the Green Deal
The Green Deal is a government sponsored initiative designed to enable householders and businesses to install a range of energy
efficiency improvements to their properties at no up front cost. Consumers will pay back the cost of such improvements through
the resulting savings in their energy bills.
At present there are around 45 energy efficiency measures on the government list such as loft and cavity insulation, energy efficient
glazing, innovative hot water systems, condensing boilers and controls, Solar PV, Solar Thermal, Heat Pumps and solid wall insulation
etc. A full list of the qualifying measures can be provided on
request, or by going to www.decc.gov.uk for more information.
Payment for the measures is made by way of a charge attached to
the electricity bill at the property and, unlike conventional loans, the charge is transferred to the new occupant should the original
occupant move from the property. The period of the loan will vary dependent on the cost of the measure/s and the rate of saving, but
could be up to 25 years.
At the heart of The Green Deal policy is the 'Golden Rule', which determines how much finance can be borrowed. Under the 'Golden
Rule' the amount of Green Deal finance that a Green Deal Provider can attach to the electricity bill is limited to the maximum amount
of savings that can reasonably be expected from the introduction of the measures. In other words the amount borrowed must not exceed
the amount of savings over the life of the loan.
If the amount of fuel bill savings is not enough to cover the cost of installing the measures the customer can opt to part-pay the
difference with their own capital, or a separate loan.
N.B. Renewable Energy products can qualify for additional government incentives which will contribute towards energy costs, but these
incentives cannot be included as part of the saving under The Green Deal.
There are three operational tiers leading to the introduction of energy efficiency measures at individual properties, these are:.
- Green Deal Provider
The Green Deal Provider is the organization that is in overall control of the provision of specific measures at
individual properties. They provide the finance and overall management of the provision of measures to the customer.
- Green Deal Advisor
The Green Deal Advisor has the job of assessing individual properties and advising which measures need to be undertaken
to bring it up to the minimum acceptable energy efficiency standard.
- Green Deal Installer
The Green Deal Installer is the installation company who carries out the energy efficiency measures that need to be installed.
For further information on The Green Deal please CLICK HERE and we will be in touch