The Green Deal was closed to new applications in 2015. We will update this page with details of a replacement scheme as more information is made available.
The Green Deal is a way for you to pay for energy saving improvements to your home. It provides you with a loan to have energy efficient technologies added to your property which you then pay back via your electricity bill. The idea is that your bill should in fact stay the same as before, thanks to the reduction in energy use created by the new measures. You would then start to make savings on your energy bill after you have paid off the loan. This is called ‘The Golden Rule’, but it is not a guarantee and it doesn’t take into account the actual amount of energy that you use.
The following are energy saving home improvements which are covered by the Green Deal:
A range of heating and insulation measures are also covered under the scheme.
How does the Green Deal work?
If you would like to use the Green Deal to get energy saving home improvements, first of all you must get a Green Deal assessor to visit your home. See the Department of Energy & Climate Change website to help you find a qualified assessor and/or Green Deal provider.
The assessor will examine your home’s use of energy and produce a Green Deal advice report which will consist of an EPC for your home (Energy Performance Certificate) and an Occupancy Assessment which examines how you use energy.
You can then take this advice report to a Green Deal provider, who will use it to draw up a plan of the improvements that could be added to your home and give you a quote for the work. In effect, this is a contract which outlines exactly what is to be done to your home, how much you will pay and for how long you will be paying it. The plan will also state the rate of interest you are to pay.
After you have agreed on the plan, an installer will fit the improvements to your home.
From this point on you will start to pay back the loan via your electricity bill. According to ‘The Golden Rule’ you should be paying no more than you were before the improvements were made and, after you have paid off the loan, you will start to save money on your energy bills.
Important things to know about the Green Deal
The Green Deal loan is tied to your property, not you. This means that if you sell your home, the debt will be taken on by the new owners.
‘The Golden Rule’ is not a guarantee. If you use very small amounts of energy, you could end have to pay back more than you save.
The loan repayments are a long-term commitment, so make sure you get a few quotes before agreeing to a Green Deal plan and deciding on a provider.