Green Deal and ECO

Green Deal and ECO

The Green Deal

The Green Deal was a government scheme that enabled individuals and businesses to make energy efficiency improvements to residential and commercial property funded through a ‘pay-as-you-save’ approach. Green deal providers arranged low-cost finance for the improvements without any up-front payment. Instead, the costs of making the energy saving improvements were added to the energy bills at the property and paid off in instalments by the energy bill payer in line with the Green Deal Golden Rule ie the rule that the expected financial savings resulting from the energy efficiency measures were equal to or greater than the costs attached to the energy bill. The burden of the repayments remains with the property, and therefore transfers to the new owner/occupier when a building is sold/let. The Energy Company Obligation (ECO), which replaced the Carbon Emissions Reduction Target and the Community Energy Saving Programme, complemented the Green Deal.

The Green Deal was introduced in Great Britain through the Energy Act 2011 (EnA 2011) and implemented through a series of regulations and orders, providing detail to the scheme, such as the Green Deal Framework Regulations

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