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Energy Efficiency Measures - The Green Deal (England, Scotland and Wales) - now closed to new applications

If you need help with energy efficiency improvements in your privately owned or rented home, there are a number of schemes that may be able to help

The Green Deal (England, Scotland and Wales) - now closed to new applications

The Green Deal Home Improvement Fund closed to new applications on 23 July 2015. This is because the Government stopped funding the scheme.

The information below gives you an overview of what the scheme was and how it worked.

Please read the section on Changes to the Green Deal to find out how this affects you if you had Green Deal improvements made to your property before 23 July 2015 or if you are moving into a property where a Green Deal grant has been given.

What was the Green Deal?

The Green Deal, available in England, Scotland and Wales, was a way to make energy efficiency improvements to your home without having to pay 'up front'. Instead, you paid for it for it by instalments on your electricity bill, for a period of up to 25 years. Paying through your bill is like a loan – but for your property, not the person. The payments were agreed at the start and the loan stays with the property after the bill payer moves on. The loan can also be paid early.

The scheme was designed to ensure that you wouldn't pay back more than you are saving on your energy bill -. this is called the Golden Rule. However, this is not a guarantee. The actual costs may exceed the estimated savings. For example, if your energy use increases or there is a fall in energy prices.

For more information on how the Green Deal worked, please see the information on the Green Deal on the Gov.UK website.

Changes to the Green Deal July 2015

In July 2015, the Government decided to stop funding the Green Deal. As a result, from 23 July 2015 the scheme was closed to new applications. Companies can no longer sell products under the Green Deal. However, in some parts of the country the accreditations that formed part of the scheme may still be relevant.

If you already have a Green Deal loan in place or were in the process of doing so before 23 July 2015, the Gov.UK website information on the Green Deal states:

"You are not affected if your Green Deal improvements have already been made and you're making repayments through your electricity bill. Your Green Deal provider will still be responsible for any warranties or maintenance specified in your contract with them.

"Contact your provider (Green Deal Provider Search) if you are in the process of arranging energy efficient improvements to your property through the Green Deal.

"If you have a voucher through the Green Deal Home Improvement Fund (GDHIF), make sure you get the work done (see Gov.UK information on Getting the work done) and redeem your voucher before it expires."

Future house sales and tenancy agreements

As the repayments for Green Deal improvements are paid through the electricity bill and are linked to the property rather than the person, this will affect future house sales and tenancy agreements where a Green Deal grant has been made.

The consumer charity Which? website's Frequently Asked Questions on the Green Deal states:

"The Green Deal is attached to your property's electricity supply and not to you as an individual, so if you sell your home then your Green Deal arrangement will transfer over to the new owner.

"The existence of the Green Deal must be disclosed to the buyer. If the buyer of your home does not feel comfortable taking over the Green Deal loan, they might want to renegotiate the terms of sale or you could consider repaying the Green Deal off early as part of your conveyance."

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