Green Deal—finance
Green Deal—finance

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Green Deal—finance
  • The Green Deal
  • What is a Green Deal plan?
  • Golden Rule
  • Savings estimate
  • Green Deal measures
  • Green Deal plan conditions
  • Repayment
  • Confirming the plan
  • Code of Practice
  • more

The Green Deal

The Green Deal is a scheme, originally designed by the government, now backed by private investors, that enables landlords and tenants to make energy efficiency improvements to residential and commercial property funded through a ‘pay-as-you-save’ approach. Green Deal providers arrange low-cost finance for the improvements without having to pay any up-front costs. Instead, the costs of making the energy saving improvements are added to the energy bills at the property and paid off in instalments by the energy bill payer in line with the Golden Rule. For more on the Golden Rule, see: Green Deal—finance—Golden Rule. The Green Deal is also complemented by the Energy Company Obligation, which replaced the Carbon Emissions Reduction Target and the Community Energy Saving Programme.

The Green Deal was introduced through the Energy Act 2011 (EnA 2011) and has been implemented through a series of regulations and orders, which provide details to the scheme, such as the Green Deal Framework (Disclosure, Acknowledgment, Redress etc) Regulations 2012 (GDFR 2012), SI 2012/2079, the Green Deal (Disclosure) Regulations 2012, SI 2012/1660 and the Green Deal (Acknowledgment) Regulations 2012, SI 2012/1661.

The scheme was launched on 28 January 2013 as part of an initiative to reduce carbon emissions through addressing the UK’s thermally inefficient housing stock. It was subsequently brought to an end in July 2015