At the start of 2013 the government’s long awaited energy saving scheme, The Green Deal, finally launched into action. The scheme aims to make energy cheaper and homes warmer with no huge upfront charges for families unable to pay.
This blog looks into the details of the scheme and helps to outline the reasons why this scheme may be right for you.This article focuses on the details of the Green Deal Plan and is aimed to help people decide if the plan is suitable for their home. You will find information on the improvements available for your home as well as pointers about the loan and repayments.
What is The Green Deal?
The Green Deal helps people upgrade their inefficient home appliances with new, more ecofriendly replacements. Homeowners are able to pay for home improvements over time instead of in a lump sum fee and the cost of the work will be covered by the money you save on your bills by having the new facilities installed.
The green deal improvements
The improvements are primarily energy saving. There are 45 different upgrades available at the moment with everything from a new boiler, wall and floor insulation, a new front door, draught-proofing, heaters, loft insulation, water tank insulation, cavity wall insulation and double or triple glazing.
The green deal assessment
If you decide to try out The Green Deal you will go through an assessment process first to establish your individual needs. You will usually have to pay for the assessment which can be somewhere between £75-120. You can see if you can get the fee waived if you decide to use the company to install your new appliances.
How do I pay the green deal bill?
You need to locate a Green Deal Advisor who will give you a quote and draw up a contract. This scheme is a new type of insecure loan with interest. The loan can last for a minimum of 10 years and a maximum of 25. The repayments are fixed and you pay them with your electricity bill.
Interest and extra payments
There is an interest rate included in the scheme that is include in the repayments. The interest is set at 6.96% but the rate can vary between 6% and 9%. There are also extra payments such as a set-up fee of £63 and an annual operating charge of £20. Many of these costs depend on the size and length of the plan you choose. You can opt to repay the plan off early but this may be subject to a charge by the provider, so you would need to check individually with each one.
Am I definitely saving money?
When you join the scheme the calculations you will receive will be based on your current situation and your situation may change that may mess up those calculations. For example, you may start a family or take on an extra lodger. Due to this, you can never be sure that you will save money.
Moving house
If you move house the Green Deal repayments are passed on to the person moving into your old home. Each Green Deal home will have a certificate to show the improvements made, the details of the repayments and the remaining length of the plan. If you are a new homeowner who was wrongly informed of the deal you have 90 days to dispute the charges.
