Green Deal loans reviewed: The Green Deal explained Green Deal FAQs
Is the Green Deal good value for money?
As with any financial product, whether the Green Deal is a good deal will depend upon your personal and financial circumstances. Green Deal plans may have different interest rates and different terms and conditions, so Which? advises you to read the terms carefully and consider all the implications when signing up to this long-term financial commitment.
You could, for example, be better paying for your energy-efficiency improvements using a 0%-on-purchases credit card and repaying it over the term of your credit card deal. You may also want to consider increasing your mortgage to pay for home improvements - though this will increase your monthly mortgage repayments, you may be borrowing at a lower rate than a Green Deal loan.
For fuller details on the financial side of the Green Deal, go straight to our guide on Green Deal loans reviewed.
What happens if I sell my home?
The Green Deal is attached to your property and not to you as an individual, so if you sell your house your Green Deal arrangement will transfer over to the new home owner.
If the buyer of your house does not feel comfortable taking over the Green Deal loan then you may be forced to repay the Green Deal off early.
Your provider is allowed to charge you a substantial fee for early repayment if they want. This is because under the regulations for the Green Deal the provider is entitled to claim for the interest that would have been paid by you should the Green Deal have run its course.
I’ve just moved in to a house with a Green Deal attached to it - what does it mean?
The person who pays the electricity bill pays the money back - so if you’re a tenant in a rented property, you’ll be paying back the costs, not the landlord. This is because the tenant can expect to benefit from lower energy costs.
If you move into a property with a Green Deal, the landlord or seller must show you a copy of the Energy Performance Certificate - this will explain what improvements have been made and how much you’ll need to repay.
What if I have a complaint about my Green Deal or Green Deal provider?
If you have a complaint about your Green Deal you should first get in touch with you Green Deal provider. If you are unhappy with how your complaint has been dealt with by your Green Deal provider then you can contact the Green Deal Ombudsman.
What happens if I stop repaying my Green Deal?
Your Green Deal charge is collected through your electricity bills so if you stop making your Green Deal payments then you are at risk of having your electricity disconnected.
If you are struggling to pay for your Green Deal or are finding that the savings to your electricity bill are not as high as you expected then you should contact your Green Deal provider as soon as possible.
How can I tell if a Green Deal assessor is accredited?
Check that the assessor is authorised with the Green Deal Quality Mark. Authorised Green Deal assessors are listed on the Green Deal Oversight and Registration Body website.
Is work done under the Green Deal guaranteed?
Yes. Government regulations mean that measures carried out under your Green Deal are guaranteed for a minimum of five years. If your house is damaged as a result of any Green Deal works, for example if installing a new boiler damages your existing plumbing, then this is guaranteed for a minimum of 10 years.
Can I still switch energy suppliers if I have a Green Deal?
In most cases you can still switch energy suppliers if you have taken out a Green Deal, as all of the larger providers (British Gas, EDF, Eon, Npower, Scottish Power and SSE) are currently part of the scheme. However there are a handful of small energy suppliers that you will not be able to switch to if you take out a Green Deal, as they are not part of the Green Deal scheme.