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Green Deal Scheme

by admin in Conveyancing Law

The Green Deal is a government initiative designed to reduce carbon emissions and save energy. The start date of the initiative was the 28th January 2013. The Green Deal allows property owners to obtain energy improvement measures with no up-front payment. The costs (together with interest) are recouped by the installer over a number of years.

The latest news regarding the initiative is that The Green Deal Finance Company has scrapped the early repayment charges in order to increase the number of people taking up the deal.

The Green Deal was introduced by the Energy Act 2011 and is intended to reduce carbon emissions cost effectively to improve the energy efficiency of British homes.

The Green Deal removes the financial barriers faced by many householders and businesses who want to install energy efficiency measures such as insulation but do not want to incur any costs upfront. A financing mechanism allows private companies, charities and local authorities to cover these upfront costs. The costs are then repaid over time through the savings made on the energy bills and not through conventional loans or finance. The repayments should never be more than the amount saved, so consumers should not see any increase in their bills.

The Green Deal charge remains with the billing at the property, rather than with the individual.  So when a property is sold or rented the new owner or tenant will take over responsibility for paying it.

For more information on the Scheme and the Act governing the Scheme you can visit The Department of Energy and Climate Change (DECC) web site at; www.decc.gov.uk

 

 

 

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