The Green Deal

The Green Deal

Nearly a quarter of all carbon emissions in 2010 were from residential properties, with businesses producing a similar amount. With some of the oldest housing stock in Europe, it has been established that the government need to tackle the problem of inefficient buildings head on. In a bid to tackle rising Carbon emissions the government is seeking to introduce and market the ‘green deal’.

Forming part of the Energy Bill, introduced to parliament in early December 2010, the Green Deal is a government initiative aimed at increasing the energy efficiency of the UK’s property stock. The Green Deal will enable homeowners, landlords and business owners to undertake measures to improve their energy efficiency without incurring the financial burden associated with such renovations. The Green Deal should not be confused with a conventional loan, however, as the cost of the improvements do not stay with the bill payer but are linked to the property. If someone was to move house after going through with the green deal, for example,  the cost would then be passed on to the next homeowner.

Intended to be a flexible framework, the Green Deal will allow consumers and businesses alike to make improvements that best suit their needs. Customers will be able to undertake and complete energy efficiency improvements on their property with no upfront costs, the Green Deal provider financing the improvements will then be able to recoup the costs in instalments through the customers’ energy bills. Using this method of repayment will enable customers to not only view how much they are repaying, but also the savings that are being made through the improvements.

The Green Deal is being designed for businesses and domestic consumers alike. Smaller businesses will be able to access funding for improvements that they would otherwise not be able to afford. Larger businesses would be able to meet their existing obligations at a cost considerably lower to them.


The Green Deal will be available, not only to homeowners, businesses and landlords, but also tenants. The Energy Bill, in which the Green Deal is outlined, will give tenants the authority to request that energy efficiency improvements be made to their residence.

Not everyone will be eligible for the Green Deal though, apart from a set of strict regulations and guidelines, criteria known as the ‘golden rule’ must be met before the Green Deal can be established. The golden rule states that the total saving from improvement measures must be equal to or greater than the cost. The Green deal for domestic consumers will differ slightly to the Green Deal offered to businesses, although the same fundamental ‘Golden Rule’ applies.

Green Deal provider and Green Deal installers will be responsible for the financing and implementation of the Green Deal, offering a variety of options to enable customers to improve their energy efficiency. All work that is carried out by Green energy Installers would be supported by all necessary warranties and guarantees, and undertaken by qualified, quality assured engineers.

The Green Deal will not only benefit those seeking to improve the energy efficiency of their properties, but will also have a larger impact on local economies, and potentially the national economy. It is expected that the Green Deal will create and support up to 100,000 jobs within the next 5 years.

The Green Deal will also benefit the Green Deal installers, increasing consumer confidence in the industry and increasing their revenue.

The green deal is likely to be very popular once the first deals are introduced in autumn 2012, with people wanting to improve their energy efficiency rating. Although with the rising cost of energy bills, consumers may struggle to meet the ‘golden rule’ criteria.

For more information on The Green Deal please visit