Green Deal Finance

[ecodeal]

Hi I am new here but will enjoy discussing the topic of the green deal with you guys and share knowledge about this new industry !

the is one question that keeping bugging me

if you are a small SME

is it possible to be an green deal advisor and a green deal installer?????

then my second question is this

if the above is possible where does a small SME arrange finance from to carry out the works etc???

[Angib]

You need to understand the GD system:
- a GD Advisor carries out the 'independent' EPC/assessment and recommends measures that will meet the 'golden rule';
- a GD Provider offers the householder a package of GD measures and the associated finance;
- one or more GD Installers install the chosen GD measures;
- the GDA goes back to generate the 'after' EPC.

The government are designing the GD system so that any commercial combination works - you can become all three (Advisor, Provider, Installer) if you want to and no doubt British Gas and others will do exactly that.

However as I understand it so far, it is only a Provider that can sign a contract with the householder and they will either use Installers as subcontractors or do it in-house. The Provider has some fairly big commitments to make and while arranging the finance is a big one, there's lots more besides - it looks likely that the Provider will need to guarantee the measures for some time and fix them if defective, which is not something most finance companies will want to get involved in. It probably also rules out SMEs becoming a Provider, just because the individual contract risks are too large.

For example this is what the DECC web site says:

If the customer experiences a problem associated with their Green Deal plan, the Green Deal provider will always be the first point of contact. The Green Deal provider will investigate the problem and provide redress if necessary, seeking compensation from their contractors if appropriate.

There are people looking at being a fairly passive Provider for Installers or Advisors who have generated GD business for themselves - so more like the role of a finance company. The one that I have heard is looking at this is the Federation of Master Builders, but this is just hearsay and their website says they want the government to:

Create a 'special delivery finance vehicle' that will enable accredited Green Deal installers to contract directly with consumers who wish to use Green Deal and/or ECO finance to pay for the work.

So that's hardly a commitment to become a Provider.

Watch this space is the message at the moment, I think.

[Green deal GB]

I was under the impression that you couldnt cover all three bases although I understand that would be difficult to police. I just hope it works so the smaller companies get a shot at this. It could be very easy for the assessor to be less of an assessor a more direct sales person. Will be interesting to see the guidelines when set out.