What is the Green Deal
The Green Deal was launched in Spring 2013 and is the Coalition Government’s initiative to encourage the householder to install energy efficient measures in homes to make them more comfortable, save energy and reduce energy bills without having to pay for them up-front.
Improvements will be repaid over time via the electricity bill. Repayments will be calculated on the basis that they will be no more than a typical household should save in their energy costs if they carry out the improvements.
Improvements will be repaid over time via the electricity bill. Repayments will be calculated on the basis that they will be no more than a typical household should save in their energy costs if they carry out the improvements.
How does it work?
To improve the energy efficiency of your home, you can make energy-saving improvements to your home without having to pay all the costs for the measures up front by using the Green Deal. The scheme works in four steps:
- Assessment: As Accredited Green Deal Advisor's we can assess the property to establish what energy efficiency improvements may be feasible and how much this would save on your energy bills.
- After the assessment you can choose a Green Deal provider to carry out the work and discuss with them what can be done and how it will be financed.
- You then enter into a Green Deal Plan which is a contract between you and the Green Deal provider stating what work will be done and how much it will cost. The provider will then arrange for a Green Deal installer to do the work.
- Once the work is done, the Green Deal will be paid off in instalments through your electricity bill.
What measures are available?
There is a variety of measures or areas of home improvement available that you may receive funding for under the Green Deal. These can include:
- Insulation, e.g. loft, cavity wall or solid wall insulation.
- Heating.
- Draught-proofing.
- Double Glazing.
- Installation of renewable energy technologies, e.g. solar panels or wind turbines.
Assessment
The assessment will be carried out by a Green Deal advisor, who can be appointed directly by you or you can ask a Green Deal provider to find an advisor for you. The Green Deal advisor will inspect the property and discuss your energy use. They will generate a Green Deal Advice Report which will explain what improvements can be made and gives estimates as to how much savings the proposed measures will be making on your energy bill.
Repayments
The amount you repay for Green Deal improvements is based on what a typical household is expected to save on their energy bills by having the work done. The cost will be shown on your Green Deal Plan (the contract between you and the provider), and will include the interest rate.
The Green Deal is designed to try and save you at least as much money on your energy bills as you will have to repay for the work done. This is known as the Golden Rule. It aims to ensure that the amount you save on your energy bills every year should be more than the cost of the Green Deal repayments made through your electricity bill.
Most improvements should reduce your heating bill because you will be using less electricity, gas or oil. However, the actual savings depend on your actual energy use and the future cost of energy.
The Green Deal loan will be repaid through the electricity bill for the property and is tied to the property rather than the individual who took out the Green Deal loan in the first instance, i.e. if you take out the Green Deal loan but then move home, you no longer benefit from the improvements and therefore stop paying for them. The incoming householder will obtain the benefits and will take over the repayments.
If you have a prepayment meter, a small amount will be taken from the meter each day instead.
The Green Deal can be paid off early, but you might be charged a fee; you will need to check this with your provider.
People on certain benefits, a low income or who live in an older property, may be able to get additional help with some instalment costs. The Energy Saving Advice Service on 0300 123 1234 is the contact for further information and assistance.
Green Deal repayments are part of the electricity bill for the property and the person responsible for paying the electricity bill (usually the occupier) is responsible for making repayments for the improvements. An Energy Performance Certificate will show if there is a Green Deal on a home and if you move, the next electricity bill payer will take on the repayments. As the Green Deal is available to both the owner-occupied and the rented sector, this is something that both prospective buyers and tenants will want to check.
The Green Deal is designed to try and save you at least as much money on your energy bills as you will have to repay for the work done. This is known as the Golden Rule. It aims to ensure that the amount you save on your energy bills every year should be more than the cost of the Green Deal repayments made through your electricity bill.
Most improvements should reduce your heating bill because you will be using less electricity, gas or oil. However, the actual savings depend on your actual energy use and the future cost of energy.
The Green Deal loan will be repaid through the electricity bill for the property and is tied to the property rather than the individual who took out the Green Deal loan in the first instance, i.e. if you take out the Green Deal loan but then move home, you no longer benefit from the improvements and therefore stop paying for them. The incoming householder will obtain the benefits and will take over the repayments.
If you have a prepayment meter, a small amount will be taken from the meter each day instead.
The Green Deal can be paid off early, but you might be charged a fee; you will need to check this with your provider.
People on certain benefits, a low income or who live in an older property, may be able to get additional help with some instalment costs. The Energy Saving Advice Service on 0300 123 1234 is the contact for further information and assistance.
Green Deal repayments are part of the electricity bill for the property and the person responsible for paying the electricity bill (usually the occupier) is responsible for making repayments for the improvements. An Energy Performance Certificate will show if there is a Green Deal on a home and if you move, the next electricity bill payer will take on the repayments. As the Green Deal is available to both the owner-occupied and the rented sector, this is something that both prospective buyers and tenants will want to check.
Moving into a property with a Green Deal Plan
If you move into a property with a Green Deal, the landlord or seller must show you a copy of the Energy Performance Certificate which will explain what improvements have been made. The Green Deal plan will have details about repayment obligations.
The person who gets the benefit of the energy savings and pays the electricity bill pays the money back, therefore a tenant in a rented property will be paying back the costs, not the landlord.
The person who gets the benefit of the energy savings and pays the electricity bill pays the money back, therefore a tenant in a rented property will be paying back the costs, not the landlord.
Other Funding.
To ensure that the most vulnerable households receive the support they need, the government has introduced the Energy Companies Obligation (ECO) scheme to make heating homes more affordable for low-income and vulnerable households.
The funding for this programme comes from the large energy suppliers. It is delivered to customers either directly from the supplier or by organisations working together with the supplier such as Green Deal providers.
Applicants who live in an older property or are on benefits or low incomes may qualify for this extra financial assistance. Eligibility criteria are complex and the Energy Saving Advice Service can be contacted on 0300 123 1234 offers further information.
The funding for this programme comes from the large energy suppliers. It is delivered to customers either directly from the supplier or by organisations working together with the supplier such as Green Deal providers.
Applicants who live in an older property or are on benefits or low incomes may qualify for this extra financial assistance. Eligibility criteria are complex and the Energy Saving Advice Service can be contacted on 0300 123 1234 offers further information.
Further Information
Energy Saving Advice Service: 0300 123 1234;
Energy Saving Scotland: 0800 512 012
Complaints can be dealt with by the Green Deal Ombudsman:
http://www.ombudsman-services.org/green-deal.html
Quick Guides to the Green Deal
https://www.gov.uk/government/organisations/department-of-energy-climate-change/series/green-deal-quick-guides
Find a Green Deal Company
http://www.greendealorb.co.uk/consumersearch
Energy Saving Scotland: 0800 512 012
Complaints can be dealt with by the Green Deal Ombudsman:
http://www.ombudsman-services.org/green-deal.html
Quick Guides to the Green Deal
https://www.gov.uk/government/organisations/department-of-energy-climate-change/series/green-deal-quick-guides
Find a Green Deal Company
http://www.greendealorb.co.uk/consumersearch