Green Deal and ECO

The Green Deal is a government backed initiative that can help you understand the energy-saving improvements you can make to your home. It can also help you find companies to carry out the work, and give you access to a number of options for paying for the improvements, including a Home Improvement Fund grant, and Green Deal finance.

The first step in getting improvements through the Green Deal will usually be to get a Green Deal Assessment.


Green Deal Assessment

You will need an authorised Green Deal Assessor company to carry out your assessment. They will send an advisor to visit your home and produce a Green Deal Advice Report listing the improvements that are possible, and which of these are likely to be cost-effective. You will usually have to pay for this, though you may be able to claim £100 towards this cost if you go on to claim the Home Improvement Fund.


Green Deal Home Improvement Fund

This is a new cashback grant to help with the cost of having certain improvements fitted. Read more about the scheme here.

This grant is unlikely to pay the full cost of the installation in most cases. One option for paying the remaining cost is to take out a Green Deal Finance Plan.


Green Deal finance

A private company, known as Green Deal Provider, provides you with a loan to pay for some or all of the cost of installing energy improvements in your home, as well as arranging the installation itself. You then repay the loan, which will include interest, through a charge added to your electricity bill. The amount you can borrow is limited by what a typical energy user might save on their energy bills from installing the improvements - so a Green Deal loan may not cover the full cost of the installation.


Where can I get more information? 

You can find more information on all aspects of the Green Deal by contacting the Energy Saving Advice Service on 0300 123 1234. You can also find further details and search for assessors, providers and installers, here.


The ECO (Energy Company Obligation)

Under ECO, the big six energy suppliers are required to help householders save on their energy bills and carbon emissions. 

Affordable Warmth Obligation

To provide heating and insulation improvements for low-income and vulnerable households (social housing tenants are not eligible for affordable warmth).

There are complex eligibility criteria for this means-tested scheme. Call the Energy Saving Advice Service on 0300 123 1234 to check whether you might be eligible, and to apply if you are.

Carbon Saving Obligation

To provide funding to insulate solid-walled properties (internal and external wall insulation) and those with ‘hard-to-treat’ cavity walls.

This is not means-tested but can be used in conjunction with the Green Deal. The aim is to provide enough support to make these relatively expensive measures cost-effective.

Carbon Saving Communities Obligation

To provide insulation measures to people living in the bottom 15 per cent of the UK's most deprived areas. It is expected that this element of ECO will particularly benefit the social housing sector.

The Cashback incentive scheme is open to any household in England or Wales making energy saving improvements under the Green Deal, after 28th January 2013.


Get updates on energy saving

Our monthly email, Energywire, has the latest money-saving tips and articles, plus competitions with great prizes – sign up now!