The Green Deal is a new government initiative aimed at improving the energy efficiency of commercial and residential properties and saving money on energy bills. The Green Deal is an innovative financing mechanism designed to help property owners employ more green technology in their properties. Loans will be granted to the property owners to fund the installation of the green technologies.
The Green Deal allows improvements such as double glazing, draught proofing, cavity wall, loft insulation, ground and air source heat pumps and solar panels to be carried out without any initial upfront capital cost to the property owner. The repayments on the loan will be covered by the savings on the energy bill as a result of the energy saving improvements installed. The loans are paid back through the energy bill for the property over a period of time- between 10 and 25 years depending on the energy efficient improvements chosen. In theory, the Green Deal should mean that you never have to pay more than you have “saved” on your energy bill.
The Green Deal was included in the Energy Act 2011 and the loans became available on 28 January 2013 to help property owners reduce their carbon footprint and generate energy savings. Energy performance standards are being introduced for commercial properties across Europe and by 2018, all commercial properties will need to meet the Energy Performance Certificate standards. Information regarding an existing Green Deal now requires be disclosed in the information provided in the Energy Performance Certificate. This information will then be entered on the Scottish EPC Register.
Green Deal loans transfer with the property rather than those who took out the loan. This means that new tenants or owners can become liable for a debt they did not enter into. For this reason Energy Performance Certificates must be inspected with care to ascertain whether or not the property in question is subject to a Green Deal, thereby obliging the owner of the property to take on the repayment of the balance of the initial loan through an increase in the energy bill for a substantial period.
0131 226 8222