The Green Deal: How it Works

by Jarrah Harburn on May 3, 2012

Energy bills, green technology, the green deal

Long heralded by the Department of Energy and Climate Change (DECC) as the flagship policy in making this government the ‘greenest ever’; The Green Deal is set for activation in September of 2012. Let’s take a look at how it pledges to bring cost effective home efficiency measures to the majority of properties across the UK.

When we consider the plethora of home upgrades that are on the sustainability and efficiency markets at the moment it doesn’t take long for ones head to start spinning. Measures such as clean energy generation through solar energy and wind power, natural gas upgrades, energy saving measures like double glazed windows, insulation and LED lighting, boiler replacements and heating and ventilation (HVAC) upgrades dominate the major concepts.

The truth is these ideas are just the most well known and publicised and many more are available. Faced with the expense involved with many of these home and business owners can feel overwhelmed and this confusion can lead to indecision. When decisions are made they can be made under false pretenses or for the wrong reasons, all leading to nation wide ineffective uptake of energy efficiency. The Green Deal aims to address the complexity involved with these measures and make them affordable and effective.

Primary Goals of The Green Deal

  1. To provide a consultation and advice service for people considering clean energy and sustainability upgrades for their properties.
  2. Establish a finance system that allows approved energy saving and green technology measures to be purchased for no upfront cost to the homeowner.
  3. Ensure that all approved measures are provided and installed to a high quality standard.
  4. To allow participant homeowners to make repayments through their energy bills.
  5. To champion the choice of Green Deal service providers and suppliers to homeowners at all times.

So some of the key aspects are the accessibility of the scheme and the cost effective, zero-outlay for the homeowner approach. It presents a widely focused incentive framework for energy saving and clean energy focused home upgrades. It’s all effectively aimed at reducing greenhouse gas emissions and promoting the clean energy revolution at a grass roots level.

For a full article on the measures that will be covered under The Green Deal, click here!

The Golden Rule

It’s all hinged on ‘The Golden Rule’; that in a standard property consuming typical amounts of energy, the measures employed must cost less than the direct resultant savings covered by the upgrades lifetime. The investor gains a return whilst the homeowner reduces energy consumption and money on energy bills.

In order to appraise the extent of the energy saving and clean energy production on each home, an assessment is required initially. This is a vital aspect of the green deal.

The Green Deal Assessment

Qualified Green Deal Assessors will undertake two reviews of each property before any measures are installed. The first assessment will summaries the average energy use of the property and the second will evaluate the actual use of this energy by the occupants of the home. Only then can an accurate projection on the energy saving potential of the property can be made.

So the essential process that a homeowner will go through will involve booking a Green Deal Assessor and receiving the assessment report, applying to and obtaining the finance from a Green Deal Finance source, selecting and soliciting the approved green deal measures to be installed and finally paying off the finance company through the Golden Rule and their energy savings.


Energy bills are rising. Natural Gas bills are rising. Greenhouse gas emissions are a considerable global issue. Green technology and energy savings are effective counters for a household looking to combat these matters. They are also expensive, complicated and there are an abundance of them on the market. The Green Deal presents a methodology for typical households to reduce their energy bills and natural gas bills in a cost effective way. If it can promote the uptake of green technology without costing the people most at risk from rising energy costs; it is welcomed with open arms.

Written by Jarrah Harburn

T: 020 7205 2267

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