What is Green Deal?
The Green Deal is a government incentive that is in place to ensure people can apply renewable sources of energy to their properties without having to pay for the initial upfront cost. The scheme has been implemented to help meet the government target to reduce the UK's carbon emissions output by 2050. It is estimated that at least half of the properties in the UK are currently not properly insulated and therefore are not energy efficient. The scheme is officially due to launch later on in 2012 and will enable people to pay back the amount for the improvements to their homes via their energy bills. This will not mean paying extra for your electricity as you will be saving money once the work has been completed and the charge added to your bills should be less than the amount you are saving. The scheme will provide up to £10,000 worth of energy efficient work to be carried out on your property.
What Is ECO?
Eco funding is in place to bring low income families out of fuel poverty. Initially they should apply through the Green Deal. If payments for installation of energy efficient measures cannot be met by the Green Deal, then ECO funding will step in to cover some of the costs. ECO funding usually applies to cavity wall insulation. This scheme is particularly important to social landlords as it will mean it is no longer possible to apply for CERT / CESP funding. ECO funding will then only be available from approved Green Deal suppliers.
How Does The Scheme Work?
To apply for this fantastic opportunity, you must first register your interest with a Green Deal Provider. There have been twenty two companies approved to be official providers and they are:
- Ampere GDP
- Anglian Home Improvements
- British Eco
- British Gas
- Carbon Low Group
- Empower Community
- Enact Energy
- Gentoo Group
- Grafton Group
- Insta Group
- Mark Group
- ReEnergise Finance
- SIG plc
- Toriga Energy
- Willmott Dixon Energy Services and Yorkshire Energy Services
Once you are on the list, your chosen provider will send out an assessor to see what work needs carrying out on your home to make it more energy efficient and they will make a report to you and the company. If you agree to have this work done, the company will then arrange for this. Once the work has been completed, your energy supplier will be informed. They will change their records accordingly and apply the charge to your bills over a period of time.
The provider you choose is the first company that you should call with any questions or complaints about the installations. They are responsible for the entire installation and all arrangements are made through them. Once the work has been carried out, should anything be found to be wrong, then it will be up to the provider to arrange to put this right or to arrange compensation if necessary. No work will be carried out that is unnecessary as the Golden Rule of the Green Deal is that the potential savings must be more than the cost of installation.
Benefits of the Scheme
This scheme will be especially beneficial to people on low incomes who often cannot meet the upfront cost of having energy efficient measures installed in their home but are interested in doing so. The scheme will lift many out of fuel poverty as their bills will come down as a result of the installments - even with the added charge.
The installations can benefit you even more once you have paid the energy company back for the work that has been done. Your home will be more energy efficient for many years to come and your carbon footprint will be significantly lowered as a result. The installations will also add value to your property.
If you wish to sell your property before you have finished paying the charges, the idea is that the next owner/tenant carries on paying. Far from putting potential buyers off, this should encourage them. With lower bills and an already efficient house on offer, not many would resist.
The scheme can provide most types of efficient energy measures such as double glazing, a new boiler, air source heat pumps, cavity wall insulation, loft insulation and even solar power. The Green Deal is not only open to home owners. If you are a tenant you can also apply for the scheme, but you will need the permission of the property owner before you can proceed (or whoever pays the electricity bill if this is not yourself).