The agreement, inked by the organisations and climate change minister Greg Barker, is “the first tranche” of signings, according to a department of energy and climate change spokesperson, “we’re expecting more”. However, she could not say when a second memorandum might be signed.
The Green Deal, which will offer householders measures to insulate and improve efficiency of their homes, is due to launch later this year. The idea is for companies to provide finance so consumers don’t have to pay for measures up front, with the payments instead collected via energy bills by energy providers. Those payments should never be more than the savings afforded by the installed measures, so consumers should get the benefits of warmer, more efficient homes more affordably.
There have been concerns raised that energy companies may not have the payment systems and processes in place to handle the programme by the mooted October start date. There are also issues to be solved about how the Green Deal might work for businesses, many of which do not own their properties, or cannot predict the nature of their business over a long-term payback period.
However, in a statement Decc today reiterated that it will be working with firms to “move from testing into a managed launch that works seamlessly and provides a good customer experience from day one”.
The big six energy firms have to be involved in the Green Deal in terms of collection but not necessarily Green deal providers. Other organisations can volunteer to become providers. It remains to be seen whether the other big three energy firms sign up to become providers under their own brands.
Those that signed up today are: Ampere GDP; Anglian Home Improvements; BritishEco; British Gas; CarbonLow Group; Carillion; Empower Community; Enact Energy; E.ON; Gentoo Group; Grafton Group; Insta Group; Keepmoat; Kingfisher; Mark Group; ReEnergise Finance; SIG plc; SSE; Stroma; Toriga Energy; Willmott Dixon Energy Services; Yorkshire Energy Services.
Further reading:
Green Deal finance company steps forward
£3.5 million to train Green Deal installers
Green Deal lock-out for small suppliers
Feature: All wrapped up? Questions over the Green Deal
Lots lots more on Green Deal from our massive if chronologically challenged archive.