Green Deal Scheme Saves Money for Small Business
Small firms will save money and be able to improve premises with no upfront costs under the Government’s Green Deal scheme, which comes into effect next year.
Part of the new Energy Bill 2010-2011, the Green Deal will enable small businesses to access up to £10,000 to pay for energy efficiency work, repaying the costs through savings on their energy bills.
The scheme will work by enabling firms to access Green Deal finance in the form of ‘green’ loans from accredited providers, which will operate the pay-as-you-save framework. Details are yet to be confirmed but likely partners include high street banks and the Carbon Trust, which already offers interest-free loans to small businesses.
Improvements in areas such as heating, lighting and insulation are likely to be the main priority areas for businesses, according the Department of Energy and Climate Change (DECC).
A DECC spokeswoman said:
“It’s a huge market opportunity for small and medium-sized businesses. Making energy efficiency improvements will produce big savings. By reducing their bills, firms will be protecting themselves from future price rises.”
In addition to saving money and reducing energy consumption, the Government has said that delivering the Green Deal will also create significant opportunities for small businesses in the energy, heating and building services sectors.
But critics have argued that further incentives will be needed to ensure that businesses and households take advantage of the scheme.
Rhian Kelly, CBI director for business environment, said Green Deal offered “great potential” for UK firms, but more detail was needed about how it would work.
“Businesses have reservations about whether people are going to buy into it. Without public understanding and enthusiasm for the scheme at its launch it will be difficult to attract the initial investment.”