This entry is part 1 of 13 in the series Green Deal

Green Deal Introduction

The green deal is a framework allowing private companies to offer consumers and businesses’ energy efficient improvements to their buildings. The cost of these improvements will be paid back by the consumers through the resulting savings in their energy bills. The green deal relies upon the golden rule which ensures the cost of the instalments won’t be greater than the savings they will make (for the first year at least). By meeting this golden rule, customers are in essence getting their energy savings for free.

The legislation for the green deal is commencing gradually. It started with the Energy Act 2011 and now the secondary legislation is commencing between 7 August 2012 and 28 January 2013 which is the date when the green deal will be fully in force.

The green deal legislation applies to England and Wales. (The legislation also applies to Scotland with a number of amendments not shown in this series of articles).

This is a rather lengthy guidance so for people wishing to “skip” to the really important bits, all landlords and letting agents are urged to read the disclosure and acknowledgment requirements sections. This contains guidance about the provisions dealing with disclosure to prospective tenants about a green deal plan that is attached to a property and the requirement to obtain in writing an acknowledgement from the tenants that they are aware of the green deal plan (including the fact that they will have the instalments to pay assuming they are to be the energy bill payer).

Although this guidance has been written for landlords, letting agents and their advisors and as such all references to “buyer, seller, sale or buy” have been removed, most of what you read in this guidance applies to both lettings and sales equally including importantly the disclosure and acknowledgment provisions.

The Energy Act

Chapter 1 of Part 1, Energy Act 2011 provides for the introduction of green deal. The definition of a green deal plan is an arrangement made by the occupier or owner of a property to make energy efficiency improvements to the property and those energy efficiency improvements are to be paid for wholly or partly in instalments [1].

Energy Company Obligation

In addition, there is a new energy company obligation (“ECO”) which will help householders who cannot achieve significant energy savings without an additional or different measure of support from green deal. For example, this includes vulnerable and low-income households and those living in harder to treat properties, such as solid walled properties.

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