Green Deal Explained
Green Deal Glasgow, Edinburgh & Central Scotland. The Green Deal is an innovative financing mechanism that lets people pay for energy-efficiency improvements through savings on their energy bills. Green Deal launched in January 2013 and applies to both the domestic and non-domestic sector. It has replaced policies such as the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP). The government has appointed a Green Deal Registration and Oversight Body. Part of their role is to register the organisations that are approved to deliver the Green Deal – Advisers, Providers and Installers. The Green Deal can run in conjunction with ECO (energy company obligation). Green Deal Glasgow
ATC Construction are a registered Green Deal organisation. ATC Construction are certified by the Department of Energy & Climate Change to undertake Green Deal Installations, you can view our accreditation certification here.
The two videos below give a clear explanation of what the Green Deal means and the processes involved.
This is carried out in your home or business premises by a Green Deal Advisor or Assessor. They will:
• Use standardised software to identify what energy efficiency or microgeneration improvements you can make and what the financial savings would be.
• Outline how the payments will work
• Identify which improvements are likely to be cost effective
• Produce a Green Deal advice report outlining your options
• Declare any links they have with Green Deal Providers.
• There will generally be a charge for the assessment. You may have to pay this up front, or you may be able to pay it off over time as part of the finance package.
Once the Green Deal Advisor has given you your report, you can take it to one or more Green Deal Providers who can arrange and fund the improvements. If you decide to take up a Green Deal offer you will then sign a Green Deal Plan, which is a contract between you and the Green Deal Provider.
The Green Deal Provider will arrange for a Green Deal installer to come and carry out the work you have agreed to. The installer will have been vetted to ensure they meet the standards set out for the Green Deal.
You pay back the cost of the improvements over time through your electricity bill. Your electricity supplier will pass your payments on to your Green Deal Provider. The amount you pay back will be no more than a typical household will save on heating bills, so you are likely to be better off overall from day one.
Although the cost of the improvements is repaid, this is not a conventional personal loan as the charge is attached to the electricity meter in your house and paid back through your electricity bill. If you move out, the new occupant will pick up the charge while also benefiting from a more energy-efficient property.
Interest will be charged on these payments, but the rate will be fixed and you will be shown a full schedule of all the payments before you sign up to the plan. It is up to the Green Deal Providers to decide on the interest rate, so it will be worth shopping around to find the best deal. You will be able to pay off the plan early if you choose, though the Provider may charge a fee for this.
How do I apply for a Green Deal?
The first step in getting a Green Deal is to have an assessment carried out on your property. A Green Deal Assessor or Green Deal Provider can arrange this for you. You can call 0800 6906906 for assessment information.
What improvements will the Green Deal cover?
There are 45 measures or areas of home improvement approved to receive funding under the Green Deal, covering:
• Heating and hot water
• Microgeneration (generating your own energy)
For the non-domestic sector lighting, mechanical ventilation and heat recovery measures can also be covered. More areas may be added as technology develops.
Incentives to kick-start the Green Deal
In Scotland on 1 November 2012 the Scottish Government launched the Green Homes Cashback Scheme to encourage people to make improvements.
The ECO (Energy Company Obligation)
The ECO for the big six energy suppliers is also being launched in early 2013. It is in three parts:
1. Affordable Warmth Obligation
To provide insulation and heating improvements to low-income and vulnerable households (but social housing tenants are not eligible for affordable warmth).
There are complex eligibility criteria for this means-tested scheme. Call ATC Construction 0800 6906909 to check whether you might be eligible, and to apply if you are.
2. Carbon Saving Obligation
To provide funding to insulate solid-walled properties (internal and external wall insulation) and those with ‘hard-to-treat’ cavity walls.
This is not means-tested but can be used in conjunction with the Green Deal. The aim is to provide enough support to make these relatively expensive measures cost-effective.
3. Carbon Saving Communities Obligation
To provide insulation measures to people living in the bottom 15% of the UK’s most deprived areas. It is expected that this element of ECO will particularly benefit the social housing sector.
Through ECO, the government aims to help 230,000 low-income households or those in low-income areas. Of the expected investment by suppliers of £1.3bn per year, there will be a 75:25 split between the carbon and affordable warmth obligations.
Timescales for Green Deal and ECO
All the elements of the Green Deal and ECO are now available, and assessments and ECO surveys are now being carried out.
Here To Help You
The variable options of the Green Deal at first glance may appear overpowering with information overload, but in fact our advisers can determine very quickly which part(s) of the Green Deal will benefit you & the property you live in. Call our Green Deal Glasgow, Edinburgh & Central Scotland information line for details 0800 6906909.