May 3, 2012

New Organisation Will Assist Small and Medium-Sized Businesses

Filed under: Energy News — Tags: , , , — Newsroom @ 11:47 am

The Green Deal, when it was originally announced seemed to be a great plan.  Unfortunately over the past few months there have been major changes which have caused one sector, solar power, to expand enormously, and then when the government checked their figures, they deemed it necessary to tweak the FiT payments, which forced many solar installation firms to reduce the number of fitters they had, only recently, employed.

A new organisation has been launched specifically to enable small and medium-sized businesses to get the most from “multi-billion pound energy efficiency initiatives.”  The Energy Efficiency Partnership for Buildings (EEPB) is a not-for-profit business and a subsidiary of the National Energy Foundation which has been established for over twenty years.  It has the backing of major companies including Kingfisher, Centrica and Strutt and Parker and has been formed so that it can become the “largest network of Green Deal providers, financiers and service suppliers.”  The EEPB is replacing the now obsolete Energy Efficiency Partnership for Homes which was started in 1999.  The government will be advised by the EEPB regarding the roll-out of the Green Deal, together with the execution of the Energy Company Obligation (ECO).

In order for small and medium business providers to be more closely involved with the Green Deal delivery system, the EEPB will able to direct them towards financial assistance.  Smaller providers will be able to provide the domestic customer with energy efficiency improvements without the consumer needing to pay any upfront costs from 1st October 2012.  These small businesses should benefit from fifty per cent of the ECO.  This is a new initiative which will force the large energy suppliers to give £1.3 billion each year in energy efficiency improvements for homeowners with low incomes or properties which are difficult to insulate.

In April, Greg Barker the Energy Minister and twenty two organisations, including seven smaller companies, signed a Memorandum of Understanding.  They have all promised to help to kick-start the Green Deal.

Dr David Strong, chairman of the EEPB stated “Our priority working groups will be looking at how we overcome market barriers and unlock opportunities from Green Deal and ECO, especially for SMEs.”

Last month it was announced that the launch of the Green Deal for businesses would likely be delayed owing to the commercial premises being more complex.  The EEPB will be able to identify the difficulties and then will provide solutions.  This must be a great bonus of the government.

John Walker, chairman of the National Energy Foundation said “The focus of the EEPB in the coming year on effective implementation of the Green Deal also dovetails with several of our high profile programmes such as SuperHomes and Unlocking the Green Deal, and our work with Green Deal providers.”

April 20, 2012

Delay to Launch of Business Green Deal

Filed under: Energy News — Tags: , — Newsroom @ 10:56 am

During the past few months the government’s Green Deal, by which businesses and householders will be able to improve energy efficiency in their properties, has been advertised far and wide.  In addition to increasing efficiency there will also be the opportunity to have alternative green technology such as solar panels or biomass boilers installed.  Twenty two companies have already signed up with the government to be Green Deal providers and over the coming weeks many more large firms will add their names to the list.

The Green Deal for both the domestic and commercial sectors had been planned to commence in October 2012.  The domestic side of the Green Deal will go ahead as agreed, so home owners who want to take advantage of increased energy efficiency and new green technology for providing energy will not be disappointed.

Business customers who want the Green Deal in their premises will need to wait a little longer.  The Department of Energy and Climate Change (DECC) has stated that they are looking at a ‘phased introduction’ with a spokesperson saying “It’s really complex and we want to get it right.”   A further comment from DECC confirmed that it would only be a short delay for commercial customers, saying “We are looking at when to launch the business side of the Green Deal.  We don’t know when that will be yet, but the business launch will not be far apart from the domestic.”

This decision by DECC has been prompted by some business groups whilst Ministers and the large energy providers are deciding on the best way to proceed with the launch of the domestic market.  The delay for business customers will a disappointment for the many firms which had planned to take advantage of not having to pay upfront costs for energy efficiency improvements.

The delay in the start of the Green Deal for business premises has though, been welcomed by some organisations.  Stephen O’Hara, the chairman of the Property and Energy Professionals Association (PEPA) said, “If it is true the Government plans to implement a staged introduction of the Green Deal then we would welcome this decision.  While its plans for domestic buildings are well advanced and appear on track for the planned October introduction, it has been clear from some time that plans for non-domestic buildings require further clarification and exploration.”

PEPA had been petitioning for a phased introduction for commercial premises for some time, as they felt that several key issues still required clarification.   Mr O’Hara continued “We have previously raised a number of concerns surrounding the existing plans for non-domestic buildings…  With such an important new framework, it is essential that the Government gets it right first time.  I believe this latest decision is in the best interests of both the consumer and the industry.”

The major part of the Green Deal is directed towards the domestic customer with fourteen million homes expected to have been properly insulated by 2020.  There are however, an estimated 2.8 million businesses in commercial buildings which could be more energy efficient with the backing of the Green Deal.

April 19, 2012

Loans Specifically for Energy Efficiency Improvements

Filed under: Energy News — Tags: , — Newsroom @ 9:36 am

A new type of loan will shortly be available to home-owners wanting to upgrade their properties, but who don’t have the amount of money required to be able to take advantage of the incentives being offered.  Customers who want to have solar panels or heat pumps installed will be able to apply for a loan to pay for the improvements.  Loans will also be available for consumers who want to improve the energy efficiency in their homes by having new double glazed units or a replacement gas boiler fitted.

The loans are planned to fill a gap in the current lending market.  ReEnergise Finance Ltd, one of the companies which have already given their commitment to the Green Deal, is the firm behind the new loans.  Adam Hewson, one of their directors said “The domestic market is a huge opportunity to finance, but the lending is not there.”  He continued by explaining that “householders in their 30s and 50s were currently being squeezed out of the green makeover investment market because they weren’t ‘cash rich’.”

ReEnergise Finance are already providing a brokerage service for businesses wanting to embrace energy efficiency and renewable energy technology, but the new service will be an extension to give the same type of loan to domestic customers.  Mr Hewson added that they are finalising their consumer credit offers, but they have the capacity to finance projects up to £100,000 themselves.  They are “in talks with a number of capital providers to partner with it on its domestic offering” according to Mr Hewson.

The interest rates on the loans from ReEnergise Finance for domestic customers aren’t known at this time, but Mr Hewson has confirmed that they will be competitive.

ReEnergise Finance currently provide commercial loans, in collaboration with asset finance companies.  These loans are between £75,000 and £5 million.  At the present time ReEnergise haven’t any plans to be members of the Green Deal Finance Company (GDFC).  This is a mutual which includes some banks and blue chip companies including British Gas and B & Q.  The stated mission of the GDFC is to “bring down the cost of borrowing for home-owners taking out Green Deal plans.”

Don’t Rush to Obtain a Loan without Considering the Costs

Although it is fantastic that companies are putting themselves forward to provide low cost loans they won’t be doing it for any altruistic reasons.  They will obviously need to make a profit, as they aren’t charities.  Rather than rushing to accept the first offer of finance, within a few weeks or months there will be other companies offering similar or perhaps more competitive rates.  Green technology isn’t going to disappear overnight so don’t panic in order to obtain finance.  The government are anxious for the Green Deal to work, and they may wish to add pressure so that the cost of loans is reduced as much as possible.

April 6, 2012

First Companies Sign The Green Deal Agreement

Filed under: Energy News — Tags: , , — Newsroom @ 1:11 pm

On the last day of the financial year the first agreements were signed by some large organisations wanting to be at the forefront of the government’s Green Deal.  There were twenty two companies which signed on the dotted line to become Green Deal providers.  A good cross-section of different businesses chose to endorse the government’s energy initiative and over the coming weeks other companies will join them.

Greg Barker, Minister for Climate Change will have been delighted that progress has been made with these companies giving their support to the scheme which is designed to provide UK properties with energy efficiency measures and alternative methods of generating energy.  At this stage, three of the big six energy providers have signed up, British Gas, SSE and E.ON and it is surely only a matter of time before the other three major providers join them.

Greg Barker said “The signing of this agreement between government and business pioneers represents a watershed moment in the development of the Green Deal.”

All of the twenty two companies involved are extremely positive about the Green Deal and the benefits it will bring to the UK.  They have years of experience between them in the various business sectors and see this as being a major step forward in making the UK housing stock more energy efficient.

The intention is that the government’s Green Deal will allow customers the opportunity to improve insulation in the loft or wall cavities.  If new double glazing is required, or the customer would like a new boiler, or photovoltaic panels, as long as the savings generated by the improvements are higher than the cost of the installation, the customer will be able to proceed with the improvements.

There will be a survey of the property to identify the best improvements and provided that the cost implications are worked out correctly, the customer can agree to the installation, knowing that they don’t need to pay any upfront money before the work is done in fact there isn’t a need for the customer to make any payments at all.  The payments will be calculated and made from the reduction in the customer’s energy bill, so that the cost of the installation won’t actually be coming from their own pocket.

If the customer decides to proceed with green technology which provides FiT payments for excess energy sold back to the National Grid, this will further reduce the customer’s energy bill.

The twenty two organisations which signed up today will be joined by many more during the next few months before the scheme officially launches in October.  Although there are bound to be hiccups along the way, the Green Deal is generally seen as being a positive action, and will give consumers a way to improve their properties without the requirement for a large cash injection of funds.

March 27, 2012

Solar Power – Bring Us Sunshine…

Filed under: Renewable Energy — Tags: , , , — Newsroom @ 12:12 pm

The Government’s final attempt to cut the FiT was defeated last Friday, 23rd March (2012) when the Supreme Court refused to allow their appeal.  This related to a problem created by the government when they attempted to change the date by which solar installations were able to receive the full 43.3p kW subsidy.  The government wanted to bring the date forward to 12th December 2011 as being the cut-off date for receiving the full FiT payment.   They planned to reduce the payment to 21p from that date, rather than the previously agreed date of 3rd March 2012.

This resulted in a fiasco which has caused a major hiatus for many solar installation companies.  Smaller firms were badly affected when the government first announced the change in dates.   For many the waiting game proved to be too difficult, as customers who were anticipating the full FiT payment of 43.3p decided not to proceed when they were told that the subsidy would be reduced.

The Way Ahead

Greg Barker, the Energy and Climate Change minister has now stated that much of the “red tape was being removed from those who wanted to become accredited installers, including the requirements to have a surety bond in place prior to being authorised; to hold warranties for the 25 year of the plan when they were longer than standard industry warranties, e.g. for boilers; and the requirement that installers pay for an Independent Conciliation Service”.

Mr Barker also tried to allay concerns that implementation of the Green Deal would be delayed, stating that a “managed” roll-out would proceed.  In other words the minister isn’t anticipating that the whole scheme will be ready on the due date.  He continued by stating that the government will respond to the Green Deal consultation in April and that further legislation will be in place by the summer recess.

There will also be a new Green Deal Ombudsman appointed who will be able to handle complaints.

Visits to Properties with Green Technology Installed

During this last weekend business and residential customers who had already installed green equipment or upgrades, allowed visitors into their properties so that it was possible to see various installations.  These included, at one end simple draught proofing and insulation, to other premises with woodchip fired boilers or solar water heating systems.

The weekend was a great success as people who had seen solar panels on neighbours’ roofs were able to get information as to the benefits from those customers who actually knew the advantages.  Although the majority of people were aware of the FiT there appeared to be only limited knowledge regarding the Renewable Energy Incentive and the Green Deal which showed the need for further publicity.

The Green Deal Must be Inclusive

Whilst opening up premises with green technologies already installed is a great way forward there is still a sector of the public who must be included and advised about their best options.  The more vulnerable customers who don’t look to change suppliers and aren’t aware of the free insulation and other services available to them need to have additional support.

March 21, 2012

Spring has Sprung – Will the Budget Make us Jump for Joy?

Filed under: Energy News — Tags: , , — Newsroom @ 12:28 pm

An open letter to the government from fifty of the UK‘s largest companies is demanding the government to adhere to its assurance that it will be the “greenest ever”.  Businesses including National Grid, Marks and Spencer, Microsoft, BT, and Siemens want to ensure that George Osborne includes a reliable proposal for “credible growth strategy” relating to energy efficiency and renewable energy in his Budget speech later today.

Renewable Energy Efficiency

These high-profile businesses, with the Aldersgate Group taking the lead, have sent this letter which is the latest one of several similar attempts to make sure that the government stays true to its promise for a low-carbon economy.

The letter continues by stating that as businesses are struggling with rising costs this is causing additional stress which will only be balanced out by increasing renewable energy policies.  Clearly defined consistent policy will allow the change to an economy which is sustainable and will encourage further growth in efficient and renewable energy.

A Sustainable Future

Peter Young, the chair of the Aldersgate Group, is concerned that the Chancellor’s current stance may suggest that jobs and businesses could suffer as a result of chasing for a greener future.  This would imply that environmental issues were only considered in monetary terms, which was the thinking back in the 1980s.

Mr Young continues with his concerns that the UK is lagging behind other countries when it relates to green issues, as currently only 0.15% of GDP is invested in renewable energy whereas by comparison 1.4% is invested in Germany.

The open letter to the government has fifty plus signatories.  Other highly regarded companies including Friends of the Earth, WWF, Aviva and the Green Building Council all support the view that the way forward must be through good environmental practices which is essential for economic growth and competition around the world.

Finally

The government must live up to its promise to deliver the Green Deal in its entirety, and not let other issues cloud their thinking.  It is essential for the economy as a whole and now isn’t the time for the Chancellor to sit on the fence or back-peddle.  When huge companies with the stature of those, plus many others, are prepared to stand together in order to chivvy the government – not to change its mind – but to merely complete on decisions already taken, it is time for the government to confirm their unswerving support.

March 15, 2012

The Green Deal – Will it Flourish or Decline

Filed under: Energy News — Tags: , , , — Newsroom @ 3:06 pm

This started with a fanfare and a promise by the government that this would be fantastic for companies, homeowners and landlords alike.  The experts would advise on the best deal after looking at the alternatives available.  The customer would sign on the dotted line, the installation would be completed efficiently, and the consumer would have reduced energy bills.  They would also receive a welcome payment from the national grid for exporting electricity to them via the feed-in tariff system.

A huge number of solar panel installation companies increased their numbers of fitters to ensure that they would be able to cope with the enormous demand that was expected and which actually started to take effect.  The feed-in-tariff payments had always been expected to reduce during 2012, but there was a huge wave of consternation when the government decided to cut them in half in December.  This is still not resolved even though the government has been to court in order to justify its reasons for the reduction.  Even when the appeal judge refused to accept the plea by the government, they are still continuing in their endeavours to have their original decision to reduce the payments ratified.

There is now another problem which may possibly derail the government’s plans and this relates to the six major electricity suppliers which have been asked to change their billing platforms in order to accommodate the Green Deal finance method.  This will involve the energy providers in taking the financial risks.  This latest fiasco may even jeopardise the deadline of 1st October which is the launch date for the national insulation programme.

The Department of Energy and Climate Change (DECC) are trying to play down the difficulties which are obviously a cause for concern.  The two major players are the government and the energy providers and if there are rifts between them at this stage it doesn’t bode particularly well for the customer.  DECC are insisting that the energy providers will be breaking the law if they don’t start collecting the Green Deal payments from the 1st October.

The one good thing to point out is that both sides are enthusiastic to get the green deal started on time and the implication is that even if everything hasn’t been resolved by that date, the launch will proceed, with the finer details being smoothed out later.

This is a major deal for everyone including consumers who need to be persuading about the benefits to them of the green deal.  Over the next decade it is anticipated to kick-start a fourteen billion pound investment program.  There will be energy saving upgrades available for millions of homes and businesses.  During the next two years alone 100,000 jobs may be created and many of those will be from small and medium sized businesses.

The six energy companies really don’t want to lose out in the long term, so although at the moment everything is up in the air, perhaps there will be a few banging of heads together during the six months before the launch.

December 20, 2011

Let Them Fight for our Business – That must be Good News

Filed under: Energy News — Tags: — admin @ 12:49 pm

As there appears to be some confusion as to the financial arrangements surrounding the green deal, and how this will affect both business and residential consumers, it is perhaps helpful to try to clarify the situation.

The Green Deal Finance Company is the business which has drawn together sixteen large organisations to provide funding for the installations.  They are a not-for-profit business bringing together a consortium of companies from across the business sector.

The premise is that the lower the cost of the loans, then the more energy saving measures a householder or business owner may have.  The savings made on the electricity and gas bills must be more than the cost of the installation.  In other words, if savings of £20 per month can be made, and the finance is only £15 then the work will be given the go ahead.  These are only suggested figures to illustrate the point, and obviously, just rough and ready.

Having a large consortium to deal with the loans and administration effectively reduces the costs, by economies of scale.  This benefits everyone as there won’t be the same level of confusion, and customers from residential and business will know that they have been offered the best deal.  There won’t be the necessity to shop around – and in doing so, the deal which you thought was best, then became over-subscribed, and not available.

The Government’s Green Deal comes into effect in the autumn of 2012 and the new GDFC will need to be ready for that time.  This won’t be the only organisation providing finance – however, they will all operate on broadly the same principles.  The government is aware of GDFC and attends weekly meetings with them.  This isn’t necessarily confirming their backing for the business however, they are supportive of it.

It will be good for the customers to have the organisations fighting competition from other companies.  In this way the customer will benefit as they try to persuade us to use them for the financing of our solar installations.  Don’t forget, smaller energy saving measures are also included – loft and cavity wall insulations as well the provision of heating and lighting installations.

Co-incidentally, in the last couple of days my local council has sent details regarding energy efficiency measures.  They include details regarding cavity wall and loft insulation.  Apparently, there will be grants available for the elderly or disabled, however if for those not qualifying for a grant, these insulations are being heavily subsidised.

Cavity wall insulation is one of the measures unlikely to receive finance under the green deal proposals because of the relatively high cost compared with the expected level of savings.  It was suggested that the installation cost for cavity wall insulation will be around £5,000 and the savings wouldn’t be covered over a twenty five year period so therefore this wouldn’t receive funding.

My local council are offering loft insulation at £129 for those people not qualifying for a grant.  This is a really good price.  What is staggering is the cost of cavity wall insulation for those who will need to pay – this will be subsidised – however, the total price for cavity wall insulation is £129!  This is tremendous, and even though I’m usually cynical, this is genuine.  I have applied and am awaiting further information!

November 7, 2011

The Green Deal – Win, Win for Everyone

Filed under: business energy — Tags: — admin @ 1:40 pm

The Government’s Green Deal will be available for business customers as well as residential consumers, and there are many different companies wanting to provide installations through the green deal.  This is a good way for different sectors of businesses to be able to gain work for themselves and their staff, but also provide a good service to other businesses.

Although at present all the details aren’t known, the idea is for any business related to installations of solar panels or biomass heating systems etc which feel they have sufficient experience and expertise to provide the installation to businesses and residential consumers alike.  There may be as many as three different businesses all involved in one project in order to obtain the best deal for the customer.

This must help the business community in times where the economy isn’t growing at all.  By providing employment for the foreseeable future of the green deal there will be both small and large companies providing the services to enable a successful completion of a green deal installation.

As businesses don’t have to pay upfront for the cost of the installation there should be a high uptake of businesses wanting to install the new technology, particularly if it isn’t going to cost them anything at the beginning.  The cost of the installation is repaid by selling excess energy to the National Grid.  Now when you see the same thing being rolled out across the UK to homeowners and properties where there are tenants, this should be a huge success.

An installation of solar panels should last for between twenty five and thirty five years, and the installation should have been paid before that time, so eventually all income from selling energy will benefit the homeowner or business owner.

Where the installation is at a residential property, the cost is secured by a loan again the property, not the owner or tenant, who if the property is sold, can walk away and know that they don’t still need to pay for an installation at a previous address.  Similarly, if you move into a property which already has an installation of solar panels under the green deal, you will acquire the repayments which will be set off against the income from selling the extra electricity to the National Grid.

In other words, everyone actually gains – which is quite a novelty.  Once they are installed there is very little maintenance required for solar panels which obviously will be explained to you at the time of the installation.  It is also worth remembering that the National Grid will continue to pay you for the electricity for as long as you are providing it.  Once the solar panels are in place, then they remain there and earn money at all times.

This is a really good way in which business energy users can help themselves, and also assist other businesses.  What goes around comes around – let’s hope that everyone agrees.

October 12, 2011

Fuel Poverty – Don’t Panic!

Filed under: Energy News — Tags: , , , — Newsroom @ 1:13 pm

Over the past few weeks we have commented about fuel poverty, the big six energy providers and the government’s green deal.

Fuel poverty is recognised when ten per cent or more of household income is spent on gas and electricity.  The current amount of approximately £1300 which is now being spent on household energy bills includes the recent increases.  This figure is about six per cent of median household income.  The problem appears to be further down the line with Deutsche Bank issuing a report which shows that in 2015, after energy suppliers have increased their gas and electric bills to customers by a further 25% a quarter of all family households will be in the fuel poverty trap!

As we in the UK need to rely more on imported fuel, this combined with the increase in wholesale prices has caused higher energy bills.  In the last ten years the average energy bill has increased by approximately 115%!  Given that piece of information, it appears more than likely that over the next 3-4 years there could be further increases totalling some twenty five per cent.  This suggests that the figures from the Deutsche Bank are reasonable.

The government’s alternative green policies appear to be adding to the problem, as the renewables obligation currently adds about ten per cent to our existing energy bills.  This piece of information comes via Ofgem, the energy regulator.  The renewables obligation means that all energy suppliers have to buy a part of the power through the EU’s carbon trading and renewable sources scheme.

By 2020 the government has committed to the spending of £200bn on new infrastructure which includes the expanding of wind power.    Tomorrow, Thursday, 13th October, Chris Huhne the energy minister will is likely to confirm the government’s plan to build new nuclear power stations.

If plans to include a carbon floor price in 2013 which make gas-fired and coal power station more expensive to run get the go ahead, then this too will increase our energy bills.

Should the government decide to cancel their green initiatives, then this could save fifteen per cent of our 2015 energy bills although this seems very unlikely given all the efforts which have been expended to date.

Whenever new technology becomes available it is obvious that to implement it will cost a considerable amount of cash.  The government won’t have suddenly have taken the decision to go down this route.  It will have taken a huge amount of deliberation and consultation with industry experts before anything makes any progress towards taking a decision.  Committee after committee will have debated the merits or otherwise and this all takes time.

The figures being given to us today about increases in our energy bills may have changed again before we are very much older.  Wherever possible, reduce your personal consumption of gas and electricity – beyond that you can’t do any more.   If you are experiencing difficulties in keeping control of you energy bills – ask for help.

There isn’t any point in worrying about something over which we have no control!  Ask for help, and continue with your requests until you receive a satisfactory response.

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