What is the Green Deal?
Launched on 28th January 2013 the Green Deal is a scheme designed to provide households with ‘low cost’ finance to pay for energy efficient improvements to their homes including loft and wall insulation, solar panels, replacement windows and so on. There is no up-front cost to the homeowner with the loan being paid off using the money saved by lower energy bills. The idea is that with the energy efficient improvements, the household will use less energy and thus generate a lower energy bill. The money saved by the reduction in the energy bill is collected by the energy company and paid to the loan provider.
Under the scheme the Property will need to be assessed by a Green Deal Assessor who will list the improvements required to make the property energy efficient. Having assessed the property, the Green Deal Assessor will provide the homeowner with a Green Deal Advice Report.
Armed with their Green Deal Advice Report, the homeowner can then order the energy efficient installations from a Green Deal Provider who will also arrange the finance through lenders such as the Green Deal Finance Company. The homeowner’s energy providers will then repay the Green Deal Providers directly in accordance with the terms of the Green Deal scheme.