The Green Deal is intended to be a revolutionary framework that will enable consumers to undertake energy efficiency measures. The key to the Green Deal is the finance structure that it is centred on. Consumers will be able to secure finance for their energy efficiency improvements at no upfront cost to them. The costs are then taken from a consumers energy bill, it is envisioned that the savings made would cover the costs.
The Government are going to make the Green Deal available to as many people as possible within the UK. Business and homeowners will not be the only parties for which the Green Deal will be made available. Tenants, under new guidelines, will also be given the opportunity to request that a landlord sign up to the Green Deal. New legislation will grant local local authorities the ability to force landlords to undertake energy efficiency measures, though properties must be underperforming significantly.
Green Deal Assessors will be able to advise consumers on which energy efficiency measures are suitable for them. The Assessor will evaluate a property and produce an Energy Performance Certificate. The certificate is then used to evaluate the properties efficiency; the assessor can then recommend potential efficiency improvements. As well as recommending what energy efficiency improvements are available to them, assessors will be able to advise consumers on how they could reduce their overall energy consumption.
Green Deal Providers will be able to provide a package of measures that the consumer must agree too. Should the consumer decide that they don’t like the packages on offer then the claim for Green Deal Finance can no longer be pursued. Should the consumer be satisfied with the package, Green Deal Financed is released and consumers can then begin the final phase, installation.
Green Deal Installers will be responsible for the installation and quality control of energy efficiency measures. Made up of various trades such as electricians, plumbers and gas engineers, installers will form the largest workforce within the Green Deal. Installers will work together to reduce the amount of disruption to a consumers day-to-day life.
The finance structure within the Green Deal is known as Green Deal Finance. At the very heart of Green Deal Finance is the ‘Golden Rule’. The Golden Rule is in place to prevent consumers conducting measures that would not meet their financial requirements. The Rule states that any energy efficiency improvements made should not exceed the total potential savings. It also states that the length of repayments should not exceed the life expectancy of any measures.