It’s very early days but rumblings about the UK Coalition Government’s Green Deal are beginning to sound. So, what is the deal with the Government’s Green Deal? Will it disappear into the policy-making machine, never to see the light of day again? If not, will it be a niche piece of legislation without any bite, or will the Government’s Green Deal really lay the foundations for a sustainable energy future?

• The aim is all about energy efficiency for British homes and businesses. At the moment, there is more information about the domestic situation but a Green Deal for businesses is definitely on the cards and likely to be similar to the Green Deal presented to households.
• Every British home is eligible for the Green Deal.
• The government has identified a perfectly understandable reluctance on homeowners to stump up substantial costs for energy efficiency measures in properties, given that many people do not expect to stay in their homes for more than a few years. Such people might wonder what the point is in spending money on energy efficiency measures if they do not plan to stay around long enough to enjoy the eventual savings.
• The Green Deal will therefore attach the costs of energy efficiency measures to a property, rather than to the owner who originally installed it.

• The Green Deal expects that the most energy efficient homes can save up to £550 on average per year through energy saving measures.
• The economy as a whole is touted to benefit, with a November press statement by the Department of Energy and Climate change suggesting that 100,000 insulation jobs could be created by 2015.

• Simply through ‘Green Deal Finance’.
• The government is looking into a legal framework for the repayment of the costs of energy saving measures to be spread over many months or years and attached to energy bills.
• Energy suppliers (such as LoCO2 Energy) will be given the responsibility of collecting the repayments on your bills and repaying the finance provider. The administrative burden will fall on the energy industry, rather than consumers or the government.

• In short: yes. The government has already begun to identify checks and balances to ensure that the Green Deal can deliver energy efficiency without costs skyrocketing.
• New rental tenants or prospective homebuyers will be informed of any Green Deal projects attached to a property so there are no nasty surprises when a new resident arrives at a house.
• The government’s Green Deal will be subject to a ‘Golden Rule’ that the instalment costs will not exceed the cost savings.
• All properties must be assessed when any energy saving measure is proposed to ensure that particular technology makes sense. Energy efficiency installations must be fitted by a qualified specialist

• The Green Deal is at an early and delicate stage. However, it did receive official backing in the Coalition Agreement.

The government's Green Deal policy consultation process will begin in Autumn 2011 with an expected launch date during the second half of 2012.