Green Deal

The Green Deal will provide householders with finance to carry out energy efficiency improvements to their properties which will then be repaid through their energy bill. A Green Deal charge will be added to the electricity meter of the property but the 'Golden Rule' will mean that the repayments will be less than the savings made from the energy efficiency improvement. 


John's current energy bills are £120 per month. He decides to use the Green Deal to install External Wall Insulation on his property, costing £9000. The cost is spread out over 25 years, so John only pays back £30 a month. The External Wall Insulation helps to keep heat in so John's home is warmer and he doesn't need to turn his heating on as often. His energy bills therefore drop from £120 to £80 per month. John pays back the additional £30 for the insulation, so his monthly energy bill is now £110 per month, which is still £10 less than before. The Golden Rule makes sure that the money he pays back for the insulation is less than the savings he is making on his energy bills.

The Green Deal will be attached to the household meter, not the person living in the property - so if you take out a Green Deal and decide to move home it will be the responsibility of the next person living in the property to continue making the repayments through their energy bill. If you are a tenant, you will need to ask permission from your landlord before you sign up for a Green Deal package. 

What is ECO?

The ECO (Energy Company Obligation) requires energy companies to help low income and vulnerable householders who require more financial assistance than just the Green Deal.   This will include free heating and hot water saving measures, glazing and insulation for vulnerable and low income householders and those living in solid wall properties

How will I apply for the Green Deal?

The Green Deal is coming into effect in Autumn  2012. When it is launched, you can ask for a registered Green Deal advisor to visit and assess your home to see whether your property is suitable for energy improvement measures. If so, the advisor will use special software to show you the cost of these measures, and how much money you could save on your energy bill. Your advisor will ensure that the 'Golden Rule' applies, so that the amount you pay back will not be more than the money you will save on your energy bill. 

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.

For further information visit the following websites: 

Energy Saving Trust

Department for Energy and Climate Change (DECC)