What is the Green Deal

The new Coalition Government has inherited a country with some of the oldest, most inefficient housing Stock within Europe. Over three quarters of Britain’s homes were built pre 1975 with another 20 being constructed before the first World War. A worrying example of the current situation Britain finds itself in is that we now use more energy to heat our homes than Sweden does!

With this type of housing stock, many of the energy efficient home improvements needed are cost negative that means they pay for themselves over time through savings from lower energy bills due to those improvements.  The pay back period may also be longer than the preferred time the homeowners want to stay within that home. Other barriers that are commonly found is a lack of information, knowledge and understanding or why we should be more energy efficient within our homes.


Help the earth with the green deal?


With the various issues listed above the Government are going to introduce the Green Deal as the scheme to overcome these barriers.

Green Deal would roll out to every householder within Britain to save money by improving their homes through various insulating improvements. Energy companies and high street retail would provide information and guidance to interested households, taking them through the Green Deal process and pay for improvements upfront. Households then recoup the initial investment of money through the various savings they make from reduced energy bills.  

The Green Deal will also assist and help those in rented accommodation. As the tenant normally pays for their own energy usage within the home they would also benefit from improved energy efficient measures. The Government are continuing to look at how to make the Green Deal a successful scheme for people in private and social housing.

Those providing the Green Deal have the option of choosing to form partnerships with local authorities, registered social landlords and social enterprises to offer locally-based solutions.  The DECC (Department of Energy and Climate Change) is looking for early involvement by Green Deal providers ahead of legislation being introduced in the forthcoming Energy Security and Green Economy Bill. Due to the legislation and other changes the Green Deal will not be rolled out straight away.

Source: DECC

For a complete, comprehensive memorandum on the Green Deal please click here.

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