Green Deal is an affordable solution to 2018 compliance
“The New Green Deal has landed and is in rude health. It could be the answer to many landlords’ prayers. Especially if they still need to upgrade their properties to comply with the government’s Minimum Energy Efficiency Standards (MEES) legislation”
By John Davidson, Managing Director, Eco-energi
April 2018 Compliance
From April 2018, landlords will be effectively banned from renting out properties with an Energy Performance Rating of F or G. The cost of updating your properties to improve your rating can now be financed through the New Green Deal (GD). There is little upfront cost and it is currently one of the easiest ways of spreading payments over an agreed period. The rate is also highly competitive.
You may not have heard of the Green Deal, but don’t worry, you are not alone. It was an inspired finance scheme launched by the government in 2013. It was implemented to help homeowners thermally upgrade their properties. Homeowners were able to apply for a GD loan through the Green Deal Finance Company (GDFC). This allowed homeowners to cover the total cost of the work and repay it through their electricity bill.
It came with a golden rule: “the expected financial savings would be equal to or greater than the costs attached to the energy bill”.
Demise of the original Green Deal
The original Green Deal also allowed landlords to upgrade the energy efficiency of their properties cost-effectively. Unfortunately, in July 2015, the government withdrew the funding and the Green Deal was dead.
Why? Wasn’t it working?
Well, yes and no. Initial uptake was slow due to poor marketing and a disorganised Green Deal infrastructure. As the glitches were being removed, and the demand began growing steadily the plug was pulled.
Back on track
Now, thanks to two private investment companies, Greenstone Finance and Aurium Capital Markets, the Green Deal is back. They acquired the GDFC’s business, its assets and existing loan book in January 2017. They have a substantial nine-figure sum ready to finance more thermal improvements.
If 2018 compliance is on your list, you’ll need to contact a Green Deal Provider, like Eco-energi, to access the funding and start the process.
It’s simple and involves four steps:
1. We will arrange for a Green Deal assessor to visit your property(ies) and assess its individual energy-efficiency needs. The MEES legislation will be taken into account during the assessment process.
2. A report is written by the assessor. This recommends the energy-saving measures appropriate for your property. It also identifies measures that can be financed through the Green Deal.
3. Eco-energi will provide a Green Deal Plan covering the estimated savings and expected energy performance rating. Also a quotation for the work.
4. We will arrange and manage the installation(s) by appointing a Green Deal Installer to undertake the work. A condition of the Green Deal code of Practice is that only an authorised Green Deal Installer can undertake these works.