What is Green Deal and how can it save you money?

Originally published 16 September 2013. The Green Deal has since closed, so this is kept for reference only - see our latest guides.

The Green Deal scheme enabled homeowners to make energy-efficient improvements without paying any upfront fees, repaying instead through savings on their energy bill. It extended beyond homeowners to landlords, private tenants and business owners.

A Green Deal assessor visited your home to determine eligibility. If approved, you contacted an approved installer to schedule the work. Your energy supplier passed repayments to the Green Deal provider, itemised on your bill. Payments typically cost less than the savings achieved, resulting in a net saving.

Is the Green Deal a personal loan?

No. If you relocated, the new residents benefited from the improved efficiency, and the outstanding balance remained attached to the bill, with new residents becoming liable for remaining repayments.

What improvements did it cover?

Green Deal funding covered loft insulation, cavity wall insulation, boilers and solar panel installations. Uninsulated homes can lose a significant amount of heat through the roof and walls, so insulation significantly reduces energy bills.

Energy efficient boilers

Older back boilers connected to integral gas fires often waste energy by storing large quantities of unused water. Modern condensing combi boilers operate up to 90% more efficiently by heating water only when necessary, with heat recovery from the flue. Replacing an old boiler also reduces repairs and produces fewer winter breakdowns.

For current funding help, see our guide on the boiler upgrade scheme.