In light of low take-up and concerns about industry standards there will be no further funding to the Green Deal Finance Company, in a move to protect taxpayers. The Government will work with the building industry and consumer groups on a new value-for-money approach, Energy and Climate Change Secretary Amber Rudd announced today.
Amber Rudd also announced that the Government will stop any future funding releases of the Green Deal Home Improvement Fund. Future schemes must provide better value for money, supporting the goal of insulating a million more homes over the next five years and the Government’s commitment to tackle fuel poverty. This decision has no impact on existing Green Deal Finance Plans or existing Green Deal Home Improvement Fund applications and vouchers. Today’s announcement comes as part of Government’s wider review of energy policies. The Energy and Climate Change Secretary has confirmed that her first priority is to get spending under control.
How does the Green Deal Work?
The Green deal was a scheme to finance energy efficiency upgrades to your home with no upfront costs to the householder, the cost of the work is repaid overtime from the savings made by the energy efficiency measures
The properties current energy bills are considered, we then look at the reduction in the energy bills once the recommended energy efficiency measures have been calculated.
This will give us a cost saving, the repayments for the green deal finance are then added on to the energy bill.
The green deals golden rule is that the estimated new bill should always be less than the bill would have been if no work had been carried out, the difference between the 2 shows the potential savings.
Adopting good energy saving habits will maximise the savings made.
This is how the process works
- The property is assessed for energy performance by one of our accredited green deal assessors.
- Gr33n Group will provide a report made up of an EPC and Occupancy Assessment recommending a specific package of measures eligible under the green deal.
- We will then produce a green deal plan detailing the energy cost savings and benefits you can achieve.
- Once we have a signed green deal contract the works can be carried out and you can take advantage of the energy efficiency upgrades.
- The green deal repayments are attached to the property and not the home owner.
- The green deal repayments are added to the electricity bill even if the customer changes supplier.
Mrs Jones wants a new boiler and External WalI Installation. The 2 products save her £500 on her energy bills in year 1. This means we can only attach a loan to her electric bill that doesn't exceed £500 in year.
Golden Rule Example
Mrs Jones needs a new boiler, she also has solid walls and would like External Wall Insulation installing.
Having both energy saving products installed will save her £500 on the annual energy bill in the first year.
Using the Golden rule Mrs Jones can only have a loan attached to her bill which doesn’t exceed £500 in the first year.
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