What is the Green Deal?
The Green Deal is a new initiative due to be launched by the government in October 2012. It aims to encourage homeowners to make their homes more energy efficient without having to pay an upfront fee. It is not a government grant, but a financial package which you can choose to take out, with availability of up to £10,000 to spend on energy saving measures. These measures could include insulation, double glazing or a new boiler. In total, there are currently 23 options from which you could choose. The finance package is not considered a loan, as the repayments are attached to the property and not the individual.
How Does it Work?
The first step will be a home visit by an accredited Green Deal assessor, who will examine your home and provide recommendations for the best home improvements to help lower your energy bills. If you are interested in proceeding with their recommendations, you will be offered a quote for a Green Deal Plan.
Once your home improvements are fitted, you will begin your repayments. This will usually be done via your utility bill. A home meter may be fitted and your repayments will be calculated on the savings made from your new home improvements. Under the scheme, you will not pay back more money than you are saving on your bills each month. If, for example, you have insulation fitted, and this saves you £11 per month on your heating bills, then your repayments will be less than £11 per month.