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The Green Deal
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What is the Green Deal?

The Green Deal will help fund energy-saving upgrades for your home without any upfront costs. Instead, the costs are added to your energy bills and staggered over time, like a loan.

So if you want to add LED lighting or part fund a solar PV installation, you can do so with a Green Deal loan.

You’ll still pay for them, but the cost will be repaid over time as an additional charge on your energy bill. However, the ‘golden rule’ of the Green Deal means that your repayments will have to be less than the money you will save on your energy bills.

The Green Deal is essentially a loan from the private companies installing these energy efficiency measures. There’s a maximum amount of £6,500 per household and, crucially, this is tied to the home rather than the owner, so if you move house the debt is passed on to whoever lives there next.

The loan is then paid back through the electricity bill over a 25-year period.

Unlike many other home improvements initiatives, the Green Deal is not dependent on people’s income and the loans are available to everyone.