Green Deal UK

Green Deal UK

The Green Deal is an innovative new scheme that the government hope will increase demand for energy efficiency measures across the UK, and ultimately help to reduce UK carbon emissions. The scheme will enable home and business owners throughout the length and breadth of the UK to undertake energy efficiency measures at no initial cost.

The government are introducing the Green Deal UK in response to the Climate Change Act 2008, which legislates for a 34% reduction in carbon emissions in the UK by 2020, compared to 1990. Though this target is ambitious it is not impossible to reach. It is hoped that the Green Deal will help the UK hit this target.

The Golden Rule will be at the heart of the financing structure within the Green Deal. The Golden Rule is in place to prevent consumers in the UK from undertaking measures that would not be covered by the savings. The Golden Rule states that the cost of any measures should not exceed the potential savings.

The Green Deal will consist of three main steps, assessment, securing finance and installation. The first step is conducted by a Green Deal Assessor. Assessors will comprise of Domestic Energy Assessors who are already common throughout the UK. Green Deal Assessors will complete an updated version of the current EPC. He or She will then use the EPC to complete a thorough assessment and suggest what measures could improve the properties energy efficiency. When deciding what measures to recommend, assessors will have to take costs, savings and the Golden Rule into consideration. To secure finance, consumers must approach a UK Green Deal Provider with the EPC, conducted by an accredited assessor. The Green Deal Provider will the tailor the final package to the consumers’ individual circumstances, once agreed upon and specific criteria are met, finance can then be provided. The final step involves Green Deal Installers. Installers will make up the vast majority of the work force within the Green Deal. They will be made up of various trades people across the UK, including plumbers, electricians, gas engineers and many more.


The government are currently creating a framework that will ensure customer satisfaction and a standardised service across the UK. The proposed framework includes a safety mark that will be known as the ‘Green Mark. It is intended that the Green Mark will work in the same way that ‘GasSafe’ works today, allowing consumers to identify that a person, or organisation, is registered and accredited regardless of where they are in the UK. The UK Green Deal could also be governed under the Consumer Credit Act 1974, further increasing protection to consumers in the UK.


The government are going to have to entice consumers by ensuring that Green Deal Providers keep their interest rates low. Should rates creep too high UK consumers will be discouraged from signing up to the Green Deal. Disruption of day to day lives is not a recordable statistic, therefore the government must remain cautious and not take an over optimistic stance on the success of the Green Deal. Expect the first Green Deals to be introduced around autumn 2012 and a peak in demand around.

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