What is Green Deal?

Green Deal Finance - the Ins & Outs


Green Deal was the Government's flagship energy saving scheme - an innovative finance package that was designed to reduce or remove the upfront cost of energy efficiency measures installed in domestic properties.

External Wall Insulation InstallerThe scheme was launched in 2013 to make energy saving home improvements (such as wall insulation and central heating), affordable and accessible for householders across Britain.

Instead of paying for an installation out of your own pocket, you would take out a loan that is linked to your energy bills – so you essentially pay as you save.

Unlike a standard loan, Green Deal was linked to the property not the person. So if you moved house the loan repayments would simply transfer over to the new bill payer, who would also benefit from having a more energy efficient home.

Due to poor uptake and a lack of investment, the Government closed Green Deal on the 23rd July 2015.

However, the Green Deal framework and infrastructure that was established for Installers, Assessors and Providers is still very relevant. For example, only certified Green Deal Installers can work on Government backed schemes such as the Energy Company Obligation (ECO).


Loan Repayments

Green Deal repayments are linked to a property's electricity meter. Householders will see a charge on their electricity bill until the loan is fully paid off.

Electricity bills are likely to increase because of this charge, but the total value of combined fuel bills will decrease enough to cover the loan repayments (e.g. a householder may save more on gas or oil, rather than electricity).

Thanks to the scheme’s Golden Rule, homeowners should never pay more than what they save providing they don’t dramatically change their lifestyle.

To determine how much finance a householder could access, the property would be assessed by a Green Deal Advisor who would recommend what energy saving improvements were appropriate to install. This assessment would then indicate how much the customer was likely to save on fuel bills if they got the work carried out.

The estimated saving would then be multiplied by the predicted lifespan of the measure (up to a maximum of 25 years) to calculate the total value of Green Deal Loan that could be borrowed once interest and charges were taken into account.


The Golden Rule

Green Deal was governed by a Golden Rule that ensured that any loan repayment never exceeded the amount of money the customer was estimated to save on fuel bills after having energy efficiency improvements installed.

A Green Deal loan only covers what each measure is predicted to save. So if a measure is more expensive to install than what it will save over its lifespan, the customer would be required to make up the shortfall.

This is where Green Deal linked in with other schemes such as ECO which offers grants to certain householders.

The total amount borrowed varied depending on a number of factors, including the type of property, what measures were going to be installed and the behaviour of the residents (e.g. how much fuel they use…etc).


Who provided Green Deal loans?

Green Deal Loans were issued by specific companies referred to as Green Deal Providers. These organisations managed the whole customer journey.

The funds themselves came from The Green Deal Finance Company (TGDFC) which is an organisation established by the Government to provide funding at low cost. TGDFC was backed by major investors including the Green Investment Bank. These companies channelled money into the scheme and made their profit through the interest rates attached to each Green Deal Loan.

Green Deal Loans could be taken out over longer periods than standard loans – up to 25 years. The interest rate was from 6.96% with fixed charges.

When the Green Deal was first launched, there were early repayment charges associated with loans that ran for 15 years or more. However TGDFC scrapped these in May 2014, meaning that householders with loans taken out after that date - for any length of time, would'nt be penalised for paying early.


Click on the banners below for more information on the Green Deal process:

 
Green Deal Assessments

Green Deal Advisor on the door step.Householders that wanted to apply for a Green Deal Loan needed to get their home assessed by an approved Green Deal Advisor.

The Advisor visited the customer’s property to complete a Green Deal Advice Report (GDAR) which consists of an Occupancy Assessment and an Energy Performance Certificate (EPC). This data then formulated what was recommended in a Green Deal Plan.

The EPC gave a detailed breakdown of the makeup of the property and what energy saving measures could be installed. Whilst it looked at what a ‘standard’ household could save, the Occupancy Assessment looked at what the ‘actual’ residents living in the property would save from having energy efficiency work carried out.

This was influenced by a range of factors such as household size, number of people and the age of the residents. For example, retired people are more likely to be at home in the daytime, so will have a higher heating demand. They will see a greater saving on their fuel bills for having energy saving improvements installed.

The information collected in a Green Deal Plan gave the customer an indication of how much money they were likely to save on fuel for getting the work carried out. It also showed them what level of Green Deal Finance was available for them to access.

Get more information on Green Deal Advisors
 
Green Deal Providers

Green Deal Loans were distributed by Green Deal Providers.

A Provider is a company responsible for issuing loans on behalf of the Green Deal Finance Company (TGDFC) – the organisation set up to allocate funds under the scheme.

Providers managed the customer journey, arranged the install work and handled any customer complaints.

Many Providers have their own installer networks and work with a broad range of contractors to fulfil the measures associated with Green Deal Plans.

Green Deal Providers also have the ability to work in partnership with major Energy Companies and can draw down funding through projects like the Energy Company Obligation (ECO) programme.


The Hubs Green Deal Provider

YES Energy SolutionsYES Energy Solutions is the Provider behind Green Deal Installer Hub (Provider Reg: GDPA 126). We work with a network of SME contractors to install measures under the ECO scheme.

YES Energy Solutions is the trading name for: Yorkshire Energy Services CIC. Find out more about our legal company information.

If you want to be considered for YES Energy Solutions’ installer network, Join the Hub.

Join the Hub
 
Green Deal Installers

Green Deal Installer with tape measureGreen Deal Installers are companies that have been officially authorised to install measures under the Green Deal framework, which includes Government backed schemes such as the Energy Company Obligation (ECO).

Each company has gone through an extensive accreditation process to ensure quality of workmanship. All Green Deal Installers are certified under the PAS2030 standard for the measures they install.

During the Green Deal Finance scheme, installers needed to have a relationship with a Green Deal Provider to enable loans to be allocated before any work was carried out.

Find out how to get Green Deal accredited

Join the Hub
 
Energy Company Obligation

ECO Installer Associated with Green Deal is another Government scheme called the Energy Company Obligation (ECO).

ECO is a legal requirement for major Energy Companies to support Britain’s most vulnerable homes. Residents that either receive certain qualifying benefits or live in properties that leak heat will be able to access ECO funding to contribute towards energy efficiency home improvements.

The Hub's Green Deal Provider, YES Energy Solutions can access ECO funding through its links with Energy Suppliers and can help installers add value to their services.

Find out more about ECO.  

For ECO funding opportunities, Join the Hub.

Join the Hub




How the Hub Can Help Installers


Solar PV InstallerGreen Deal Installer Hub invites small to medium sized contractors to join a growing network of accredited installers that partake in the Government’s wider Green Deal framework.

Hosted by the national Green Deal Provider, YES Energy Solutions, the Hub helps build partnerships and facilitate access to ECO funding.

Sign up to the Hub and receive regular industry news, policy updates and events, as well as the chance to join YES Energy Solutions’ Funded Partner programme.

Green Deal Installer Hub is free to join and will help you with your comercial developments.

 Join the Hub
 

Join a leading network of SME installers

Green Deal & ECO News :

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