Green Dale

How Will Green Deal Work?

The Green Deal is designed to help consumers improve the energy efficiency of a property using a “no cash up-front” finance package to access building upgrade measures that otherwise might not be possible. By utilising the framework domestic and business consumers would have an assessment done on the property which could help to identify potential energy-saving improvements that could be made. Once completed, the improvements will help to save energy and reduce the Carbon Footprint of the property and through the Green Deal Finance, the cost of the measures should be recovered via the utility bills of the property

For consumers that are renting or living in Social Housing they will need to get the landlords/Housing Associations permission, likewise for landlords and Housing Associations applying.

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It is expected that the customer process for accessing the Green Deal will be as follows:

  1. Consumer expression of interest through promotion. An individual could be alerted to the Green Deal offer by a variety of organisations including a local installer, home improvement store, a supermarket, local council, estate agent, landlord, a local community group or an energy company. The consumer will express interest in the Green Deal and look to start the Green Deal process. It should be clear that there is no commitment or obligation expected from the consumer at this stage and that any advice given will adhere to a strict code of practice.
  2. Accredited Assessment. One of the prerequisites for a Green Deal plan is for the consumer to have a property assessment by an accredited adviser. The adviser would visit to assess the energy performance of the property and advise on the relevant opportunities for energy efficiency improvements, the consumer can choose to have all the improvements or a select few. They might also make recommendations on energy-saving behaviour. Advisers will draw from a list of measures which have been approved for the Green Deal. There will be considerable consumer protections built into the framework – this is to protect both the initial occupier and those who follow. There will be an initial cost for this assessment but this will be refunded to you once the work is completed.
  3. Green Deal Finance. Consumers will be free to finance work as they wish, and some people may opt to pay for the work upfront, in whole or in part. But, uniquely, the Green Deal offers the opportunity to repay through energy bills, spreading the cost and enabling the obligation to repay to be passed on to future occupiers. There will be considerable consumer protections built into the framework – this is to protect both the initial occupier and those who follow. The key principle, or golden rule, for accessing Green Deal finance is that the charge attached to the bill should not exceed the expected savings, and the length of the payment period should not exceed the expected lifetime of the measures. This is not a government guarantee, but a guideline for customers that, typically, they should be able to expect to gain more efficient, less wasteful properties with no additional net cost from the Green Deal.
  4. Accredited Installation. Once finance for measures has been approved, installation is the next step. The Green Deal is designed to provide trusted, accredited installation of energy efficiency measures to households and businesses. The standards and certification framework will ensure that all work is completed to a recognised standard and that consumers can expect the same level of customer care and protection regardless of the installer. Certified installers will be backed by an official quality mark, designed to allow consumers easily to identify Green Deal service providers.
  5. Collecting Green Deal Finance Payments. One of the key features of the Green Deal is that the consumer repayments come through a charge on the energy bill. It is important that the Green Deal charge can be recouped in the same way as any other part of the energy bill to ensure simplicity for the customer, and so that finance providers have the confidence to provide the upfront capital, secure in the knowledge that they will receive payments via energy suppliers.

    When the Green Deal installer has completed the work, they will inform the Green Deal provider (if it is a separate organisation) who will arrange for details about the Green Deal to be included in an updated EPC or other appropriate document and lodged on the EPC or equivalent database. The Green Deal provider would also pass the relevant details to the customer’s energy supplier. Following verification by the energy supplier, which would give the customer the right to query any details, the Green Deal charge would appear on the next energy bill received by the customer. Customers with a Green Deal charge on the energy bill will still be able to switch energy suppliers. At the end of the repayment period, the Green Deal charge will automatically be removed from future energy bills.
  6. The Future. As a Green Deal can be passed onto future occupiers, the presence of a Green Deal must be disclosed to subsequent bill payers such as new owners or tenants. This includes how much the repayments are and the length remaining on the payment terms.