The Green Deal

The Green Deal has been introduced through the Energy Act 2011. It is intended to be a solution to building owners and tenants not investing in energy saving measures in residential and commercial properties. Research has revealed that of the EPCs and DECs issued, a high number of properties throughout the UK are very energy inefficient. As a result, there are large carbon and financial savings to be made through investing in the recommendations made through the EPC and DEC reports.

The Green Deal is a way of funding the improvements so that the annual savings made based on an average bill are more than the capital expenditure repayment, the golden rule as the government call it. The loan will be attached to the property and the energy supply so that as energy and bills paid the capital expenditure cost will be repaid. When the property is sold or let then the loan and benefit will continue.

The Green Deal for residential properties will be supplemented by a new Energy Company Obligation from the end of 2012. The idea behind this is that additional support will be available for properties that are difficult to improve the energy efficiency and also less well off residential property owners.

For more information on Green deal opportunities get in touch with us on 0141 354 1688.