On 19 October 2012 the Department of Energy and Climate Change (DECC) announced a Green Deal Cash back scheme, making available a cash back for energy efficient improvements of up to £125m from 28 January 2013 on a first come first served basis. 

The purpose of this scheme is to incentivise homeowners, landlords and tenants to sign up for energy efficiency improvements, such as loft insulation, solid wall insulation and replacement windows under the Green Deal. 

Cash back is available to:

(1)    Owner – occupiers;

(2)    Tenants in privately rented or social housing;

(3)   Privateand social landlords paying installation costs, up to certain limits.

The purpose of the Green Deal is to remove the up front costs of improving the energy efficiency of buildings under a new “pay as you save” financing mechanism.

In order to be eligible, households must have a Green Deal assessment carried out on their property and then install some or all of the improvements recommended within a specified period.  The cash back rates that apply to the various different energy saving measures are published in DECC: Quick Guide: Green Deal: Cash back for Energy-Saving Home Improvers.  This will be capped at 50% of the householder’s contribution to costs.  The cash back is separate, and in addition to any other incentives offered by Green Deal Providers.

Residential landlords will be able to claim cash back even if the landlord is only temporarily the energy bill payer, either where they pay for energy efficiency works up front or where they put in place a Green Deal financing plan.

Landlords can also claim the cash back on multiple properties although there are state aid limits, which mean that landlords cannot receive more than approximately £160,000 in public funds over a rolling three year period.

If you would like more information about this issue, please contact Joanna.osborne@edwincoe.com.

Please note that this blog is provided for general information only. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this blog.

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