UK: UK’s Green Deal Gathers Pace

Last Updated: 4 October 2011
Article by Michelle T. Davies

Background

The Green Deal was first introduced in the Energy Bill introduced into Parliament in December 2010. The UK Government intends that it will revolutionise the energy efficiency of British properties.

It is a framework that will allow private firms to offer consumers energy efficiency improvements to both domestic and non-domestic premises at no upfront cost, the costs being recouped through a levy contained within energy bills.

Proposed Timetable

Primary Legislation will be completed during early Autumn 2011. Consultation on Secondary Legislation will commence by the end of October 2011 and will continue until early 2012. Proposals will deal with the content of:

  • licences,
  • industry codes,
  • multiparty agreements between electricity suppliers and the Green Deal providers,
  • accreditation,
  • changes to the Consumer Credit Act,
  • enactment of nine Statutory Instruments,
  • Energy Company Obligations (the successor to CERT)

DECC intends that the finalised proposals will be laid before parliament in March 2012.

Other Points to Note

  • We understand that residential mortgage lenders are considering including likely energy bills as well as any charges under a Green Deal loan.
  • From 2016, Commercial Landlords will only be able to refuse consent to tenant's requests for Green Deal measures being implemented at their premises where they have reasonable grounds. From 2018 (subject to certain exceptions) Landlords will not be able to rent out their properties unless minimum efficiency standards are met.
  • Only measures capable of demonstrating reliable energy savings without subsidy will be capable of being financed by the Green Deal. DECC have informally indicated that solar PV and heat pumps may not yet qualify as they cannot yet be demonstrated to produce reliable savings without subsidy.
  • We understand that DECC is considering linking the eligibility for Feed In Tariffs on projects located on buildings to the Green Deal such that eligibility will depend also on the projects generating energy efficiencies.   This should not be a retrospective change.

Green Deal Seminar

In November 2011, Eversheds will be hosting a Green Deal Seminar at its offices at One Wood Street, London. The seminar will focus on the opportunities presented by the Green Deal, corporate and finance structures, the public sector view and the key challenges and concerns of the market.  Speakers will include DECC and participants from the institutional investment and commercial banking community, trade associations, utilities, FM providers and commercial retailers. Further details will be released shortly.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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