Government Green Deal anticipates £14bn private sector investment in energy improvements for buildings

The scheme, set out in the Green Deal consultation (238-page / 1.8MB PDF), will enable property owners and occupiers to fund the costs of insulation, double glazing and other measures to improve the energy efficiency of their building through their energy bills.

Upgrades funded by the scheme, which the Government hope will lead to £14 billion worth of private sector investment over the next decade, will cut the average energy bill.

“The Government’s campaign to publicise the potential advantages and energy savings of the Green Deal has been very much targeted at the residential sector, leading to uncertainty for the business world,” said Sherryll L`Oken planning and environment expert at Pinsent Masons, the law firm behind Out-Law.com.

Huhne described the Green Deal as a "massive business opportunity" which would help to power the economy and secure up to 65,000 jobs.

However, he admitted that businesses would see an increase in their own energy bills as a result of rising fossil fuel prices and the Government's policies to tackle climate change.

Policies to achieve energy savings and incentivise the shift from fossil fuels to "green" methods of power generation, would however result in a net saving on bills that would start to kick in from "around 2013", DECC  said.

"The Green Deal is a massive business opportunity for firms up and down Britain, helping to power the economy and creating jobs. From one man bands and local authorities, to the big supermarkets and DIY stores, we want as many providers getting involved as possible because that's what will give consumers the best deal," Huhne said.

“It is perhaps more likely that commercial property occupiers will be more prepared to take up the scheme than individual householders, particularly in view of the Carbon Reduction Commitment (CRC) scheme which overtime will increase the cost of energy used by commercial organisations in the UK.” commented Linda Fletcher, a real estate and environment lawyer at Pinsent Masons.

The Government said it was committed to introducing further measures to minimise the financial impact of its policies on energy-intensive industries by the end of the year.

"There are certainly costs to replacing our ageing energy infrastructure with modern, clean power stations, and we take very seriously any impact on our policies on what consumers and businesses pay. We've repeatedly taken steps to reduce this - by removing some planned levies on bills and making others more cost-effective and within budget. But a crucial - and too often ignored - priority of our whole strategy is to reduce the amount of energy we use in our homes," he said.