What is the Green Deal?
What is the Green Deal?

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

  • What is the Green Deal?
  • Green deal objectives
  • Key roles in the Green Deal
  • How does the Green Deal work?
  • What properties are eligible for the Green Deal?
  • What energy efficiency measures are eligible?
  • LexisPSL notes on the Green Deal

The Green Deal is a scheme, originally designed by the government, now backed by private investors, that enables individuals and businesses 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 any up-front payment. 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. The Green Deal Golden Rule is that the expected financial savings resulting from the energy efficiency measures must be 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 Green Deal is also complemented by the Energy Company Obligation (ECO), 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 Regulations (Disclosure, Acknowledgment, Redress etc) 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.

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