Please note that as of July 2015, the government has stopped funding the Green Deal. The info on this page is for reference purposes only. To find out more about this and how it affects you if you already have a Green Deal loan, click here.
The Green Deal is the government's scheme designed to encourage energy-efficiency upgrades to be made to the UK's ageing infrastructure.
The central idea behind the Green Deal is to help cover the significant upfront costs of major energy-efficiency projects like solar panels and wall insulation by offering money back. This upfront loan is then paid back through your energy bills, which will be lower thanks to the energy-saving upgrades.
To help kick start the scheme, the government offered an additional financial incentive in the form of cashback to the first households to sign up for a Green Deal.
The money was offered on a 'first come, first served' basis to encourage early take-up of the new scheme
The government set aside a total of £125m set aside for the scheme, but only the first £40m is guaranteed at the rates we've shown below.
How the Green Deal works
The cashback deal may be done, but you can still take part in the Green Deal. Find out how to apply for and carry out Green Deal work
- Apply for a Green Deal assessment through the Green Deal Helpline
- Set up a Green Deal assessment
- You will get a Green Deal Advice Report, which includes eligible upgrades and projected household savings
- Choose the upgrades and have them installed by an authorised Green Deal Installer (be sure to look for one carrying the Green Deal Quality Mark)
- Once installed, repayments begin via your energy bill
How much you could receive?
If you applied before June 2014, below is a table of energy efficiency upgrades that are eligible for the cashback scheme and how much each is worth:
|Energy efficiency upgrade||Cashback level|
|Loft insulation (incl. top up)||£100|
|Cavity wall insulation||£250|
|Solid wall insulation*||£650|
|Flat roof insulation||£390|
|Room in roof insulation||£220|
|Hot water cylinder insulation (incl. top up)**||£10|
|Condensing oil boiler***||£310|
|Upgrade boiler to condensing gas boiler||£270|
|Flue gas heat recovery||£90|
|New or replacement storage heaters||£150|
|Replacement warm-air unit||£320|
|Waste water heat recovery systems||£60|
|Double/triple glazing (old single to A)||£20-320|
|High performance replacement doors||£40|
How does the Green Deal work?
While the idea behind the Green Deal – upfront loans to cover energy-saving upgrades – may sound simple enough, the implementation is anything but.
First you have to work out what changes are suitable for you home. Next is how much those changes will cost and how much they will save you. Then it's down to who offers the best rate for the loan and a quality service.
The first stage of any Green Deal plan is the assessment phase, whereby a qualified Green Deal assessor inspects your property to determine what energy-efficiency upgrades are suitable and recommended. To find a Green Deal assessor you should take a look at the DECC website.
A Green Deal assessment typically costs around £120 but costs do vary so make sure you shop around. Some assessors are also linked to Green Deal providers – those who install the upgrades – and may offer discounts as a result, but make sure you take the long-term costs into account and shop around before agreeing to anything.
Once the Green Deal assessor is finished they will produce a report compiling the results of their findings. It is this report that you take to Green Deal providers offering to do the work and provide the loan.
Do you have to use the Green Deal?
No, the Green Deal is simply a way of financing big energy-saving upgrades to your home that you may not otherwise be able to afford. At its essence the Green Deal recognises that the costs of, say, solar panels, are immediate, while the benefits take time to filter through.
However if you are able and willing to cover the upfront costs of energy-efficiency upgrades it will be cheaper in the long-run.
What's more some of the most effective energy-efficiency upgrades like loft insulation and draught-proofing are cheap and easy to do yourself. To learn more read our guides to lost-insulation and draught-proofing.
Find out more
Learn more at www.gov.uk/greendealcashback or contact the Energy Savings Advice Service on 0300 123 1234.
- Fixed Price Energy Could you save money with a fixed price energy tariff?
- Insulation Improve the energy efficiency of your home with insulation
- Energy Performance Certificate EPC's are now a requirement if you're buying or selling a home
*Where Cashback is claimed on solid wall insulation, the solid wall insulation must be applied to at least 50% of the external wall area.
**Cannot be claimed at same time as boiler replacement (as this is a regulatory requirement).
***Off gas-grid households should consider their renewable heat options – higher payments may be available through the Renewable Heat Premium Payment scheme than the Green Deal Cashback offered for condensing boilers.