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Eco-energi – your Green Deal finance providers

Eco Energi
Sally Walmsley
Written by Sally Walmsley

Green Deal providers Eco-energi offer funding for energy improvements using unique ‘loan to the property’ financing, whereby the costs of improvement works are paid back through energy bills, with little or no upfront costs.

MEES (Minimum Energy Efficiency Standards) apply to new lets and renewals of tenancies from the 1st April 2018 and for all existing tenancies on 1st April 2020.

After these dates, it will be unlawful to rent a property that breaches requirements for a minimum energy efficiency rating of E

So, what is Green Deal?

The Green Deal is an initiative to help landlords and homeowners install energy efficiency measures.

Energy improvement works are financed through a loan ‘to the property’.

This sometimes involves an upfront payment by the landlords and sometimes not, depending on the work that is being done.

The repayments are added to the utility bills paid by the tenant – but are offset by the savings made as a result of the efficiency measures.

John Davidson of Eco-energi said the golden rule is that provided the tenants are sensible about their energy use – ie: don’t leave the lights on all day – their bills will be lower or the same as before.

What improvements can be carried out?

Energy efficiency measures that can be installed include:

  • New or replacement boiler (condensing, 
biomass)
  • Solid Wall (internal & external)/ Loft/ 
Floor Insulation
  • Cavity Wall Insulation
  • Heating/ Hot Water/ Lighting Controls
  • Heating System Insulation
  • Ground and air source heat pumps
  • Fan assisted storage heaters
  • Flue gas recovery devices
  • Innovative hot water systems e.g. waste 
water heat recovery systems
  • Draught proofing

How does Green Deal Finance work?

The process sees the landlord (or homeowner) make the deal with the finance company which then notifies their energy provider once the works have been agreed, with around 24 energy companies signed up.

Once the work is done the repayments will be included in the energy bill.
Mr Davidson said: “The bill will include a Green Deal loan repayment figure, but we need to dispel the perception that the tenant is covering loan repayments.

“It’s not the tenant paying for the improvements it’s the savings achieved on the bills that are repaying the loan.

“The golden rule is the expected savings made from the home improvement must be the same or greater than the total cost of implementing the improvement itself.”

Unlike other funding streams which may just be open to landlords with tenants on benefits, Green Deal is open to all landlords and homeowners alike.

The amount a landlord has to pay upfront is dependent on the work needed. Some landlords may not have to pay anything, but others may have to fund some of the costs.

The amount is calculated by a software system that works out the amount of energy that can be saved through the efficiency measures and therefore repaid through the bill.

The shortfall is paid for by the landlord.

What happens next?

A Green Deal Provider (GDP) arranges the finance, arranges the GD assessment, appoints suitable installers, manages the project and all works are covered with an insurance backed guarantee. Improvements can only be carried out by certified PAS 2030 Green Deal Installers.

The comprehensive Green Deal assessment is £95 plus VAT however if the Green Deal plan goes ahead then this fee is reimbursed.

To determine what works can be done to meet MEES, Eco-energi offer a MEES-CAR (Compliance Advisory Report) for just £20+vat.

This involves a review of your current EPC and any recommendations it may have contained, any works that have been done to the property, and then works out what you must do now to upgrade and comply.

From here if there are significant works required then a GDAR (Green Deal Advice Report) is done outlining which measures can be installed.

Eco-energi is fully FCA authorised for both credit brokering and Green Deal finance.

For more information contact Eco-energi on 01344 876 672 or email info@eco-energi.com.

Alternatively visit the Eco-energi page on the RLA website to fill in an enquiry form by clicking here.

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

1 Comment

  • What a load of rubbish. The GDFC take 3% of the loan, then you need a £150.00 EPC, on top of that £200.00+ to the green Deal Provider. So that’s almost £500.00 before a single item is installed.

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