Energy grants The Green Deal

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The Green Deal will provide finance for home energy efficiency improvements

What is the Green Deal?

The Green Deal is a new government initiative that aims to encourage consumers to make their homes more energy efficient, without having to fork out money upfront.

It's a sort of loan for home improvement to improve your home energy efficiency. The 'loan' is paid back through your energy bills when you start to save money as a result of improving your home. It's a commercial loan that you can choose to take out - it is not a government grant and is not supported with money from government.

But it means that rather than having to dip into your savings or take out loans to install cavity wall insulation, solid wall insulation, double glazing or maybe a new boiler, you can take out long-term finance that will be attached to your home. The 'loan' is then paid back through the savings achieved on your gas and electricity bill by the energy-saving measure you've had installed. 

To find out more about the Green Deal, read our guide to the Green Deal.

Extra financial help

The 'Energy Company Obligation' (ECO) can provide grants to certain households. This is because it places one or more obligations on energy companies to help with the installation of energy-efficiency measures in homes in Great Britain before a set deadline. It is proposed that the ECO will provide:

  • support for homes that cannot fully pay for energy efficiency improvements through Green Deal finance alone (for example 'hard to treat' homes)
  • support to low income and vulnerable households least able to heat their homes to an adequate standard.

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