The Green Deal could enable you to install for example, insulation, new windows or a heating boiler with no or little upfront cost AND reduce your energy bills in the process.
An ECO subsidy upto 100% could be provided if you live in a home with solid walls and / or are over 70 and / or receive certain benefits.
Alternatively, a loan, increasing your mortgage or using savings, may be the best option for you. We will help you make an informed decision.
How the Green Deal works
Home owners and small businesses can arrange £10,000 or more of energy efficiency improvements.
45 different property improvements could be funded through a Green Deal. These include boiler upgrades, heating controls, double glazing and insulation (including solid wall insulation).
The Green Deal process is complicated but we can help you make an informed decision.
To take advantage of the Green Deal, property owners will have to get their home or business assessed by an accredited Green Deal Assessor (GDA) who will produce a Green Deal Report. A GDA must be contracted with a Green Deal Assessor Organisation (GDAO) or employed by or contracted to a Green Deal Provider (GDP).
Some GDPs will arrange asessments, quotes for the works, funding and installation. Others, won't To protect consumers against mis-selling and installation being offered in inappropriate circumstances, the GDA, GD installer and GDP are strictly accredited and monitored.
Customers may receive the GD assessment for free, the cost being added to the installation cost or absorbed as a cost of marketing. Others may charge and refund the cost, when the owners installs. The cost for an assessment could vary - currently between say £99 and £175. It may include or exclude VAT.
While the initial assessment and report must be impartial, the GDA will be able to 'switch hats' once the report has been produced and become a 'salesperson'. He/she may then try and persuade you to take out a Green Deal Plan with a GDP whom they work for or have a business relationship, with.
By law, GD assessments are portable and we encourage you to bring
your assessment to us. We will then do our best to get you a better offer.
Some owners may choose to pay for improvements out of savings, via a loan or increase their mortgage instead of arranging a Green Deal.
The ‘Golden Rule’
The Green Deal is designed to try and save homeowners and tenants at least as much money as they will have to repay.
Under the Golden Rule, the cost of installation must not exceed the deemed savings on energy bills over a period of upto 25 years. The estimated savings will be calculated using a Government approved software package.
Where the cost of improvement does not meet the Golden Rule, the property owner or tenant will have the option of paying some money in advance to reduce the cost of the works with the balance paid via a Green Deal. Certain measures such as solid wall insulation could be subsidised from energy suppliers under the Energy Company Obligation (ECO) thus reducing the cost to a level that meets the Golden Rule. The % of subsidy will vary so contact us and we will try to get you the maximum available.
Going ahead with a Green Deal
Once an owner or tenant has a Green Deal Assessment they can shop around for quotes and we encourage you to do this.
It will be the owner’s responsibility to ensure that all relevant permissions are secured including things like planning permission or in the case of rented property, the tenant’s approval to have the Green Deal charge added to their electricity bill. Failure to get these permissions will invalidate the Green Deal package and leave the owner footing the entire cost of works. We can help you with the paperwork involved and advise on likelihood of success..
Once the contract is signed with a GDP, the Green Deal charge will be centrally registered. This will ensure that, regardless of who supplies the electricity to the property, the charge will be added to the bill and the money passed over to the GDP.
The Green Deal charge must be notified in writing to any new tenant or owner of the property as part of the conveyancing process.
Under the Green Deal, energy bill payers will be able to get energy saving improvements made to their properties without having to pay for it, upfront.
Instead, Green Deal Providers (energy suppliers and retailers etc) will fund installation getting their money back via the bill payer's electricity bill. At the heart of the offer is the Golden Rule - estimated savings on bills must exceed the cost of the work.
Any home or business in Britain will be able to arrange an energy efficiency refurbishment of their property. The repayment cost will appear on the electricity bill as a Green Deal charge and will be secured against the property's electricity meter (not the occupier). So, if you subsequently decide to move or sell your property, the new tenant or buyer will be responsible for paying the Green Deal charge, not you.
There are a number of important consumer protections embedded into the Green Deal. These include:
1. The expected financial savings must be greater than the costs attached to the electricity bill, known as “the golden rule” of the Green Deal.
2. The measures installed must be recommended for that property by an accredited, Green Deal Assessor who has carried out an assessment under Government approved rules and regulations.
3. The measures must be installed by a Green Deal accredited installer.
4. The Green Deal Provider must provide finance within the terms of the Consumer Credit Act and take account of the individual circumstances of the applicant.
5. The Green Deal Provider must have consent from the relevant parties including the
express consent of the property owner and electricity bill-payer.
6. The presence of a Green Deal must be disclosed to subsequent billpayers (e.g. new owners or tenants) alongside energy performance information.
7. Energy suppliers must collect the Green Deal charge and pass it on within the existing
regulatory safeguards for collecting energy bill payments – including protections for
THE GREEN DEAL IS COMPLICATED BUT IT COULD OFFER YOU A WAY TO FUND HOME IMPROVEMENTS AT NO OR LITTLE COST.
We can help you through the process and if you would like to hear how, please get in touch.