Telford Energy Savers

Transcription

1 Telford Energy Savers The Commercial Green Deal Iain Wheeler - Telford & Wrekin Council Helen Jones Carillion Energy Services

2 Agenda Setting the scene What is Green Deal? Commercial Green Deal Other alternatives?

3 Setting the Scene Priorities and Objectives

4 What is Green Deal? Green Deal government s flagship policy for eco-retrofitting of our aging housing stock. 47% of emissions are from home energy, and govt. Targets are for an 80% reduction by In order to achieve this, a whole-house approach is needed. The age of Cheap Energy is over fuel poverty is now running at 1 in 5 The GD is a financing mechanism available to those who wish to install energy efficiency/ carbon reduction measures in their homes and businesses- removing the barriers of upfront cost. Complex grant funding by the energy companies circa 1.4billion per year. Measures are repaid through the energy savings on the electricity bill, but unlike a traditional loan, the Green Deal charge is attached to the property At the heart of the Green Deal is the Golden Rule, which determines how much finance can be borrowed. if it saves you money now, it will save you more money in future.

5 Telford s response Marches-wide Task & Finish group established to appraise the options. Report to senior management and full council in January T&W entered in Dialogue with Carillion Energy Services Contract award End May. Telford Energy Savers launch 19th June. Commercial Green Deal to be launched in Autumn.

6 Green Deal Process How does it work?

7 Principles of Green Deal

8 The Commercial Green Deal The principles between Green Deal for domestic properties and businesses is fundamentally the same: All properties must receive an assessment from a Green Deal Energy Assessor; an EPC is produced for the property and energy efficient technologies identified as suitable for the premises The Green Deal Loan is financed and supported by the Green Deal Provider. The money spent on the GD improvements will be paid back through the money the property saves on their energy bill A Green Deal Charge will be added to the electricity bill for the property

9 The Commercial Green Deal Commercial properties are more complex, therefore a more flexible approach is required: The assessment will build on existing SBEM methodology which produces the current Energy Performance Certificates for non-domestic properties. it will include the energy performance in the actual use of the building, to provide a more accurate reading of potential energy savings under the Green Deal. Under the scheme s Golden Rule, the amount of finance attached to a Green Deal Plan is limited by the amount of estimated savings. There is more flexibility in the commercial GD by allowing specialist assessments taking into account whole systems of measures. As there are different energy tariffs in the commercial sector, we will be able to adjust the savings estimate produced by the generalist assessment taking into account individual tariffs Businesses have the same measures available as Domestic GD customers

10 Difference between Commercial and Domestic Green Deal Businesses have no upper cap in what they can apply for through Green Deal, as long as it meets the Golden Rule Commercial Green Deal plans do not have to have interest rates fixed for the term of the plan. Green deal plans entered into by individuals is regulated under the Consumer Credit Act (CCA). This is not the case if a business takes out a plan. The Energy Company Obligation (ECO), which is the extra financial support to enable hard to treat homes, and the lowest income and vulnerable households to benefit from the Green Deal, is not available for businesses. Key to the success of Green Deal will be the availability of Finance. The Green Deal Finance Company can provide funding, however, Their focus has been on delivering to the domestic market, but they have clear ambitions to support the Commercial market towards the end of the year

11 Other Alternatives? Commercial Green Deal not available until end 2013 but we want to save energy and reduce costs NOW! TES is coming soon.. Business case support to local businesses? Energy Performance Contracting as an alternative Requires a joined up approach Can guarantee savings (dependent on set up) Zero cost capital projects could be available depending on project Real alternative to GD whilst we wait for market to develop HOW CAN YOUR BUSINESS BENEFIT??