The Green Deal

The Energy Act 2011 introduced a framework for the most revolutionary scheme for encouraging energy efficiency ever. At the core of the Bill is the Green Deal, which aims to lower UK carbon emission output, improve competition in the energy market and also to reduce the national demand for imported gas supplies by offering both consumers and businesses access to funding for property improvements as part of a Green Deal Plan.

The Green Deal is an innovative financing mechanism that lets people pay for energy-efficiency improvements through savings on their energy bills. It is a government backed initiative promoting the installation of energy efficiency measures to householders which will reduce energy use leading to lower energy bills.

Green Deal was launched in January 2013 and applies to both the domestic and non-domestic sector. Homes and businesses will be able to benefit from energy efficiency improvements, such as cavity wall insulation, solid wall insulation, loft insulation, flat roof insulation, condensing boilers, draught proofing, floor insulation, solar thermal panels, photovoltaic PV panels, under-floor heating, ground and air source heat pumps or biomass boilers installed through the national Green Deal Scheme

There will be no upfront cost to the householder, instead a finance package will be repaid via a charge on their existing electricity bill over a specified period. The Green Deal Installer must adhere to a strict Green Deal code. The Green Deal for homes is not means tested and any adverse credit history will not be a problem. The Green Deal Scheme is a way of making a property more energy efficient and getting Green Deal advice. Only Green Deal approved Green Deal Installers can fit Green Deal recommendations.

There are three key stages to the process:

1. Green Deal Assessment

A Qualified Green Deal Advisor will visit your home or business to complete an Energy Performance Survey and Occupancy Assessment. Reporting Ltd, based in Carisbrooke on the Island, was one of the first Green Deal Advisor Organisations to receive certification through BRE Global.

The assessment is carried out in your home or business premises by a Green Deal Advisor, and may be subject to a charge. This will generate an Energy Performance Certificate (EPC) and Green Deal Advice Report which the Advisor will discuss with the property owner/occupier. A Green Deal Advice Report (GDAR) will be given to the homeowner and a Green Deal Plan will be compiled. Advisors will:

  • use standardised software to identify what energy efficiency or microgeneration improvements you can make and what the financial savings would be
  • outline how the payments will work
  • identify which improvements are likely to be cost effective
  • produce a Green Deal Advice Report outlining your options
  • declare any links that they  have with Green Deal Providers.

Contact Ian Williams on 01983 522144 to find out more information, or to request a Green Deal Advice Assessment.

2. Financing the Green Deal Plan

Once the Green Deal Plan is in place you can instruct a Green Deal Provider to give you access to your Green Deal Finance. The Green Deal Provider will pay your Green Deal Finance directly to your chosen Green Deal Installer, They will have to install your energy efficiency recommendations in accordance with a strict Green Deal Code.

3. Installation of Green Deal improvements

Once your Green Deal Provider has your Green Deal Finance in place a Green Deal Installer will visit the property and carry out Green Deal improvements on your property. The Green Deal Provider will pay the Green Deal Installer and/or Advisor directly.

1. How are the measures repaid?

You pay back the cost of the improvements over time through your electricity bill. Your electricity supplier will pass your payments on to your Green Deal Provider. The amount you pay back will be no more than a typical household will save on heating bills, so you are likely to be better off overall from day one.

Although the cost of the improvements is repaid, this is not a conventional personal loan as the charge is attached to the electricity meter in your house and paid back through your electricity bill. If you move out, the new occupant will pick up the charge while also benefiting from a more energy-efficient property.

Interest will be charged on these payments, but the rate will be fixed and you will be shown a full schedule of all the payments before you sign up to the plan. It is up to the Green Deal Providers to decide on the interest rate, so it will be worth shopping around to find the best deal. You will be able to pay off the plan early if you choose, though the Provider may charge a fee for this.

2. What improvements will the Green Deal cover?

There are 45 measures or areas of home improvement approved to receive funding under the Green Deal, covering:

  • insulation
  • heating and hot water
  • glazing
  • microgeneration (generating your own energy).

For the non-domestic sector lighting, mechanical ventilation and heat recovery measures can also be covered. More areas may be added as technology develops.

3. Where can I get impartial information?

Independent advice services provide impartial advice around energy saving and the Green Deal, funded by the Department of Energy and Climate Change and the Scottish Government. These advice services currently refer customer into free and discounted insulation schemes but in future will be able to refer them to Green Deal Advisors and Providers.

The Green Deal is open to any household in England or Wales making energy saving improvements under the Green Deal, after 28th January 2013. Contact us now on (01983) 522144, or Click here for more information.