The Green Deal in Scotland encourages homeowners and tenants to introduce energy saving measures to their properties. It has been promoted as a solution to solving some of the problems which put off individuals financing energy saving improvements to their homes.
When Green Deal finance has been obtained there is no requirement to repay the loan in the standard way, instead the money is recouped by the energy supplier by way of added charges to their energy bill. Another feature is that the obligation does not rest with the individual but remains with the property. The increased energy charges pass to the new owner on any sale. This overcomes reluctance on the part of owners to carry out works if they don't intend to remain long term in a property.
The scheme operates in a similar way wherever you are located in the UK. Essentially there are four stages:-
- Green Deal Assessment - A Green Deal accredited assessor carries out an assessment of your property details in a report, outlining what energy efficiency measures could be installed and the likely savings. These may include a change to a biomass or condensing boiler, introduction of Solar PV etc. The list is something of a work in progress.
- Quotation - You then contact a Green Deal provider to discuss the report and they will issue you with a quote for the cost of the recommended measures and proposed monthly repayments. The golden rule applies where the monthly payment must always be lower than the savings to be made on energy bills as a result of the improvements.
- Installation - Once you have agreed to go ahead with your Green Deal Plan, the improvements will be arranged and installed by an accredited Green Deal installer.
- Payment - Once the work is complete, your Green Deal repayments will be added to your energy bill.
The Green Deal is attached to the property and so those buying a property are entitled to information on any green deal affecting the property. It will be included in any Energy Performance Certificate and there is an obligation on a seller or landlord to provide information before selling or letting a property. Owners will be asked to supply details to include in any contract of sale.
The Council of Mortgage Lenders has included new rules in its handbook on 'green deal' plans for properties. Please click here for more information.
If you are looking to buy or sell a property and would like to be represented by a lawyer who understands the implications of green deal, get in touch.