The Green Deal is the Government’s programme which aims to promote energy efficiency, whether people own or rent their property. The work to upgrade the property will be paid back from the saving on energy bills.
The objective is to provide a framework to enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and recoup payments through a charge in installments on the energy bill.
For more information follow this link: The Green Deal
The Green Deal is expected to provide finance for up to £6,500 worth of works to homes or businesses. This will be tied to the property and paid off through lower energy bills.
Householders will make repayments spread over a long enough period so that repayments are lower than their predicted energy bill savings, meaning financial and carbon savings are made from day one.
1. The expected financial savings must be equal to or greater than the costs attached to the energy bill, known as “the golden rule” of the Green Deal.
2. The measures must be approved and the claimed bill savings must be those accredited through this process.
3. The measures installed must have been recommended for that property by an accredited, objective adviser who has carried out an assessment.
4. The measures must be installed by an accredited installer.
5. For householders, the Green Deal provider must give appropriate advice within the terms of the Consumer Credit Act and take account of the individual circumstances of the applicant.
6. The Green Deal provider must have consent from the relevant parties, including the express consent of the current energy bill-payer.
7. The presence of a Green Deal must be properly disclosed to subsequent bill payers (e.g. new owners or tenants)alongside energy performance information.
8. Energy suppliers must collect the Green Deal charge and pass it on within the existing regulatory safeguards for collecting energy bill payments – including protections for vulnerable consumers.
Pilot scheme to trial and assess elements of the PAYS concept involved providing £4 million of funding to cover capital measures with £2 milliion available in 2009/10 and the balance in 2010/11.
The pilot scheme has been launched with around 500 homes from Birmingham, London Borough of Sutton, Sunderland, Stroud, Surrey and Sussex being offered the chance to receive a whole house energy makeover.
Watch clips about Pilot Pay As You Save on YouTube.