Delaying Green Deal loans until 2013 will result in loss of momentum, expert says

Linda Fletcher of Pinsent Masons, the law firm behind Out-Law.com, said that many businesses will be disentivised by the two stage introduction process for the Green Deal and may  "lose interest "  The Government has claimed that the scheme will lead to £14 billion worth of private sector investment over the next decade, supporting 60,000 jobs in the insulation sector alone.

"The whole basis of the Green Deal was to provide funding for the upfront costs of undertaking retrofitting works, so the fact that the loan scheme to enable that will not now be available until the end of January 2013 is disappointing," Fletcher said. "Businesses looking to use the scheme to improve the energy efficiency of their properties will undoubtedly postpone those decisions until this time."

Her comments came as the Government published legislation to bring its flagship Green Deal programme into operation and implement the Energy Company Obligation (ECO), a subsidy from energy suppliers to provide extra help for those most in need. Properties can undergo assessments to consider their suitability for the scheme from 1 October, the Government confirmed, however the first loans will not be made available until January 2013. Consumers ineligible for ECO assistance will be able to pay for work upfront.

Certification bodies will be able to submit applications to register with the Green Deal Registration and Oversight Body from August, enabling them to register assessors and installers as 'Green Deal Approved' before the scheme begins in October. Potential Green Deal Providers, including financial companies lending the money needed for any improvements under the scheme, will also be able to pre-register.

Established by the Energy Act 2011, the Green Deal will allow property owners and occupiers to fund the installation of energy efficiency measures such as double glazing or insulation at no up-front costs. Repayments will be met through subsequent energy bills.

Energy Secretary Ed Davey said that the Government would support a "responsible and controlled" approach to the introduction of the programme, complete with full national systems testing.

"We have created a robust legal framework which enables a market in energy efficiency to flourish," he said. "The Green Deal will play a huge role in improving the energy efficiency of our homes and businesses, with ECO making sure that the most vulnerable homes benefit too. I am determined to make sure that, in addition to creating huge opportunities for Green Deal providers and businesses along with thousands of new jobs, this new market in energy efficiency will deliver the very best deal for consumers."

Among the changes introduced are restrictions on 'cold calling' to protect consumers, and rules requiring Green Deal Assessors to declare any ties they have to installation companies as well as declare any commission they might be receiving for carrying out an assessment. Certified Green Deal Assessors will have to carry out an inspection of the property before its owner or occupier can apply for Green Deal funding, which will take into account the fabric of the building and the way in which it is used.

The Government has also eased a requirement for businesses to provide warranties on improvements for the length of a Green Deal Plan while still maintaining "robust minimum standards of protection" for consumers.

Arrangements for the Green Deal Registration and Oversight Body and a Green Deal Ombudsman and Investigation Service will be announced shortly. A Green Deal Code of Practice will be published later this month.