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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 launches this autumn and applies to both the domestic and non-domestic sector. It will replace 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 Green Deal Advisors, Providers and Installers. (There is no longer any need for manufacturers to register products and systems that will be installed under the Green Deal.)

Apply for a Green Deal

The Green Deal process has four stages:

Assessment by GD advisor, Finance by GD provider, Installation by GD installer, Repayment through electricity supplier, all overseen by GD registration and oversight body.


This is carried out in your home or business premises by our Green Deal Advisor or Assessor. They will:

  • use standardised software to identify what energy efficiency or micro-generation improvements you can make and what the financial savings would be outline how the payments will work
  • ensure that the improvements identified meet the Golden Rule: the payments made for the improvements cannot be higher than the estimated energy bill savings they will make
  • declare any commission they may receive for carrying out the assessment and any links to Green Deal Providers.


Once our qualified DEA and GDA Advisor has carried out the assessment, they will outline a range of packages available from Green Deal Providers to 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.


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.


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 covered by the reduction in your energy costs as a result of the energy saving improvements you have made.

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. The Green Deal Finance Company expects an interest rate of 6 to 8% but this is down to Providers to set. Green Deal Providers may also charge an early repayment fee for plans that are over 15 years but must disclose any fee to you up front.

Details of the Green Deal

What improvements will the Green Deal cover?

There are 45 measures or areas of home improvement approved to receive funding under the Green Deal, covering:

  • Insulation
  • Heating and Hot Water
  • Glazing
  • Micro-generation (generating your own energy)

For the non-domestic sector lighting, mechanical ventilation and heat recovery measures can also be covered. More areas may be added as technology develops.

Incentives to kick-start the Green Deal

The Government have recently announced the Green Deal Cash back Scheme, an incentive to encourage people to make improvements during the early days of the Green Deal. Eligible customers will receive cash back payments once they have measures installed, with the highest rates going to the earliest applicants.

Where can I get more information?

Independent advice services will provide impartial advice around energy saving and the Green Deal, funded by the Department of Energy and Climate change . These advice services currently refer customer into free and discounted insulation schemes but in future will be able to refer them to Green Deal Advisors and Providers.