The Green Deal for Small Firms

The Green Deal for Small Firms Thursday 17 November 2011 Hayley Fry Head of Training Federation of Master Builders The voice of construction SMEs

The Green Deal for Small Firms• The Green Revolution• The FLASH experience• FMB’s Social Networks The voice of construction SMEs

The Green Revolution • UK legal commitment to cut carbon emissions by 80% • 85% of existing homes will still be standing in 2050 • 26 million homes need to be retrofitted + 2 million non domestic buildings • Scale is unprecedented both in terms of challenges and opportunities • Potential to create new jobs and stimulate economy The voice of construction SMEs

Retrofit Market FMB research commissioned from Oxford University New market for construction SMEs - £3.5 billion to £6.5 billion per annum But......... • Absence of strong consumer demand • Absence of a clear delivery plan • Absence of knowledge and skills The voice of construction SMEs

The Green Deal – Customer Journey • ADVICE – All households/smaller businesses entitled to an energy assessment from a qualified assessor. An enhanced EPC • FINANCE – a finance mechanism that will enable the cost of installed energy efficiency measures to be paid back via the customer’s energy bill The voice of construction SMEs

The Green Deal – Customer Journey • INSTALLATION – only accredited installers allowed to install measures. Designed to give consumer confidence • REPAYMENTS – a charge will be added to the energy meter at the property. Repayment obligation will stay with the property and will transfer to any new occupier The voice of construction SMEs

The Green Deal - Legislative Timetable • Energy Bill receives Royal Assent - autumn 2011 • Formal consultation on secondary legislation - autumn 2011 • Secondary legislation laid before Parliament - early 2012 • Detailed industry guidance - spring 2012 • Green Deal launched in October 2012 The voice of construction SMEs

Green Deal Concerns • Householders won’t find it sufficiently attractive • Australian experience – need for accredited builders • High street retailers/energy companies dominating the market • Only Green Deal Providers will have direct link with the client The voice of construction SMEs

Green Deal relationships.............Key relationships ASSESSOR PROVIDER INSTALLER CUSTOMER The voice of construction SMEs

Installation: Business ModelsEPC+ Measure Assessment Product assessment/quote and SME Installer Information (locally sub- to: contracted to a Energy Comp GD provider) Finco schedule of works Installer SME Installer Oversight (acts Body independently Customer selling service, Installation obtaining finance through third party) One-Stop Information to: GD One-stop GD Provider Provider The voice of construction SMEs

Buildings Cycle The voice of construction SMEs

Involving Small Firms: Skills• Existing skills approach is ‘trade based ‘and not ‘outcome based’• Numerous skill and industry organisations• No comprehensive, coherent system of qualifications• No train the trainers system in place• Lack of available investment funds• No accreditation of builders !! The voice of construction SMEs

FMB Rising to the ChallengeWorking Across the Construction Sector• Meetings with other Trade AssociationsEnergy Bill• Lobbying MPs to set clearer targets and consider the issue of demandFMB Working with Government:• Capacity and Innovation Forum • access to the market for SMEs• Accreditation and Skills Forum • Code of Practice for installers • PAS 2030 The voice of construction SMEs

FMB Options for the Future • Springboard to drive professionalism and standards • A qualification for general builders – a first! • Competent Persons Scheme application • Talks with GD Providers • Training for experienced workers – additional knowledge • Ongoing CPD requirements The voice of construction SMEs

So to conclude ...................• Green Deal offers opportunities and threats to construction SMEs• Incentives will be needed to create demand for Green Deal• Training required in the whole construction sector• Threat of more regulation – consequential building works• FMB needs to reposition itself and take the lead in driving up standards The voice of construction SMEs

The FLASH experience• FMB = Small builders ‘FLASH’ network• Partnership with Institute for Sustainability• Business case for low carbon• 100+ small firms registered in London• Forthcoming Events: • 7 December: Introduction to Retrofit (focus on traditional buildings) • 13 December: Essentials of Renewable Energy • 20 December: FITs The voice of construction SMEs

The FLASH experience! The voice of construction SMEs

The Social Media Challenge: FMB’s response• Democratic Governance Structure requires member engagement• Traditional communication methods• FMB Social Networking site;• Groups• Twitter • @Hayley1961 • @fmbuilders The voice of construction SMEs

The FLASH experience! The voice of construction SMEs

The voice of construction SMEs

Thank you ...................For more information contact:Hayley FryHead of TrainingFederation of Master Builders14-15 Great James StreetLondon WC1N 3DPE: hayleyfry@fmb.org.ukT: 020 7092 3875W: www.fmb.org.uk The voice of construction SMEs

The Green Deal for Small Firms

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