27.—(1) The green deal provider must estimate the savings on energy bills that are likely to be made in the 12 months after the improvements are installed (the “estimated first year savings”)(1) on the basis specified in paragraphs to (4).
(2) The green deal provider must estimate, in respect of each improvement, the savings on energy bills that are likely to be made in the 12 months after that improvement is installed—
(a)taking into account the structure and fixtures of the property at the time the estimate is made; and
(b)on the assumptions that—
(i)all of the improvements will be installed at the same time; and
(ii)after the improvements are installed the property will be used as specified in paragraph (3).
(3) The use of the property referred to in paragraph (2)(b)(ii) is that—
(a)for a domestic property, its use will be in accordance with the assumed use of domestic properties in the Government’s Standard Assessment Procedure for energy rating of dwellings (2009 Edition, as amended in October 2010)(2);
(b)for a non-domestic property—
(i)which is occupied at the time the estimate is made, its use will be the use for which it is occupied;
(ii)which is not occupied at the time the estimate is made, its use will be the use which the improver informs the green deal provider will apply after the improvements are installed.
(4) The estimated first year savings are the sum of the savings for each improvement estimated under paragraph (2).
(5) The estimate made under paragraph (2) is, in relation to an improvement, the “improvement-specific first year savings”.
28.—(1) The green deal provider must estimate the period over which the savings on energy bills resulting from the improvements are likely to be made (the “savings period”)(3) on the basis specified in paragraphs (2) to (5).
(2) The green deal provider must make a reasonable estimate of the period over which each improvement is likely to result in annual savings on energy bills which are equivalent, after taking into account the effect of likely changes in the price of energy, to the improvement-specific first year savings for that improvement.
(3) Subject to paragraph (4), the green deal provider must, when making the estimate under paragraph (2), include any period when the efficient functioning of the improvement is likely to depend on repairs for expected wear and tear.
(4) The period included under paragraph (3) does not extend beyond the time that the green deal provider estimates that the likely cumulated cost of carrying out repairs for wear and tear will exceed the likely cost of replacing the improvement.
(5) The savings period is the longest of the periods estimated under paragraph (2).
(6) The estimate made under paragraph (2) is, in relation to an improvement, the “improvement-specific savings period”.
This is the estimate that is required to be made under section 4(4) of the Act.
The Government’s Standard Assessment Procedure for Energy Rating of Dwellings (2009 Edition) can be found at http://www.bre.co.uk/filelibrary/SAP/2009/SAP-2009_9-90.pdf.
This is the estimate that is required to be made under section 4(5) of the Act.