The Government’s proposed Green Deal, set to launch in October 2012, is designed to offset the upfront cost of energy-saving retrofit in existing homes through pay-as-you-save financing.
The cost of improvements is repaid to investors through a charge on the householder’s energy bill, and the idea is that the Green Deal’s ‘Golden Rule’ will mean that the charge to borrow the money up front cannot exceed energy-cost savings.
The costs will be met by Green Deal ‘Providers’ (usually high-street companies) who will then receive repayments from you through your energy bill, subject to the “Golden Rule” that the repayments you make must be smaller than the savings from reduced energy costs.
Importantly, the bill for the work will also be attached to your energy meter, not to you personally, so if you move out of your home at any point after the work is done, it will be the next tentant or owner of the property that will take up the repayments.
Click here for the government leaflet on the Green Deal.
However, questions remain about the scheme’s practical application, and levels of interest have not been set, accreditation has not been agreed and there is still much ongoing debate. For more info see: http://www.decc.gov.uk/en/content/cms/tackling/green_deal/green_deal.aspx
Bright Green Homes is keeping up to date with the events surrounding the Green Deal and please get in touch with us if you have questions.