the green deal for small firms

The voice of construction SMEs

The Green Deal for Small Firms

Thursday 17 November 2011

Hayley Fry Head of Training

Federation of Master Builders


The Green Deal for Small Firms

•The Green Revolution

•The FLASH experience

•FMB’s Social Networks


The Green Revolution

•UK legal commitment to cut carbon emissions by 80%

•85% of existing homes will still be standing in 2050

•26 million homes need to be retrofitted + 2 million non domestic buildings

•Scale is unprecedented both in terms of challenges and opportunities

•Potential to create new jobs and stimulate economy


Retrofit Market

FMB research commissioned from Oxford University

New market for construction SMEs - £3.5 billion to £6.5 billion per annum

But.........

• Absence of strong consumer demand

• Absence of a clear delivery plan

• Absence of knowledge and skills


The Green Deal – Customer Journey

•ADVICE – All households/smaller businesses entitled to an energy assessment from a qualified assessor. An enhanced EPC

•FINANCE – a finance mechanism that will enable the cost of installed energy efficiency measures to be paid back via the customer’s energy bill


The Green Deal – Customer Journey

• INSTALLATION – only accredited installers allowed to install measures. Designed to give consumer confidence

•REPAYMENTS – a charge will be added to the energy meter at the property. Repayment obligation will stay with the property and will transfer to any new occupier


The Green Deal - Legislative Timetable

•Energy Bill receives Royal Assent - autumn 2011

•Formal consultation on secondary legislation - autumn 2011

•Secondary legislation laid before Parliament - early 2012

•Detailed industry guidance - spring 2012

•Green Deal launched in October 2012


Green Deal Concerns

•Householders won’t find it sufficiently attractive

•Australian experience – need for accredited builders

•High street retailers/energy companies dominating the market

•Only Green Deal Providers will have direct link with the client


Green Deal relationships.............

Key relationships

PROVIDER

INSTALLER

CUSTOMER

ASSESSOR


Installation: Business ModelsE

PC

+ M

easu

re A

sses

smen

t

Customer

SME Installer (locally sub-

contracted to a GD provider)

One-Stop GD

Provider

Pro

du

ct a

sses

smen

t/qu

ote

and

sche

dule

of

wor

ks

Installation

Information to:

Energy Comp

Finco

Installer Oversight Body

Information to:

One-stop GD Provider

SME Installer (acts

independently selling service,

obtaining finance through

third party)


Buildings Cycle


Involving Small Firms: Skills

• Existing skills approach is ‘trade based ‘and not ‘outcome based’

• Numerous skill and industry organisations

• No comprehensive, coherent system of qualifications

• No train the trainers system in place

• Lack of available investment funds

• No accreditation of builders !!


FMB Rising to the Challenge

Working Across the Construction Sector

•Meetings with other Trade Associations

Energy Bill

•Lobbying MPs to set clearer targets and consider the issue of demand

FMB Working with Government:

•Capacity and Innovation Forum

• access to the market for SMEs

•Accreditation and Skills Forum

• Code of Practice for installers

• PAS 2030


FMB Options for the Future

•Springboard to drive professionalism and standards

•A qualification for general builders – a first!

•Competent Persons Scheme application

•Talks with GD Providers

•Training for experienced workers – additional knowledge

•Ongoing CPD requirements


So to conclude ...................

• Green Deal offers opportunities and threats to construction SMEs

• Incentives will be needed to create demand for Green Deal

• Training required in the whole construction sector

• Threat of more regulation – consequential building works

• FMB needs to reposition itself and take the lead in driving up standards


The FLASH experience

•FMB = Small builders ‘FLASH’ network

•Partnership with Institute for Sustainability

•Business case for low carbon

•100+ small firms registered in London

•Forthcoming Events:

• 7 December: Introduction to Retrofit (focus on traditional buildings)

• 13 December: Essentials of Renewable Energy

• 20 December: FITs


The FLASH experience!


The Social Media Challenge: FMB’s response

•Democratic Governance Structure requires member engagement

•Traditional communication methods

•FMB Social Networking site;

•Groups

•Twitter

•@Hayley1961

•@fmbuilders


The FLASH experience!


Thank you ...................

For more information contact:

Hayley FryHead of TrainingFederation of Master Builders14-15 Great James StreetLondon WC1N 3DP

E: [email protected] T: 020 7092 3875W: www.fmb.org.uk

mailto:[email protected]

http://www.fmb.org.uk/

the green deal for small firms

Technology