Green Deal Briefing
What is the Green Deal?
From October 2012 the Green Deal is proposing to carry out work to improve energy efficiency of homes, with no upfront cost, with the charge added to subsequent electricity bills. It subject to the ‘Golden Rule’ which means that the subsequent charge must be less than the anticipated saving. The Green Deal is attached to the property and remains even when the householder moves.
What is ECO?
In addition there is the Energy Company Obligation (ECO) worth £1.3bn/year which will support two categories of activity. Firstly it will support properties which are hard to treat, most obviously single wall properties, which would not meet the Golden Rule. Secondly it will support poorer households not eligible for the Green Deal. This can include social housing. It effectively replaces the £2.4bn Carbon Emissions Reduction Target (CERT) which runs until December 2012 with a strong emphasis on supporting insulation and low income households and the £350K Community Energy Savings Programme (CESP) .
So why does the Government want to do the Green Deal?
The government intends to treat 14 million homes by 2020, with £7bn of investment and 250,000 new jobs.
So how will it really work?
Firstly a Green Deal Accredited Assessor will visit the property. Then if the property meets the Golden Rule a financial package will be drawn up for the householder to agree. This will include an interest rate on the upfront payment for the work to be carried out. Then the work is carried out. Finally repayment takes place through electricity bills.
Author: Phil Morgan