What is THE GREEN DEAL?

The Energy act 2011 includes provisions for the Green Deal. The act creates a financing framework that allows households and non domestic properties to obtain fixed improvements to a buildings energy efficiency that are paid for from savings in energy usage and collected through energy bills thus avoiding the need to pay upfront costs.

The Green Deal is the coalition government’s flagship climate change mitigation policy and is the primary mechanism through which the UK intends to meet its legally binding emission reduction targets set out in The Climate Change Act 2008.

The Green Deal will be delivered through a prescribed process simply illustrated below.

The responsibility for this process will lie with a Registered Green deal Provider. Whether the provider performs each task in house or sub contracts sections the customer’s relationship and responsibility for the Green Deal Plan lies with the Green Deal Provider.

The first part of the process involves an energy efficiency and usage assessment. This will be built on the current EPC certificate with an added usage assessment.

The recommendations from this assessment will then be used to form a Green Deal Plan. This plan will detail what energy efficiency measures can be installed and the savings they would provide. If the customer agrees this plan and they qualify for finance then the measures can be installed.

Once the measures are installed repayments in line with the schedule set out within the plan are collected from the customer’s electricity bill by the energy provider. These payments are then passed onto the Green Deal Provider or nominated finance provider.