Green Deal

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The Green Deal is an innovative financing mechanism that lets people pay for some of the cost of energy-efficiency improvements through savings on their energy bills.

Green Deal was launched in January 2013 and applies to both the domestic and non-domestic sector. It replaces 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 organisations that are approved to deliver the Green Deal – Advisors, Providers and Installers.


How the Green Deal Works

The Green Deal process has four stages:

Green Deal Process_ajm4



This is carried out in your home or business premises by a Green Deal Advisor or Provider, and may be subject to a charge. They will:

  • use standardised software to identify what energy efficiency or microgeneration improvements you can make and what the financial savings would be
  • outline how the payments will work
  • identify which improvements are likely to be cost effective
  • produce a Green Deal advice report outlining your options
  • declare any links they have with Green Deal Providers.


Once the green deal advisor has completed the report, we then pass on the information to the green deal provider to arrange the funding for the improvements. If you decide to continue with the green deal offer, you sign the appropriate paperwork which will be a binding contract between you and Green Deal Provider.


The green deal provider will then contact us to carry out the required work. 


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 no more than a typical household will save on heating bills, so you are likely to be better off overall from day one.

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 and you will be shown a full schedule of all the payments before you sign up to the plan. It is worth shopping around to find the best deal. You will be able to pay off the plan early if you choose, though the Provider may charge a fee for this.


Want to know more? Check out the FAQ's or full Terms and Conditions


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