Fears of liquidation have been put to an end, as it has been confirmed that the Green Deal Finance Company (GDFC) has secured a £50m rescue package. £34m of it will be provided by the Department of Energy and Climate Change (DECC) and the additional £16m will be provided by private investors which include British Gas, SSE, EDF, E.ON, Npower, and Scottish Power, as well as other private-sector firms such as Carillion, PwC and Insta Group. The GDFC believes the new funding will deliver a 300% increase in the size of the company’s current loan book.
“We are glad that our Green Deal providers now have even more certainty that funding is in place,” said Mark Bayley , the chief executive of the GDFC. “In addition to the strong backing that the pay-as-you-save model has received from DECC, we have funding from our private investors.”
This rescue package was well needed as there has been a huge increase in applications for Green Deal loans. “This time last year the GDFC had £5.97m finance plans in the system and 1,461 plan applications,” said a spokesman for the company. “This week there is £28.92m in the system across 8,088 applications. On top of that there are now 65 official Green Deal providers and a further 24 in the process of qualifying.”
Provider selection is very important for installers.
We would recommend larger organisations such as the Merchant groups that broker funding directly with the Utilities and offer more security via their payment processes and are also working directly with the utilities so often the finding is better than using a Provider who is further down the chain and subcontracting work.
There are many ECO Providers who accessed funding without having the proper procedures in place to delivery robust data to the funding providers and subsequently weren’t paid for many jobs.
These types of Providers will not be able to secure further funding and therefore find themselves in trouble with their installer networks.
ECO is set to run until 2017 with £4.5billion in the pot, so there is funding available although gaining access can be a difficult process.
If you are using an unknown Provider we would recommend undertaking a few jobs first and checking payment process and support from the Provider is in place before ramping up activity.
As we understand, Kingfisher, Saint Gobain and Grafton Merchanting are all announcing their 2014 quotas shortly and present an opportunity for Installers, often the frontline staff may not be fully trained on ECO so it is worth escalating your enquiry further up the chain to area managers perhaps?
Something else to bear in mind is that you can sign up to multiple Providers and offset some of the risk this way too.