Green Deal Scheme – Overview of the Initiative

What is the process?

Under the Deal there must be an Accredited Assessment which is likely to take the form of an Energy Performance Certificate. This assessment will show what improvements could be made to the property. If the improvements qualify for Green Deal Finance under the Golden Rule then an approved Deal Installer will undertake the improvement works. There is no upfront cost to the client and the repayments for the installation will be made through charges on the property utility bills.

What is the Golden Rule?

The Golden Rule is in two parts. First, the actual cost of installing the measure must be equal to or less than the potential savings that could be made from installing the measure. Second, the term of the repayments must be shorter than the expected product life. If the improvement doesn’t meet the Golden Rule then it will not qualify for the Green D Finance.

What is Green Deal Finance?

The Green Finance provides access to energy efficiency improvements at no upfront cost. If the improvement qualifies under the Golden Rule then the cost of the measure is paid back through savings made on the Utility Bill. These repayments will be form part of a charge levied over the property Utility Bills which will continue regardless of future owner or tenant, until the cost is repaid. The payments will be deducted by the Utility Provider and will be covered by the Consumer Credit Act. Before the Green Deal Finance can be agreed and the improvement installed express consent must be given by all interested parties, in particular the Utility Bill Payer.

What happens if the property is sold or let to a new tenant?

The charge on the Utility Bills through Deal Finance belongs to the property and the Utility Bill payer. Whoever is paying the bills will have to continue to pay the Green Deal Finance cost.

What improvements are likely to be available?

The improvements are likely to include insulation improvements, such as loft and cavity wall insulation; heating system changes, such as boiler upgrades; and renewable technologies, such as solar panels. Any improvements would have to be installed by a certified and approved Green Deal Provider who will be qualified installers for the product.