The Green Deal explained

Key takeaways

• The Green Deal was put into place to help homeowners improve energy efficiency without upfront costs

• Only about 10,000 households completed measures by June 2015 so the government stopped funding in July 2015 due to low participation and quality concerns

• The original scheme has ended, but private financing options remain as well as other schemes such as the boiler upgrade scheme and renewable incentive scheme

The Green Deal was once a flagship UK government initiative, designed to help homeowners transform their properties into models of energy efficiency without the burden of immediate, out-of-pocket expenses.

Launched with much fanfare, the scheme encouraged the adoption of energy-saving features such as loft insulation and double glazing, aiming to make greener living accessible to all.

However, the discontinuation of the Green Deal has left many wondering about the current alternatives for making eco-friendly home improvements.

Let's delve into the details of what the Green Deal was, its current status, and what options remain for homeowners looking to reduce their carbon footprint.

What was the Green Deal?

The Green Deal represented an innovative approach to environmental conservation in the housing sector.

It was a loan system that allowed homeowners to spread the cost of energy-saving improvements over a period of 10 to 25 years.

The scheme's primary goal was to eliminate the upfront financial barrier that often discourages investment in energy efficiency.

Under the Green Deal, repayments were conveniently added to the homeowner's electricity bill.

Notably, the loan was attached to the property rather than the individual, meaning that if you moved, the new occupant would take over the repayments.

A cornerstone of the Green Deal was the 'golden rule': the cost of the improvements should not exceed the projected savings on energy bills, ensuring the financial viability of the investments.

What happened to the Green Deal?

Despite its potential, the Green Deal did not resonate as expected with the public. By June 2015, only about 10,000 households had completed measures under the scheme, and there were around 5,600 plans in progress.

The government ceased funding in July 2015 due to this low uptake and concerns regarding the standards of work being carried out.

Consequently, the Green Deal Home Improvement Fund also came to an end.

With government support withdrawn, the future of the initiative became uncertain, and few private firms were willing to offer loans independently.

Is the Green Deal Scheme still available?

While the original Green Deal scheme has ended, the spirit of the initiative lives on. Financing for such projects can still be obtained from private providers.

The government website provides details on how you can get green financing for your home and links to the current providers that can help you with these improvements.

To secure a loan, homeowners must undergo a Green Deal assessment, and providers are required to ensure that repayments do not outstrip the savings made on energy bills.

Who qualified for the Green Deal?

The Green Deal was open to any homeowner looking to make energy efficiency improvements that could lead to reduced energy costs.

The eligibility for such improvements is determined by a Green Deal assessment, which must be arranged through a private provider.

What improvements were available under the Green Deal Scheme?

The Green Deal covered a broad spectrum of improvements, including:

• New boilers and heating systems

• Various types of insulation

• Heat pumps

• Draft proofing

• Advanced hot water systems

These improvements were all geared towards reducing energy consumption and enhancing the sustainability of homes.

Can I still apply for a Green Deal loan?

Green Deal loans are still available through private companies.

An approved assessor must visit your home and produce an advice report, which typically costs around £120.

The government website has a link where you can search for an authorised firm in your area.

Can I get any other help towards home improvement costs?

• The Energy Company Obligation provides assistance to those in fuel poverty, helping with costs for boiler and insulation improvements.

• The Boiler Upgrade Scheme offers up to £5,000 for ground and air source heat pumps and £6,000 for biomass boilers. This scheme is due to run until 2025 in England and Wales.

• The Energy Company Obligation is aimed at those living in fuel poverty (spending 10% or more on energy bills), with energy companies obliged to improve boilers and insulation. The Ofgem website has more details.

• The Renewable Incentive Scheme is now closed to new applicants. But if got in before the deadline, you could be get up to £5,000 for heat pumps and £6,000 for biomass boilers until 2025.