Green Deal


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Background information about this scheme to be launched by UK gov. in octobre 2012 and that aim is to boost energy efficiency in UK home.

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Green Deal

  1. 1. 4th October 2011Green Deal Guillaume FERY
  2. 2. AGENDA1/ Green Deal = Why ? 2/ Green Deal = What ? G. FERY - 4th October 2011 2
  3. 3. Green Deal … why ?
  4. 4. “Britain has some of the oldest building stock in Europe. Our draughty homes are poorly insulated, leaking heat andusing up energy. As consumers, we pay a high price for inefficient housing.” Chris Huhne Secretary of State of Energy and Climate Change G. FERY - 4th October 2011 4
  5. 5. Good From April 2018Banned the UK GovernmentIn 2018 will make it unlawful to rent out a house or business premise which has less than an "E" energy efficiency rating. . Source, consumer focus G. FERY - 4th October 2011 5
  6. 6. Draughty homes ? G. FERY - 4thSource October 2011 6
  7. 7. Average Electricity Bill in 2011 : £ 1,100 / year G. FERY - 4th October 2011 7
  8. 8. TARGETS Cut emissions by • 50% by 2025 • 60% cuts by 2030. • 80% by 2050, Based on 1990 levelsG. FERY - 4th October 2011 8
  9. 9. G. FERY - 4th October 2011 9
  10. 10. Home improvement needed+ Rising energy prices+ CO2 Emissions targets+ Green jobs______________________= Green Deal G. FERY - 4th October 2011 10
  11. 11. Others government-initiated schemes to improve energy efficiency in businesses and households. Scheme CommentsThe Carbon Emission Reduction Target Introduced in April 2008, it is an obligation on energy suppliers to(CERT).. reduce carbon emissions in the household sector through providing energy efficiency improvementsThe CRC Energy Efficiency Scheme. Mandatory carbon dioxide emission trading scheme to improve energy efficiency in large public and private sector organisations in the UK.The Community Energy Saving Programme Introduced in September 2009, it is an obligation on energy suppliers(CESP). and generators to deliver energy efficiency measures in certain low income areas.The Warm Front Scheme in England, A range of programmes designed to offer grants to enable certainthe Nest energy efficiency scheme in Wales7 households in fuel poverty to install energy efficiency improvementsand the Energy Assistance Package in Scotland. such as home and loft insulation and heating measures.The Decent Homes Programme. A policy designed to improve conditions, including energy efficiency, in social housing. G. FERY - 4th October 2011 11
  12. 12. Green Deal … what ?
  13. 13. What is it ?“Green Deal plan” is a frameworkto enable private firms to offer consumersenergy efficiency improvements to their homesat no upfront costand recoup payments through a charge in instalmentson the electricity bill.Green Deal Principle (“Golden Rule”): payback costmust be less than average saving on bill.The charge is attached to the house. G. FERY - 4th October 2011 13
  14. 14. How does it work? Customer chooses a Green Deal provider Green Deal Providers Arrange and finance the work to be undertaken on homes.Reimburse through the electricity bill Send the payments to the Green Deal Green Deal Adviser Government accredited advisers will visit undertake a All installers will have to be accredited, detailed and technical survey The measures installed will be paid for by finance arranged by the Green Deal Provider. provider Electricity Companies Put the repayment of the whole project on the electricity bill. Attached to the premises. G. FERY - 4th October 2011 14
  15. 15. What measures ? GDF: Green Deal finance ECO: Energy CompaniesSource: Energy bill Impact assessment Obligations CW: cavity wall insulation SW: solid wall insulation G. FERY - 4th October 2011 15
  16. 16. Government Forecast of National Accumulated Green Deal Measures 14 12 Accumulated Products (ms) 10 8 6 4 2 0 2013 2014 2015 2016 2017 2018 2019 2020 Loft Cavit y Wall Glazing & Doors Solid & Part y Wall Cost & Benefits of Green Deal to the Customer Annual Payback % of Measure Cost Savings (Years) Total Bill Cavity Wall £400 £110 4 10% Loft Virgin £300 £145 2 10% Loft Top Up £300 £40 8 5% Golden Rule Solid Wall Internal £5,000 £365 18 25% Solid Wall External £7,600 £385 30 25% G. FERY - 4th October 2011 16Figures derived from Government Green Deal Impact Assessment, which does not distinguish between measures delivered by Green Deal versus CERT/CESP / ECO
  17. 17. A new market ? This is big money ! Measures to Installation 2020 Value Owner-occupied 7.4m £2.2bn Loft insulation (<200mm)* Installation =£300 Private-rented 1.7m £0.5bn Owner-occupied 3.6m £1.4bn Cavity wall insulation £400 Private-rented 0.6m £0.2bn Double-glazing (entire house) Owner-occupied 1.4m £4bn £2,700 Private-rented 0.9m £2bn Solid wall insulation (internal) Owner-occupied 1.2m £6bn £5,000 Private-rented 0.3m £2bn Solid wall insulation (external) Owner-occupied 1.2m £9bn £7,000 Private-rented 0.3m £2bn B2B Energy Management and Building Technology £1.8bn All Energy Efficiency Measures £30bn Air source Heat Pump £6,700 0.5m £3bn Ground source heat pump £11,000 0.6m £7bn Solar water heater £4,500 1.5m £7bn Solar PV £11,000 0.9m £10bn G. FERY - 4th October 2011 17
  18. 18. Stakeholders … and lobbies All the “ecosystem” is on the moveto be ready to launch new specific offers, test trials or to be compliant => Many articles ! Consumers Builders Standardization bodies G. FERY - 4th October 2011 18
  19. 19. Guillaume FERY for 2012 ?