Member News
Business groups have expressed concerns about the funding for the Government's Green Deal.
Today Chief Secretary to the Treasury Danny Alexaner announced a £7m loan from the Department of Energy and Climate Change (DECC) to The Green Deal Finance Company (TGDFC).
It will allow TGDFC to continue developing its offer of low cost finance, expected to be available early in 2013.
Green Deal Providers will be able to access finance through TGDFC, enabling them to offer low cost finance packages to consumers upgrading their homes under the Green Deal.
The Glass and Glazing Federation said it is still concerned about the whole funding proposals for Green Deal, specifically the fact that the majority of window contracts through Green Deal will require "Top-Up", which will not be eligible for this funding.
"This may act as a disincentive to undertake the work," GGF said in a statement.
"That said the move by DECC to provide this loan will certainly allow work to continue to develop the provision of low cost finance and should be applauded.
"More must still be done to make the replacement of windows a more attractive option financially for the building owner."
Keith Riddle, Managing Director at VELUX, said the £7million Government loan is just the first step in ensuring the Green Deal is affordable for homeowners.
"With more than 4 million UK homes residing in the lowest two grades on their Energy Performance Certificate we need to see increased investment if the scheme is to live up to its promise of 'greening' our buildings," added.
"The Government should now seriously consider additional funding from the UK Infrastructure Guarantees Scheme.
"However, even with this increased investment, another worry is that homeowners remain in the dark about the scheme's impending launch.
"Our own research as part of the Dods Green Deal Dialogue Group reveals that a significant proportion of MPs do not understand the Green Deal and will not promote it to their constituents.
"Unless a top down approach is taken by Government we will not succeed in addressing the UK’s carbon emissions attributable to buildings and the very real and growing issues of fuel poverty and unemployment."
The Dods Green Deal Dialogue was held last month at the Institution of Engineering and Technology in Birmingham.
It was attended by small and large businesses interested in getting involved in the scheme, trade associations, Department of Energy and Climate Change (DECC) representatives and Green Deal providers.
The summit, which combined an exhibition with breakout policy discussions on the implications of the Green Deal for the domestic and non-domestic markets, examined the benefits on offer to entice consumers as well as asking whether the proposed measures to compel landlords to comply with the scheme were too punitive.
Under present DECC proposals, private landlords that fail to bring properties up to a defined emissions threshold could face non-compliance fines, to be introduced by 2018.
Energy and Climate Change Minister Greg Barker welcomed today's "important developments".
"The opening of the Green Deal register will enable businesses to start becoming Green Deal authorised and the Green Deal Quality Mark will show they have met our standards," he said.
"Crucially, this will protect consumers, who will know that anyone displaying the Quality Mark has been through the required process to become authorised.
"The loan we have agreed with The Green Deal Finance Company will help them to undertake essential development and be ready to offer finance to Green Deal Providers in early 2013."