Energy Q&A: What is the Green Deal?

Recent changes to the Green Deal scheme mean more money for making energy efficient improvements on your home — at no up-front cost to you

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You may have heard the Green Deal mentioned more than a few times in the past year-and-a-half. But what is the green deal, exactly? And should you apply for it?

In a nutshell, the Green Deal is a government loan scheme that offers a way to get energy-efficiency upgrades done on your home, and then pay off the loan via extra payments on your energy bill.

The "golden rule" of any household taking up a green deal loan is that monthly savings garnered by carrying out the work are more than the monthly repayment cost of the loan.

It’s important to know that the Green Deal loan can only be used for energy-saving home upgrades, which are covered as follows:

  • Up to £4,000 for solid wall insulation
  • Up to £1,000 for 'room in roof' insulation
  • Up to £650 for households to install double glazing

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Homes must first have a Green Deal assessment carried out first by a certified assessor, and the recommended work must be undertaken by a certified Green Deal provider.

For more information on applying for a Green Deal loan, visit the Green Dal Helpline site.

Green Deal reception

First launched in January 2013, the Green Deal drew controversy in its first year due to a low uptake of borrowers.

Despite about a hundred thousand households showing interest in the programme by having a green deal assessment done on their home, very few progressed to applying for the Green Deal loan.

Critics stated that this was due to fact that the loan would be attached to the property, not to the borrower. Unsure what this would mean if someone were to try to sell their home with a green deal loan attached, it appeared that after getting the assessment, some simply carried out the work without the aid of the loan.

DECC countered that despite the low uptake of loans, the high interest in energy efficiency upgrades was a sign that the scheme was doing what it set out to do — raise awareness of the savings that could be gained by carrying out energy efficient work.

Read more about the Green Deal with our handy guides:

Related info

New, simpler Green Deal announced

Green Deal loan explained

Green Deal myths: separating fact from fiction

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