The Green Deal, a government initiative which aims to reduce carbon emissions and increase the energy efficiency of British buildings in a cost-effective manner, was outlined in detail earlier this year in the Energy Act.
Speaking at a Westminster roundtable, hosted by Dods in partnership with the department of energy and climate change (DECC),
Greg Barker
MPhighlighted just how important SMEs were to the programme’s success.
Barker said: "It is inconceivable that we could have a successful Green Deal programme without having a high quality in-depth collaboration with the SME sector."
He continued: "I know that, so far, many SMEs have some quite legitimate concerns that they are being excluded from the market."
"But I am here to tell you, we need you. I am absolutely determined that SMEs will not be excluded from the Green Deal."
"SMEs are going to be key at putting the flesh on the bones of the Green Deal proposition."
Barker highlighted the economic, as well as environmental, benefits of the scheme.
"Economic growth, and policies that drive economic growth and prosperity, have never been more important than they are now," Barker said.
"I am confident that the Green Deal is not only compatible with economic growth, but it will be one of the big economic opportunities of next year."
The minister also urged small businesses to approach DECC with suggestions of how they could best spend the £200m pledged recently by the chancellor to drive the take-up of the Green Deal in the early years of the initiative.
And, noting that a poll conducted by DECC had shown that 50 per cent of homeowners would be motivated to pursue energy-efficient measures for reasons of home improvement, Barker highlighted the importance of the Green Deal to the nation's aspirational values – a 21st century version of the 1980s Right to Buy scheme.
He noted: "The Green Deal must work with the aspirational ambitions of the British people. It is the very grain of our national character to want to improve our homes."
Barker also faced a number of questions from roundtable attendees, comprising of small business representatives and trade bodies, focusing on issues such as access to the Green Deal and the use of local supply chains.
Noting that there was a "likelihood" that financial intermediaries could be used to assist SMEs seeking support to deliver the Green Deal, Barker argued that the initiative would be a market model – a model that "no small business or entrepreneur should be afraid of".
And he called on all local chambers of commerce and small companies to "knock on the door of the chief executive of your local council and ask them, ‘what are your plans to take advantage of the Green Deal?’"
Small businesses had nothing to fear from the Green Deal, Barker argued, as "local businesses are often the obvious choice for homeowners through a referral of someone that they trust".
As a result, the Green Deal could prove more of an opportunity for small business than for larger companies who don’t have the same track record of trust, Barker claimed.
Following the minister's speech the roundtable discussed key issues affecting SMEs seeking to engage in the Green Deal market.
Topics touched on included the anticipated high administration costs of the scheme, the danger of small installers taking a lead in the provision of the Green Deal but then losing out to a larger organisation, and concerns of government policy restricting a variety of business models.
Nigel Rees, chief executive of the
Glass and Glazing Federation, discussed the impact the Green Deal will likely have on glass and glazing manufacturers and installers.
Rees, who had previously expressed concerns about smaller companies being "swallowed up" by large multi-nationals entering the market of Green Deal provision, argued that whilst his sector was supportive of the scheme, concerns remained as to the accessibility of the Green Deal for companies of all sizes.
And he expressed concerns about how warranties would work in the Green Deal, given that insurance providers that the industry had spoken to would only provide assurances for 10 years.
Describing this as "a major barrier for windows", Rees said that "the idea of each individual installer offering a warranty to a provider who will then produce an insurance package for the consumer" would raise real concerns.
Discussing the role of the Green Deal, David Adams, of Willmott Dixon, argued that the scheme was a "financial enabler, but certainly not a panacea."
He said: "The Green Deal is a suite of financial instruments that enable business to pursue certain goals."
Commenting on behalf of DECC, Dan Monzani agreed that the Deal was a "financing mechanism" and one that government was determined to "get right".
Monzani also highlighted the two different business models for Green Deal delivery that small businesses could partake in: a larger company sub-contracting to an SME, or an SME taking the lead itself on the initiative.
Green Deal: SME Roundtable was hosted at the Royal Institution of Chartered Surveyors by Dods on behalf of the department of energy and climate change.