The Green Deal was a government funded scheme to help you pay for energy improvements on your home. As of July 2015 it is no longer available, however in 2017 some private investors resurrected the Green Deal.
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The Green Deal was a government loan set up in 2015. It aimed to fund energy-saving upgrades to your home, without you having to make upfront payments.
Costs would be added to your energy bills and so staggered over time. They also had to abide by the “golden rule” which means the cost of the loan should not exceed the cost of the energy you save.
The goal was to improve the UK’s energy efficiency by making it more affordable for you to make energy-saving improvements to your home, such as installing loft insulation, or double glazing.
Unfortunately, the Green Deal was pulled in 2015 and is no longer available as a government loan.
The Green Deal Home Improvement Fund was launched in 2014. Like the Green Deal, it was designed to encourage more people to install energy efficient measures.
The Green Deal Home Improvement Fund would provide up to £7,600 cashback for those abiding by certain criteria. It was essentially a grant towards the cost of energy-efficient measures.
Unfortunately, the Green Deal Home Improvement Fund is also no longer available.
Unfortunately, the Green Deal was considered unsuccessful as by the end of June 2015 only 10,000 households and had used it to install energy-saving measures.
Low take-up rate and concerns about standards meant the government pulled Green Deal funding in July 2015. This means you can no longer apply for the Green Deal loan as a government scheme.
Some private companies may still offer you a Green Deal loan. In reality very few firms are prepared to offer the loan without government support, but it may be worth considering.
If you have already made improvements to your home using Green Deal finance then you should not be affected by the withdrawal of funding. You can carry on as usual making repayments through your electricity bill.
Any warranties will also remain valid and your Green Deal provider will still be responsible for any maintenance arrangements set out in your original contract.
If you have a Green Deal loan then you can still switch energy providers, but you must switch to another energy provider that also offers the Green Deal.
Most big energy companies, and even some smaller ones are a part of the scheme. It is important to check which companies are a part of the Green Deal scheme before you switch.
If you want to switch to a supplier outside the scheme you can sometimes pay off your loan early. However, you must check your finance plan first as if you took it out before May 2014 you may incur a penalty fee.
Your Green Deal finance plan will be attached to your property, or even your electricity meter. This means that if you move house the loan is no longer your responsibility. It will be for the new owner or tenant to repay.
It is essential to declare any Green Deal obligations when selling your property.
It is still possible to apply for a Green Deal loan through some private companies.
If you choose to apply a Green Deal assessor will visit your home to gauge your energy use and produce an advice report for recommended energy-efficient changes.
It is worth noting you will have to pay for this assessment. It will usually cost you around £120.
Once an assessor has visited your house you can:
Remember you can take your assessment to multiple Green Deal providers. It is worth comparing quotes before making a decision.
In short, yes. If you are able to find a private energy company offering a Green Deal loan then it can save you lots of cash and help you implement environmentally friendly changes to your home.
Energy-efficient upgrades such as installing insulation or upgrading your boiler can save you up to £310 a year and so are well worth doing. With a Green Deal loan you won’t have to make upfront costs.
If you don’t have access to Green Deal finance and cannot afford to pay for your own improvements then you may be able to apply for financial assistance under the Energy Company Obligation (ECO). The ECO offers help toward the cost of energy-saving measures to low income and vulnerable households.
Making energy-efficient changes to your home can be a great way to save money in the long term, and financial help makes them even more affordable.