The Department of Energy and Climate Change (DECC)
implemented this policy late in 2012, with the aim of providing funding for
energy-saving improvements to homes.
DECC has stipulated a specific process for customers wishing to sign up for the
scheme. There are four stages, starting with an assessment of a customer’s home
and energy usage. Some people may incur charges for this assessment, so it is
worth checking with the assessors beforehand.
The assessor will then draw up a Green Deal plan, making recommendations for
the property concerned. This plan tends to include energy-saving modifications
such as double-glazing, loft/cavity wall insulation and draught-proofing. The
existing energy systems in a property, such as boilers and radiators, are also
examined. Assessors can provide information on solar panels and other renewable
energy sources. Once the assessment is complete, the customer receives a Green
Deal Advice Report, which details relevant improvements and an approximation of
how much money might be saved on energy costs.
The customer then needs to select a Green Deal provider. The government has an
approved list of providers and recommends obtaining quotes from more than one
of these. Once the customer has agreed the necessary work with the provider, a
Green Deal Plan contract is drawn up. This specifies the work to be completed
and total costs incurred. An approved company then carries out the necessary
For further detail on the green deal check out this website. They are a national
company with great experience in saving customers money on their energy bills.
How is the loan paid off?
The loan is paid off through the property’s electricity bill. If the customer
moves, the debt will remain at the original property and the new owner will
become liable for its repayment. Customers can pay the loan off early, but
there may be a charge for this.
Which? (2013) highlighted a number of concerns about the scheme. The terms and
conditions vary between different Green Deal providers, with a range of
interest rates. They also highlighted the assessment costs, estimated to be
around a hundred pounds. Another question is the unknown effect a Green Deal
contract may have on selling a property, which may deter potential buyers.
The BBC (2013) also raised a number of issues. With five million households
estimated to be affected by fuel poverty, the costs involved with the Green
Deal may just add to the high cost of energy. Many will not see any savings
from the scheme until they have paid off the loan. Others worried that the
potential savings were nowhere near the overall cost of the modifications under
the scheme, which may run into thousands of pounds. Although the DECC says the
Green Deal can save consumers money in the long run by making their homes use
energy more efficiently, there are many concerns about the scheme and