The Green Deal

A new government initiative aimed at you

The Green Deal is the new government initiative aimed at supporting wider introduction of energy efficiency and renewable energy technologies into the home. It’s officially due to start on the 1st October 2012. The Green Deal enables homeowners and tenants to choose energy efficiency and renewable energy technologies for their home, and pay nothing for them up front. Instead, it is intended that the cost of supply and installation will be paid for over a period of time out of the savings made.

Importantly, the Green Deal agreement is tied to the house where the technology is installed, so if someone sells their house or moves, then the new tenants or owners will take on the ownership of the cost for the remaining period.

Only authorised Green Deal companies such as AHS can provide Assessments and Install products under the scheme.

A new Energy Company Obligation (ECO) for disadvantaged groups and hard-to-treat homes will integrate with the Green Deal, allowing an energy supplier subsidy and Green Deal Finance to come together into one seamless offer to the consumer.

This means that some measures, such as solid wall insulation which is classes as ‘hard-to-treat’, may be completely free of charge to the homeowner.

Who can Apply for the Green Deal?

The government wants the Green Deal to be available to almost everyone. They want the scheme to be available throughout the country, in every region, and to be easily accessible to all. This means that it is available to homeowners and also tenants. If you are a tenant, you will be able to apply, but will need the consent of your landlord. Businesses of all sizes will also be able to apply for the Green Deal without having to pay an upfront fee.

The Green Deal will be known as a finance plan and will be attached to the property where the improvements have been undertaken. It is not a personal loan and is not means tested, so the applicant will not need to undergo a credit rating assessment when they apply.

What the Green Deal entails

All Green Deal customers will benefit from a comprehensive and impartial assessment of their property, and will be able to shop around between different offers in the market place. Customers can use the new Green Deal finance to pay for the energy efficiency measure up to the limit of the “golden rule” or the can use it alongside their own investment where they want other improvement measures which are not expected to generate savings on their energy bill.

What’s the Green Deal Golden Rule?

The “Golden Rule”, set out in legislation, specifies that any charge attached to a customer’s electricity bill via the installation of Green Deal measures must be less than the expected savings from the improvement (over its lifetime, which in some cases can be up to 25 years).

Of course, not every measure will necessarily pay for itself over its lifetime. In such cases the building owner will be able to contribute to some of the cost to ensure that the Golden Rule can be met. However, some homes and businesses, (such as low income and vulnerable households and hard-to-treat buildings) may be able to get ECO funding to substitute any shortfall, or fund the retrofits entirely.

How does Green Deal work?

We will undertake a home visit as an accredited Green Deal assessor, and examine your home and provide recommendations for the best home improvements to help lower your energy bills. If you are interested in proceeding with their recommendations, you will be offered a quote for a Green Deal Plan. Our Green Deal Assessor will spend around two hours taking a complete look at both the energy efficiency of your home and how you use energy. The survey will help you understand your home’s energy efficiency, assess how you and the people living there use it and recommend energy saving improvements that are right for your home

What your Green Deal Assessment contains:

Green Deal Advice Report

Following the assessment, the same certified Green Deal Assessor will provide you with a Green Deal Advice Report with detailed findings of your Green Deal Assessment along with an Occupancy Assessment and an Energy Performance Certificate (EPC). Your Green Deal Advice Report is fully portable meaning you can use these with any Green Deal Provider

Energy Performance Certificate

An Energy Performance Certificate (EPC) allows you to understand your home’s current energy efficiency performance by measuring the energy use and carbon dioxide emissions and giving you a rating (A – G).

How You Use Energy

The Occupancy Assessment looks at how the people living in your home use energy, compared to a typical household. Using standard measures, the Green Deal Advisor will rate your energy use as low, typical or high. To do this the assessment will take into account information about your heating, hot water, appliances and lighting.

Green Deal Plan

Your certified Green Deal Assessor, with your permission, will establish if a Green Deal Plan is right for you and then provide a quote for the products recommended in the Green Deal Advice Report. The combination of products on your Green Deal Plan will be based on the recommendations from your certified Green Deal Assessor. Only a Green Deal Provider can offer you a Green Deal Plan.

The Green Deal Plan will form the basis of your install journey and repayment plan which includes the fixed interest rate. For added peace of mind Green Deal Plans fall under the Consumer Credit Act 1974.

Install with peace of mind

When you install with a certified Green Deal Installer you do so safe in the knowledge that they meet Green Deal standards and are authorised to operate under the Green Deal. The improvements will have to be recommended by a Green Deal Assessor and you have understood how they will be paid for. Look out for the Green Deal Quality Mark. Only accredited Green Deal Assessors, Providers and Installers can use it.

Key benefits

• Pay as you save – energy savings should be greater than the cost of your improvements.
• As much as £1000 cash back – for a limited number of households
• Expert impartial advice – based on saving advice from a certified Green Deal Assessor.
• Install with peace of mind – with Green Deal approved installations.