What is the Green Deal Scheme?

“The Green Deal will be quite simply Britain’s most ambitious home improvement programme ever” – Greg Barker – UK Minister of State for Energy and Climate Change

A green deal plan is part of the green deal scheme. The UK Government has launched the UK Green Deal Scheme. The Green Deal Scheme will make it possible for millions of home and business owners to have energy efficient improvements installed in their properties at little or NO UP FRONT COST to the owner, tenant or landlord.

The UK Government are giving up to £1000 in CASH BACK incentives for the first 125,000 households that take up a Green Deal Please CLICK HERE for more info

The UK Green Deal Scheme will enable energy efficient improvements such as: cavity wall insulation, loft insulation, solid wall insulation, condensing boilers, double glazing, floor insulation, solar panels, photovoltaic PV panels, ground source heat pumps, electric storage heaters or wind turbines, amongst many others, installed in the property (for a list of some of the 45+ eligible improvements please CLICK HERE).

The Green Deal UK Scheme will be open to everyone. You may even be able to get Green Deal council tax discount. A discount on your council tax for having a Green Deal done on your home or business (to be confirmed)

The UK Green Deal is NOT means tested. The Green Deal Finance debt will be attached to your property’s electricity bill and not to you or your property. If you move the debt stays will the property’s electricity bill as is not attached to you and will not be a charge against the property.

The Green Deal UK scheme will enable Green Deal providers, such as private firms, councils and charities, to offer these energy efficiency improvements by offering Green Deal Finance, of up to approx. £10,000. Pay back for the UK Green Deal improvements, in accordance with your Green Deal Plan, will be recouped by instalments, over 25 years or less, from a charge made on the home or energy electricity bills. The Green Deal debt will NOT be attached to you or your property.

In other words and as an example: You install more loft insulation, replace your old boiler, get your cavity walls insulated and install a room thermostat and thermostatic radiator valves then your energy bills should be lower because your running costs/heating bills will be lower because you have added extra energy efficient improvements. You would then be able to use the money you have saved on your lower energy bills to pay back your Green Deal Finance. You may have to pay towards some improvements yourself (say for example glazing, boilers, solar panels etc) if they do not fully meet the “Golden Rule”. Note: Your gas bill should fall due to energy measure installed but your electrcity bill will rise (but at a lesser amount) to enable repayment of the Green Deal Finance. This will be illustrated by your green deal plan.

  • Green Deal finance is NOT like a personal loan – the Green Deal Finance debt will be attached to the property’s electricity bill. The debt will NOT attached to you and will NOT attached to your property. If you move house, repayments for the Green Deal finance will be recouped, by instalments, from a charge on the new occupier’s electricity bill – after all, the new owner will also be benefiting from the work you have had done.
  • Installations under the Green Deal UK scheme, both domestic properties and commercial properties, will all have to meet a single key principal: The expected savings must be greater than the cost of the work being done – this is known as the “Green Deal Golden Rule”. The Green Deal Plan and Green Deal Code also covers Green Deal Scotland and Green Deal Wales. Please refer to Green Deal DECC website for more details.

How Do I Apply for the Green Deal UK Scheme?

Step 1 of the Green Deal UK scheme:

Instruct a Green Deal Advisor

A Green Deal Advisor will perform a Green Deal Assessment on your home or business property (Please always check if the company will charge you up front). Based on your current lifestyle / energy usage the Green Deal Advisor will be able to give Green Deal advice and recommendations. After Green Deal Advice has been given the Green Deal Advisor will produce a Green Deal Report. (Please always check if the Green Deal Advisor will be paid commission on any sales made to you after you receive impartial Green Deal advice from them)

Your Green Deal Plan will then be created. Green Deal energy efficient improvements are said to include: Cavity wall insulation, loft insulation, solid wall insulation, floor insulation, draught proofing, boiler upgrades, double glazing, solar water panels, wind turbines and ground source heat pumps (note: some improvements may have to be part funded by you if they do not meet the “Green Deal Golden Rule” ) There will be a 24 hour cooling off period before you sign up for any Green Deal plan.

Step 2 of the Green Deal UK scheme:

Instruct a Green Deal Provider

Based on your Green Deal Report a Green Deal Plan will be formulated. You will have a cooling off period. If you wish to continue with your Green Deal Plan then you can instruct a Green Deal Provider. Your Green Deal Plan is fully portable – you can choose your own Green Deal Provider, you DO NOT have to use your present electricty suppliers as a Green Deal Provider. Your Green Deal Plan will be fully portable. It is the role of the Green Deal Provider to give you access to up to approx. £10,000 of Green Deal Finance. The Green Deal Provider will help you understand how the Green Deal Finance will work for you, how your home or business property will qualify the Green Deal Finance and how it will be paid back.

Step 3 of the Green Deal UK scheme:

Instruct a Green Deal Installer

Once your Green Deal Provider has your Green Deal Finance in place a Green Deal Installer can then be instructed. Your Green Deal Plan is fully portable – you can select your own Green Deal Installer. The Green Deal Installer will fit the pre-agreed Green Deal energy efficiency recommendations, in accordance with your Green Deal Plan. The Green Deal Installer will be paid directly by the Green Deal Provider using your Green Deal Finance.