Green Deal Glossary



Green Deal Providers: arrange Green Deal Plans through providing finance and carrying out, directly or through sub-contractors, the installation of the agreed energy efficiency improvements.  As well as authorisation under Green Deal, Green Deal Providers must be authorised by the Financial Conduct Authority as lenders.

Green Deal Providers are responsible for:

  • offering a Green Deal Plan to customers, based on the recommendations in the Green Deal Advice Report
  • arranging for the installation of the relevant efficiency improvements
  • the ongoing obligations in relation to Green Deal Plans, including dealing with customer complaints and providing information on request to bill payers who move into a property with a Green Deal Plan.

Green Deal Plan: is the term for the arrangement established by the Energy Act 2011 whereby specified energy efficiency improvements can be installed in a property and the cost of the improvements are recovered as a debt by the energy supplier who supplies the property with electricity. Green Deal Plans have a number of key features:

  • there are 3 parts – a Green Deal consumer credit agreement, an installation agreement and a guarantee backed by insurance
  • the amount that can be financed by the plan is limited by the Golden Rule (see separate definition below)
  • the plan remains with the property and, provided disclosure has been made, is the responsibility of whoever the bill payer is from time to time
  • repayments for the plan are made to the energy supplier.

Green Deal Loan: is the Green Deal consumer credit agreement that forms part of a Green Deal Plan.

The Golden Rule: the Energy Act 2011 and the Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012 require that repayments under a Green Deal Plan in the first year cannot exceed the estimated ‘typical’ energy savings in the same period.  For example, if the estimated energy savings in the first year are £120, the repayments on the loan cannot exceed £120 in that year. This cannot be guaranteed since the savings, energy consumption and energy cost can only be estimated, but explains why Green Deal Plans are described as “Pay as you Save”.