The much-heralded Green Deal will launch today, with the aim of helping households make energy-efficiency upgrades like insulation and boiler-upgrades without the upfront cost.
Instead, the Green Deal offers a loan which is incorporated into the energy bills, making it easier to manage your costs.
However, critics have argued that the Green Deal isn’t the answer to fuel-poverty and won’t help households struggling with their bills.
Others have criticized the interest rate of 6.9% attached to the loan.
‘Energy bills will fall’
Commenting on the launch the Deputy Prime Minister Nick Clegg said:
“The Green Deal will help thousands of homes stay warm for less.”
“Those people will benefit from energy saving improvements – and their energy bills will fall.
“The UK green sector is a success story. It is the sixth largest in the world and has a crucial part to play in building a strong economy. The Green Deal will support thousands of jobs, not just over the next few years, but in the long-term.”
However, reports suggest there has been little take-up of the scheme so far, and uSwitch research last week found that just 1 in 5 had heard of the Green Deal.
What is the Green Deal?
The Green Deal lets you pay for energy-efficiency improvements over time through your electricity bill. Crucially the repayments are linked to your property, not you, which could impact resale.
Any Green Deal measures linked to your home will show on your Energy Performance Certificate (EPC), which must be Grade D or higher. The government hopes that your repayments will be no more than a typical household should save in energy costs.
If you want a Green Deal plan you’ll first need an assessment by a registered assessor. The assessor will then offer you a report with recommendations, which you can take to Green Deal providers to get quotes, before having the improvements carried out by a Green Deal installer.
Green Deal – Learn all about the Green Deal, from the latest news to how you can apply.