What is the Green Deal?

The Energy Act 2011 was introduced on the 18^th October 2011 and states “The Green Deal”.  This intends to reduce the carbon emissions cost effectively and revolutionise British properties.  Twenty five percent of the UK's carbon emissions come from the energy used within homes.  As a nation it is important to reduce its greenhouse emissions, as they are affecting climate change.

With the Green Deal households and businesses will improve their energy efficiency and therefore less energy will be consumed and money will be saved.  The green deal plan is an innovative financing mechanism, enabling customers to pay back through their energy bills. The bills stay with that property, so if you move the bills don’t move with you.

The Green Deal provider will offer a plan to customers, enabling them to finance work recommended by an accredited adviser and also undertaken by an accredited installer. The Green deal will make people more aware of their options on how to insulate their homes and make them more energy efficient. By making investments- there will be no upfront costs and will increase the incentive for owner- occupiers, tenants and landlords to take action and make their homes more energy efficient.

Not everyone will benefit from the Green Deal; vulnerable and low income households will be targeted.  Many of these homes do not have the heating turned on long enough, and therefore their homes are not being heated sufficiently. For these homes, energy efficiency may just make their homes warmer, rather than saving any money. Moreover, homes that can only be made efficient through major methods will need additional costs to save in the end. Furthermore, the Government is bringing in Energy Company Obligation (ECO) that will focus on the vulnerable homes.

Important consumer protections which are embedded into the Green Deal:

• The Golden Rule – The expected financial savings must be equal or higher than the costs attached to the bill.
• The savings must match the measures implemented to that property
• There must be an accredited energy assessor who has carried out a full assessment
• The Green Deal provider must give relevant advice to home owners, within the terms of Customer Credit Act and individual’s circumstances
• The current energy bill payer must comply to the regulations of the act
• The Green Deal must be disclosed to subsequent bill payers (new home owners and tenants)
• Energy suppliers must comply with the Green Deal regulations and safeguards including protections for vulnerable consumers.