The Green Deal

In early 2013, a new initiative was launched, which the Government hope will improve the UK’s aging housing stock and cut energy bills nationwide.

The Green Deal is the Government’s new mechanism for improving the energy efficiency of UK homes.

The aim of the scheme is to encourage companies to carry out energy efficiency or renewable energy measures on domestic or business properties with no up-front cost to the homeowner and without increasing the cost of the fuel bills.

Instead, approved companies will be able to install one or more energy efficiency measures, the cost of which is then recovered from future electricity bills using the financial savings from the energy efficiency improvements the householder has made.

At the heart of the Green Deal is the Golden Rule.

The Golden Rule is the rule which decides what measure or measures can be installed on a business or home. The principle is that the monthly bill savings from installing the measure should always be greater than the repayment on the finance.

The debt is not personal. Rather the charge is tied to the electricity meter at the property. Therefore people will only ‘pay’ through their fuel bills if they’re benefitting from the measures – they won’t take the charge with them if they move out.

There are four steps to the Green Deal process – which you can find out about here.

To find out what measures are available to be installed under the Green Deal, see here.

Alongside the Green Deal, something called the Energy Company Obligation, or ECO, was also launched. This is a requirement of the six main energy suppliers in the UK to fund works that reduce the amount of carbon produced and the fuel bills in domestic customer’s homes.

If you're in receipt of certain benefits, live in a home with solid walls or which is difficult to insulate, or you live in a specific part of the country which is recognised as being in need of support, then get in touch with Warm and Well.