The Green Deal’s Golden Rule
There is an element that all properties that want to take part in the Green Deal must pass; this has been named ‘The Green Deal’s Golden Rule’. This rule is intended to protect the property owner and act as the back bone of the initiative. Essentially, the Golden Rule underpins how big your Green Deal finance repayments will be.
What does the Green Deal Golden rule state?
The Green Deal’s Golden Rule states that the energy savings a property makes in a 25 year period (it is possible to choose a shorter period of time, but return on investment must be paid for within the time period) must be equal to or more than the cost of implementing the changes in the first place. In essence no one wants to install a measure that won’t pay for itself.
The Golden Rule – Installers
The “Golden Rule” also states that installations must also be carried out by accredited Green Deal Installers. This ensures that the property owner is not investing money in work which will not save them money on their energy bills. Each property will first of all be visited individually by an objective Green Deal Assessor and then allocated an amount of money to buy the measures, no actual money will change hands, dependent on the potential savings.
The Golden Rule – Safeguard
With the emphasis on protecting the property owner, the Green Deal Golden Rule will place a cap on the amount that can be collected in the first year of a Green Deal payment to the estimated annual savings. This also safeguards the installers and helps reduce the risk of the property owner not being able to make the payments. The amount the Green Deal payments will increase by during the following years will also be controlled.
It is impossible to predict or guarantee a rise or fall in future energy costs. Although the Green Deal’s Golden Rule will protect the property owner in the short term, it is not possible to guarantee that future energy savings will not increase over longer periods of time. It is worth mentioning, however, that property owners who have invested in the Green Deal, are likely to see their energy costs rise less than they would have done without the Green Deal measures in place.