Green Deal and ECO

Green Deal and ECO

The Green Deal

The Green Deal is a scheme, originally designed by the government, now backed by private investors, that enables individuals and businesses to make energy efficiency improvements to residential and commercial property funded through a ‘pay-as-you-save’ approach. Green deal providers arrange low-cost finance for the improvements without any up-front payment. Instead, the costs of making the energy saving improvements are added to the energy bills at the property and paid off in instalments by the energy bill payer in line with the Green Deal Golden Rule. The Golden Rule is that the expected financial savings resulting from the energy efficiency measures must be equal to or greater than the costs attached to the energy bill. The burden of the repayments remains with the property, and therefore transfers to the new owner/occupier when a building is sold/let.

The Green Deal was introduced through the Energy Act 2011 (EnA 2011) and has been implemented through a series of regulations and orders, which provide details to the scheme, such as the Green Deal Framework (Disclosure, Acknowledgment, Redress etc) Regulations 2012 (GDFR 2012),

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