Conveyancing Blog: Green Deal scheme

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May 3, 2016 | By Sarah Kent |

May 3, 2016 | By Sarah Kent |

The Green Deal scheme was closed in July 2015 for new applicants. As properties come onto the market with outstanding Green Deal finance, buyers and tenants may ask: What was the Green Deal scheme and how does it affect me?

Introduced in 2013, the scheme enabled people to finance home improvements designed to improve energy efficiency. The loans were paid back via savings made on energy bills.

The best energy-saving improvements available would depend on the type of house, but examples included:

  • Insulation, e.g. solid wall, cavity wall or loft insulation
  • Heating
  • Draught-proofing
  • Double glazing
  • Renewable energy generation, e.g. solar panels or heat pumps

Any household with an electricity meter (including prepayment mbeneters) in England, Scotland or Wales could use the scheme.

How was the Green Deal scheme paid for?

Where the owners had chosen to take Green Deal finance and pay for their energy by quarterly or monthly bills, Green Deal Scheme repayments would have been automatically added to the household’s electricity bill. In households where electricity is paid for via a prepayment meter, a small amount will be taken from the meter each day.

What happens if I move into a house which has benefited from the Green Deal scheme?

The Green Deal scheme requires the person who pays the electricity bill to repay the loan, therefore if you’re a tenant in a rented property, then you’ll be paying back the loan, not the landlord. This is because the tenant can expect to benefit from lower energy costs. If you purchase a property with outstanding finance from the Green Deal scheme then you will also be required to continue to repay the loan.

The landlord or seller must show you a copy of the Energy Performance Certificate (EPC), which will explain what improvements have been made and how much you’ll need to repay.

The important thing to note here is that whilst you are required to cover the Green Deal costs, you are not tied in to using the existing energy supplier. As long as your new supplier is participating in the Green Deal scheme, you can switch.

Disclaimer: The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice, and the law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice on their own particular circumstances.

Sarah Kent

Sarah is a Conveyancer within our Residential Conveyancing department. She is based in Wakefield and joined Switalskis in 2010, moving to the Conveyancing team in 2013. Sarah's profile

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