Green Deal finance and manufacturers are gearing up to meet new demand with new products or increased volume of existing products.
Redland has responded to this opportunity by introducing new insulation products to its range- Rapid loft Board Insulation and Rapid Rafter Insulation.
Designed to be used as a part of a whole roof system we anticipate that the key market will be our Redland Select contractors working on domestic roofing refurbishment projects. Rapid Loft Board Insulation and Rapid Rafter Insulation provide additional functionality and value for the homeowner over many existing insulation products on the market and are eligible for Green Deal funding since they comply with the Green Deal Code of Practice.
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