The Green Deal UK

The Green Deal UK

Within the UK, a quarter of carbon emissions come from the energy used to heat homes. The lack of basic energy efficiency measures such as insulation is the primary cause. If households within the UK were more efficient at heating, Carbon emissions would be reduced significantly. To help address this, the government plan to introduce the Green Deal across the UK.

Through the Green Deal initiative, bill payers will be able to install energy efficiency measures at no immediate cost. Bill payers throughout the UK will be able to receive funding, for efficiency measures, of up to £10,000. It is intended that any efficiency measures installed will pay for themselves, through savings made on energy bills. The unique selling point of the Green Deal is that the financing structure is unlike any, it is tied to the meter of the property not to an individual. So should a bill payer move house after undertaking efficiency measures, then they are no longer responsible for repayments.


It is anticipated that the Green Deal will help the government achieve their targets of a 34% reduction in carbon emissions across the UK by 2020, in comparison to 1990. Heating water and rooms, usually through gas boilers, accounts for 75% of all energy consumed within UK households. The Green Deal will help address these issues through improving the energy efficiency of households across the UK. The Green Deal will extend further than just energy efficiency measures, consumers will be advised on how to be more efficient, thus eliminating any bad practices.

At the very heart of the Green Deal is the ‘Golden Rule’. The golden rule is a criterion used to calculate whether or not financing a customer’s Green Deal Plan is financially viable. The ‘Golden Rule’ is made of two parts. The first being that the cost of energy efficiency measures should never exceed that of expected savings. Part two states that the total length of repayment must not exceed the life expectancy of installed measures. The golden rule was introduced to make sure the households across the UK that sign up to the Green Deal will be able to meet their repayment obligations. Without the Golden Rule the risk of installed upgrades leaving a deficit in consumers’ energy bills is too high.

The Green Deal, according to the government, will be made accessible to as many households throughout the UK. The Green Deal will extend further than just homeowners and businesses. Tenants will be able to request that their landlord apply for the Green Deal, and local authorities, across the UK, will have the power to force owners of significantly underperforming properties to conduct energy efficiency measures.

The Green Deal will require a multitude of skills and services from a number of different industries in the UK. The Green Deal will have a significant impact on the construction and trade industry throughout the UK, as these will fulfil the role of Green Deal Installers. Electricians, plumbers, plasterers, to name but a few, will be required to help install efficiency measures in UK households.

For more information on The Green Deal please