Homeowners Guide to the Green Deal
October 23, 2012
Most of us will have felt the effect of rising energy prices in recent years which is due to depleting local reserves and reliance upon imported fossil fuels. Competition for reserves in countries like China means the cost is going to keep going up. Installing energy saving measures, like loft,wall and floor insulation, will help protect you from rising heating bills and spiralling energy costs by reducing the amount of energy you need to keep warm. Not only that as buildings account for 40% of the UK's carbon emissions, reducing our energy use will help protect us and our planet from dangerous climate change, as well as improve the air quality and our general well-being.
The government recognises that not everyone can afford the initial capital cost of making our homes energy efficient and so has come up with the 'Green Deal'. Essentially this is a new type of loan which helps people to make energy saving improvements to their homes to keep them warm and cosy. It becomes available in January 2013.
What is the Green Deal?
The Green Deal helps you pay for home improvements like insulation through expected savings on your energy bills. The Energy Company Obligation (ECO - a subsidy from energy suppliers) will provide extra help for those most in need and properties that are harder to treat.
There are two reasons for this:
- The Green Deal can lead to benefits such as a cosier, more comfortable house or apartment and savings on your gas and electric bills.
- It will help you do your bit towards reducing the UK's carbon footprint by 34% before 2020.
The Green Deal has three parts:
- The home energy assessment,
- A list of approved suppliers, and
- A new way of paying for home improvements.
How Much Support Will I need?
From 1 October 2012, you will be able to have an impartial Green Deal assessment carried out. A qualified Green Deal assessor will determine how you and your family use your home and how much energy you use.
Recommended measures may include energy efficient boilers, heating controls, solar panels and double glazing; as well as loft, cavity or solid wall insulation. You can pay upfront if you want to or, from January 2013, via your electricity bill with a Green Deal finance plan.
How Does This Help With Upfront Installation Costs?
The Green Deal can help you to pay for home improvements through savings on your energy bills. The terms of the loan ensure that your repayments are no more than your expected energy savings. NB Your monthly Green Deal charge will be fixed so if energy prices do rise, savings will increase.
Why is the Green Deal right for me?
The Green Deal is designed to finance a range of energy efficiency improvements. There are currently 45 available measures. It allows you more choice and control over what improvements you wish to make and stays with the property if you move.
The Green Deal will protect consumers rights through the process. Any Green Deal advisor, provider or installer will have to display the Green Deal quality mark seal of approval, only an authorised Green Deal advisor will do an onsite assessment of your home then draw up a Financial Plan and only trained and accredited installers can do the work.
How can I get the funding for all of my Green Deal recommendations?
In some cases, more expensive measures which take longer to pay for themselves will be recommended by your Green Deal adviser. For example, older buildings tend to have solid walls instead of modern cavities and require insulation to be fitted externally.
The Green Deal will only allow you to use your energy bill to pay for improvements with repayments that are equal to or lower than your expected savings.
The Energy Company Obligation (ECO) sits beside the Green Deal and stipulates that the big energy companies, who supply gas and electricity to most homes across Great Britain, must help households to reduce your energy use and related carbon emissions. This means that if you require more expensive measures, such as solid wall insulation, your prospective Green Deal provider should be able to advise on whether any of the recommendations for your property are eligible to receive support from these companies, and factor this subsidy into any offer of Green Deal funding they can make you.
What if I move to a new home before the end of my plan?
All repayments are attached to your electricity meter.Should you move before the end of your Green Deal plan the new occupants will continue to pay it. This is because they will benefit from energy savings and a more comfortable home in the short- and long-term.
If you have already paid off your Green Deal plan and are enjoying energy savings and an improved living environment, this could possibly increase the value of your home when you come to sell it.
If you move to a new house or flat that is not energy efficient, you can apply for a fresh Green Deal assessment and plan. If your new home already has a Green Deal plan in place you will continue to make any repayments through your electricity bill in the same way and enjoy all of the home comforts that insulation and other efficiency measures bring.
Save Energy, Save Money, Save the Planet
For more information about the Green Deal, email [email protected]
Source: StudioEight_Architecture
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