WHAT IS THE GREEN DEAL?
The Green Deal is a financing mechanism that lets people in England and Wales pay for energy-efficiency improvements through savings on their energy bills with little or no up-front costs.
Under the Government’s Green Deal Scheme, households are able to get insulation, heating and hot water, draught-proofing, double glazing, micro-generation and more installed using Green Deal Finance, and repay the money in instalments via their electricity bill.
It was launched at the start of 2013, and aims to make home energy improvements accessible and affordable for millions of homes across the UK. Each measure you install should lower your household’s energy usage and could help you save money over time.
Homeowners could borrow all or part of the upfront cost of installing a range of specific improvements and pay for them over time through their electricity bill as the loan is attached to the electricity meter and not the individual.
To qualify for the Green Deal Finance, the repayments on your Green Deal Plan should be no more than the estimated savings you make on your energy bills as a result of installing the improvements. This is referred to as the “Golden Rule”.
BENEFITS OF THE GREEN DEAL
- Help make your home warmer, with lower energy cost.
- Little or no upfront cost to the home owner.
- Grants and subsidies are available through the ECO so early adopters may have some measures installed for free.
- Fixed rate Green Deal Finance means that your energy saving will increase with the inevitable rise in consumer energy cost.
- The “Golden Rule” ensures your repayments are less than the savings made by your new energy efficient installation.
- All Green Deal Providers, Assessors and Installers need to be trained, accredited and approved. This ensures the Green Deal will provide the highest level of consumer protection.