A guide to the green deal scheme

The green deal scheme has the potential to reduce the UK’s carbon emissions drastically, and it will save you money. The follow is everything you need to know about the green deal.

green scheme deal

The green deal scheme has the potential to reduce the UK’s carbon emissions drastically, and it will save you money.  The follow is everything you need to know about the green deal.

The green deal scheme:

The green deal scheme is the government’s flagship energy saving policy.  After years of planning, the green deal scheme has now gone live.  However, after speaking to people I have come to realise that many haven’t heard of the green deal.

The statistics state that 4 in 5 people have never heard of the green deal scheme or do not know what it is about.  This surprises me.  This guide aims to layout what the green deal scheme is, how it will save you money, and create thousands of jobs.

What is the green deal?

The green deal scheme helps fund energy saving upgrades for your home, without any upfront costs from you.  The costs are added to your energy bills, which are then staggered over time.  It is essentially a type of loan.

Green deal golden rule:

Say you want new, energy efficient loft insulation or draught proofing; you can with the green deal loan.

You will still pay for the system, but the cost will be spread over time and added to your energy bill.  This does sound expensive.  However, the golden rule of the green deal scheme is that your repayments have to be less than the money you save on your energy bills.

In other words, the money you save by installing energy efficient systems will always be more than what you are charged in your energy bill.

How does the green deal scheme work?

The green deal can be seen as a loan from private energy efficient installers.  You can have a maximum of £6,500 worth of upgrades per house.  You should know that the deal is tied up with the house, not you (i.e. the owner).  If you move property the debt is passed on to the next owner.

The green deal scheme is fully transferable between suppliers.  You can switch energy suppliers at any time, as the debt is a fixed amount.

Long-term commitment to carbon reduction:

Your green deal scheme loan is paid over the next 25 years.  The green deal is a long-term project to reduce the UK’s carbon emissions and meet hard targets set by the Climate Change Act.  We are committed to cutting our carbon emissions by up to 80% by 2050.  A large part of our emissions come from energy inefficient housing.

How you can get involved?

There are a number of steps you need to take before you can apply.  You will need to assess what needs doing to your home to make it more efficient.  In order to do this you will need a property assessment.  From this you can find out where you are loosing efficiency and what to do to improve this.

Now you need to choose a green deal scheme provider or installer.  There are many that have signed up to the program.  You can choose the quote most applicable to you.  The work can then begin with no upfront cost to you.

You should be aware that you can pay upfront for the work if you wish.  You can also make one off payments for your new upgrades at any time.

What is included in the green deal scheme?

The following is a list of some of the energy efficient upgrades that are covered by the green deal scheme.  More information can be found here.


  • Condensing boilers,
  • Flue gas recovery devices,
  • Radiant heating,
  • Storage heaters,
  • Under-floor heating,
  • Warm-air units


  • Cavity wall insulation,
  • Draught proofing,
  • Floor insulation,
  • Loft insulation


  • Biomass boilers,
  • Ground, water and air source heat pumps,
  • Micro CHP,
  • Solar PV,
  • Solar thermal

Saving money with the green deal scheme:

The green deal is a scheme aimed at making UK housing more efficient and which will reduce carbon emissions.  You will see this increased efficiency in reduced energy costs.

For example, insulation can save you up to £310 a year.  Installing a better boiler can save you around £300 a year.  Yes, the cost of installation will appear in your energy bill as an added extra, but because of the ‘golden rule’ this cost wont be more than what you save.

Also you should remember that once your loan has been repaid, you would keep any further savings.  Over a number of years this could mean substantial savings.

Government cashback incentive:

The government has created a reward for people to sign up to the green deal.  £125m will be given to homeowners who have work done to their homes.  This is first come, first serve.

Payouts include:

  • £100 loft insulation,
  • £270 energy efficient condensing gas boiler,
  • £250 cavity wall insulation,
  • £650 solid wall insulation,
  • £150 floor insulation,
  • £250 draught proofing,
  • £150 new storage heaters

You should note that these rates are only available to the first £40m worth of projects.  Once projects exceed the total of £40m it is very likely the rates for these payouts will reduce.

Also once the £125m has been given to homeowners the reward will cease altogether.


Green deal scheme growth:

Hopefully this guide has shown you what the green deal scheme is, how it benefits you the consumer and also the environment.  But will the scheme actually take off? After all, like I said at the beginning, 4 in 5 people do not know it exists.

The green deal scheme began in January this year and in the last few months it showing signs of healthy growth.

Between January and April there were 18,816 green deal assessments.  This shows a clear interest by consumers to improve the efficiency of their homes.  Businesses are also showing an interest in the scheme.

By the end of April there were 55 providers, 1,274 assessors and 942 installers.  This number is growing fast as businesses realise the potential of the scheme.

Green deal supports green jobs:

One aspect of the green deal scheme, which is arguably the most important, is how the green deal will create employment opportunities.

The government has claimed that the scheme will provide 60,000 insulation jobs by 2015.  Although this figure is ambitious and has met scepticism, in the long-term this could easily be achieved.

That figure is just for the insulation sector.  Remember that the green deal covers many other sectors (45 to be exact) including double-glazing, heating and lighting.  The potential for employment is huge.


Youth unemployment is a big problem in the UK.  One way to help young people is by proving training.  The government has made £3.5m available to help train young people for these green jobs.  They will also help pay for 1,000 green deal apprenticeships.


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