Heralded as a “revolution” in the UK energy sector, the Green Deal is the flagship government initiative to increase the energy efficiency of British properties in the public and private sector.

First proposed to parliament in December 2010 as the centrepiece of the Coalition Government’s Energy Bill, the Green Deal will allow private energy firms to provide domestic and commercial customers with double glazing, loft and wall insulation and other structural improvements designed to boost the energy efficiency of their buildings and reduce heating bills.

From autumn 2012, participating energy utility companies and accredited retailers will provide customers across the UK with quality-assured work to their homes, businesses and community spaces for no upfront cost, and without loans or advance finance.

The full cost of the measures will be recovered through instalments on the energy bill over several years, and because the Green Deal is not a personal loan or an advance payment scheme, there is no obligation to continue paying the instalments if you move house.

Suitability for the scheme will be assessed on a simple calculation, known as the “golden rule” of the Green Deal - the predicted savings from the energy efficiency improvements to your property must equal or exceed the cost of installation.

The scheme will establish a flexible framework by which both domestic and commercial customers will be provided with energy efficient installations that best suit their individual needs, as well as ongoing advice and support to increase the energy efficiency of their home or workplace.

In particular, there will be a drive to provide extra support for vulnerable members of society and low income families. It is recognised that in an effort to control costs, some households use the central heating only very sparingly throughout the year and will not therefore reap enough savings through energy efficiency installations to meet the golden rule.

Under the Green Deal, these households will be insulated so low income families can enjoy warmer, more comfortable homes for longer periods of time.

Additional support will also be provided for people living in outdated properties that will require substantial and expensive work to become energy efficient, such as homes with solid walls. To ensure that the most vulnerable households receive the support they need, the government intends to introduce a series of Energy Company Obligations (ECO) designed to make heating homes more affordable for people receiving benefits and pensioners over the age of 70.

A “Super Priority Group” of highest risk households will be supported to ensure that everyone is able to access the energy they need at a price they can afford