Green Deal

The Green Deal is a new and innovative scheme from the Government which aims to encourage individuals and businesses alike to invest in energy efficiency measures and green technologies to help reduce the UK’s carbon emissions, and to reach the national targets for the use and production of Renewable Energy.

Put simply, the Government is establishing a framework to enable consumers to improve energy efficiency within their homes, community spaces, and businesses at no upfront cost. The investment will be recouped via payments through an instalment charge on your energy bills (which will be reduced by technology you will have installed.) 

The Golden Rule of the Green Deal states that the costs of the improvements must not be greater than the benefit of the savings.

The improvements that are eligible under the Green Deal range from Boiler replacements, heat system upgrades, insulation measures as well as lighting upgrades and Renewable Technologies. (A more detailed list is provided below).

Customers may also be entitled to ECO funding in conjunction with the Green Deal of which more information is provided below.

How Does the Green Deal Work?
The green deal process begins at the consumer requesting a green deal assessment which will be available from one of our many qualified advisors in which a detailed energy performance assessment will be performed and calculated in order to offer the consumer a tailored energy saving solution for the property.  

The consumer can then choose from a range of shortlisted Green Deal measures and packages to be installed at their property for which financing is arranged on behalf of the customer by a Green Deal provider. Where there is also access to ECO funding, consumers will be advised on their eligibility for a free grant in conjunction with Green Deal financing. 

Once the measures and the financing terms have been agreed an installer carries out the works and signs the work off to an assessor who then carries out a revised energy performance certificate with the new Green Deal Measures taken into account. After 14 days the bill payer can then be billed for the Green Deal charge and the consumer pays through their utility bill.

How Can I Get Involved in the Green Deal?

Duncan Renewables will provide many services under the Green Deal as an accredited installer of a large range of measures available, as well as providing  a Green Deal Assessment service and arranging financing with our green deal provider partners. 

How is the Green Deal Paid?
The Green Deal is paid for by the consumer through their electricity bill. The payment is clearly separated on their bill under the Green Deal payments allowing for customer transparency. The cost of the measures is linked to the meter of the property and not the person, therefore if the current resident moves house the green deal payments stay solely with the property and the next person to move into the property would then pick up the green deal charge. 

It is worth noting however that with the Golden Rule the green deal charge should never be more than the savings made by the measures installed.   

What is the Golden Rule

The Golden Rule of the Green Deal states that the costs of the improvements must not be greater than the benefit of the savings made. If the cost of the measure is higher than the estimated savings it will not be eligible for the green deal. It is for this reason that the green deal assessment must be carried out by a certified and impartial Green Deal Assessor.

Will the Green Deal provide full financing for the advised measures?

Not all measures will be entirely funded under the Green Deal. This does not mean however that they are not available. Those measures that are not eligible for full financing may be made up by the participant through other means such as their own reserves. Some measures will also be eligible for an additional ECO grant.

What is ECO?
The Energy Company Obligation is available in conjunction with the Green deal in which some consumers will be eligible for a government grant as well as financing. This grant is mainly available for more vulnerable/low income households or properties that are hard to treat.

Feed In Tariff/RHI Eligibility
The Feed in Tariff and the Renewable Heat Incentive will be eligible and available to Green Deal participants; the incentive payments received however must not contribute to the Golden Rule.  

Is the Green Deal Available for Landlords/ Tenants?
Yes but both Landlords and Tenants’ will need to consent to the measures proposed. It is most likely that landlords would take advantage of the initiative during a vacancy period when they tend to carry out other maintenance work. 

Why would a customer be attracted to the Green Deal?
The Green Deal is an excellent opportunity for both domestic and non-domestic applicants to finance energy efficiency measures at no up-front costs, finance rates are highly competitive and linked to the property meter, not the individual providing a high degree of safety and assurance for the customer that the payment is only their responsibility for as long as they occupy the premises the green deal is attached to. 

Is the Green Deal Available Now?
For Domestic Customers the Green Deal will be available for ‘soft-start’ from October for which only a select handful of cities across the UK have been chosen to trial the scheme. The proposed date for the full initiation of the Domestic Green Deal is January 2013 with the Non-Domestic scheme following shortly in spring 2013. 

Improvements Supported by the Green Deal:

• Solar Photovoltaic (PV) Installation
• Solar Thermal Water Heating
• Ground Source Heat Pumps
• Air Source Heat Pumps
• Biomass Boilers
• Biomass Room Heater (with radiators)
• Hot Water Cylinder Insulation
• Cylinder Thermostats
• Micro Combined Heat & Power
• Oil-Fired Condensing Boilers
• Flue Gas Heat Recovery Devices
• Heating Controls (for wet central heating system and warm air system)
• High Efficiency Gas-Fired Condensing Boilers
• High Efficiency Replacement Warm Air Units
• Lighting Systems, Fittings & Controls
• High Thermal Performance External Doors
• Internal Wall Insulation
• Loft or Rafter Insulation and Loft Hatch Insulation
• External Wall Insulation
• Mechanical Ventilation with Heat Recovery
• Energy Efficient Window Glazing
• Roof Insulation
• Room in Roof Insulation
• Cavity Wall Insulation
• Draught Proofing
• Fan-assisted Replacement Storage Heaters
• Under-Floor Heating
• Under-Floor Insulation

Further information on the Green Deal is available on the DECC website

Get in touch and one of our advisors will be happy to discuss your needs

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