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Green Deal launches, but will it succeed?

The Green Deal – the government’s flagship energy-efficiency program – officially launched today.

green dealThe 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?

Below is a video of our very own Ann Robinson explaining how the Green Deal works on BBC News, and what you should do:

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.

Learn more…

Green Deal – Learn all about the Green Deal, from the latest news to how you can apply.

  • James Tucker

    25 million homes in the uk and nobody has made a comment about this plan. It could have been so good but it seems far to complicated and who would buy my house with a loan attached to it and how much more will it cost to have the loan incorporated into the legal sales process plus the scheme does not cover any lighting energy reduction schemes which with LED lighting could cut my lighting energy use by 90 %

  • James

    Green deal is complex when people no little about it, my company have been gearing up for green deal for the last 2 years and we are still learning due to things changing by the week. What I can say looking at it as the customer people can get products with no upfront cost and plus will never be paying more in there energy bill then they currently are, unless they use more. Now for people who have not got the cash to pay upfront this is

  • James

    Led lighting may come at a later stage on green deal as things keep getting added on. Solar was never ment to be on green deal but now is. Led lighting is available on commercial and seems to be doing well

  • ukheartstart

    i understand the cost of loan is 8%! Not cheap and what evidence do we have that the measures we take will help recover the investment. I am nearly 60 and did the sums for solar panels. The break even point assuming zero interest was 17 years!

  • http://www.facebook.com/ian.perryman.79 Ian Perryman

    The installation work will be directed to the main energy suppliers who will have installers charging much higher prices than your local plumber. Add in the interest charges, the fee for the assessment and the credit reference check and it’s not worth it.
    Get an interest free credit card if you can and save yourself some money.

    • http://www.facebook.com/karena.house Karena House

      thought so, thanks nice to hear the same opinions from someone else!

  • http://www.facebook.com/Johnparry999 John Parry

    so here comes all the cold callers again ?

  • http://www.facebook.com/Johnparry999 John Parry

    why not get the insulating yourself ? and led lights ?

  • Philip Rhodes

    This doesn’t help those individuals whom rent uninsulated and draughty properties through necessity from private sector landlords, this is no incentive for landlords to improve there properties, it is left to those individuals renting, to pay for the energy bills.

    • Andrew Boughen

      you telling me because im a private tenant that I cant get the help our house has bare brick walls a front door that does not fit in the frame a kitchen where there are holes to let cold in and it no use going to housing standards as went to them in my old house and got kicked out for calling them there is no rights for private tenants the landlords can do what they like

  • From Cornwall

    Doesn’t seem help those who have to fork out a small fortune for heating oil! We have gone through the winter with very little oil, due to cost, and have had to wear layers of clothes to keep warm. Oil prices are far too high!

  • Irons

    It’s just a way to give all those under paid domestic energy assesors trained up by the government a job…. Shame shame shame

  • Suzz

    People can not afford there bill now so how can they with a lone added to it talk is cheap

  • marion

    with energy bills rising almost constantly, will the cost of adding another cost to the bill outway the proposed saving? What is the proposed saving on each item offered? There seems no evidence that it will actually reduce rising costs!

  • Somerset

    As a residential landlord and tenant lawyer, I’m struggling to keep up with the number of changes made to the green deal. More worryingly is the legislation does not seem to consider landlords and their property to any great degree.
    Numerous clients have asked “what if” and there does not seem to be a definite answer to all the questions – more litigation in the courts to iron out bad drafting?

  • http://www.facebook.com/dan.f.mitchell Dan Fred Mitchell

    Does this ‘Green’ project include solar panels?

  • Maddy

    Another rip off, if the government is so keen to help with energy saving schemes why did they cancel solar panel installations to all council properties? This is just going to get people further into debt, I will be glad when we get a chance to elect a labour government in 2 yrs time

    • Cold Tyke

      The same Labour Govt that for 13 years only promoted adding insulation to cavity-walled houses, yet totally ignored the fact that some homes have solid, not cavity, walls that are much less efficient, therefore colder and in desperate needs of insulation. It is not going to get people into debt as you have been paying a 12% tax on your energy bill and has been funding the ‘free’ low energy bulbs and loft insulation. I have been bombarded with offers of free cavity wall insulation, but with solid walls it does not work – one of my lounge and kitchen walls has only 4 inches between me and sub-zero temperatures: this scheme is going to make a massive difference to my heating bills, all Labour did was let power companies put up prices and make people with warm houses even warmer!

      • DavidR

        Are you sure your outside walls are only 4 inches? All older solid outside walls that I know of are 9 inches thick.

    • Conrad

      oh yeah, like a labour government wont rip you off, have you paid your share of the Gulf war costs yet, no, it’s waiting to be paid by your children and their children add infinitum forever. The worst thing anyone can ever believe about govt is that it cares about you. The reason that energy companies are so keen to reduce your usage is so they can justify charging you more for what you do use, just look at their ever increasing profits.

    • johnjen

      Solar panels were put in new build council houses end of last year here NW when did they cancel it?

  • David, East Lothian

    Does this include oil fired boilers? I live in a village that is not connected to mains gas and I am informed by Scottish Gas that is nothing in the pipeline to connect the village. Oil is more expensive everytime the tank is filled.

  • http://twitter.com/trishastanton11 Patricia Stanton

    Energy bills are set to rise steeply and with the costs of assessment, installation and loan repayment nobody is going to go for this unless they have lots and lots of spare cash, and how many people do you know who are that rich? This is A JOKE ! ! !

  • http://www.facebook.com/diane.simmonds.7 Diane Simmonds

    The people who will be making money on this will be the the registered assessors & the companies who employ them, more money to other parties here we go again !!

  • steve

    how do we as the customer know that this green deal is better for us. we only have the governments say so and so far the government has done or said nothing to make customers feel happy and safe in there own homes. if this green deal really does work you need to prove it to the customers first or don’t expect it to work. be a government for the people not for the politics. when you start doing that people will trust the government and not think your talking rubbish

    • Conrad

      Anyone who ever trusts a government is very foolish indeed.

  • toffy

    They have given out free loft insulation and cavity wall insulation to everyone whether private or council, much of which the majority of houses already had installed years ago either by the owners or the council long before the government handed out these freebies! I have to say that there seems to be no free insulation to properties built in the 60s and 70s which are of flat roof construction and therefore have no loft should this not be included in their energy efficiency insulation programme? It is a bit unfair.

  • Jpm

    It can’t cost nothing. If you believe the salesman below, he’ll have you believe it will cost you nothing unless you use more. Sorry people, you don’t get something for nothing….. it’s just another sales tactic.

  • http://www.facebook.com/judith.v.davis Judith Davis

    I live in Bristol and there is no providers for me to access this.

  • Avril

    I’m a pensioner in fuel poverty, my bills are half of my income. I have cavity wall insulation, loft insulation, but my double glazing has all ‘blown’ and they won’t do anything about that. I have put led lights in kitchen an bathroom and don;t put heat on upstairs but have large rooms downstairs. I can’t afford an assessor and I know they’ll say no anyway. The only answer is put fuel prices down !!! These big greedy companies are raking off massive profits, just be fair .

  • JonCa

    So if I want a full assessment against the 45 areas covered can I get this done via just one assessor? Not looking like it so far. Whats worse is you have to contact each provider of assessments to find out what they do. The Green Deal web site only gives names not assessable areas reported on by that company.

  • brian

    maybe we should work harder to freeze the energy companies out.how about nationalising?.or forming a coperative fof energy supply

  • Oddbit

    I went to a talk given by a Green Deal assessor last night and he was very open about how he felt a proper assessment would cost about £150. If someone charges you less, then they probably haven’t spent enough time at your property to do a full and valid survey and if you get offered a cheaper assessment be wary. Also if they for instance come from British Gas they must inform you of any vested interests…. eg if they are connected to a provided, or get a referral fee etc… His argument for the 7% interest is that is is FIXED rate and not variable like mortgages. He was quoting in the past mortgage interest of 15% – well even I don’t remember that, so bar my son I must of been the youngest there then….

    There are also other schemes offering reduced loans amounts and grants so check your local areas. For people on certain benefits there is also the ECO scheme…..

    The idea is that the money you pay for the loan is offset by the savings from the improvement measures, so that your fuel bill doesn’t go up. It is attached to your electric meter as very few people default on their electric (need tv, games consoles etc to keep going). However for the EPC if it is fitted – doesn’t matter if used/doesn’t work that is considered to be working…. so if you don’t want to include it, remove it before your assesment…. hope this all helps.

  • L GUESFORD

    We would all pay less if the green goons ideas of saving the planet? were tossed aside and a thought was given to the millions of people being forced into fuel poverty . They keep on about the future perhaps they should think of people trying to survive at the present time!

  • Roger

    I think this is a good idea and would be taking it up however, an assessment is required to tell you if you qualify for the ‘deal’. Of all the assessors that cover this post code I have called this morning the cheapest was £100. I cant afford to take the risk of the assessor saying I don’t qualify. Another good idea poorly executed!

  • Keith

    The Green Deal is a complete con, I am furious, I have bought a house needing a new boiler and loft insulation and have money in the bank to pay for it. Before the green deal I would have got boiler scrappage (£400) plus £100+ towards loft insulation. Now I get nothing apart from the possibility of a high interest loan plus having to pay £100+ for an assessment that told me no more than the survey I got when I purchased the house.

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