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Government delays next wave of solar cuts to August 1

admin — Thu, 24 May 2012 13:50:43 +0000

Barker announces delay to incentive cuts, announces raft of new support for solar industry.

Climate Change Minister Greg Barker has today confirmed the next wave of cuts to solar feed-in tariff incentives will come into effect from August 1, cutting payments for small scale installations from 21p/kWh to 16p/kWh.

In a statement in the House of Commons accompanied by the release of the government’s response to its most recent consultation on the feed-in tariff incentive scheme, Barker said the government had finalised reforms to the scheme that would provide the industry with “TLC: transparency, longevity, and certainty”.

He also underlined the government’s long term commitment to the sector, confirming that solar technologies will be added to the UK’s Renewables Roadmap, announcing the formation of a dedicated PV Cost Reduction Task Force, committing to the development of a new Solar Enterprise Strategy, and trailing the launch of a new solar technology centre in Cornwall.

The confirmed cuts are at the lower end of the range originally proposed by ministers and will mean that incentives for installations with under 4kW of capacity will fall by just over 22 per cent. However, the period for which businesses and households will receive payments from the feed-in tariff has been reduced from 25 to 20 years.

Cuts to larger scale installations were also at the lower end of those proposed by ministers in the consultation in February, with the Department of Energy and Climate Change (DECC) confirming that 10-50kW installations will receive 13.5p/kWh, 50-150kW sites will get 11.5p/kWh, and 150-250kW will receive 11p/kWh.

In addition, the rules regarding multiple installations such as social housing projects have been relaxed so that they will receive 90 per cent of the standard tariff rate as opposed to the 80 per cent originally proposed.

Moreover, the export tariff for installations exporting energy to the grid will be increased from 3.2p/kWh to 4.5p/kWh.

Significantly, Barker also announced a new mechanism for reducing feed-in tariff that gives the government an option to cut the tariff every three months from November, based on the level of deployment in the preceeding months.

He explained that ministers would automatically authorise a freeze in cuts if there was less than 200MW deployed in the preceeding three months and a cut of 3.5 per cent if there is between 200MW and 400MW deployed. Equally, a surge in deployments resulting in more than 400MW being installed would result in deeper cuts of up to 28 per cent.

Under the new rules, the quarterly changes would be announced with two months notice.

“Today starts a new and exciting chapter for the solar industry,” Barker said. “The sector has been through a difficult time, adjusting to the reality of sharply falling costs, but the reforms we are introducing today provide a strong, sustainable foundation for growth for the solar sector.

“We can now look with confidence to a future for solar which will see it go from a small cottage industry, anticipated under the previous scheme, to playing a significant part in Britain’s clean energy economy.

“I want to send a very clear message today. UK solar continues to be an attractive proposition for many consumers considering microgeneration technologies and that having placed the subsidy support for this technology on a long-term, sustainable footing, industry can plan for growth with confidence.”

The move will be seen as a fairly sizable victory for the solar industry, after ministers delayed the proposed date for the new cuts to come into effect from July 1 and opted for tariff reductions that are significantly lower than the 35 per cent cuts that had been proposed in the consultation.

However, Shadow Climate Change Minister Luciana Berger argued Barker had been forced to put back the new cut-off date until August 1 because the government missed the deadline to impose the cuts on July 1, again accusing the government of mishandling a series of cuts that has led to a slump in demand for solar.

Barker denied the charge, insisting the deadline had been moved in response to feedback from the industry and accusing the opposition of “talking down” the solar sector.

The sector remains deeply concerned over the current rate of installations, which has seen the number of completed installations fall from over 10,000 a week prior to the most recent cuts on April 1 to around 1,500 a week over the past month.

Ministers and some within the solar industry have argued that the rate of deployment is still higher than it was a year ago, but critics of the government’s handling of the cuts have countered that the sharp contraction in demand has undermined many firms’ business plans and resulted in significant numbers of redundancies.

Paul Barwell, chief executive of the Solar Trade Association (STA), expressed confidence that the changes would provide the industry “with the security of guaranteed tariffs to 2015 allowing it to build for the future”.

“The STA is pleased to have won its ask for quarterly reviews with more responsiveness to market size, and less emphasis on automatic tariff cuts,” he said. “We remain very concerned that the market has stalled, and the recession certainly hasn’t helped. However, today’s announcement means we can now be confident that even when tariffs are adjusted on August 1, solar will still offer attractive returns to consumers – certainly when compared to other investments currently available.”

However, while the solar industry welcomed the renewed clarity developers of small scale wind turbines, anaerobic digestion, small scale hydro, and biomass technologies were left in the dark about the new incentive rates they can expect after DECC confirmed an announcement would not now be made until the summer.

Source: Business Green

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NICEIC chosen to provide Green Deal certification

admin — Thu, 24 May 2012 08:42:25 +0000

NICEIC has been successful in its application to provide certification services for the Government’s Green Deal initiative.

It can now offer certification to any business wishing to become a Green Deal installer.

NICEIC was one of 14 companies chosen to provide Green Deal certification in the first wave of official approvals by the United Kingdom Accreditation Service (UKAS)

“We are delighted to have been chosen by UKAS for this important initiative,” said NICEIC CEO Emma Clancy.

“Green Deal will be central to achieving the Government’s energy efficiency objectives. Tradespeople with competent skills will be key to delivering Green Deal and we look forward to offering them the opportunity to get involved at an early stage.”

More than 30 companies were invited to take part in a pilot programme with UKAS in November last year. The pilot was established to test the certification process and standards, which Green Deal certification bodies use to assure quality for Green Deal Advisors and businesses undertaking Green Deal installation work for consumers.

The Green Deal will incentivise householders and businesses to install energy efficient products by off-setting the cost through savings in energy bills.

To successfully deliver the Green Deal a network of approved Green Deal Advisors and Installers will be needed. As part of its scope NICEIC can offer Green Deal installer certification in the required PAS2030 standard in virtually all of the services covered – including heating, lighting, insulation and microgeneration.

In addition NICEIC is setting up a series of workshops and training seminars specifically related to Green Deal.

“As a leading certifier of professional tradespeople we believe there is a real opportunity for our contractors with the appropriate expertise to benefit from Green Deal and also an opportunity for other tradespeople to become certified to undertake the Green Deal measures,” added Emma Clancy.

“The PAS2030 compliance already compliments many other government schemes such as the Competent Persons Schemes and the Microgeneration Certification Scheme. We believe there is a great opportunity for the people already with these skills to play a major part in Green Deal.

“We look forward to using our experience and knowledge of certification to make the Green Deal a success,” added Clancy.

Source: Electrical Times

Which? Calls on government to ensure Green Deal is a good deal for consumers

admin — Thu, 24 May 2012 08:39:52 +0000

Which? is calling for the Government to make big changes to the coalition’s flagship Green Deal to ensure the scheme is a good deal for consumers.

The consumer groups is concerned that the savings on energy bills, promised to consumers, may fail to materialise.

“This is a real possibility – although there will be a personalised assessment, the amount a Green Deal company can lend a consumer won’t be calculated taking into account their actual energy use, it will instead be based on average figures,” it wrote in a statement.

Which? Continued: “Whilst the Green Deal ‘Golden Rule’ promises that consumers will not pay back more in their regular payments than they end up saving on their bill from using less energy, no one is guaranteeing this and there is no redress if consumers end up paying more than they save.”

Which? is also worried that companies providing the Green Deal will have every incentive to sell a number of home improvement measures, some of which may not be covered by the Green Deal.

“This could make for highly complex and confusing financing,” it added.

To highlight its concerns Which? has set out five challenges to improve the Green Deal to make it fairer and more attractive for consumers:

Green Deal savings must be tailored to people’s actual energy use – Green Deal savings estimates should be based on tailored assessments of peoples’ individual circumstances, such as how many people live in the property, and the actual energy they use rather than standardised, average figures for a typical household and property type.

The Government is proposing that savings are worked out using the Energy Performance Certificate (EPC), which uses standardised average figures and could mean in some cases that estimated savings are much higher than they would be in reality. An occupancy assessment, which is personalised to actual household energy use will also be used but only for information – it won’t define the size of a Green Deal loan. Green Deal assessors who work out the size of the loan and whether it meets the ‘golden rule’ are not independent as they are employed by the companies who will provide the Green Deal, so they are likely to want to lend the maximum amount possible under the EPC. Which? wants the occupancy assessment to be used to calculate Green Deal savings.

The Green Deal must not be a licence to mis-sell – There is a real risk that consumers will be sold products that they don’t want or need because the government has said that companies can use the Green Deal as an opportunity to sell other home improvements not related to energy efficiency. However, consumers could be bombarded with confusing advice and it won’t be clear to them what they can pay for through the Green Deal and what they can’t. Which? is calling for a ban on cross-selling non-Green Deal items on credit.

There must be no harsh penalties for early repayment – Plans to amend the Consumer Credit Act for Green Deal loans of 15 years or more are a significant concern and could mean that consumers face a significant penalty if they want to repay their Green Deal earlier than planned. Future buyers of their property might want the Green Deal paid off before completing a sale. Which? believes the existing protections offered by the Consumer Credit Act should apply to the Green Deal just as they would to any other loan.

Green Deal quotes must be clear and comparable – It should be easy for consumers to compare quotes for different Green Deal loans and other finance options on the market. Which? wants clear information for consumers that outlines at every stage the different costs and savings, including the cost of finance so that consumers can compare the Green Deal with other forms of credit.

The Energy Company Obligation (ECO) must be fair to all and cost effective for consumers – the ECO will be launched alongside the Green Deal and will be used mainly to subsidise solid wall insulation, which many homes need. However, because the ECO will be paid for out of energy bills, all consumers will be paying for this subsidy and therefore all consumers are paying for some people to have expensive insulation installed. This is difficult to justify when many are already struggling with high energy bills. It would be fairer to allocate more of the ECO to help fuel-poor homes and people who are really struggling with high energy bills. Which? would also like to see greater investment in low cost measures like loft and cavity wall insulation that will have a big impact on reducing people’s energy use and bills.

Which? executive director Richard Lloyd said, “There must be fairer terms of finance, stronger protection on sales and marketing practices and more accurate savings estimates.
“Without significant changes we are unlikely to be able to recommend the Green Deal to consumers. With the launch just months away, our message to the government is clear – time is running out to rescue the Green Deal.”

Source: Electrical Times

Travis Perkins subsidiary offers Green Deal Assessor training

admin — Thu, 24 May 2012 08:38:05 +0000

Sustainable Building Solutions part of the Travis Perkins Group is offering the first City & Guilds accredited courses in Green Deal Domestic Energy Assessing.

The courses are aimed at Domestic Energy Assessors, plumbers, electricians and heating engineers who currently undertake Domestic Energy Assessing activities.

In April 2012, Travis Perkins plc announced its strategic partnership with Green Deal Provider, Toriga Energy, and has announced that it has its current relationship with PPL Training to cover the Green Deal Training provision.

Paul Joyner, director of SBS, said: “We are delighted to be working with PPL Training to deliver our Green Deal training courses, which will form a key element in our market-leading Green Deal offer.”

The Green Deal will effectively allow householders throughout the UK to make cost effective energy efficiency improvements to their home at no upfront cost, which will ultimately dramatically increase the demand for home improvements such as insulation, energy efficiency boilers, renewables and double glazing.

With 65,000 extra jobs to be created by The Green Deal by 2015 and £3.5m funding currently being set aside by DECC for training, it is crucial that the up-skilling of the UK’s skilled professionals starts now in order to get The Green Deal off the ground and running.

Source: Builders Merchants Journal

Preparing for the Green Deal

admin — Tue, 22 May 2012 07:53:21 +0000

National training company EcoSkies has unveiled its new Green Deal Advisor courses.

The Green Deal will be launch this October and is one of the government’s flagship renewable energy initiatives, with the mission of upgrading the UK’s notoriously draughty housing stock. The scheme will loan customers up to £10,000 for upgrading insulation and other energy efficiency measures, with the amount of the loan tied to the cost of the upgrades.

Before a customer receives funds from the Green Deal scheme, their property will be inspected by a Green Deal Advisor. The Advisor will assess energy performance, draw up a list of recommended improvements, and connect with the Green Deal Provider to secure financing for the upgrades.

This will require a raft of new Green Deal Advisors to be trained. Trainees who are already qualified Domestic Energy Assessors (DEAs) will be able to top up their qualification at EcoSkies with a five day course, rather than undergoing a full ten day course.

Source: Energy Management

Green Deal Finance Company doubles its membership

admin — Tue, 22 May 2012 07:50:39 +0000

The Green Deal Finance Company Limited has doubled its membership since its incorporation in March.

Twenty- one more organisations have joined the industry-led consortium which has the aim of delivering low cost financing that underpins the Green Deal plans that accredited providers will offer households, to enable the installation of energy efficiency measures.

The membership now includes six local authorities, and industry associations representing construction products, builders, and energy conservation.

The new members are: Association of Greater Manchester Authorities, Association for the Conservation of Energy, Breyer Group, the Builders Merchants Federation, Construction Products Association, Enact Energy Renewables, Energise Barnet, E3G, Green Assess, Keepmoat, Kier Energy Solutions, The London Borough of Haringey Council, Nottingham City Council, Places for People, Rockwool, Skanska UK, SIG, Swindon Borough Council, United Merchants, Wolseley UK and Yorkshire Energy Services.

It is expected that membership will shortly exceed 40 when organisations currently in the process of completing their admission join as members.

Since joining The Green Deal Finance Company Limited, members have contributed to the companies activities, including responding to DECC’s consultation on the Green Deal, focusing on how the programme will work to minimise costs for consumers. At the first Green Deal Finance Company members conference, key milestones ahead were examined as the Green Deal gears up for roll out.

Paul Davies, speaking on behalf of The Green Deal Finance Company Limited, said: “The growing membership of The Green Deal Finance Company is a real reflection of the wide range of local authorities, businesses and services involved in delivering the low carbon economy. We have had significant interest in joining from other organisations in the public and private sectors, so we expect membership to increase again over the coming months as organisations prepare to take advantage of the consumer interest in this scheme at its roll out in autumn.”

A key part of making the Green Deal work is that future Green Deal Providers – the companies that will make energy efficiency improvements – should be able to facilitate the cheapest possible finance, to maximise the value for consumers.

The Green Deal Finance Company Limited will be a national aggregator designed to make finance generally available for Green Deal measures. By operating at a national level, it intends to minimise the operating and administration costs of Green Deals and will aim to access the cheapest sources of finance in the market with the benefit of a strong credit rating.

Source: Housing Excellence

David Cameron briefed on concerns over green deal for homeowners

admin — Thu, 17 May 2012 11:25:35 +0000

Deep concerns over the government’s flagship policy to make 14m homes warmer and cheaper to heat have reached the top of government, with prime minister David Cameron and deputy prime minister Nick Clegg receiving a personal briefing on its troubles.

The green deal aims to provide “pay as you save” loans to homeowners to improve their energy efficiency and cut bills. It is due to launch in October but has faced widespread criticism from energy companies, the building industry, consumer groups and charities. The government’s own impact assessment shows loft insulations and cavity wall insulations – the most cost-effective measures by far – are set to fall by 93% and 67% respectively under current plans. “The impact assessment says it is going to be a train crash,” said Andrew Warren, director of the Association for the Conservation of Energy.

The escalation of the issue to Downing Street came on the same day as official data revealed that average home energy bills have shot up by up 12% – £140 – in 12 months, following a doubling in the past six years due largely to rising gas prices. Furthermore, national statistics on fuel poverty due to be published on Thursday are certain to show a rise from the current 5 million homes, a quarter of the total.

The green deal is intended to address fuel poverty, as well as being a crucial policy in cutting the carbon emissions driving climate change, but the Cabinet Office has been told it will flop unless fundamental changes are made. Warren and a series of other senior stakeholders were interviewed by Cabinet Office officials, who reported to Cameron, Clegg and energy secretary Ed Davey on Wednesday.

A Downing Street spokesman said: “As we implement all policy, we maintain constant dialogue with stakeholders and businesses who have an interest. The deputy prime minister and prime minister are fully committed to the green deal.” While the commitment to the green deal is not under review, government sources said the implementation of the policy is being discussed.

Existing policies lead energy companies to lag lofts free of charge, or even pay homeowners, but the funding available for basic energy efficiency and fuel poverty measures is set to fall dramatically under the green deal. Furthermore, loft and cavity wall insulation will not be eligible for green deal loans.

The treasury has already committed £200m to sweeten the green deal for early adopters. “That is a very helpful start, but we are going to have to more than that,” said Warren. Suggestions made to the prime minister include council tax and stamp duty discounts for energy efficient homes and a national awareness campaign such as that for the recent digital TV switchover.

In December, the government’s own climate advisers launched an unprecedented attack, stating that the green deal would fail and reach only reach 2-3m of the 14m households targeted. “There is a significant risk in leaving it to the market, as that has never worked anywhere in the world and is unlikely to in the UK,” said David Kennedy, chief executive of the Committee on Climate Change. “We are talking about the transformation of the entire building stock of this country.”

Luciana Berger, shadow climate change minister, said: “That No 10 has had to call in the Cabinet Office to fix up the government’s flagship green deal is a clear admission that the current proposals are a complete mess, which won’t deliver the new jobs, lower bills or reduced carbon emissions we all want to see.”

Other criticisms of the green deal include consumer group Which stating it is unfair to use money taken as a levy on all energy bills to subsidise the installation of expensive solid wall insulation in richer households. The Green Alliance said high commercial interest rates will mean too few green deal loans will meet the golden rule – that energy bill savings more than cover the loan repayments – and suggesting the new green investment bank should be allowed to provide discounted loans.

Source: The Guardian

Industry launches guide to Green Deal opportunities

admin — Tue, 15 May 2012 15:20:55 +0000

New industry-backed guide to offer advice and checklists on how firms can qualify to provide Green Deal services

Businesses interested in providing services as part of the government’s soon-to-be launched Green Deal energy efficiency scheme have been urged to begin investigating the opportunities presented by the new financing initiatives as soon as possible, following the launch of a new guide to the scheme.

The Construction Products Association and the Energy Efficiency Partnership for Homes yesterday launched a new free guide, Green Deal Opportunities for Industry, designed to offer firms practical advice on how manufacturers, distributors, main contractors and installers can benefit from the scheme.

Due to be launched in the autumn, the Green Deal will offer households and later businesses the opportunity to undertake energy efficiency improvements at no upfront cost, and then pay for the work through a small levy on energy bills. Under the rules of the scheme, those taking part will end up better off as repayments have to be lower than the savings people will realise as a result of the energy efficiency improvements.

A number of firms recently signed up to the scheme and have indicated they will provide Green Deal services, but the government is keen to grow the number of organisations taking part in the scheme, predicting it will enable a long-term increase in demand for green building services.

Writing in the foreword to the 93-page report, climate change minister Greg Barker praised the guide as “an example of how collaborative working can help companies prepare for the Green Deal”.

“It highlights how many firms are already gearing up to enter this new market, as well as showcases previous examples of the installation of energy efficiency measures,” he added.

The scheme has been criticised in some quarters for failing to provide enough clarity on how it will work before its launch in less than six months.

However, the new guide seeks to address some of this criticism with detailed step-by-step advice and checklists detailing how firms can qualify to provide Green Deal services, as well as information on which technologies and techniques are most likely to benefit from the scheme.

“Although it is early days within the Green Deal, which is still under consultation, the framework is now established,” said John Tebbit, industry affairs director at the Construction Products Association.

“So despite the fact that some working details may change, now is the time for those companies that are interested in the potential opportunities of the Green Deal to begin to investigate how they should prepare and what they need to be aware of. This publication provides the introduction that industry needs and will give companies a head start in their preparations.”

Source: Business Green

CITB tells builders how to cash in on the Green Deal

admin — Mon, 14 May 2012 09:10:03 +0000

The National Construction College (NCC), the training division of CITB-ConstructionSkills, is planning to host a series of Green Deal Awareness workshops throughout the UK to help smaller contractors get work from the government’s Green Deal.

The Green Deal scheme is intended to enable homeowners and businesses to fund energy efficiency work based on future savings from their energy bills. The government expects it to create 65,000 construction jobs when it is launched later this year. The NCC said that it wanted to ensure that construction firms had the knowledge and skills to exploit the opportunities.

NCC director Andy Walder said: “We are urging construction firms to start preparing for the future now. The government’s Green Deal is great news for the industry, but it is essential that businesses make sure that they have the knowledge and skills to take advantage of the new work that will be created by this scheme.

“These workshops will help companies discover and unlock the Green Deal’s commercial and employment opportunities, as well as informing businesses which skills their workforce will require. This is just one of the many ways that we’re investing industry funds to help businesses upskill their workforce to take advantage of business opportunities and to ensure that we are in the best position possible for future economic growth locally and nationally.”

The Green Deal Awareness workshops have been designed to provide managers, contractors and owners of small and medium sized businesses (SMEs) with a basic understanding of energy efficient measures for domestic properties.

Each half day workshop will explain how the Green Deal works and the type of measures that are covered by the initiative, such as solid wall insulation, solar pv and thermal, high efficiency boilers and ground source heat pumps. The workshop will also show firms how to access Green Deal funding for customers, in addition to how to get qualified to deliver the energy efficient improvements covered by the scheme.

Source: TCI

Prime Minister in battle to save Green Deal

admin — Thu, 10 May 2012 08:01:39 +0000

The Prime Minister David Cameron has called for a high level briefing from the Cabinet Office on how to rescue his Government’s flagship Green Deal.

There is growing concern that the launch of the Green Deal this October will be a flop. Even the big six energy providers have asked for a delay so that all the details can be finalised.

There is a real fear amongst industry and stakeholders that consumers will fail to buy into the complicated scheme.

There is also evidence that the scheme as it stands could all but destroy the loft and cavity wall insulation industry. The government’s own impact assessment for the Green Deal shows that loft insulation and cavity wall insulation will reduce by 93% and 70 % respectively under the scheme. This document runs to 297 pages, indicating how complex the scheme set-up is.

The Government aims to upgrade the energy performance of 3.6m homes by 2022, which would require around a 1,000 installations every day.

Mike Leonard, director of the Modern Masonry Alliance, said: “Successful consumer campaigns have to be market driven. The needs and requirements of consumers came last in this process.”

“Over 70 full time civil servants have worked studiously in their London bunker to create yet another bureaucratic nightmare that even the most optimistic give little chance of long term survival.

“We urgently need to form a task group comprised of industry, local government and consumers to come up with a simple incentive led plan based on doing the simple things to improve the energy efficiency of our 26 million existing homes.”

Source: Builders Merchants Journal