Definitions:
Green Deal assessors – they will visit your property, tell you what improvements you can make and estimate how much you could save on your energy bills.
Green Deal providers – they will help you decide if a Green Deal Plan is right for you, provide finance and arrange for installation of improvements. The providers range from local and national energy companies to DIY organisations.
How it works:
The Department of Energy & Climate Change (DECC) Green Deal is the new government initiative which enables homeowner’s and businesses to take out a loan of up to £10,000 to employ more green technologies into their properties. The idea is to install new green technology such as insulation, heating, draught-proofing, renewable energy sources and double glazing without having to pay all of the cost upfront. Instead, the cost is added to homeowner’s energy bills and then paid back over a period of up to 25 years; like a loan.
Before a homeowner can apply for a loan, an assessment will need to be carried out on the property by a Green Deal assessor – you can ask a Green Deal provider to find an assessor for you. Alternatively you can find a list of assessors (and providers) online. Please visit www.gov.uk.
You may have to pay for an assessment, however check with your assessor or provider before any appointment is made.
An assessment will calculate your current energy performance and list what improvements can be made to help you save on your energy bills. The ‘golden rule’ of the Green Deal is: the expected financial savings must be equal to or greater than the costs attached to the energy bill.
You will then choose a Green Deal provider to carry out the work that the assessment has concluded. You can get quotes from as many providers as you like. You will discuss with them the work you wish to carry out and whether the Green Deal is right for you. The Green Deal providers will supply you with the loan in order to carry out the work.
If you chose to go ahead with the proposed improvements, you must sign your Green Deal Plan, this is your contract between you and your chosen provider, and then the work can commence (the contract will include the cost of repayments which will also include the interest rate).
Unlike other home improvements initiatives, the Green Deal is not dependent on people’s income and the loans are available to everyone.
If you move into a property with a Green Deal in place, a copy of the Energy Performance Certificate must be represented by the owner or landlord. The certificate will explain what improvements have been made and how much you will need to repay. But remember, you will save on your energy bills.
If you are a landlord, you must get the tenants permission before signing up to the Green Deal, and vice versa.
It is worth noting that there is a Cashback scheme. You may be eligible to claim your money back from the government that you have spent on making energy saving improvements under the Green Deal. However this scheme will only run for a limited time, and is only available to house holders (homeowner’s, tenants etc) in England and Wales (there is a different scheme for Scotland). Landlords are eligible if they pay for insulation.
To apply for the cashback scheme, please visit the Green Deal cashback website: gdcashback.decc.gov.uk or ring 0300 1231234 for more information.
