The Green Deal launched this week in a blaze of publicity, unfortunately
much of it negative. The scheme has been the Conservative’s flagship home
energy efficiency policy since before they even came to power, so the big
question is: is it any good? The short answer is that it’s good for some, but not
for others.
At its heart the Green Deal is a loan scheme for energy efficiency and
renewable energy measures, but rather than homeowners paying back the loan
directly to the bank the repayments are made via a charge on their
electricity bill. The two key innovations of the Green Deal are that the repayments
should not exceed the anticipated savings on your energy bill (i.e. your bills
will be lower afterwards, even with the loan repayments) and that the loan
stays with the property rather than you (if you move the new owner takes over
the repayments).
The Green Deal is an attempt to address one of the big problems with
some energy efficiency and renewable energy measures. Upgrades such as solid
wall insulation and solar panels are expensive – many people would struggle to
raise the cash to pay for them and they may worry that they’ll move house
before they’ve recouped the costs through lower energy bills. The Green Deal offers
a solution by providing financing and a guarantee that you’ll pay less than you’ll
save. For homes that need these kind of expensive measures the Green Deal looks like it
could be a real success.
Recent press criticisms of the scheme have focused on the fact that
only 5 people appear to have signed up for it and the high interest rates on Green
Deal loans. These criticisms appear to be the result of teething problems: the
tiny number of people signed up is because the scheme database isn’t ready yet
rather than a lack of public interest, whilst a competitive market
will presumably bring interest rates down in time.
The real problem with the Green Deal is that in their zeal to encourage
high cost home energy measures the Government has lost sight of the fact that many homes still just require bread and butter measures such as loft and cavity
wall insulation. The Green Deal and its sister ‘ECO’ subsidy scheme replace an
obligation on energy suppliers called the Energy Efficiency Commitment, under
which millions of cavity walls and lofts were insulated all over the country.
Getting insulation under the Energy Efficiency Commitment worked like
this. You’d ring up your energy company who’d give you a quote for (subsidised)
insulation. If you wanted to proceed a couple of men in a van would turn up at your
house, assess the job and (assuming they didn’t find any problems) install the
insulation. The cost would be a few hundred quid on a typical house and the
outlay of your time fairly minimal. Compare that to the hoops you need to jumpthrough for the Green Deal, and the costs that will be loaded on to the job by assessors,
management companies and finance providers.
The result is that anyone who can afford a few hundred quid to pay upfront
for cavity wall and loft insulation would be barking mad to have it installed
through the Green Deal. The real shame is that people are far less likely to do
these basic insulation measures now that subsidised insulation is no longer available through the
Energy Efficiency Commitment – they’ll have to pay the
full cost instead.
The other controversial element of the Green Deal is that it can be
used to fund what I’d tend to call basic home maintenance measures, such as new
boilers and double glazed windows. Picture a situation where you had a choice
of buying or renting two identical houses, one where the owner had paid for the
(modern) boiler and windows themselves and one where these were funded through
the Green Deal. In that situation most people would want a discount on the
price (or rent) to make up for the loan charges added onto the Green Deal home’s
electricity bill. Bang goes the Green Deal advantage of the loan staying with
the property.
Of course in reality you’ll rarely find two identical homes where you’ll
be making a direct comparison, and in areas with busy housing markets this
factor might be forgotten as buyers scrabble to secure a desirable property.
But a Green Deal loan will be something you’ll need to declare when you’re
selling or renting a home.
Maybe my discomfort with the Green Deal is a sign of me getting old –
my first job involved dealing with Energy Efficiency Commitment funded
insulation grants and energy saving lightbulbs – but my view is that the
Government’s desire to get solid walls insulated and solar panels fitted has made
them kill off one of the most successful energy saving schemes of recent
decades. The Green Deal isn’t aiming to demolish our old solid walled housing
stock and replace them with new houses; it’s trying to improve these (in many
cases) lovely old buildings. It’s just a shame that the Government isn’t
applying the same ‘improve the old’ logic to its successful home energy efficiency schemes.
This comment has been removed by a blog administrator.
ReplyDeleteIn any case, it was so costly at first to buy and introduce the boards that I abandoned that sustainable power source thought rapidly.camden county nj electricians
ReplyDeleteI really like and appreciate your work which is about loft insulation service. The article you have shared here is great. I read your post with carefully, the points you mentioned can be very helpful. It is nice seeing your wonderful post. Loft Boarding Services in UK
ReplyDeleteKeep it up and in the future sharing more articles like this. The article you have shared here is very informative and the points you have mentioned are very helpful. You are sharing a piece of nice information about real estate, it helped me. Thanks for this message. Loft Insulation Fitting Service.
ReplyDeleteWonderful post for us. The information you provided is very useful. Thanks for posting it and I am waiting for a more informative post like this, please keep posting. Attic Insulation in Davie, FL
ReplyDeleteI like the work which you have placed in this article. This data is significant and superb. I might want to thank you for sharing this article here. Home Energy Consultant In Ireland
ReplyDeleteCasino Royale - Live Dealer Games - Virgin Games
ReplyDeleteCasino Royale is https://vannienailor4166blog.blogspot.com/ a live casino with a large, eclectic portfolio of casino games. Players can nba매니아 play 토토 this deccasino game with live wooricasinos.info dealers,
Geelong Road Tech
ReplyDeleteThis is helpful and interesting! The Green Deal’s concept of linking loan repayments to energy savings is innovative, but it’s clear there are challenges, especially with high interest rates and accessibility.
Heatherton Road Tech
ReplyDeleteVery thoughtful analysis! The concern about long-term property value and buyer hesitation with Green Deal loans staying with the house is an important consideration that might impact its success.
NS Driveways Redhill
ReplyDeleteThis is helpful and interesting! The explanation of the Green Deal's benefits for costly energy efficiency measures like solar panels is insightful, especially for homeowners considering long-term investments in their property.
NS Driveways Reigate
ReplyDeleteI appreciate the balanced view on the Green Deal, particularly the critique of its complexity compared to simpler, subsidized insulation programs. It highlights important considerations for homeowners weighing their options.
Thank you for the detailed overview of the Green Deal! It’s clear there are both potential benefits and drawbacks. I hope it evolves to better serve homeowners’ needs. If you happen to need New Driveway Hitchin services, feel free to check out our site!
ReplyDeleteThank you for this insightful overview of the Green Deal! It’s interesting to see both the potential benefits and the challenges it faces. It’s crucial for homeowners to understand their options for energy efficiency. If you happen to need a Driveway Resurfacing Caboolture, feel free to visit our site!
ReplyDeleteThank you for shedding light on the Green Deal and its implications for homeowners! It's important to weigh the benefits and drawbacks carefully. If you happen to need a New Driveway Knaphill, feel free to visit our site for assistance!
ReplyDeleteThank you for sharing this analysis of the Green Deal! It’s important to consider both the potential benefits and drawbacks of such initiatives. While the idea of financing energy efficiency upgrades is promising, the criticisms highlight significant barriers to accessibility and affordability. Hopefully, as the program develops, it can better serve all homeowners, not just those who can afford the high-cost measures. If you happen to need a Driveway Resurfacing St Neots, feel free to visit our site for more information!
ReplyDeleteThank you for sharing insights on the Green Deal! It’s interesting to see how it attempts to make energy efficiency upgrades more accessible, especially for those who need them most. However, I can understand the concerns regarding the complexities and costs involved. It’s crucial that we also focus on simpler solutions like loft and cavity wall insulation. If you happen to need a Tar & Chip Surfacing Redcliffe, feel free to visit our site for quality options that enhance your home!
ReplyDeleteBrixworth Driveways & Patios
ReplyDelete"This is helpful and interesting! The Green Deal sounds like it has some innovative ideas, especially with the loan staying with the property, but it seems there are still some practical challenges for homeowners looking for simple, affordable insulation options."
Hurstbridge Road Tech
ReplyDeleteGreat breakdown of the Green Deal’s pros and cons! It’s a shame that basic energy-saving measures like cavity wall insulation might be overlooked now, especially since these are such effective ways to reduce energy costs."
Thank you for sharing this insight! It's interesting to see how the Green Deal could make energy-efficient upgrades more accessible, though it's clear there are still some hurdles to overcome. If you happen to need a driveway, feel free to visit our site—we'd be happy to assist with your home improvement needs! CLICK HERE
ReplyDeleteBlock Paving
ReplyDeleteThank you for the insightful analysis! It’s great to see a program that offers flexibility for homeowners, but I can see how some might be hesitant with the high interest rates. If you happen to need a driveway, feel free to visit our site!
Tarmac | Tar & Chip | Block Paving Driveways & Surfacing Anglia Tar
ReplyDeleteThank you for sharing this detailed overview of the Green Deal! It’s interesting to see how it balances financing and energy efficiency. If you happen to need a driveway, feel free to visit our site for more information!
New Driveway Buderim
ReplyDeleteThank you for the insightful breakdown of the Green Deal! It's interesting to see how this policy is evolving, and it seems it could benefit many homeowners with the right adjustments. If you happen to need a driveway, feel free to visit our site!
Driveway Contractor Near Me
ReplyDeleteThank you for this informative overview of the Green Deal! It’s great to see energy efficiency being prioritized, though I agree the process can feel a bit complicated for some. If you happen to need a driveway, feel free to visit our site for professional driveway construction services.
Block Paving
ReplyDeleteThank you for sharing your insights on the Green Deal! It’s certainly a unique approach to financing energy efficiency upgrades, but as you mentioned, it’s not without its challenges. If you're looking to enhance your home in other ways, such as with a beautiful driveway, feel free to visit our site. We’d be happy to help with any exterior improvements!
Thank you for sharing these insights about the Green Deal! If you happen to need driveway services, feel free to visit our site. Driveway Contractor Near Me
ReplyDeleteI appreciate the breakdown of the Green Deal's impact. For professional driveway services, don't hesitate to check out our website! Driveway Resurfacing Long Buckby
ReplyDeleteBlock Paving
ReplyDeleteThank you for this detailed explanation of the Green Deal! It’s interesting to see how the scheme is designed to address some of the common barriers to energy efficiency upgrades. If you happen to need a driveway, feel free to visit our site!