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Carbon saving link to Green Deal

Companies may be asked to bid for Green Deal work based on the amount of carbon they can save, under a model being considered by the government.

Department of Energy and Climate Change head of future energy company obligation Paul McCloghrie told an Emap Green Deal conference in London the government might give contractors the opportunity to bid for jobs with the carbon saved by retrofit work.

He said: “The energy company would offer an amount of money dependent on levels of carbon saved and delivery agents would then say ‘I can deliver x amount of savings’ and then get the work.”

DECC has established a working group to produce a paper on a potential brokerage model during the consultation period in an attempt to ensure delivery of Green Deal packages remains competitive.

The government is also considering more than 30 different types of installations to qualify under the Green Deal.

But the Federation of Master Builders and National Federation of Builders said that SMEs would either be shut out of the scheme or will not want to get involved due to the concern over borrowing.

NFB chief executive Julia Evans said: “Builders want the Green Deal to work but they will either have to be a provider or subcontractor to a provider. These guys are not money-lenders and there is a huge gulf where people who have the expertise to do the work will find it difficult to get the customers to access finance.

“The local builder will be a bit worried when you look at the complexity of finance in the construction sector, where bank-lending is a big deal, that here is a further offering around money-lending. Will builders want to take that on? I don’t think so.”

UK Green Building Council policy consultant Richard Griffiths said the government’s consultation document on the Green Deal will give the industry a chance to focus on the scheme, but won’t necessarily give them confidence in it.

“People who have been involved in the Green Deal process already won’t have learned anything new [from the document] and there will be lots of people who will not be sure it’s a good proposal they can buy into and invest in heavily,” he said.

“It’s a shame there is so little time to respond [to the consultation] because if people look at it as a complete proposition it’s not a straightforward task. The question now is - can industry scale up in time?”