Green Deal

Green Deal

The original Green Deal scheme ran from 2013 to 2015. This scheme was backed by the government and offered loans for making energy-efficient improvements to your home. The original scheme closed in 2015, but was offered again in 2017.

The difference between the two schemes is that the latest scheme is backed by private investors, instead of the government.

The scheme offers loans to make energy efficient changes to your home. Loans are available through the Green Deal Finance Company.

The scheme currently offers loans to make the following energy saving improvements to your home:

  • Insulation – this includes cavity wall, solid wall, loft and floor
  • Heating, hot water and lighting controls
  • Heating system insulation
  • Ground and air-source heat pumps
  • New or replacement boilers (condensing and biomass)
  • Fan-assisted storage heaters
  • Flue gas recovery
  • Draught proofing
  • Innovative hot water systems

How does it work?

The Green Deal is there to help people who want to make their home more energy efficient but lack the funds to do so.

Through the deal, you will be able to apply for a loan to cover the cost of insulation work. As with any loan, the amount you borrow (plus interest) will have to be paid back.

However, these loans different to bank loans or loans from other credit providers. The key differences are:

  • Repayments are made through your electricity bills.
  • Its ‘Golden Rule’ states that the amount of money saved on energy bills through the insulation measures must be greater than the amount repaid on the loan.
  • The Golden Rule does not mean that the amount you save on your bills will match how much you repay on the loan.
  • The loan is attached to the property, not the owner. If you move, the loan will pass to the new owner.
  • Interest rates do apply to the loans. The loans usually last between 10 and 25 years.

Can I still switch energy providers?

Taking out a Green Deal loan will not prevent you from switching to another provider in the future to take advantage of a cheaper energy deal.

If you change suppliers, your loan will still be in place and you will continue to pay it off as normal. However, your new supplier will become responsible for collecting your loan repayments and passing them onto The Green Deal Finance Company.

What happens if I move home?

Green Deal loans are attached to the property you live in and where the insulation measures are carried out. This means that if you have a Green Deal loan in place and decide to sell you home, the repayments on the loan will become the buyer’s responsibility.

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