Have you considered making energy-saving improvements to your house?
It’s no secret that major governments in Europe are encouraging their citizens to take steps forward to protect the planet. Installing eco-friendly measures such as insulation, solar panels, draught proofing, and many more is not always the top priority for homeowners, so the UK government made attempts to change that.
Although the initial ‘Green Deal’, introduced by the UK government around 2013, is not available in its original form, private investors now play a crucial role in helping homeowners benefit from a very similar scheme. These investors provide the necessary funds for your energy-saving improvements, which you can repay over time.
So, what exactly are the details of the deal? Who is responsible for it – and where does the money to pay for it come from?
What is ‘The Green Deal’?
When you want to make energy-saving improvements to your house, the ‘Green Deal’ helps you pay for them.
The deal was first introduced by the UK government in 2013 and helps people in the country to pay for:
- Insulation
- Heating
- Draught-proofing
- Double glazing
- Renewable energy generation, such as solar panels
As of 2024, private investors support you in paying for these home improvements by giving you a loan, which you must repay further down the line.
In theory, the eco-friendly changes you make to your property should reduce your energy costs, which is supposed to help cover the loan’s costs.
Once the loan is paid in full, it will be removed from your bill. You can then enjoy the savings that the energy efficiency may have brought.
The Conservative government introduced this initiative to signal their commitment to improving energy efficiency throughout the country and helping homeowners reduce their carbon footprint.
However, there was low uptake from households, which caused private investors to become the only primary funding source once the deal was discontinued.
Are all homes eligible for the Green Deal?
All property types are eligible for the Green Deal and, therefore, can get a loan to cover payments—but only if your assessment recommends that these changes be carried out.
You should contact a registered assessor about completing this at home. You will have to pay for this yourself – and the assessor should give you a quote in advance. Paying for an assessment will typically cost somewhere between £100 to £200.
Subjects in the assessment will typically cover:
- Whether you own the property or rent it
- When your house was built
- How your property was constructed
- Any access issues that exist
- Your current energy payments
The assessment will outline your EPC rating, potential changes, an estimate of how much you could save by making these changes, and a statement on whether the improvements will pay for themselves through reduced energy costs.
Each report is valid for around ten years.
How to find a Green Deal assessor
There is an online website that lists all the approved Green Deal assessors and providers.
What is a Green Deal Provider?
A Green Deal Provider can help you to decide whether a Green Deal Finance Plan is right for you, provide finance, and then offer additional assistance through Green Deal Cashback or the Green Deal Home Improvement Fund.
What is a Green Deal Installer?
As the name suggests, a Green Deal Installer is a contractor who implements eco-friendly changes to your house. They have experience installing all different types of features, including solar panels, insulation, doors and windows, and more.
How do I pay for the Green Deal?
A Green Deal provider can offer you finance terms to consider. You may want to discuss these with a financial advisor.
However, in addition to this, there are several funding schemes that you may want to research and take advantage of. For example:
- Energy Company Obligation
- Smart Export Guarantee
- Local authority schemes
Your location may impact which of these you might be eligible for. You should do thorough research on each one, as some may be applicable. After all, both public and private organisations are keen to encourage residents to make green improvements, and funding is a major part of this.
You mustn’t mix up the scheme with the ‘Green Homes Grant’, a different initiative.
Should I apply for ‘The Green Deal’?
By adding eco-friendly features to your property, you’re not just making a short-term investment. You’re also increasing its value in the long term. If your monthly energy bills don’t increase significantly, this could be a smart decision that benefits both your pocket and the planet.
You may also want to weigh how vital your carbon footprint is to you. After all, if you want to have a clear conscience about your effects on the planet, then perhaps the changes will be worth it.
Eco investment is long-term
On the other hand, if you plan on selling your property soon, you may decide that it is not worth making the changes because you will not benefit from the financial savings on your bill over the following months or years.
The results of your assessment may also impact you. The details about how much it will cost and how long it will take to earn your money back will affect your feelings about the changes. Speak directly to your assessor for their feedback, then decide what is most important to you.
What can I do to improve my EPC rating?
When you get the EPC test carried out on your property by a registered assessor, it typically includes recommendations on improving your score. You should follow up with your assessor on this for further clarification.
Installing double-glazed windows is an excellent way of keeping the heat in, and implementing energy-efficient technology (such as light sensors, which turn off automatically, or even solar panels) will work in your favour, too. It will also be important that major systems, such as boilers, are not outdated and work effectively.
If you are serious about increasing your score, you will need to budget for these home improvements. Some of these installations will not be cheap, but they will hopefully make your house far more attractive to buyers and renters in the future.
Does Energy Efficiency Impact Property Value?
In short, yes.
According to Nationwide, there is approximately a 1.7% price difference between a house rated A or B on its EPC certificate and a property with a D rating.
Similarly, if your house has solar panels or well-insulated walls, this will reduce monthly energy costs for new owners. It is worth paying more for.
Your assessor can provide more accurate figures on how much you could benefit, how much it will cost, and how many years it may take to get your money back. If you want more guidance on property-related matters – for example, selling your tenanted house – then contact us today.