ABOUT THE GREEN DEAL

The Green Deal is an innovative financing mechanism that lets people pay for energy-efficiency improvements through savings on their energy bills.
Green Deal was launched in January 2013 and applies to both the domestic and non-domestic sector. It replaces current policies such as the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP).
The government has appointed a Green Deal Registration and Oversight Body. Part of their role is to register the organisations that are approved to deliver the Green Deal – Advisors, Providers and Installers.

How the Green Deal works

The Green Deal process has four stages:
Green Deal Assessment
This is carried out in your home or business premises by a Green Deal Advisor or Assessor, and may be subject to a charge. They will:

  • use standardised software to identify what energy efficiency or microgeneration improvements you can make and what the financial savings would be
  • outline how the payments will work
  • identify which improvements are likely to be cost effective
  • produce a Green Deal advice report outlining your options
  • declare any links they have with Green Deal Providers.

Finance
Once the Green Deal Advisor has given you your report, you can take it to one or more Green Deal Providers who can arrange and fund the improvements. 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.

Installation
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.

Repayment
You pay back the cost of the improvements over time through your electricity bill. Your electricity supplier will pass your payments on to your Green Deal Provider. The amount you pay back will be no more than a typical household will save on heating bills, so you are likely to be better off overall from day one.

Although the cost of the improvements is repaid, this is not a conventional personal loan as the charge is attached to the electricity meter in your house and paid back through your electricity bill. If you move out, the new occupant will pick up the charge while also benefiting from a more energy-efficient property.
Interest will be charged on these payments, but the rate will be fixed and you will be shown a full schedule of all the payments before you sign up to the plan. It is up to the Green Deal Providers to decide on the interest rate, so it will be worth shopping around to find the best deal. You will be able to pay off the plan early if you choose, though the Provider may charge a fee for this.

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FAQ'S | Green Energy Financing & Ofgem

The process for adding new measures to RdSAP (and as a result to the Green Deal) is called 'Appendix Q'. It enables the testing and verification of measures to ensure that they are able to reduce energy consumption. If they can, they can be modelled in the software, recommended during a Green Deal Assessment, and added to the list of eligible measures.
Yes, providing that the new supplier is participating in the Green Deal payment collection mechanism.
Yes. However, the current design of prepayment meters does not allow for the collection of the Green Deal payment as a standing charge, therefore the charge will be collected in the same way as arrears are collected.
The government has put in place a range of consumer protections including:
  • new accreditation and standards so customers can have confidence in those authorised under the Green Deal
  • strengthening cold-calling protections by introducing a cooling-off period of one day
  • only allowing cross-selling of products where the customer has agreed to this in advance
  • ensuring that assessors outline any commission they receive or ties they have to Green Deal Providers and disclose when they are moving from the impartial assessment stage to a sale
  • making Green Deal Providers offer minimum periods of mandatory cover: five years for warranties, 10 years for building damage cover and 25 years for cavity or solid wall insulation
  • comfort that the Golden Rule has to be met in all instances.
The Green Deal Finance Company is a private-sector consortium looking to provide Green Deal finance to a wide customer base. It has submitted a business plan to the government for investment but the service has not been procured by government. Members of the Green Deal Finance Company include British Gas, Carillion, Clifford Chance, E.ON, EDF Energy, Goldman Sachs, HSBC, Insta Group, Kingfisher, Linklaters, Lloyds Bank Corporate Markets, Mark Group, npower, PwC, RBC Capital Markets and SSE.
Green Deal packages can include energy efficiency, renewable heat and energy generation products together. However, you will not be able to use expected income from the Feed-in Tariff, for example, to help you meet the Golden Rule.Renewable Heat Incentive payments will be conditional on making 'Green Deal-able' thermal efficiency improvements to the property, so that renewable heat is not wasted.
No, there is no cap on the amount of finance a customer can receive through Green Deal, but the total amount available will be limited by the Golden Rule.
No, but the savings estimates used by Green Deal Providers to calculate the amount of finance they can offer a customer will be reduced by a set percentage (called an 'in-use factor'). This approach was also taken in the CERT Scheme. The in-use factors have been recommended by a team of experts and are different for each measure.

The Green Deal Booking Form:

If you are considering any green energy improvements to your home or business property then the first step to take is getting the Green Deal Assessment carried out, without this you will not be able to claim ANY of the lucrative Government grants!

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