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THE GREEN DEAL

The Green Deal is a scheme introduced by the UK Government on 28th January 2013 that aims to increase the Energy Efficiency of 14 million homes.

There are two aspects to the Green Deal. Grant funding through the Energy Companies Obligation (ECO) and Green Deal Finance, which supports all other householders by allowing them to install energy-related products without any up-front cost.

ECO grants can be claimed by homeowners and private tenants. Products available under and the grant scheme include the following:

Those who do not qualify for an ECO grant can still apply for Green Deal Finance. However, availability of the scheme has been limited since it's launch.

The Energy Companies Obligation (ECO) Grant

The purpose of ECO is to support those living in fuel poverty and to contribute towards expensive Green Deal measures that would otherwise not meet the Green Deal Golden Rule.

The Energy Companies Obligation has been designed to fit in with the Green Deal by providing 100% grants to those living in fuel poverty. These householders can have Loft & Cavity Wall Insulation and in some cases a replacement Boiler or full Central Heating system installed. This means they will benefit from the full savings on their energy bills.

100% grants for External Wall Insulation are available to all householders whose properties are mainly heated by electricity or solid fuel. Properties heated by other fuels can receive a grant of up to 50%.

ECO grants to cover the full cost can also be claimed for Cavity Wall Insulation. Loft Insulation is provided free of charge with External Wall Insulation and is heavily discounted with Cavity Insulation.

ECO is split into three parts:

Home Heating Cost Reduction Obligation (HHCRO)
Formerly known as Affordable Warmth. Customers in receipt of a qualifying benefit can receive fully funded measures. These include Loft & Cavity Wall Insulation, Boiler replacement and full Central Heating systems.

Carbon Saving Communities Obligation (CSCO)
Anyone living in a postcode area where incomes are generally lower than average and the likelihood of fuel poverty is higher can claim an ECO grant to have Loft and Cavity Wall Insulation free of charge.

Carbon Emissions Reduction Obligation (CERO)
CERO also provides full grant funding for External Wall Insulation where the property is mainly heated by electricity or solid fuel. Grants of up to 50% can be claimed for other fuel types. CERO also provides free Cavity Wall Insulation to all private householders. Loft Insulation is provided free with External Wall Insulation and is also discounted by up to 95% with Cavity Insulation.

Which Products Qualify For An ECO Grant?

The following products can be installed with an ECO grant:

ECO GRANT PRODUCTS:
  • Loft Insulation
    11" (270mm) installed on the floor of a loft.
  • Cavity Wall Insulation
    Installed between bricks or brick/block.
  • External Wall Insulation
    Fitted to outside of Solid Wall properties.
  • Boilers & Central Heating
    For inefficient boilers or no heating.

Green Deal Finance

Those who do not qualify for an ECO Grant can receive Green Deal Finance to have energy efficient products installed without paying a penny up front. The savings on energy bills are used to pay for the cost of the work in installments.

Providing the energy bill savings are greater than or equal to the repayments, Green Deal products can be installed. This is known as the Green Deal 'Golden Rule'. More expensive products such as External Wall Insulation may require CERO grant funding to help them meet the Golden Rule.

The Green Deal is effectively a loan or charge against the property. The repayments are taken directly from the electricity bill and so the charge is passed on to the next occupier of the property.

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