Policy

Helping households to cut their energy bills

Supporting detail:

Green Deal

Buildings that leak heat and waste energy account for 43% of the UK’s total greenhouse gas emissions. Research has shown that people feel unable to act because they can’t afford the upfront costs of energy efficiency improvements or are unsure whether they can trust the quality of work.

We have introduced the Green Deal programme to let householders and businesses pay for some or all of the cost of energy-saving improvements to their properties, over time, through savings on their energy bills, using suppliers they can trust.

For those most in need and for properties that are harder to treat, extra help may be available through the Energy Company Obligation (ECO).

How we’re managing the Green Deal

Creating a new system

We have:

  • worked with industry, local government, voluntary sector and communities to develop plans for the Green Deal
  • consulted widely to get input into the development of secondary legislation about the Green Deal and ECO
  • set up a £125 million cashback scheme for householders in England and Wales installing energy efficiency improvements under the Green Deal
  • created a financing mechanism that lets consumers pay back financing through their electricity bills
  • created the ECO to help some householders in older properties, and those on benefits or low incomes, who qualify for extra financial assistance

Setting the right standards

Businesses providing energy efficiency improvements must be authorised to operate under the Green Deal by:

We have considered Consumer rights and protection at every stage of developing the Green Deal.

Providing impartial information and advice

We have helped consumers to understand what is available by:

  • setting up a national energy savings advice service that provides advice
  • producing a range of guidance and advice documents and research
  • creating easy-to-read quick guides to provide information usable by all
  • committing £2.9 million to a communication campaign to build understanding of and trust in the Green Deal

Funding for partners involved in the Green Deal

We have:

  • provided a £7 million loan to support development of the Green Deal Finance Company (TGDFC), which will help fund Green Deal providers
  • awarded over £12 million in funding to 8 major cities in the UK to support ‘demonstrator’ projects to trial the main aspects of the Green Deal
  • supported the Pioneer Places competition to give local authorities in England (outside of the 8 major cities) the chance to bid for £10 million to support delivery of the scheme

Impact

The Green Deal programme will support the creation of up to 60,000 jobs in the insulation sector alone by 2015.

Our heating and insulation measures will benefit around 230,000 low-income households each year.

By 2020 the Green Deal could reduce UK household and business carbon emissions by 4.5 million tonnes per year.

Around 3 million hard-to-treat cavity wall properties will be eligible for support under the ECO.

Green Deal and ECO statistics

The latest statistics on the Green Deal and Energy Company Obligation (ECO) have been published. These include summary figures on the number of GD assessments, as well as information on ECO brokerage and the GD supply chain.

Further information

You can read more about the Green Deal in our detailed guides:

Help us improve GOV.UK

Please don't include any personal or financial information, for example your National Insurance or credit card numbers.