Blog: Getting on board the Green Deal – or not?

So the Green Deal was officially launched by the Government this week but a few questions seem to be lingering on everyone’s mind. Is it a good scheme? Does it […]

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By Priyanka Shrestha

So the Green Deal was officially launched by the Government this week but a few questions seem to be lingering on everyone’s mind. Is it a good scheme? Does it do what it says on the tin? And most importantly, is it cost effective?

With numerous headlines about the energy efficiency scheme, I’m sure most in the industry already know what it means and how it is expected to help consumers. But to reiterate – it offers efficient home energy improvement package for UK householders, which will be paid for by the savings from lower energy bills. Early birds in England and Wales can also get more than £1,000 worth of “cashback” if they sign up to the scheme.

That sounds all well and good and who in their right minds wouldn’t want some money back right? But could there be nasty surprises in store that consumers should expect?

Energy Secretary Ed Davey doesn’t think so as he called the launch a “significant achievement” for his party in Government. He also claimed it will “empower” customers as it offers them more choices on the improvements they can make in their homes. But while that may be true, is it really the best option available out there?

A surveyors’ association suggested people should look into other avenues to get funding for making their homes more efficient as it may not be suitable for all.

Especially with the interest rate set just under 7% and repayments that will be based on estimates of average energy use in homes and future energy prices. That means what the homeowner pays will not always be the same. Consumers must also pay up to £150 for their initial assessment and undergo a credit check AND energy suppliers could also charge them another £63 to help loan setup.

Some have also suggested people to be wary as it could be difficult to sell a property if it comes with an additional loan attached. Obviously who would really want to buy a house with a loan on top of the mortgage payments? People do need to tread carefully and check the small print before deciding to take financing through the scheme. And as some may say, if it’s too good to be true, it probably is!

But it can’t be all that bad right? Why would the Government want to rip the nation off through a scheme such as the Green Deal? Surely there are benefits to it?

Especially for construction firms in the country as DECC suggested the scheme could create up to 250,000 new jobs within the next decade. And with people complaining about the Government not creating enough job opportunities, surely this is an effort? And businesses may as well take advantage of the opportunity!

However, in order for that to happen, it is crucial to raise awareness as the scheme could be in danger of becoming Britain’s best kept secret!

And for those who can’t afford to make their homes energy efficient any other way, the Green Deal could serve as a great deal whilst sadly for others, it could just bring a whole lot of trouble.

But like anything new that pops up, not everyone can be pleased.