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Published: 29/09/2015

The Green Deal has come to an end

At the end of July, the Government announced that it will no longer be funding the Green Deal. The Department for Energy and Climate Change (DECC) states that the decision was made in order to protect taxpayers, and that low take-up and concerns over industry standards are the main catalysts.

The Green Deal was introduced in the spring of 2013 as a way of financing energy efficient home improvement measures through a long term loan that is repaid via electricity bills. Since the launch of the scheme in 2013 and the end of June 2015, measures had been installed in around 10,000 properties and another 5,600 applications were in progress.

Although there is no replacement for the Green Deal currently in place, the DECC has said that it will be working in conjunction with building industry and consumer groups to create a new scheme that offers greater value-for-money.

How will this affect existing Green Deal Finance Plans?

The Government has said that its decision will not impact those with existing Green Deal Finance Plans. If you’re currently paying the bills in a property with a Green Deal Plan in place, you’ll need to continue to repay the loan via your electricity bill, as before. Read more on

What about the Home Improvement Fund?

In addition to ending funding of the Green Deal, the Government is also ending the related Home Improvement Fund. The final release was announced in March 2015 and will close on 30th September 2015, or when the remaining funding runs out, whichever happens first. If you have already received a Home Improvement Fund voucher you will need to use it before its expiry date.

Energy Company Obligation to continue

The end of the Green Deal has not affected the Energy Company Obligation (ECO) scheme, which will continue until March 2017. The ECO scheme supports low-income and vulnerable households. After March 2017, the future of the ECO scheme will form part of the wider discussions around the new policy.

Energy and Climate Change Secretary, Amber Rudd said:

“We are on the side of hardworking families and businesses – which is why we cannot continue to fund the Green Deal.

It’s now time for the building industry and consumer groups to work with us to make new policy and build a system that works.

Together we can achieve this Government’s ambition to make homes warmer and drive down bills for 1 million more homes by 2020 – and to do so at the best value for money for taxpayers.”

Funding for heat pumps

Householders and businesses installing heat pumps in their properties and premises may be able to benefit from the Renewable Heat Incentive (RHI). On successful applications, you would receive a monthly payment from the Government, which over time could offset the cost of installation.

Click here for more information on the Renewable Heat Incentive.