Industry must seize Green Deal initiative
It is arriving quietly rather than with a bang, but John Hurst of the Building & Engineering Services Association believes the Green Deal will deliver its objectives.
The cash-back scheme launched by the Government to give the Green Deal a ‘flying start’ is not exactly subtle, but it is simple and, therefore, deserves to work. The financial packages to pay for Green Deal projects will be available from 28 January, and households or small businesses that apply early may also qualify for a cash reward. The more work they have carried out, the more cash they will receive — on a first-come first-served basis up to a maximum of £1000. Social landlords also qualify.
There is plenty of scepticism about the Green Deal, but you can’t fault the Government for trying. It might have had a low-key ‘soft launch’, but there is an emerging logic to how the scheme is being rolled out.
If this gives the initiative the early boost it needs, well qualified building-engineering firms have much to gain. High efficiency condensing boilers, solar thermal and PV, biomass boilers, heat pumps, LED lighting, heated flooring, showers, glazing, insulation, taps and heating controls are among 45 separate measures that can be financed through the Green Deal. These are all technologies with which we are very familiar.
Trigger
In many cases, a boiler replacement will be the trigger for a Green Deal package, as that is the obvious time for the householder or small business to consider an overall system upgrade. By arranging it through the Green Deal, they would not have to pay for any of the improvements up front — including the new boiler.
This also gives us the opportunity to ensure that new technologies are properly integrated with the rest of the existing services, that proper controls are included and that full commissioning is carried out. We must also clearly explain how the systems work to the end users, who will, after all, be operating the systems for the rest of their installed life.
The additional work around installation is critical because improvements must meet the Golden Rule that the energy savings cover the cost of repaying the money provided by the scheme. This means systems must continue to perform right throughout their operating life as the owner will be repaying the cost from their monthly energy bill.
Trained, multi-skilled services engineers are the best qualified people to carry out such work and should take a proactive approach to this great business opportunity. They cannot afford to wait for things to happen, but must get out there and take the initiative by becoming unofficial ‘ambassadors’ for the scheme.
Quite apart from the increased benefits to the householder, this also expands the scope of the project and improves profitability for the contractor.
There are about 5000 boiler installations every day in the UK (around 1.5 million per annum) carried out by 90 000 heating firms. (Gas Safe has registered 130 000 installers). This is a considerable sales force available to promote the benefits of upgrading with no upfront cost.
Energy Secretary Ed Davey has urged businesses ‘to take advantage of this transforming market’ — describing the launch as a critical period for the industry. ‘Whatever your business does in this sector, the Green Deal will have an impact. So I say to businesses large and small — gear up, get training and get ready to take advantage of the Green Deal.’
PAS 2030 — the ‘publicly available specification’ for existing buildings, which provides the quality standards to which all energy efficient measures funded by the Green Deal must be installed, is currently being reviewed and, again, puts skilled installers in the driving seat. It sets out the installation processes, the management of those processes and the quality of the service provided to the customer before, during and after the installation.
Benchmark
The Department for Energy & Climate Change (DECC) depends on the PAS to guarantee the standards required by the Green Deal Code of Practice and as a good practice benchmark for installations. The Building & Engineering Services Association (B&ES) accreditation service BESCA is about to receive UKAS approval as a Green Deal accreditor because recognised industry standards must underpin this work.
The Government gets good marks for setting up the Green Deal, but there are a number of aspects of the scheme that betray its poor understanding of how building-engineering projects work. It will be up to our sector to learn the lessons and communicate them back to officials. B&ES is already playing a key role in this area by flagging up potential issues.
For example, if a contractor working on a project funded by the Green Deal comes across a problem such as finding asbestos or needing to resite the boiler because of a previously hidden problem with a wall, he will have to go back to the Green Deal provider for approval. This means a delay and could result in the householder being without heating or water until the person or organisation providing the funds has re-assessed the application and approved the changes.
There are concerns that the market will be dominated by large companies with the resources to pull together the different trades required to complete the projects and able to finance accreditation. However, the Government believes it is crucial that SMEs are heavily involved.
Local installers are encouraged to act as ‘expert’ advisers to their own customers, and there is also no reason why a small contractor that is Green Deal accredited cannot work directly with a finance company.
There is also an issue about warranties. Who will have responsibility for ensuring the measures achieve the promised savings and satisfy the Golden Rule in the months and years after the installation? The jury remains out.
The flaws in the scheme will become increasingly apparent once it gets up and running, and there need be some sort of ‘staging’ process to allow already competent engineers to carry out the work before they complete further training — particularly as the PAS is still under review.
The Government must also resist the temptation to nanny people. It is setting up a lot of consumer protection around the Green Deal and must be careful not to put off legitimate installers. Members of the public should treat these projects just like any other and get three quotes before choosing their installer. If they then choose the cheapest one they should be aware there could be risks — just as in any walk of life.
There are risks for both consumers and installers — but there are also huge potential rewards.
John Hurst is chairman of the B&ES heating and plumbing services group of the Building & Engineering Services Association.
