The Green Deal helps you or your tenants make energy-saving home improvements, like insulation, to make your rental property more comfortable.
The person responsible for paying the electricity will pay for some or all of the improvements over time through their electricity bill. Repayments will be no more than what a typical household should save in energy costs.
The Energy Act 2011 contains powers so that from 2016 landlords should not be able to refuse reasonable requests for consent to install Green Deal measures from their tenants. From 2018 landlords should ensure their privately rented properties meet a minimum energy efficiency standard (likely to be set at EPC rating ‘E’) or that they have installed the maximum package of measures under the Green Deal.
Improvements that could be made to your rental property
Improvements made under a Green Deal Plan come from recommendations made by a Green Deal Assessor. The bill payer won’t be charged more than what a typical household is expected to save in energy costs. Of course, the actual savings will depend on how much energy is used at the property and the future prices of energy.
Loft insuLation
Heat rises and it may be leaking into the loft. Insulating the loft, or topping up the existing insulation, will keep heat inside the living spaces for longer.
Renewable energy
Renewable technologies like wind turbines, solar panels and heat pumps can capture energy and turn it into electricity or heat for the home.
Windows
Homes leak heat through their windows. By replacing windows with double or triple glazed windows, or installing secondary glazing to existing windows, the home can be kept warmer and outside noise could be reduced.
Boilers
Older boilers tend to lose a lot of heat so they use more energy. High efficiency
condensing boilers and air or ground source heat pumps recover a lot of heat so they use less energy.
Draught proofing
Gaps around doors, windows, loft hatches, fittings and pipework are common sources of draughts. Sealing up the gaps will stop heat escaping the home and your tenants will be able to turn down their thermostat.
Cavity wall insuLation
Homes built after 1930 usually have walls with a hollow space in the middle. Putting insulation in this space is quick and makes no mess because the work can be done from outside the home.
External wall and internal solid wall insulation
Homes built before 1930 usually have solid walls. Installing insulation on the inside or outside of the wall can dramatically reduce the heat that escapes the home.
Five things landlords need to know
1. The current electricity bill payer always pays the Green Deal repayments
If the property is left vacant, you will need to make the repayments until a new tenant moves in and starts paying the electricity bill.
2. Your tenant needs your permission before taking out a Green Deal
Your tenant needs your permission before taking out a Green Deal. If your tenant wishes to take out a Green Deal Plan, they will first need your agreement to both the improvements and the financial aspects of the plan, like the amount of the repayments and how long repayments need to be paid for.
3. You need tenants’ permission before you take out a Green Deal
Where the tenant is the electricity bill payer, they will need to make repayments for the Green Deal on their electricity bill. So you will need their express permission before taking out a Green Deal at the property.
4. All improvements are quality assured
All improvements made under the Green Deal are completed by Green Deal Installers. This means the work is completed by professionals that meet Green Deal standards and are authorised to operate under the Green Deal.
5. New tenants need to be awareof the green Deal and acknowledge the repayments they need to make
When renting out a property with a Green Deal you need to provide the tenant with a
copy of the Energy Performance Certificate (EPC) (or, in Scotland, the EPC and the
Recommendations Report) showing:
• the improvements that have been made under the Green Deal
• the repayment amounts the electricity bill payer needs to make
• the length of the Green Deal
• the name of the Green Deal Provider.
You will need to make sure that tenant acknowledges the Green Deal and the repayments by including standard prescribed wording.
The electricity bill payer makes Green Deal repayments
Green Deal repayments are part of the electricity bill for the property. So, the person responsible for paying the electricity bill – usually the tenant – is responsible for making repayments for the improvements.
If a bill payer defaults on their electricity bill, you will not be held liable – the electricity company will use their normal collection processes.
Get a Green Deal
To start, you or your tenant will need a Green Deal Assessment. Many different organisations – including energy companies, DIY stores, and local tradespeople
– are authorised to do this.
When you book an assessment you may be asked if there are any accessibility issues, like access to your loft, and whether you can provide bills showing your
recent energy use.
Keep in mind that some Green Deal Assessors may charge for their service – it’s best to check when you make an appointment.
For help finding a Green Deal Assessor, call the Energy Saving Advice Service (England, Scotland and Wales) on 0300 123 1234 or visit www.gov.uk/greendeal.
