Why will businesses miss out on the Green Deal scheme?

When the October launch of the Green Deal scheme comes around, businesses will be unable to apply because of the Government’s decision for a ‘managed launch’.

A Department of Energy and Climate Change spokeswoman said that the Green Deal scheme requirements for commercial buildings would be more complicated than domestic properties.

She said: “It’s because some businesses have multiple sites, but they might take up a Green Deal loan for just one property and there are still questions about how to bill them.

“Assessments are also more complex for commercial properties and some of the measures they will be introducing will be more specialised.”

How will the Green Deal scheme affect you?

  • The Green Deal will help homeowners with inefficient properties pay for energy efficient home improvements
  • The product, double glazing, loft insulation or a new boiler, will be installed in the home with no upfront charges
  • The loan will go against the property, not the homeowner and will be paid back through energy bill savings
  • If you sell your property, the loan will remain with the home

The DECC are planning to introduce the Green Deal Scheme slowly, in an effort to ensure its success in the UK. In fact, they’ve said a business Green Deal has yet to be formally agreed.

Whilst the October launch will see just domestic properties benefitting, the DECC spokeswoman kept alive hopes of businesses being included shortly afterwards. Also, small businesses based in homes would be able to participate from October, if they adhere to the regulations of the launch.

The official reason for business being blanked in the original launch is that there are still some potential problems that need to be ironed out once the Green Deal scheme comes into being.

The Government recently revealed 22 providers who’d be involved in the Green Deal scheme. ReEnergise, one of the few announced so far, say that there’s no reason for alarm.

Tarquin Henderson, from the company, said: “We’re not picking up any concerns over alarms or delays from DECC. We think that we need to get the domestic sector sorted first and then look to roll it out to bigger properties, which are more complex.”

He also said he was expecting a large uptake from these businesses in the Green Deal scheme, as people look to reduce their heating bills as the cost of living rises.

But despite the Government’s intentions, many still fear that this could mean further delays in the DECC’s commitments to cutting energy bills.

Many of the worries are that three of the major energy providers weren’t included in the first published list. Some are suggesting that firms will wait to see the success of the Green Deal scheme before committing.


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