The Green Deal scheme is being prepared for an autumn launch, and the Government is still making alternations to its flagship energy program. And now the DECC has confirmed Green Deal discounts could be made available in the form of one-off cash payments.
The scheme hasn’t been met favorably by the general public thus far, with many unaware of how it will work and 80% of the UK suggesting they would not be interested. This is terrible news for the Government, who have pinned their hopes on making Britain energy efficient with £200 million of funds.
The scheme will provide upfront payments for those wanting to cut their energy bills with insulation such as replacement boilers, double glazing, loft lagging and wall cavity insulation. This loan will then be paid back monthly.
The lowdown on the Green Deal
The scheme will work by supporting homeowners in the purchasing of energy-efficient home improvements that will reduce household bills
This Government loan will then be paid back monthly on the basis of how much is saved on energy bills
Rather than being a personal loan, it will be attached to the property
Whilst this sounds like the perfect opportunity, you should be wary. The scheme has attracted criticism over its repayment plans, with proposals working out figures on a national average rather than on a personal level.
Green Deal discounts
To counter the general animosity over the Green Deal, the Government is putting plans forward for Green Deal discounts, which would work as a cash-back system.
The Department of Energy and Climate Change (DECC) wants one-off payments to be made to those who take up the scheme early.
The scheme, which has been billed as the most significant home insulation project since the Second World War, will have £200 million available for those willing to take part. £30 million will be available in the current financial year, with a further £170m ready to come in next year.
A DECC spokesperson confirmed speculation surrounding Green Deal discounts, saying the Government is “looking at some kind of cashback scheme that would reward people who take up Green Deal measures.”
The DECC is targeting 14 million UK homes to benefit from loans, but there are fears homeowners simply won’t see the scheme as an attractive prospect.
Should I replace my boiler with the Green Deal?
Whilst the Green Deal offers a way out of making upfront payments, the prospect of paying back more than you save should undoubtedly ring alarm bells. Investing in yourself is the better option, and with a new boiler:
Cut your heating bills by as much as £300 a year with an efficient system that converts more fuel into heat.
Ensure your home is warmer in the winter and that breakdown risks are reduced. An old boiler can fault at any time, leaving you without heat and hot water, so investing in your own boiler now will cut the risk of this happening.
Make your property more environmentally friendly by reducing carbon emissions and help the Government meet challenging EU carbon reduction targets.
Energy-efficient boilers will reduce your heating bills by up to £300 a year. Combi boilers will cut more from your annual costs and are much more convenient with no water storage tank.