Residential Property Surveyors Association

23 April 2013

Stephen Penlington Department of Energy and Climate Change

What is the Green Deal?

• The Green Deal helps people pay for energy efficiency improvements like insulation and new boilers, through a daily charge on their electricity bills.

• The provision of Green Deal finance is predicated on the principle that the instalments payable under a Green Deal Plan should not exceed the expected resulting savings.

What’s eligible?

Loft insulation

Cavity wall insulation

Solid wall insulation

Draught proofing

Heating

Creating energy

Windows

External doors

• 45 different improvements can be paid for in part or full• Covers both residential and non-residential buildings

What can the Green Deal pay for?

Cavity wall insulationCylinder thermostatsDraught proofingSolid wall insulationCondensing boilersHeat pumpsHeating controlsLighting systemsBiomass boilersCylinder thermostatsDraught proofingDuct insulationHot water

showers/systems/taps

•Fan-assisted replacement storage heaters•Flue gas heat recovery devices•Heating, ventilation and air-

conditioning controls •Replacement and secondary

glazing•Under-floor heating•High performance external doors•Hot water controls •Lighting systems, fittings and

controls•Mechanical ventilation with heat

recovery

•Pipe-work insulation •Microgeneration•Chillers•Condensing boilers•Replacement glazing•Roof insulation•Sealing improvements•Under-floor heating•Under-floor insulation•Variable speed drives for fans

and pumps

If it’s on this list, you could pay for it in whole or in part using Green Deal finance

Assessment

Recommendations

Quotes

Installation

Benefits

recommendations on what customers needAssessor gives impartial

Provider arranges quotes to customer,provides finance and arranges for installation

Installer installs improvements

Customer enjoys benefits and pays provider over time through savings

How does it work?

The Green Deal Charge

What is the Green Deal charge?

• A new type of loan repayment (Green Deal is an unsecured loan regulated under the Consumer Credit Act)

• A daily charge added to the electricity bill of a property, collected by the electricity company and passed onto the Green Deal Provider

• Green Deal instalments can only be paid by the “bill payer for the time being” as the person benefitting from the energy savings while they occupy the property – key concept that allows Plan charge to pass between bill payers

What the Green Deal Charge is not

• It is not a charge against the property – specifically prohibited by the legislation - and the Land Register has no role in the Green Deal

The Green Deal Charge

New electricity bill payers will not be liable for anyarrears in payment left by the previous bill payer – Green Deal instalments are treated the same way as any other energy debt

Where a property repossessed mortgagee in possession likely to be responsible for electricity bill and therefore the Green Deal Plan payments – as person with right to pass on title

Where the property is “de-energised” (i.e. temporarily disconnected) the Green Deal daily charge will continue to be added to the bill and will still be payable

Consents and Confirmations

Before a Green Deal is entered into, relevant consents are required

Consent to the charge to be added to the electricity bill, from

• the bill payer, regardless of who is the Green Deal customer

• The landlord or freeholder, as they become liable for the electricity bill (void periods)

Consent to the improvements installedGreen Deal customer must:• gain consent from all relevant parties as set out in their

lease, tenancy or license agreement.

• Secure relevant consents from the Local Authority for planning and Building Control (competent persons schemes for Building Regulations will authorise installers under the Green Deal)

• provide confirmation that they have gained all these necessary consents

• supply the Provider with written documentation from all relevant bodies confirming consents have been given.

Provider must attach written consent documents as an annex to the Green Deal Plan – people moving into Green Deal properties

should check these are in place

Disclosure and Acknowledgement

meeting existing requirements to provide an EPC

full EPC to be included with all written information at the “earliest opportunity” – supports disclosure

Green Deal Providers required to update the EPC

In any document that effects a property transfer

wording in the regulations:i.Liable to pay the green deal plan instalments; andii.Bound by the terms of the green deal plan which bind a bill payer

1. Disclose key terms of the Green Deal Plan to a prospective buyer or tenant

2. Secure the acknowledgment of the buyer or tenant that they will be bound by the Plan

the Energy Act 2011 and framework regulations require owners to

The Green Deal banner on the EPC

Look for the EPC - banner text at bottom of first page will indicate presence of a Green Deal (details on new 5th page)

England & Wales

A Green Deal has paid to install energy efficiency improvements at this property. A daily Green Deal charge is payable via the electricity bill. Important details about the Green Deal on this property, including the amount of the charge, can be found in the “Information about the Green Deal” section at the end of this EPC.

Scotland

A Green Deal has funded energy efficiency improvements at this property and a daily charge is payable via the electricity bill. Please refer to the attached Recommendations Report for details.

The Role of the EPC

The EPC will include:

• details of the Green Deal Provider• key terms of the Plan

Each EPC has a unique Report Reference Number (RRN) which

can be used to access the up to date EPC free of charge at www.epcregister.com.

RRN is only way to access the EPC where a Green Deal is present on the property

Conclusion

The Green Deal has been designed as a tool to enable carbon reduction from the building stock, and to balance the need to create a viable market, with the need to protect consumers and provide confidence

It will build on existing property industry regulation and practice e.g. use of the EPC

The Guidance can be found at https://www.gov.uk/government/publications/the-green-deal-guidance-for-the-property-industry-in-great-britain

Any Questions?