Doubts around the effectiveness of the Green Deal are still prevalent across the plumbing and heating industry. Ian Stares, PTS Product Director for Renewable Energy Products (pictured right), discusses the need for the industry to take a proactive approach and lend its support to the Green Deal.
The reality is that the Green Deal had to happen; not only to work towards carbon emissions targets but to ensure that energy efficiency in the UK continues to be championed. However, awareness needs to be raised to ensure that both consumers and the industry can truly benefit from the initiative.
The idea behind the Green Deal is that instead of home owners having to pay for energy efficient measures up front, a loan of up to £10,000 can be applied for to cover the cost which is then linked to the building rather than the borrower. Eligibility is determined by the so-called ‘golden rule’ which says that the savings you make must outweigh the capital costs.
While we’ve seen a ‘soft’ launch in October, with regulations for the domestic market on the horizon for January 2013, the average person on the street would still probably be unaware of what the Green Deal actually is. Education and training is key, which is where the merchant needs to play a crucial role through its direct access to installers and to credible training partners. Communication needs to be clear and filtered down to the end user where possible.
Our approach was to develop a Green Deal business model in advance, with the aim of addressing this knowledge gap. Part of this is developing a programme with Green Deal supplier Climate Energy, backed by a number of training and awareness courses with our training partner PPL. The Travis Perkins Group also has formed a partnership with Toriga who will act as Green Deal Provider.
The Renewable Heat Incentive (RHI) has suffered from a lack of understanding on the part of key decision makers and it’s absolutely crucial that the Green Deal avoids the same barriers. With tariff rates for some technologies such as solar thermal and biomass less than generous under the RHI and other renewables such as biomass condensing boilers missing out completely, it would suggest that more insight is required into both the products and industry.
The introduction of the Green Deal is undoubtedly a positive move for the industry, but there are definitely areas for improvement. For instance, there is a whole raft of issues associated with old housing stock in the UK which contributes to around 80% of the housing market. Energy saving improvements under the Green Deal will include loft or cavity wall insulation, installing high efficiency gas boilers, draught proofing, double glazing and renewable energy products such as solar panels and wind turbines. However the average man in the street remains unaware of the Green Deal and what it means, so more awareness is required by Government as well as the Industry.
There is an argument that the ‘Golden Rule’ needs to be reassessed. By having an open dialogue with the Government to ensure that renewables are included, not only will older housing stock be catered for, but a whole-house approach can be offered to customers. This prevents the offering of a less than cohesive strategy which only addresses some of the issues facing homeowners, landlords and tenants.
Interestingly, there is a strong view that the RHI could be included in the Green Deal within the next year, so with any RHI assessment a Green Deal assessment would also be required. This is good news as a combined implementation could encourage growth in the uptake of renewables and therefore in the Green Deal itself.
The Green Deal has the potential to be an incredibly powerful tool for behavioural change in the UK but the emphasis has to be on getting the detail right and encouraging a ‘joined up’ approach from installers, ministers and home owners alike. PTS will continue to invest in this important area and to develop its Green Deal model, but this must be supported by a Government that is listening to the industry, trade organisations and individual companies.
For further information on PTS, call 01788 527700. Visit www.ptsplumbing.co.uk or text PTS or SPARES to 83332 to find your nearest branch.
