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
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
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.