The announcement by the Government on Friday 19 October 2012 of the Green Deal cashback scheme, where both registered providers (as landlords) and tenants can claim cash back on energy saving improvements, once again brings to the fore the range of possibilities presented by the Green Deal and Energy Company Obligation (ECO). The cashback scheme is due to open on 28 January 2013.
The Government has guaranteed that £40 million will be available as cashback for energy saving improvements. Will you be in a position to take advantage of the scheme and the other opportunities presented by the Green Deal and ECO?
This alert considers the key issues that registered providers should take into account before engaging with the Government’s flagship policy to reduce carbon emissions throughout the country.
Key issues for registered providers to be aware of
- What are your existing stock investment needs? Would any of the works which are eligible either under the Green Deal or ECO tie into your planned stock investment programme? Green Deal and ECO funding could be used to tackle fuel poverty and encourage job creation within your organisation.
- What role does your registered provider want to play in the delivery of the Green Deal and ECO? Will you:
- become a Green Deal provider and become responsible for the funding and installation of energy saving measures in your properties and possibly across a wider area to include owner occupiers, local authorities and other registered providers?
- provide energy saving measures to properties as part of a Green Deal supply chain with partners? (It may be that you do not wish to become a fully fledged Green Deal provider but would like to secure a new income stream and safeguard jobs/create new jobs by providing either assessment or installation services)
- work with other Green Deal providers that may approach tenants to undertake assessments/works on your properties?
- Have you engaged with tenants on the opportunities presented by the Green Deal and ECO? Have you considered the tenancy management implications where tenants ask for works to be undertaken by a third party Green Deal provider?
- Would assisting tenants with participation in the cashback scheme drive up satisfaction levels? Only one claim can be made for the cashback, but it can cover a package of improvements recommended following a Green Deal assessment. Cashback will be capped at 50% of the tenant’s contribution to costs.
- Have you considered the implications of the Green Deal and ECO with your existing funders and the impact it may have on the value of your properties? The Council of Mortgage Lenders has recently announced that it will be up to individual lenders to decide whether the Green Deal will affect property values.
How we can help you
At Bevan Brittan we have numerous ideas and solutions to guide you through the new Green Deal and ECO landscape. Our experience of advising Birmingham City Council on their procurement of a partner that will deliver Green Deal, ECO and other energy efficiency measures means that we have a detailed understanding of the opportunities this initiative may bring to you.
We would be delighted to talk to you further about how you could make the Green Deal and ECO opportunities work for you.