Property owners and occupiers are having to cope with various changes emanating from an increased focus on and awareness of carbon emissions.
Planning policy imposes green travel plans on the larger development schemes; building control imposes increasingly more stringent requirements for energy efficiency; energy performance certificates have also been introduced as have compulsory inspections of air conditioning systems in commercial premises.
Contractors, investors and other interested parties, as well as property owners and occupiers, will also be looking at property as a means to take advantage of the opportunities arising from green energy technology.
Green leases
A “green lease” is one which effectively contains novel and new provisions allocating additional responsibilities in relation to commercial premises for reducing carbon emissions. This may, for example, take the form of:
increased powers for the landlord in the administration of the service charge;
new obligations requiring the parties to act or not act in such a way having regard to carbon emissions;
a requirement for landlords to employ only energy efficient contractors in delivering the service charge.
Carbon Reduction Commitment
The Carbon Reduction Commitment Order 2009 (“CRC”) introduced a mandatory carbon emissions reporting and pricing scheme for all organisations using more than 6,000MWh of electricity per annum. Participants will be required to buy allowances from Government each year to cover their emissions in the previous year.
Incentive Schemes
There are, or will shortly be, a number of incentive schemes available to property owners and/or occupiers, including feed-in tariffs, the renewable heat incentive and ROC. Further details of what they are and how to obtain them can be found on our Renewable Energy and Incentives web-page.
Green Deal
The Energy Bill 2010/11 seeks provisions for a new financing framework to enable the provision of fixed improvements to the energy efficiency of households and non-domestic properties, funded by a charge on energy bills that avoids the need for consumers to pay upfront costs (the “Green Deal”). The Bill also seeks provisions for new powers to prevent private residential landlords from refusing a tenants’ reasonable request for energy efficiency improvements to be undertaken in their properties, where a finance package is available.
How we can help you...
We can provide advice and assistance for owners, occupiers, registered providers and/or contractors in relation to the following:
preparation and negotiation of green leases;
property certification (including Energy Performance Certificates, Display Energy Certificates and Air Conditioning inspection);
compliance with the carbon reduction commitment (“CRC”);
recommendations for future compliance with the Green Deal;
installation of equipment to generate renewable energy (including leases of part, deeds of variation, consents and ancillary commercial contracts);
option agreements related to green energy opportunities;
“green” considerations for rent renewals;
planning requirements; and
building regulations requirements.
