Energy grants The Green Deal


The Green Deal will provide finance for home energy-efficiency improvements

What is the Green Deal?

The Green Deal is a government initiative that aims to encourage consumers to make their homes more energy efficient, without having to fork out the money for improvements up front.

It includes advice on how to make your home more energy efficient and can also include a loan for energy efficiency measures. 

If you take out this Green Deal Finance, the money is paid back through your energy bills. The idea is the savings made through the energy efficiency measures cover the loan repayments - known as the 'Golden Rule' - although this is not guaranteed.

It's a commercial loan that you can choose to take out - it is not a government grant and is not supported by money from the government.

But it means that rather than having to dip into your savings or take out other types of loans to install cavity wall insulation, double glazing or maybe a new boiler, you can take out a long-term finance that will be attached to your electricity supply - meaning it passes on to the next owners if you sell your house. However, since the Golden Rule is not guaranteed, you may still need to find extra cash to cover the repayments if your energy savings are not as large in practice as initially estimated.

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

Extra financial help

The 'Energy Company Obligation' (ECO) can provide grants to certain households. ECO obliges energy companies to help with the installation of energy-efficiency measures in homes in Great Britain before a set deadline. 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 that are least able to heat their homes to an adequate standard.

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