Green Deal

[SRE]

I thought his might be of general interest, it's a comment made by one of the utility company representatives about the Green Deal implications for social housing but it's as relevant for the private sector :

Social housing providers can utilise Green Deal for their properties, however this means that the tenants will have to pay back the capital cost of the measures and the cost of borrowing, on their electricity bills. Thus, they are unlikely to see any tangible saving on their energy bills.

So, the utilities are of the view that there will be little to be gained by Green Deal measures which makes a mockery of linking the solar fit to Green Deal and the EPC. I think it's really important to cross reference the 2 consultations when responding.

Has anyone actually got through the Green Deal consultation yet?

 

[solarsavings]

Thank God we have the greenest government ever or we would be well and truly stuffed.

 

[grandfortune]

what a joke

 

[TedM]

I can't say I really understand the comment. The whole basis of the Green Deal is that only capital projects that do result in a saving on the bill can be funded. So once the funding has been repaid there should be savings.

 

[SRE]

I've worried all along that the capital cost + interest even at a low rate will be consumed by repayments (ok for low cost things such as cavity & loft insulation although they will be more expensive than those subsidised through cert at the minute) making the financial benefit feel neglible to the customer.

Ok, in theory they should be better off (and probably will be) but by the time the first payments are being added to the fuel bills the perception of saving won't be as much as the actual saving because we'll have had another hike in fuel bills. It look as though some of the utilities have a similar view.

Ted do you know if ECO is intended to supplement Green Deal or is it going to be run completely seperately? Is the theory that ECO provides the initial capital, Teco, M&S etc provided the finance and in theory it becomes a revolving loan minus admin expenses????

 

[TedM]

AFAIK the ECO component is specifically reserved for hard to treat properties (e.g. solid wall insulation) and for low income households, but the intention is that GD and ECO should be able to combine seamlessly. ECO will have set targets similar to the CERT and CESP that it replaces.

Of course ECO is nothing more than another FiTs-like levy on everyone's energy bills. I haven't had time yet to go through the GD Impact Assessment to see what effect on bills it is supposed to have.

 

[The Solar King]

Remember finance is going to be at 'market rates', this means 7 or 8%.
the loan attaches to the property so if you come to sell there is a charge against it.

The insulation industry are already predicting a 50% fall in take up against current levels.

Why is it OK for lender to charge 7 or 8% interest to get a return, but this is not an OK level of return for someone wanting PV?

 

[SRE]

Personally I think we're going to be in the same situation as rent a roof. A few people will think it's a great way of getting a replacement boiler/double glazing but as soon as people start to realise it will detract from the value of the house they will think again about having work done.

I worked in the energy efficiency industry for 15 years and did loads of this sort of thing without the financing and I'd like to be more positive but I just can't see how it's going to work and if it does how many of us can hold out until this time next year when we'll be able to capitalise on it?

 

[TedM]

Read a bit more last night, and it looks like the ECO part of GD is set to add £1.3 billion a year to energy bills.

How Barker can promote this while complaining about the cost of FiTs is beyond belief.

 

[Earthstore]

I never follow politics, it has managed to bimble along without my input, but due to this affecting all I have worked for I have been following this.
My opinion is that Mr Barker is playing the tune for the "big six", if you look at all that has happened, it certainly points in that direction.
Of course, this is only my opinion, which I am entitled to have, but the longer this pantomime goes on the more convinced I am.

 

[The Solar King]

@Earthstore
This will put some perspective on your views. The Real villan is Chris Huhne.
Energy companies have lent more than 50 staff to government departments | Business | The Guardian

 

[Earthstore]

That's interesting, when will the s**t hit the fan? surly it has to be soon?
Me thinks it's time to write to my MP, I live in Oxfordshire,
so mine is the "top man", but can little ole me have any influence?
I am tired of bun fights, I just want to work and sell renewable energy systems, is that too much to ask?

 

[sbrown2]

Did any of you listen to five live drive yesterday evening. I caught the very back end of the green deal interview? Supposedly it will make savings for businesses who invest in it during the these tough times. I'd be grateful if anyone can expand.
I have a read now that its dinner.