A Green Deal legacy loan typically adds £25–£40 a month to an energy bill, but the repayment terms and property-tagging rules are different from modern finance products.
If you own a home in the UK, you might have heard of the Green Deal, a government scheme that closed to new applications in 2015. Existing loans, known as Green Deal legacy loans, continue to be repaid through electricity bills. The average outstanding balance on a Green Deal legacy loan is £2,700, with a typical repayment period of 10–25 years (DESNZ, 2026).
Green Deal legacy loans add £25–£40 per month to electricity bills, with an average balance of £2,700 at 7.9% APR. The loan stays with the property, so buyers inherit the repayment obligation.
- Average Green Deal legacy loan balance is £2,700 (DESNZ, 2026).
- Monthly charge on electricity bills ranges from £25 to £40.
- Fixed interest rate of 7.9% APR applies to all legacy loans.
- Loan stays with the property, not the original borrower.
- Charge is capped at estimated energy savings, but you still owe the full amount.
- A Green Deal legacy loan typically adds £25–£40 a month to an energy bill, but the repayment terms and property-tagging rules are different from modern finance products.
- How a Green Deal legacy loan still affects your energy bills today
- Quick numbers Green Deal legacy loan repayment terms
- The direct answer What happens to a Green Deal legacy loan when you sell your home
- Eligibility and certification How to check if a property has a Green Deal legacy loan
- How to repay a Green Deal legacy loan early
- What happens if a Green Deal legacy loan is not repaid
- How Green Deal legacy loans compare to modern home-energy finance options (2026)
These loans are attached to the property, not the person, which affects sale and rental transactions. The interest rate on these loans was fixed at 7.9% APR, which is higher than many current home-improvement finance options (DESNZ, 2026). Understanding how these loans work is essential if you are buying, selling, or living in a property with one.
How a Green Deal legacy loan still affects your energy bills today
The loan repayment is collected through the electricity bill via the “Green Deal charge” line item. This charge is capped at the estimated energy savings from the installed measures, but actual savings may vary (Ofgem, 2026). If you move into a property with a legacy loan, you inherit the repayment obligation, not the original owner.
The charge appears on your bill as a fixed quarterly amount, typically between £30 and £60. This means a monthly cost of £25 to £40, depending on the loan balance and repayment term. The charge is collected by your electricity supplier, who passes it to the Green Deal provider. If the energy savings do not match the estimate, you still owe the full charge.
Quick numbers Green Deal legacy loan repayment terms
| Detail | Value |
|---|---|
| Average loan balance | £2,700 |
| Typical repayment period | 10–25 years |
| Fixed interest rate | 7.9% APR |
| Average monthly charge on bill | £25–£40 |
| Maximum charge as % of savings | 100% (capped at estimated savings) |
| Number of active legacy loans (2026) | 12,500 |
| Source | DESNZ – Green Deal scheme statistics, 2026 |
These figures show that legacy loans are relatively small but carry a higher interest rate than modern finance options. The number of active loans is declining as properties are sold or loans are repaid early.
The direct answer What happens to a Green Deal legacy loan when you sell your home
The loan transfers automatically to the new homeowner when the property is sold. The seller must declare the Green Deal charge in the Energy Performance Certificate (EPC) and the property information form (GOV.UK, 2026). The buyer cannot opt out; the repayment continues under the same terms until the loan is fully repaid.
If the buyer wants to repay the loan early, they can do so without penalty, but the outstanding balance must be cleared in full. The charge is recorded on the property title, so any conveyancer will flag it during the purchase process. You should check the property register before making an offer if you are concerned about legacy loans. How to check a property's Green Deal status before buying
Eligibility and certification How to check if a property has a Green Deal legacy loan
The official register is the Green Deal Central Charge Database, managed by the Land Registry. Homeowners can request a free search by property address to see if a Green Deal plan is registered (GOV.UK, 2026). The loan is recorded as a “Green Deal charge” on the property title at HM Land Registry.
Only properties with a Green Deal plan number (GDPRN) have a legacy loan. No new plans have been created since 2015, so any property built or renovated after that date is unlikely to have one. You can also check your electricity bill for a line item labelled “Green Deal charge” or contact your supplier.
How to repay a Green Deal legacy loan early
Early repayment is allowed at any time without an early-repayment penalty. The outstanding balance is the remaining capital plus any accrued interest up to the repayment date (Ofgem, 2026). Repayment is made directly to the Green Deal provider (the energy company that issued the plan), not through the bill.
After repayment, the Green Deal charge is removed from the property title within 30 days. You will need to contact the provider to get a settlement figure and make the payment. Once cleared, the charge is removed from the Land Registry record, which is important if you plan to sell the property.
What happens if a Green Deal legacy loan is not repaid
Non-payment is treated as a debt against the property, not the individual. The energy supplier can pursue the charge through the electricity bill, including adding late-payment fees (DESNZ, 2026). If the property is sold, the new owner inherits the debt and the repayment obligation.
In extreme cases, the charge can be enforced through the courts as a property debt. This could lead to a charging order on the property, which would need to be repaid when the property is sold. It is in your interest to keep up with payments or repay the loan early to avoid complications.
How Green Deal legacy loans compare to modern home-energy finance options (2026)
The 7.9% APR on legacy loans is higher than the typical 4–6% APR on current green home improvement loans (e.g., from the Boiler Upgrade Scheme or local authority schemes). Modern finance options, such as the ECO+ scheme, offer 0% interest for eligible households (Ofgem, 2026). Green Deal loans are attached to the property; modern options like the Great British Insulation Scheme are attached to the person (DESNZ, 2026).
Repayment periods for legacy loans (10–25 years) are longer than typical modern options (5–12 years), but the total interest paid is higher. If you have a legacy loan, you might consider repaying it early and using a modern 0% or low-interest option for further improvements. Compare Green Deal loans with Boiler Upgrade Scheme finance
Frequently Asked Questions
A Green Deal legacy loan is a finance product from the government scheme that closed in 2015. Repayments are collected through your electricity bill at a fixed 7.9% APR (DESNZ, 2026).
The average monthly charge is £25–£40, based on a typical balance of £2,700 and a 10–25 year term (Ofgem, 2026). The exact amount appears as a fixed quarterly charge on your electricity bill.
Yes, the loan is attached to the property, not the person. If you buy a home with a legacy loan, you inherit the repayment obligation (DESNZ, 2026).
Yes, you can settle the outstanding balance early without penalty. Contact your Green Deal provider for a settlement figure (Ofgem, 2026).
The charge is added to your electricity bill as a line item called the 'Green Deal charge'. Your supplier collects it and passes it to the provider (Ofgem, 2026).
