Green deal paves way for energy efficiency home improvements
The new 'Green Deal' has been launched with the aim of assisting people paying for energy efficient improvements
to their home.
Under the scheme a homeowner (or tenant with the Landlord’s permission) would contact a Green Deal provider who would arrange an inspection of the property
(for which they may charge) to see what steps could be taken to make the property more energy efficient
and result in savings.
If it is possible to carry out works which would result in energy savings the Green Deal provider puts together a proposal
showing the works, likely savings and the costs. It is important to note that the costs are recovered via a surcharge
on top of the electricity bill charged to the property for a set period of time. The theory behind this is that the surcharge will be offset by the savings made
due to lower usage, so the process should not actual cost the user.
The scheme could be used for such things as cavity wall insulation; draught proofing; condensing boilers; replacement and secondary glazing; under-floor insulation; roof insulation and biomass boilers.
If the works go ahead, the homeowner enters into a contract with the Green Deal provider and the home becomes subject to the electricity bill surcharge
. When the property is sold, the new owner also then becomes subject
to the electricity bill surcharge as the cost passes with the property as the perceived benefit also does – the seller must disclose the existence of the Green Deal plan
to the buyer and relevant information may also appear in the Energy Performance Certificate provided. It is possible to repay the charge early so as to remove the surcharge
, however, it is possible that penalties may apply if this happens.
The Green Deal also has an impact on Landlords as they will be able to carry out energy efficiency works to the property with the costs ultimately borne by the tenants
. However, they should note that they must have the Tenant’s agreement
to do this and must disclose the Green Deal to any future Tenants who would be liable for the electricity surcharge. Landlord’s should also bear in mind that if the property is not tenanted the surcharge still needs to be paid – by the Landlord.