The hesitancy and lack of definition around the Green Deal create striking opportunities for finance providers who are prepared to be bold, collaborate with new partners and shape the scheme to get the best for their customers and organisation.
Being bold to win high visibility in 25 million homes PA's Managing Uncertainty survey, which asked over 200 senior business leaders from across the world how they had responded to the financial crisis, revealed that in times of uncertainty, companies that capitalise on opportunities for growth emerge stronger and with higher market share in the long term. The Green Deal represents such an opportunity.
Through the scheme, the coalition government aims to insulate 14 million of the UK’s 25 million homes by 2020. This means that suppliers on the government’s accredited list will gain high visibility nationwide. As a further incentive, DECC proposes to make the details of five and a half million properties that currently have an Energy Performance Certificate available to accredited Green Deal providers. This will allow providers to understand which homes could benefit the most from green measures and target them accordingly.
As a result, finance companies bold enough to get involved in the Green Deal stand to reap significant rewards in terms of growth and brand awareness.
Collaborating with trusted brands to win consumer confidence Across green markets, success has frequently resulted from collaboration. For example new technologies, charging points, communication standards and customers have been created thanks to car manufacturers, utility companies and governments working together, aiding electric vehicle adoption. This has created new sources of revenues for each party that has actively collaborated.
Finance companies planning to capitalise on the Green Deal need to look outside standard partnerships into sectors and companies that can bring new thinking to create a truly differentiated product.
Working with trusted brands will be essential. Ann Robinson, Director of Consumer Policy at uSwitch, says that “consumer trust and confidence is key for the success of a scheme that potentially requires signing up to a 25-year contract. If consumers don’t understand the process or feel comfortable with the quality of work going on in their home, they simply won’t take up this opportunity to improve their property’s energy efficiency”.
Shaping the scheme to get the best deal for your customers and your organisation There is currently no clear articulation of how the Green Deal will work. This leaves the way clear for finance providers to engage with the Government and shape the Green Deal in a way that will deliver the greatest rewards for their customers, the environment and their organisation. This is similar to the way in which financial services are helping shape regulation in Europe.