Making Repayments
After you redeem your Green Deal cashback voucher it is likely there may still be an outstanding balance to pay. Here you have the opportunity to use savings, loans or Green Deal finance to repay the balance.
If you decide to use Green Deal finance, the amount you repay for Green Deal improvements will be based on what your home is expected to save on energy bills by having the work done. The cost will be shown on your Green Deal Plan (the contract between you and the provider).
Most improvements if recommended should reduce your energy bills as you’ll be using less electricity, gas, oil etc - but the actual savings depend on your energy use and the future cost of energy. Before you sign your Green Deal Plan, check you understand the repayment rules.
How you repay
You’ll pay the money back through your electricity bill. This is so that the Green Deal stays with the house - ie if you move, you no longer benefit from the improvements and therefore stop paying for them.
If you have a prepayment meter, a small amount will be taken from the meter each day instead.
The Golden Rule principle?
The Golden Rule is the principle which limits the amount of Green Deal finance that a provider can attach to the energy meter to the estimated energy bill savings that are likely to result from the installation of measures under the Green Deal plan.
This principle aims to keep the energy bills at the property no higher than they would have been had the property been without a Green Deal – this is important both to protect consumers from higher energy bills, and to protect investors from a higher risk of default on the bill.
The Golden Rule.
About Green Deal Finance
