The Green Deal and the consumer

24 May

In previous blogs we have looked at the Green Deal and the installer. Since the Green Deal has now launched, what does it mean to the consumer?

It maybe you have heard of the Green Deal but are not very clear about how it functions or you may not have heard of it at all. Let’s learn a little more.

Basically it is a scheme initiated by the government to enable people to make energy-saving improvements to their homes without having to pay all the costs right away. The costs of the improvements have to be outweighed by future savings in energy consumption and consequently energy bills. This has become known as the Golden Rule. Payment for the improvements is then made through the property’s future energy bills.

Some of these improvements include double glazing, draught proofing and solar panels.

How is the Green Deal achieved?

The first thing that happens is an assessment of your property. This will produce a report which will explain what improvements could be made and how much that could save on energy bills. The important thing to remember at this point is that the report must comply with the Green Deal Golden Rule that the cost of the work must be outweighed by the energy savings.


Ok, sounds pretty straight forward so far.

The next step is decision time. If you think the Green Deal is something you want to take advantage of, you will need to choose an approved Green Deal installer to carry out the improvements you have decided upon having.

In the case of double glazing, only companies who are certified by a Green Deal Certification Body (e.g. FENSA) against PAS 2030 to
become a Green Deal Certified Installer can install Green Deal measures.
Homeowners need to get quotes for Green Deal finance packages from Green Deal Providers who can be found at .  Of course you can get quotes from as many Green Deal Providers as you like.  Here is your opportunity to discuss with them what work you want done and whether the Green Deal is right for you.

So, how does it all get paid for?

Once all the decisions have been made your Green Deal contract will be drawn up. This will show the costs and interest charges. You should ensure you understand the repayment rules before you sign your Green Deal Plan. The payments are then made through your electricity bill.


The Green Deal is different in as much as the actual costs of the improvements stay with the property not the individual.

Therefore if you move in to a property, it may have a Green Deal, so if you are the person who pays the electricity bill, you will continue paying the money back. This is because you will be benefitting from the lower energy bills due to the improvements already made.

Alternatively, if you leave a property with a Green Deal, you are no longer benefitting from the improvements so you stop paying for them.

There is information here if you would like to know more about the Green Deal and its benefits.


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