The Green Deal Explained
The Green Deal is a user-friendly, flexible framework which enables private businesses to offer consumers the opportunity to make energy efficiency improvements to their homes and businesses without the upfront capital costs.
Proposed by the Government, the Green Deal is aimed at improving the energy efficiency of the UK’s building stock, reducing carbon emissions and supporting the UK’s 2050 emission reduction target.
The Green Deal programme is not only providing energy savings measures to homes and businesses across the UK, but is also generating new job opportunities for both the skilled and unskilled labour force.
How Does The Process Work?
First of all the consumer contacts a Green Deal provider to request an assessment with an accredited adviser. The accredited adviser visit the property and undertakes a property assessment, they then report back to the Green Deal provider.
The Green Deal provider recommends a package of measures and costs appropriate to the consumer, and on agreement to the recommendations, the consumer seeks any necessary permissions before signing up to the Green Deal. If you are not the home owner or business premises owners, permissions will need to be sought from the landlord and, or, freeholder.
The Green Deal provider arranges for the agreed energy efficiency measures to be installed by an accredited installer. And on completion of installation, the Green Deal provider then informs the consumer’s energy supplier, who in turn updates their records and adds a charge to the consumer’s energy bill. At the same time the Energy Performance Certificates (EPC) register is updated by the Green Deal provider.
The consumer pays the energy bill, which now includes the Green Deal Charge. The energy supplier, who receives the Green Deal payment, then passes the equivalent monies back to the Green Deal provider – who at this point receives payment. Once the energy improvements have been paid for the Green Deal Charge is no longer applied to the energy bill.
Does It Pay?
YES. The way that the Green Deal is structured and accredited means that the total cost of the measures must amount to LESS than the estimated energy efficiency savings, and that the pay-back period must not exceed the length of time the improvements last. What’s unique about the Green Deal is that the financial obligation remains with the property and NOT with the consumer – there are no costs to the consumer once they stop receiving the benefits in energy reduction.
The ‘Golden Rule’ of the Green Deal set out by the Government states: ‘The expected financial savings must be equal to or greater than the costs attached to the energy bill.’