The Green Deal is very much up-and-running for domestic households, but it’s still lagging when it comes to the commercial sector. Legislation is geared up for offering The Green Deal to companies, by commissioning an assessment. With further regulation from the government, and greater pressure for businesses to become more eco-friendly, it’s more important than ever that The Green Deal steps up.
By April 18th, it will be unlawful to rent out a property with an EPC rating below a specified level (probably will be ‘E’). And by 2016, landlords will be banned from preventing tenants from undergoing Green Deal alterations, unless they have a convincing, legitimate reason. They will be forced to accept energy efficiency measures.
It’s a government initiative to try to incentivise a move towards a greener standard of living, without having to pay costs up-front – green alterations can be expensive.
How Is The Green Deal Executed?
A Green Deal Assessor visits the property to ascertain how much work could be done to the building to make it more energy efficient. The property owner decides which adjustments should be carried out and begins making repayments over a set period of time. The bill payer is responsible for these repayments, so if the tenant leaves the property, he or she won’t be making any more repayments. The next bill payer continues to pay off the outstanding money.
The idea is that you should be saving a lot of money while making the repayments, so you won’t be out of pocket.
For it to be a Green Deal plan, all improvements must be within specific energy efficiency enhancements or adjustments. Seeing as it’s an extremely extensive list, you’re unlikely to be turned away from a request. An assessor must have carried out an assessment of your property – he or she will make recommendations. The cost of instalments must not cost more than the savings within the first 12 months. This ensures value for money.
Business Green Deals
So what’s the difference between domestic and commercial green deals? Well, Green Deal plans will be regulated under the Consumer Credit Act, if it’s undertaken by individuals – businesses don’t receive the same attention. Commercial Green Deals don’t guarantee fixed interest rates for the duration of the plan. The Energy Company Obligation (ECO) helps individuals from lower incomes and vulnerable households to pay for their Green Deal – this isn’t available for businesses. Visit Vincent’s commercial property page for more info.
How It’s Carried Out
Before the work is undertaken, it’s up to you to get all the necessary consents and confirmations. A tenant will have to contact the property owner. You can find out if the property you’re interested in is part of a green deal by looking at the EPC. You should always be provided with the EPC.
In commercial properties, the obligation to pay the outstanding sum is held by a party or bill payer, but this can be paid off early.