Green Deal

The 'Green Deal' is intended to revolutionise the energy efficiency of British properties. It will be the biggest refurbishment of Britain's housing stock to take place since World War II.

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The basics

The Green Deal is a government scheme which enables homeowners to install energy efficient home improvements without the upfront costs. The scheme gives a loan which is then repaid through your energy bill using the savings you make by using the improvement. The Green Deal operates according to a ‘Golden Rule’ which says that the repayments must never be greater than the savings you make. However, there is around 7% interest charged on the repayments which reduces your savings compared with if you had funded the installation yourself. It is hoped that competition in the market will drive this interest rate down, as at 7% the scheme isn’t great value compared to other borrowing services. It is, however, a good option if you have no other way of funding your improvement.

The Green Deal is now open for applications – you can get a Green Deal Assessment, the first step in the process, by contacting a Green Deal Assessor company in your area. You can find companies close to you and compare their assessment fees by visiting our Assessor Comparison pages. Anyone signing up for the scheme is also eligible to receive a one-off payment from the Green Deal Cashback Scheme which is offering £40m of incentives to kickstart the scheme. Payments vary from £10 – £650 depending on the type of improvement chosen.

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What is the Green Deal?
The Energy Bill introduced to Parliament on 8 December 2010 includes provision for the new 'Green Deal', which is intended to revolutionise the energy efficiency of British properties. The Government is establishing a framework to enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and to recoup payments through a charge in instalments on the energy bill.
Who is entitled to Green Deal Finance & Green Deal Grants?
It is understood that the Government will place no restrictions on who can apply for Green Deal Finance. Applicants current or past credit history will not be taken into account and applicants do not need to own their own home to benefit from Green Deal Finance as private tenants will be able to apply. More specific information is expected to be released soon.
How much will be made available via Green Deal Finance & Green Deal Grants?
Originally, the government suggested that around £6,500 will be available per home. However, the coalition government have hinted at that figure rising to around £10,000. Nothing is confirmed however, a home will only receive what is needed to sufficiently improve the energy efficiency.
Can I install the measures now and apply for Green Deal Finance at a later date?
There is no information is yet available regarding retrospective Green Deal Finance.
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