The Green Deal is a UK Government scheme launched in 2013 set up to reduce the greenhouse gases emitted by the UK’s residential housing stock. As part of national efforts to meet the UK’s legally binding target to reduce carbon emissions by 35% by 2020, the Green Deal scheme was implemented and is a highly attractive offer because it allows consumers to install new energy efficient home improvements with little or no up front costs.
The key feature of the finance scheme is that customers are estimated to never pay more than their existing energy bills even after taking on the loan, because of the energy savings generated. Known as ‘The Golden Rule’ the key principle is that the charge attached to the bill should not exceed the expected savings and the length of the payment period should not exceed the expected lifetime of the measures.
In addition, the repayment of the loan is taken from the customer’s energy bill and not from their bank account. The Green Deal loans are also attached to the property, not the individual and this will continue to be the case as the popularity of Green Deal loans continues to grow.
Watch this simple to understand video on how the Green Deal works: