GREEN DEAL Explained
The Green Deal is an innovative financing mechanism that lets people pay for energy-efficiency improvements through savings on their energy bills.
Green Deal launched in January 2013 and applies to both the domestic and non-domestic sector. It has replaced policies such as the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP).
The government has appointed a Green Deal Registration and Oversight Body. Part of their role is to register the organisations that are approved to deliver the Green Deal – Advisors, Providers and Installers. To find an assessor in your area go to: Green Deal: energy saving for your home or business
How the Green Deal works
The Green Deal process has four stages:
This is carried out in your home or business premises by a Green Deal Advisor or Assessor. They will:
• use standardised software to identify what energy efficiency or microgeneration improvements you can make and what the financial savings would be
• outline how the payments will work
• identify which improvements are likely to be cost effective
• produce a Green Deal advice report outlining your options
• declare any links they have with Green Deal Providers.
There will generally be a charge for the assessment. You may have to pay this up front, or you may be able to pay it off over time as part of the finance package.
Once the Green Deal Advisor has given you your report, you can take it to one or more Green Deal Providers who can arrange and fund the improvements. If you decide to take up a Green Deal offer you will then sign a Green Deal Plan, which is a contract between you and the Green Deal Provider.
The Green Deal Provider will arrange for a Green Deal installer to come and carry out the work you have agreed to. The installer will have been vetted to ensure they meet the standards set out for the Green Deal.
You pay back the cost of the improvements over time through your electricity bill. Your electricity supplier will pass your payments on to your Green Deal Provider. The amount you pay back will be no more than a typical household will save on heating bills, so you are likely to be better off overall from day one.
Although the cost of the improvements is repaid, this is not a conventional personal loan as the charge is attached to the electricity meter in your house and paid back through your electricity bill. If you move out, the new occupant will pick up the charge while also benefiting from a more energy-efficient property.
Interest will be charged on these payments, but the rate will be fixed and you will be shown a full schedule of all the payments before you sign up to the plan. It is up to the Green Deal Providers to decide on the interest rate, so it will be worth shopping around to find the best deal. You will be able to pay off the plan early if you choose, though the Provider may charge a fee for this.
Details of the Green Deal
How do I apply for a Green Deal?
The first step in getting a Green Deal is to have an assessment carried out on your property. A Green Deal Assessor or Green Deal Provider can arrange this for you. You can search for Assessor and Provider companies operating in your area by going to gov.uk/greendeal, or you can phone Home Energy Scotland on 0808 808 2282.
What improvements will the Green Deal cover?
There are 45 measures or areas of home improvement approved to receive funding under the Green Deal, covering:
• heating and hot water
• microgeneration (generating your own energy).