Green deal

The Green Deal is an innovative financing mechanism that lets people pay for some of the cost of energy-efficiency improvements through savings on their energy bills.

Green Deal was launched in January 2013 and applies to both the domestic and non-domestic sector. It replaces current policies such as the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP).

The government has appointed a Green Deal Registration and Oversight Body. Part of their role is to register the organisations that are approved to deliver the Green Deal – Advisors, Providers and Installers.

How the Green Deal works

The Green Deal process has four stages:

Assessment by GD advisor, Finance by GD provider, Installation by GD insstaller, Repayment through electricity supplier, all overseen by GD registration and oversight body










This is carried out in your home or business premises by a Green Deal Advisor or Provider, and may be subject to a charge. They will:

  • use standardised software to identify what energy efficiency or microgeneration improvements you can make and what the financial savings would be

  • outline how the payments will work

  • identify which improvements are likely to be cost effective

  • produce a Green Deal advice report outlining your options

  • declare any links they have with Green Deal Providers.


Once the Green Deal Advisor has given you your report, you can take it to one or more Green Deal Providers who can arrange and fund the improvements. If you decide to take up a Green Deal offer you will then sign a Green Deal Plan, which is a contract between you and the Green Deal Provider.


The Green Deal Provider will arrange for a Green Deal installer to come and carry out the work you have agreed to. The installer will have been vetted to ensure they meet the standards set out for the Green Deal.


You pay back the cost of the improvements over time through your electricity bill. Your electricity supplier will pass your payments on to your Green Deal Provider. The amount you pay back will be no more than a typical household will save on heating bills, so you are likely to be better off overall from day one.

Although the cost of the improvements is repaid, this is not a conventional personal loan as the charge is attached to the electricity meter in your house and paid back through your electricity bill. If you move out, the new occupant will pick up the charge while also benefiting from a more energy-efficient property.

Interest will be charged on these payments, but the rate will be fixed and you will be shown a full schedule of all the payments before you sign up to the plan. It is worth shopping around to find the best deal. You will be able to pay off the plan early if you choose, though the Provider may charge a fee for this.

Details of the Green Deal 

There are 45 measures or areas of home improvement approved to receive funding under the Green Deal, covering:

  • insulation

  • heating and hot water

  • glazing

  • microgeneration (generating your own energy).

For the non-domestic sector lighting, mechanical ventilation and heat recovery measures can also be covered. More areas may be added as technology develops.

Incentives to kick-start the Green Deal

The Government has recently extended the Green Deal Cashback Scheme, an incentive to encourage people to make improvements during the early days of the Green Deal. Eligible customers will receive cashback payments once they have measures installed.

Where can I get more information?

Independent advice services provide impartial advice around energy saving and the Green Deal, funded by the Department of Energy and Climate Change and the Scottish Government. These advice services can provide you with details of the Green Deal and other government schemes.




Do I qualify?

As long as you own your own home or you are a tenant living in privately rented accommodation (and you have your landlord's permission) you might be eligible for a 100% boiler grant to replace your old boiler.

What if I don't qualify?

If you aren't eligible for a 100% boiler grant there is an alternative solution and it's called the Green Deal Finance scheme.

Think of it as a loan against your home which you use to carry out approved and recommended home improvements...