What is the Green Deal?
The Energy Bill includes provision for a new “Green Deal” which we believe will revolutionise the energy efficiency of British properties. Put simply, the Government is establishing a framework to enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and recoup payments through a charge in instalments on the energy bill.
At the heart of the Government’s proposals is the “Green Deal plan”, an innovative financing mechanism which allows consumers to pay back through their energy bills. This means consumers can see the Green Deal charge alongside the reductions in energy use which generate savings on their bill. It also means that if they move out and cease to be the bill-payer at that property, the financial obligation doesn’t move with them but moves to the next bill payer: the charge is only paid whilst the benefits are
enjoyed.
In this way, the Green Deal differs from existing lending – it is not a conventional loan since the bill-payer is not liable for the full capital cost of the measures, only the charges due whilst they are the bill-payer. This is a market mechanism, funded by private capital, which we believe will deliver far more to consumers than any sort of top-down Government programme.
Read to full report
Green Deal leaflet homes business energy