Green Deal

What is a Green Deal?

The Green Deal is part of a Government initiative aimed at helping homeowners and businesses make energy-efficient improvements to their property. By reducing the carbon footprint of British homes through a reduced demand for energy, these measures have the added benefit of cutting energy bills.

How does the Green Deal work?

While the average British homeowner is aware of the benefits of an energy-efficient property, the cost of upgrades can be a major barrier. As a solution, Green Deal Providers will cover the upfront costs of any recommended upgrades – including insulation, heating and renewable energy – with homeowners making repayments through savings on their energy bills.

How do I qualify?

To qualify for the benefits of the Green Deal, an approved assessor will need to survey your property and provide a set of recommendations designed to increase its energy efficiency. This will be based on the structure of your property as well as your typical patterns of energy usage.

Collated as a Green Deal Advice Report, these recommendations will indicate whether upgrades and installations would be beneficial. If so, your Green Deal Assessor will use these findings to prepare a Green Deal Plan.

A Green Deal Plan will only be offered if the recommended changes are likely to make a significant difference to the energy efficiency of your property. If this the case, your plan will outline the changes that will be made to your property, and how the cost of this will be repaid to your Green Deal Provider via your energy bills.

What Products are Included?

The Green Deal includes the products recommended in your Green Deal Advice Report. This may encompass:

  • Upgrades to your heating, such as heating controls, condensing boilers, under floor heating and biomass boilers
  • Insulation measures including double glazing, roof and loft insulation, cavity wall insulation, sealing improvements and draught-proofing
  • Renewable energy technologies
  • Money-saving products such as solar PV, micro wind generation and lighting systems

The specific products advised will vary from property to property: your Green Deal Assessor will be able to explain the recommendations for your home in further detail.

How do Repayments Work?

Under the Green Deal, the upfront costs for any upgrades or installations will be made on your behalf. These costs will then be recouped by the property owner via your energy bills over a period of time, and in line with the savings you are making. This loan will be subject to interest, but at a specific fixed rate as outlined in your Green Deal Plan. Your energy company will pass the payments on to your Green Deal Provider, so the process is seamless for you.

The repayments for any Green Deal improvements are attributed to a property, and not an individual. If you move home, the energy-efficiency benefits will remain with the property, as will the loan. As a result, the new owners will continue to pay until the full amount has been recouped.

To get started, a British Gas Green Deal Assessment costs £99. Answer to common questions can be found on the Energy Saving Trustwebsite.