What is the Green Deal?

The Green Deal aims to improve the energy-efficiency of homes and businesses by allowing energy improvements to be installed at no upfront cost. Instead, you pay for the improvements over time through your electricity bill. The repayments cannot exceed the amount you are expected to save on energy costs, so there should be no increase in your bills as a result of taking out

All properties are eligible for the , regardless of whether they are owned or rented. And credit check thresholds are expected to be much lower than average for finance (source: Green Deal Finance Company), meaning that the should be accessible to most.

Why has the Green Deal been introduced?

The is a Government-led initiative that aims to retrofit 14 million homes by 2020, cutting CO₂emissions by 29% in housing and 13% in workplaces (source DECC). It is a core part of the Energy Act 2011, enacted on 18th October 2011.

The Green Deal is a great opportunity for homeowners, tenants and businesses to improve the energy-efficiency of their property and cut their running costs, while contributing to a ‘greener’ future for the UK.

What improvement measures are covered?


In order to get a Green Deal for your property, you must have a Green Deal assessment undertaken by a qualified Green Deal Advisorworking for a certified Green Deal Advice Service. The assessment will identify improvement measures that are suitable for the property, highlighting measures that will be eligible for the Green Deal and/or ECO, and the Advisor will agree a suitable package of measures with you. (In rental properties, both the landlord and tenant’s permission are required before a Green Deal assessment can be carried out.)
You can then find a Green Deal Provider to arrange a Green Deal Plan. Many Green Deal Advisors will have links with Green Deal Providers, and may even be able to provide an on-the-spot Green Deal quotation. If an Advisor is working with a specific Green Deal Provider they will inform you of this, and declare any commission they might receive.

The Plan will include:

  • A quotation for the agreed package of measures, including products and labour.
  • An agreed repayment schedule. The repayments cannot exceed the predicted savings, and the full term of the plan cannot exceed 25 years.

Once the Green Deal Plan is accepted, a contract is in place between the Provider and the current bill-payer, which will be transferred to any subsequent bill-payers.

Installation: The measures will then be installed by a  Installer, which holds Green Deal certification. This will ensure that the installed measures are quality-assured and will deliver genuine CO₂ and energy savings.RepaymentsThe Green Deal charges are attached to the electricity bill for the property and collected by the energy supplier on the Green Deal Provider’s behalf. If you move out, the responsibility for repayments will transfer to the next bill-payer, who will benefit from the energy savings due to the improvement.