12 things you may not know about the Green Deal
Posted by Cathy Debenham on 21 October 2010 at 12:35 pm
The Green Deal is aiming high, with a goal of retrofitting 14m homes in a decade. Minister of state for energy and climate change, Greg Barker spoke in detail about plans at today's online question time event organised by Great British Refurb. Here's some of what was revealed.
1. The green deal will offer up to £6,000 per household to spend on approved energy efficiency measures. This will be paid back through savings in energy bills over a 25 year period.
2. The loans will be provided by the private sector at a rate similar to a personal mortgage. They will be attached to the energy bill of the house, not the resident, and so will stay with the house as occupants change. Subsequent occupants will also benefit from the energy savings while continuing to repay the loan.
3. Barker hope that the Green Deal will stimulate product design and innovation as insulation and other energy efficiency measures reach the mass market.
4. While renewable energy installations may be wrapped up together and sold with Green Deal measures, they will not be included in the finance package, but will be financed through the feed-in tariff and renewable heat incentive.
5. There will be special help for hard to treat homes where the energy efficiency measures cost too much to lead to a saving in bills, and also for people in fuel poverty who won't save on bills, as they can't afford to turn the heating on. "We will provide, or make sure the money is provided, to make this happen," said Barker.
6. Barker recognises that there will need to be a range of "nudges and triggers" to incentivise take up, but wouldn't be drawn on whether a reduction in council tax or zero VAT on retrofit measures were options on the table. He just said he "will work with the Treasury" on this.
7. He hopes to see local authorities promoting energy efficiency measures street by street and getting communities involved.
8. The Green Deal is something that is a win win in the private rented sector - landlords can install measures without up front costs, and tenants benefit from the lower bills and warmer homes.
9. The Green Deal loan is available to every one. It is not dependent on income, and doesn't affect people's credit score.
10. The scheme will not be introduced until 2012, giving the government time to make sure it has the right accreditations in place for installers. "It is really important we take a bit of time and get consumer accreditation and standards right," said Greg Barker.
11. To access the Green Deal you will have to have an independent assessment of your house by an accredited installer. They will tell you which measures are suitable for the property, and which ones are approved under the scheme, then you can shop around among accredited suppliers for who will do the job.
12. It's estimated that the roll out of the Green Deal will create up to quarter of a million "green jobs".
If you have a question about anything in the above blog, please ask it in the comments section below.
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