The Government’s plan to introduce the ‘Green Deal’

Posted on Wednesday, February 22, 2012

As from 1st April 2012 the Energy Performance Certificate (EPC) will be changing. Many people are familiar with the current EPC, which is required when any residential or commercial property which is sold or let. The EPC allows the prospective purchaser or tenant to see how efficient the property is from the Energy Efficiency Rating Graph and also the impact the property imposes on the environment, this is shown on the Environmental Impact (CO2) Rating Graph.

The new EPC will still provide this information together with recommendations to improve both ratings but will now include information about the ‘Green Deal’.

The Green Deal is the main driver for the EPC changes, essentially this is a loan provided to the property owner to undertake energy efficiency improvement work and is repaid through the property’s electricity bill. Loans will be calculated on the basis that energy savings per annum will be greater than the amount of the loan over an agreed number of years. The calculation for eligibility of the Green Deal is provided by the EPC provider and is simply shown as a green tick on those items which are eligible for an upgrade such as extra loft insulation, cavity wall insulation, draught proofing etc. There is also an orange tick section where installation costs are higher and a contribution towards the improvement is required from the property owner, such as double glazing or the installation of a new boiler.

Any property owner wishing to take advantage of the Green Deal will need a new EPC provided after 1st April 2012 and a further EPC once improvement works have been undertaken. Green Deal loans will be available from October 2012.

For further information relating to the Green Deal or the Energy Performance Certificate please contact Guy Lythe in our Surveying Department on 01423 534192.