The Green Deal
The Green Deal is an initiative to reduce carbon emissions cost effectively by improving the energy efficiency of British properties, including homes and businesses. Over half of the UK’s 26 million homes are insufficiently insulated: the Green Deal sets out to tackle this problem.
Launched by the Government on 28th January 2013, the Green Deal allows householders to take out a long term loan to pay for new energy-saving home improvements. Improvements such as loft, cavity or solid wall insulation, double glazing, a new boiler or even a ‘micro-generation’ system such as solar panels are all considered acceptable as part of the scheme.
The way the Green Deal differs from a standard loan is that the repayments made by the householder should (in theory) be covered by the savings on their energy bills as a result of having had the energy-saving measures installed. This system is known as the ‘Golden Rule’. However, the Golden Rule is not a guarantee, just a guideline based on energy-saving estimates.
Unlike a traditional personal loan, the Green Deal is attached to the property rather than the householder as an individual, which means it will pass on to the next owner of the property if the householder moves home.
I’m a Householder – How does the Green Deal work?
The Green Deal process goes through four main stages: assessment, finance, installation and repayment.
• A Green Deal assessor or advisor will make an assessment of your home and recommend energy-saving improvements in a Green Deal advice report.
• A Green Deal provider will then issue you with a quote for a Green Deal plan to pay for the improvements based on the Green Deal advice report.
• A Green Deal installer will provide and install the measures agreed under your Green Deal plan.
• Your electricity supplier will pay back the Green Deal ‘loan’ through the savings made on your energy bills.
If you’re interested in a Green Deal loan you will first need to arrange a visit from an assessor accredited with the Green Deal Quality Mark. All companies involved in the Green Deal must bear this mark and comply with a code of practice. The assessor will examine your property and recommend energy-saving home improvements. Assessors aren’t necessarily independent from providers, but they must be impartial.
Green Deal providers include energy companies, shops and companies that install energy efficient technology. The provider will offer you a quote for a Green Deal plan. You could be expected to pay around £100 for an assessment.
You can find more information about the Green Deal in the following policy documents /leaflets:
The Green Deal: A new way to pay for improvements (DECC Oct 2012)
The Green Deal: What to expect from your Green Deal assessment (DECC Oct 2012)
The Green Deal: What to do after your Green Deal assessment (DECC Oct 2012)
The Green Deal: How your business can benefit (DECC Oct 2012)
The Green Deal: A guide for social housing providers (DECC Oct 2012)
The Green Deal: A guide for social housing tenants (DECC Oct 2012)