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The Green Deal Has Launched!
After months of delay, the Green Deal finally launches today, January 28th 2013!
Homeowners can now be offered loans that will cut bills while making their homes more energy efficient than ever. Under the new government scheme, each household will have no up-front costs and will be funded up to £10,000. These loans are paid back through the savings made on your energy bills over a maximum of 25 years. Different from a personal loan, the Green Deal is attached to your property. If you move before the loan has been paid off, it will pass onto the new owner or tenant.
1) Find your local assessor
2) Approach your local Green Deal provider
3) Get your assessment done with a certified installer
Property owners are protected by Green Deal’s Golden Rule, which states that “the energy savings a property makes in a 25 year period must be equal to or more than the cost of implementing the changes in the first place. This ensures that the property owner is not paying back more to partake in the Green Deal than they are saving on their energy bills”.
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Who else is really worried by this scheme? Our reasons:
1. 80% of people don’t know what it is, despite having had over a year to get the message out.
2. The Government is spending £2-3m on marketing to make it succeed (so is it really that good?)
3. The Golden Rule is for the expected savings. If the assessor is over-zealous, you may well be out of pocket.
4. The high interest rate means that the majority of people who take it up are likely to be more vulnerable to over-selling.
5. As the loan is linked to the meter, it may make selling a house harder.
6. You will only find out the answers to 4 and 5 a few years down the line.
We really don’t like being negative about things that help reduce carbon emissions, but we need a sensible debate about the efficacy of such schemes rather than being overwhelmed with Government hype.
I for one would love to take up the green deal offer, I understand the pro’s and con’s of it, I understand I may get a slap in the face and be left out of pocket in years to come but I still think it is worth the risk. But alas this is where it ends for me because the assessors are charging £99 up front for an assessment and me being on pension credits like may others I just do not have £99 lying aroung to pay this, I know this is refunded at the end of the process but I don’t have it to start with.
All we know is that the Green Deal will evolve to take your concerns into consideration and we are sure that one provider will emerge who will offer no up front costs what so ever to capture people in your position. Keep your ear to the ground and your find one soon!
There all very good points and further more the interest rates are set to high and cheaper bank loans (with cheaper interest rates) are readily available to pay for some items, which slightly defeats the object of the initiative.
I’m not sure who benefits most but it currently seems the householder has all the risk items. If you’re paying a green deal loan back over 25 years on some new double glazing what happens when the rubber seals break down and need replacing or the seals to the glazing have blown. More cost to the householder.
The resale of housing is also a concern as it can go one of two ways, either buyers will be happy to carry the loan onto the mortgage or they will ask for a reduction in the value of the house which affects seller.