As long as the repayments are less money than the total of the energy bills, the scheme will fund any energy-saving upgrades in the home, these may include: double glazing, draught proofing, loft insulation, solar panels and underfloor heating, to name but a few. With the costs being added to the electricity bill over a 25 year period, this makes it a much more viable way of improving your rental property.
After recent conflicts between the Green Deal scheme and the Consumer Credit Act were addressed, the Green Deal finance is once again available to landlords. It is important to note that by April 2018, landlords with poor Energy Performance Certificates rating (F or G) will be forced to make their properties more energy efficient, by bringing their rating up to an E. These improvements can be funded under Green Deal – so it is important to act now!
It is crucial that as a landlord you get permission from your tenant before joining the Green Deal Scheme. Especially where the tenant is the electricity bill payer, as they will be the ones making the repayments. Similarly, they will need to seek your agreement to the improvements to the property and the financial aspects of the plan, as the repayments will affect future tenants. A tenant can not force their landlord to join the Green Deal scheme, however from April 2016, landlords will not be able to refuse reasonable improvement requests from tenants.
To find out if your property is eligible for the Green Deal, you will first need to arrange an appointment for an assessor to visit your property and this appointment may be chargeable to you. The assessor will check your energy bills and usage and figure out the best places you could be saving energy and money. Your assessor must be a member of the Green Deal scheme; you can find your local assessors using the online search here – http://gdorb.decc.gov.uk/consumersearch
If you have joined the Green Deal Scheme it is your responsibility as a landlord, to make sure new tenants are aware that your property is under the Green Deal scheme. You will need to provide the tenant with a copy of the Energy Performance Certificate (EPC) showcasing the improvements that have been made under the Green Deal, the repayment amounts, the length of the Green Deal and the name of the Green Deal Provider. Your tenant will need to acknowledge the Green Deal and the repayments by including standard prescribed wording.
If you would like any further information or advice then please contact our team on 0800 612 7977 or email firstname.lastname@example.org
Article by Carly Truemen of Big Red House www.mybigredhouse.co.uk