What is the Green Deal?
The Green Deal aims to improve the energy-efficiency of homes and businesses by allowing energy improvements to be installed at no upfront cost. Instead, you pay for the improvements over time through your electricity bill. The repayments cannot exceed the amount you are expected to save on energy costs, so there should be no increase in your bills as a result of taking out a Green Deal Plan.
A Green Deal Plan is linked to the property, not to any individual: if you move out, the next bill-payer will become responsible for the repayments. This means that you can safely make improvements without tying yourself to the property.
All properties are eligible for the Green Deal, regardless of whether they are owned or rented. And credit check thresholds for Green Deal finance are lower than average (source: Green Deal Finance Company), meaning that the Green Deal should be accessible to most.
Why has the Green Deal been introduced?
The Green Deal is a Government-led initiative that aims to retrofit 14 million homes by 2020, cutting CO₂emissions by 29% in housing and 13% in workplaces (source DECC). It is a core part of the Energy Act 2011, enacted on 18th October 2011.
The Green Deal is a great opportunity for homeowners, tenants and businesses to improve the energy-efficiency of their property and cut their running costs, while contributing to a 'greener' future for the UK.
What improvement measures are covered?
Click here to see a list of the measures that are covered under the Green Deal. During a Green Deal assessment, a Green Deal Advisor will determine which measures are Green Deal eligible and work with you to decide which are the most suitable for your property.
How does the Green Deal work?
- In order to get a Green Deal for your property, you must have a Green Deal assessment undertaken by a qualified Green Deal Advisor working for a certified Green Deal Assessor Organisation. The assessment will identify improvement measures that are suitable for the property, highlighting measures that will be eligible for the Green Deal and/or ECO, and the Advisor will agree a suitable package of measures with you. (In rental properties, both the landlord and tenant's permission are required before a Green Deal assessment can be carried out.)
- You can then find a Green Deal Provider to arrange a Green Deal Plan. The Green Deal Plan will include:
- A quotation for the agreed package of measures, including products and labour.
- An agreed repayment schedule. The repayments cannot exceed the predicted savings, and the full term of the plan cannot exceed 25 years.
Once the Green Deal Plan is accepted, a contract is in place between the Green Deal Provider and the current bill-payer, which will be transferred to any subsequent bill-payers.
Many Green Deal Advisors will have links with Green Deal Providers, and may even be able to provide an on-the-spot Green Deal quotation. If an Advisor is working with a specific Green Deal Provider they will inform you of this, and declare any commission they might receive; meanwhile your Green Deal assessment remains completely impartial and is undertaken using a standardised methodology set by Government (e.g. RdSAP for domestic properties). Stroma Certification’s RSAP+ software is based on RdSAP and allows an Advisor to undertake a domestic Green Deal assessment, check whether you might qualify for a grant under the Energy Company Obligation, prepare a tailored quotation, and even progress your application for Green Deal finance, all whilst in your property.
The measures will then be installed by a Green Deal Installer, which holds Green Deal certification. This will ensure that the installed measures are quality-assured and will deliver genuine CO₂ and energy savings.
- The Green Deal charges are attached to the electricity bill for the property and collected by the energy supplier on the Green Deal Provider's behalf. If you move out, the responsibility for repayments will transfer to the next bill-payer, who will benefit from the energy savings due to the improvement.
Why not use Stroma's web-based 'Calculate my Green Deal Potential' widget? In less than five minutes you can obtain an energy report for your property, based on basic information collected about the building and how you use it.
How can I get a Green Deal?
The first step to find a Green Deal Advisor through a Green Deal Assessor Organisation (GDAO); Stroma Certification is a certification body for GDAOs and you can find one in your area using this page.
Still confused or unsure about the Green Deal and ECO? You can browse the Green Deal area of our site for lots of further information.
Free, impartial energy-saving advice is also available from the Energy Saving Advice Service, operated by the Energy Saving Trust. You can call them on 0300 123 1234 (calls are charged at the standard national rates), or access information online by visiting www.energysavingtrust.org.uk.