The Green Deal is the Government’s flagship energy-saving scheme which enables a householder to carry out energy-saving home improvements, including:
- New boilers
- Wind turbines
- Solar panels
- New or replacement storage heaters,
These improvements may be paid for over time in instalments.
An assessment is arranged by the household to be carried out by a Green Deal provider.
Paying for energy-saving home improvements
The householder chooses which improvements to carry out and then signs a Green Deal plan. This is an unsecured loan attached to the electricity bill. The loan is for a minimum period of 10 years and a maximum of 25 years with interest thereon.
Repayments are collected by the utility provider via the electricity bill, the idea being that the loan repayments are offset by the reduced energy costs. However, there is no guarantee of this.
Like any other home improvements, consumers are advised to shop around between providers for the best deal so that the amount they need to borrow is kept to a minimum.
How does this affect buyers and sellers?
First and foremost, the Green Deal plan and the unsecured loan which forms its basis attaches itself to the property rather than the person who has taken it out. Therefore, we as conveyancers, along with estate agents, will need to determine whether a property is subject to a Green Deal plan.
Do not forget that if your are on a low income or in receipt of benefits you may be entitled to free cash to help with energy-saving improvements, such as insulation, without resorting to the Green Deal.