What is the Green Deal?
The Green Deal is the new way to pay for energy-saving improvements for your home. You can take out a Green Deal loan to pay for energy efficiency improvements (referred to as measures) such as loft, cavity or solid-wall insulation, a new boiler or even a ‘micro-generation’ system, such as solar panels. The loan is repaid through savings you will make on your electricity bills. Your combined energy bills shouldn’t be any higher than usual. Once the loan is paid off you can take full advantage of the energy savings and feel the difference straight away.
You can save even more money by switching your energy provider. Don’t pay more than you need to for energy – use our independent switching service Whichdeal.com to find the cheapest gas and electricity tariff for your home.
See our Green Deal FAQs page for an explanation of all the Green Deal.
How do you get started?
Firstly we need to arrange for an accredited Green Deal Assessor to visit your home and conduct your assessment. The Green Deal Assessment is made up of two parts-
- An Energy Performance certificate (EPC) will need to be conducted on your property. Most homes have an EPC due to the need for them when buying and selling properties in the UK. However, there has been updates to the EPC calculation software early in 2015, which is why we need to complete a new EPC on each property. The EPC rates your property in terms of energy efficiency relating to the construction type.
- In the same visit, the assessor will conduct an Occupancy Assessment (OA). This is a survey to look at how you use energy in the home. This looks at how much you have spent on your energy bills in the last twelve months, how you heat your home and takes in to consideration behavioural habits that impact your energy consumption.
How is the Green Deal different?
In the past, insulation has been available free of charge or heavily discounted through schemes funded through everyone’s energy bills. The most recent of these free insulation schemes is the Energy Companies Obligation (ECO).
The Green Deal significantly differs from old energy schemes, as it involves a loan that is attached to your property, not you personally. The loan is paid back through your electricity bill and is attached to your electricity supply, rather than you as an individual. This means that if you move, it will pass on to your home’s next owner.
We explain how the Green Deal works in more depth, below – or you can go straight to the home improvements covered by the scheme.
Green Deal loans
The Green Deal loan is repaid through your electricity bill. The way the deal differs from a standard loan is that the repayments you’ll make on the loan should be covered by the savings you make from having the energy-saving home improvements installed. This system is known as the ‘Golden Rule’ – you should not pay back more in loan repayments than you are saving on your energy bill.
The range of available interest rates varies from provider to provider. However, the Green Deal Finance Company has published a list of example rates, on which the APR ranges from 7.9% to 10.8%, along with a one-off admin fee of £63 and an annual fee of £20 for each loan.
You will have to go through a credit-checking process to obtain a Green Deal loan. The benchmark for acceptance for a Green Deal Loan is set at 620. The government has stated that anyone who falls into arrears on their energy bills with a Green Deal loan attached, is protected by the obligations on arrears followed by energy suppliers. You must let your energy supplier know, and they will offer you advice and help work out a payment plan based on what you can afford.
For more details about Green Deal loans and alternative ways to pay for the Green Deal, visit our Paying for the Green Deal page.
Who can install Green Measures for you?
Only Organisations that have registered with the Department of Energy and Climate Change (DECC), and have been authorised and given a Green Deal Quality Mark, can become a Green Deal Provider or Installer and can help you arrange installation of measures through a certified installer. Green Deal installers are traders authorised to install energy efficient measures in your home.
The good news is, Enhance Energy will deal with locating the Green Deal Installers for you, and only use approved companies who have passed a rigorous on-boarding process with ourselves.
To have the measures installed under the Green Deal, a Green Deal Advisor (GDA) needs to visit your property to carry out an assessment to produce a Green Deal Advice Report (GDAR). Once the GDAR has been completed, Enhance Energy will advise you on how much Green Deal Finance is available in line with the Golden Rule.