Legal issues/updates - Environmental Law


Legislation for the Green Deal Enacted

New legislation: Energy Act 2011
Who does this affect: UK
When does this change take place: Various

The Act has three main objectives: tackling barriers to investment in energy efficiency; enhancing energy security; and facilitating investment in low carbon energy supplies.

The majority of the Act concerns provisions to enable the financing and facilitation of the installation of energy efficiency measures in homes and businesses – the ‘Green Deal’ – with the remainder of the Act dealing with securing fair competition in energy markets and the supply of low carbon energy.

The Green Deal is a new financing framework that enables the provision of fixed improvements to the energy efficiency of households and non-domestic properties (such as loft, cavity wall and solid wall insulation) that avoids the need for consumers to pay upfront costs by being funded by a charge on energy bills.
The Green Deal aims to be effective by ensuring that:

  • the instalment cost for the energy saving measures should not exceed the projected associated cost savings;
  • the obligation to repay the costs of energy efficiency measures is attached to the energy bill at a property, rather than to an individual; and
  • only accredited measures are installed, by appropriately-qualified installers, giving consumers confidence that the measures are high-quality.

The full text of the Act can be found here.


Published: 01 November 2011

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