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The Green Deal

Published on 13 February 2013 at 17:42

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The Green Deal was launched on the 28 January 2013, an initiative established by Government to  encourage and promote energy efficiency and help businesses and homeowners to employ more green technologies in their properties.  The aims of the Deal are to lower UK carbon emission output (Climate Change Act 2008 set carbon emission reduction targets – 24% by 2020 and 80% by 2050), reduce demand for imported gas suppliers and improve competition with the energy market.

Businesses and Homeowners can now be offered loans that will cut bills while making their properties more energy efficient. There will be no up front costs to the householder or business, instead loans will be paid back through the savings made on their energy bills over a maximum of 25 years, loans are attached to the property, and not the person, so where people move on it passes onto new owners or tenants.   

Property owners are protected by Green Deal’s Golden Rule, which states that “the energy savings a property makes in a 25 year period must be equal to or more than the cost of implementing the changes in the first place. This ensures that the property owner is not paying back more to partake in the Green Deal than they are saving on their energy bills”.

The Golden Rule states that each property is initially by an accredited Green Deal Provider who recommends a package of measures and costs, this is dependent on potential savings in line with the Golden Rule.  Measures must be implemented by an accredited Green Deal Installers, this ensures that the property owner is not investing money in work that will not save them money on their energy bills.