The Green Deal

What is is?

As part of its ambitious target to reduce carbon emissions in the UK by 80% before 2050 the Government is to introduce the Green Deal in Autumn 2012. It is aimed at improving the energy efficiency of homes by creating a new financing mechanism to allow a range of energy efficiency measures to be installed in people’s homes at no upfront cost.


How is it run?

From autumn 2012, participating energy utility companies and accredited retailers such as Tesco, B&Q and Marks & Spencer will provide customers across the UK with quality-assured work to their homes, businesses and community spaces for no upfront cost, and without loans or advance finance.The full cost of the measures will be recovered through instalments on the energy bill over several years, and because the Green Deal is not a personal loan or an advance payment scheme, there is no obligation to continue paying the instalments if you move house.

How does it work?

  • The expected financial savings must be equal to or greater than the costs attached to the energy bill, known as “the golden rule” of the Green Deal
  • The measures must be approved and the claimed bill savings must be those accredited through this process.
  • The measures installed must have been recommended for that property by an accredited, objective adviser who has carried out an assessment
  • The measures must be installed by an accredited installer
  • For householders, the Green Deal provider must give appropriate advice within the terms of the Consumer Credit Act and take account of the individual circumstances of the applicant.
  • The Green Deal provider must have consent from the relevant parties, including the express consent of the current energy bill-payer.
  • The presence of a Green Deal must be properly disclosed to subsequent bill payers (e.g. new owners or tenants) alongside energy performance information.
  • Energy suppliers must collect the Green Deal charge and pass it on within the existing regulatory safeguards for collecting energy bill payments – including protections for vulnerable consumers

 What technologies will be available under the Green Deal?

It is not yet certain exactly what energy saving technologies will be inculded in the Green Deal. This will become clearer nearer the launch date. However, download the PDF table below to get an idea of those technologies likely to be included.