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The Green Deal - A new way for owners and tenants to pay for energy efficient improvements

The idea is simple; install new green technology into your pub with no up-front costs. You will pay back the costs through your energy bill over a period of time. This is unlike a conventional loan because if you move out of the pub the bill stays with the property where the savings are occurring and not with the bill payer.

The goal is to ensure that the savings on energy bills always outweighs the repayment amount. This is referred to as the ‘golden rule’ – so whatever the initial outlay, it must always be offset by the energy savings. If not, then no deal.

The Green Deal

What improvements will the Green Deal cover?

There are 45 measures approved to receive funding under the Green Deal, we anticipate most public houses would benefit the most from:

  • Insulation (Loft and Cavity wall )
  • A rated condensing boilers
  • Zoned heating controls
  • LED lighting

Green Deal Approved

Green Deal FAQ

How are the financial savings calculated?

The first stage of the Green Deal process is to have an accredited advisor attend the site and produce a Green Deal advice report. The Green Deal assessor will produce a Green Deal advice report made up of two documents, an Energy Performance Certificate (known as an EPC, this rates the buildings energy efficiency on an A to G rating scale) and a Green Deal Occupancy Assessment, which assesses how energy is used in the pub. The Occupancy Assessment is personalised to the site and uses actual data i.e. current energy unit costs and the previous 12 months bill history. All assessors will use the same calculation model developed by the government known as ISBEM.

Are there guarantees that savings will be achieved and the Golden Rule will be met?

No, but the savings estimates used by Green Deal Providers to calculate the amount of finance they can offer a customer will be reduced by a set percentage (called an 'in-use factor'). The in-use factors have been recommended by a team of experts and are different for each measure. This approach has already been used in previous energy efficiency schemes such as the CERT Scheme.

Who pays for the EPCs and GD Occupancy assessment?

The cost of EPCs and occupancy assessments can be added to the total cost of the Green Deal plan and paid off over the lifespan of the plan.

Is work coved by any warranties?

All work undertaken by Green Deal installers shall be correctly notified to the relevant competent person scheme including Gas Safe. All installations shall be subject to the relevant workmanship warranties for a minimum of five years for Green Deal products and ten years for the consequential property damages. The products shall carry a minimum five-year warranty, additional warranty packages can be offered to ensure that the product warranty matches the lifespan of the Green Deal plan. All works will be sample audited and complaints procedure documentation shall be issued by the Green Deal Advisory Service.

Is interest added to a Green Deal Plan?

Yes, around the 7-10% mark.

How is it different from a normal loan?

Unlike getting a bank loan, which is tied to the borrower, a Green Deal plan is attached to the property, so when your tenants move out, the new occupants automatically continue the repayments through their electricity bills, as they will receive the benefits.

What consent is required to set up a Green Deal plan?

The Green Deal Provider must have consent from the relevant parties, including the express consent of the current energy bill-payer.

What happens if a tenant moves out?

Green Deal repayments are part of the electricity bill for the property. So the person responsible for paying the electricity bill is responsible for making repayments for the improvements. As noted above, if they move out, the next electricity bill payer will take on the repayments.

What if the previous tenant has left without paying the electric bill, will we have to pay off the arrears?

No, all debts remain with the person whose name is on the electricity bill so you will just pay the charge from the day you take back the property.

Do I need to declare the Green Deal plan to a new tenant?

Yes, the repayments of the Green Deal plan will become the responsibility of the new tenant so their consent is required. 

Will it be more difficult to sell or let a pub with the Green Deal charge attached to it?

It is hoped that the savings on energy bills will be beneficial and make the pub sell or let more easily. If however the purchaser demands the loan is cleared there will be an option to do this and the Green Deal Provider will be obliged to provide a settlement statement.

What happens if we want to sell the Pub?

An Energy Performance Certificate (EPC) will show if there is a Green Deal plan in respect of the pub. If there is, the certificate or report will show the improvements made, the repayments amount and how long you will need to make the repayments for.  The property owners will have to provide a copy of these documents to the next occupier and get written acknowledgement of the Green Deal.

Can we pay the Green Deal off quicker?

Yes, you have the right to repay your Green Deal quicker.

Can customers that take out a Green Deal Plan still switch energy supplier?

Yes, providing that the new supplier is participating in the Green Deal payment collection mechanism. All the major suppliers are participants in the scheme. 

Is there a way I can find out how much I still need to repay on the Green Deal Plan via an online account or otherwise?

At least once per year your Green Deal Provider will send you statements of account, showing how much you have paid off and how much is still remaining. You can also request a statement of account and a copy of the Green Deal plan at any time from your Green Deal Provider.





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