Green Deal Disclosure

Subsequent occupiers of buildings with Green Deal measures will continue to benefit from the energy bill savings. To pay for the investment that enabled these energy savings, and for the Green Deal finance model to work, the liability to pay the Green Deal instalments needs to transfer automatically to subsequent occupiers. For this to happen, the new occupier responsible for the energy bills of the building needs to be aware of their liability to pay these instalments before they move in. Therefore the owner must disclose details about any Green Deal plans on their buildings before they sell them or rent them out. ‘Renting’ can be through a variety of mechanisms in both the residential and commercial sector, like the granting of a long term lease or a shorter term tenancy and the grant of a licence to occupy. This obligation will also apply where a tenant is renting out a property to a sub-tenant or granting a licence to occupy.

The details to be disclosed will be set out in Green Deal regulations, but the intention is that the primary vehicle for disclosure will be the EPC or equivalent. Once the energy saving work has been completed, the document will have been amended to include key information about the Green Deal plan. This information may need to be updated by the Green Deal provider at specified times to be set out in regulations. The Bill also requires those selling or renting out a property to ensure that the relevant contract includes an acknowledgement by the buyer, tenant or licensee that the Green Deal plan is binding on the bill payer at the property. This route for disclosure of the Green Deal will protect businesses and consumers and ensure they do not take on liability to pay the Green Deal charge without being fully informed about it first. Before the launch of the Green Deal in 2012, we will work with the Law Society and others to ensure these routes for disclosure and acknowledgement will work effectively to give consumers and businesses confidence in the Green Deal without imposing undue burdens on commercial or residential property transactions. Source DECC

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For more information regarding the scheme for insulation, heating and renewable energy installers refer to the Green Deal www.greendealadvisersuk.com website.