What is the Green Deal

The Green Deal is a Government sponsored framework to allow private firms to offer all UK consumers (households or businesses) energy efficient improvements to their buildings.

Consumers will repay the cost of such improvements through the resulting savings in their energy bills. At the heart of the Green Deal is the rule that savings on bills will exceed the cost of the works. By meeting this ‘Golden Rule’, customers will get energy savings for free. Consumers will pay back the cost of such improvements through the expected savings in their energy bills. Improvements can include measures such as loft and cavity wall insulation, innovative hot water systems, condensing boilers and may also include more costly measures such as solar thermal energy or solid wall insulation.

Households and companies will be assessed for what Green Deal measures can improve their properties and will apply to Green Deal Providers to implement those measures. These Providers will quote a regular Green Deal repayment figure which will be collected with your energy bill by your chosen energy supplier.


There are various energy saving measures available in the market that can help existing properties reduce their energy bills including insulation, boilers and cavity and solid wall insulation. To fund these improvements the consumer has to finance the product themselves (although some support is available from Government schemes and energy suppliers). These upfront costs can be a hindrance to installing energy saving measures in the homes.

Under the Green Deal, households and businesses can have such retrofit work done to their premises without incurring debt, but rather by paying a Green Deal payment which is attached to the property. The government has legislated that Under the Golden Rule, these Green Deal payments must be less than the future savings on their energy bills as a result of the improvement investment. Accredited assessors will recommend the measures which will meet the Golden Rule and then a green deal plan will be finanaced by private sector providers who will instruct a green deal accredited installer to install the energy efficient measures.

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