The Green Deal
What's the big deal?
The Green Deal enables a property owner to make energy saving improvements, such as loft insulation, double glazing and solar panels, without having to meet the immediate capital cost. Provided that the improvements meet the Green Deal criteria (the most important of which is that the predicted savings exceed the capital cost), a Green Deal provider will fund the improvements and the capital cost will be recovered through instalments on the electricity bill over a period of up to 25 years.
How to sign up to the Green Deal
There are 4 stages:
An assessment is carried out at the property. A Green Deal assessor will then provide a report identifying what improvements can be made and what the financial savings might be.
If the predicted savings exceed the capital cost, the report can be taken to a Green Deal provider who can agree to fund the improvements.
The Green Deal provider will arrange for an accredited installer to carry out the improvements.
The person responsible for the electricity bill will pay back to the cost of the improvements through the electricity bill over a period of time. The electricity supplier will pass the repayments on to the Green Deal provider.
Is a Green Deal already in place?
When a property is sold or leased, the new owner or tenant (if that tenant is to pay the electricity bill) will take over the responsibility for the repayments. A seller or landlord should provide an Energy Performance Certificate disclosing the key facts of the Green Deal and the purchaser or tenant should acknowledge that it is aware of the terms of the Green Deal, particularly the charges, before proceeding.
It is crucial for all prospective purchasers and tenants to check if a Green Deal is already in place. Those who do not exercise caution may find themselves with an unexpected addition to their electricity bill for a substantial period of time.
Posted on: 03/06/2013
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.
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