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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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9 comments - read them below or add one

Cathy Debenham

Cathy DebenhamComment left on: 12 April 2011 at 2:57 pm

As Eco Your Life suggests, this isn't intended as a first read about the Green Deal. For a clear introduction, with all your questions answered, you can see our introduction to the green deal, in our financial incentives section

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Eco Your LifeComment left on: 7 April 2011 at 11:46 am

This is a very interesting read and raises some points about the proposed green deal, however it is a little technical for a first time read.  I found this website has a very good article about the Green Deal

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Jeff B

Jeff BComment left on: 24 October 2010 at 6:35 pm

Cathy - ok, hope you're right! I was looking forward to getting a bit of financial help towards external wall insulation!

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Jeff B

Jeff BComment left on: 24 October 2010 at 5:13 pm

Cathy - the press release about the Green Deal says: "From 2013, support for heating and insulation for the most vulnerable will be delivered through the Green Deal for energy efficiency and a new obligation on energy companies". I note that this says that support will be available to the "most vulnerable" rather than to everyone as you said in Point 9 of your article. I must admit I always assumed that the deal would be open to all, but I'm not so sure now! I guess we need a definition of the most vulnerable?

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Cathy Debenham

Cathy DebenhamComment left on: 24 October 2010 at 4:52 pm

Hi Jeff

I'm pretty confident, having listened to Greg Barker talking at some length at the Great British Refurb Q&A on Thursday, that the Green Deal will be open to all. The bit of the press release you're referring to is about the shift from CERT to a different way of supporting people on low incomes and who are in fuel poverty. There will also be extra help available for people with "hard to treat" houses - ie solid walls, in listed buildings etc.

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Jayhawk International Ltd

Jayhawk International LtdComment left on: 21 October 2010 at 4:36 pm

For my part in the renewables sector, I wished that no cash incentives were handed out at all, leaving the home and business owner to decide on whether they continued to burn up at any cost the fossil fuels left in the plannet, or do something for themselves. As Cathy states, no mention on how we can install as the Germans do, DIY systems and still get paid the feed in tariff? (Except the wiring up to the consumer box) What I also find amazing with this frenzy for PV installations to grab the 8% tax free feed in tariff, is you dont need to do anything about the energy hungary appliances to become more energy efficient when genarating electricty from an inefficient technology imported mainly from China. When I try to sell the very latest in 3 watt LED lamps to replace 50 watt halogen bulbs for £22.00 each with the holder, I am looked at as being crazy. If those reading this have just paid out £14,000 for a PV installation, does the £22.00 3 watt x 30,000 hrs LED sound expensive?

As a last point about covering your roof in PV panels will add value to your house. I wrote to the Times haveing seen a full page advert for PV installations with all the standard bullet points to show how benificial PV is, stateing that a PV system will add 10% value to the home.

A home owner I supplied a 4m2 evacuated tube collector that genarates 2.4kW, then went ahead with Southern Electric and paid out £11,200 for a 2.2kW x 15m2 system on a house valued at £650,000, meaning that a 10% gain equal to £65,000 in added value??

The editor contacted the company and in the next advert, it stated PV could add extra value to your home.

Seeing 4 council houses in Sheffield 2 weeks ago on the main road covered in PV panels stood would not entice me to buy that house if for sale, due to the method of installation.

My house where I installed myself every micro technology all with storage, batteries for power and a large thermal store for solar heat, has not yet been sold after 18 months up for sale.

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Inergy UK Ltd

Inergy UK LtdComment left on: 21 October 2010 at 2:03 pm

I suppose we should be thankful that 'something' is being done, but I'm sure that many people actively working to promote energy efficiency, renewable energy use and to create a more sustainable way of life will be left disappointed by this and left thinking that the government could have done so much more.

But this always seems to be the case with 'green' government incentives and we always seem to be left with the feeling that not enough is being done.

Ultimately it won't be governments who change the way we live - it will be people. Communities working together to find ways to meet their own energy needs. The government wants to put an end to what it calls a culture of dependency in the UK - maybe one day we'll realise we don't need to depend on the government at all. Maybe we'll realise we can manage ourselves much better than they can.

It's good to encourage householders to make their homes more energy efficient but we'll make much better progress towards a sustainable future if we work together at the community level and create things like solar farms.

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brianfauxComment left on: 21 October 2010 at 1:33 pm

As usual it will be down to business to make the running (and the profits) protected by a closed shop courtesy of HMG. It seems that this gov, like the previous and despite being mainly formed by the party of `individualists` , sees people only as `consumers`- passive payers.

The gov has a message for those who would like to get on their bikes and do something with their own hands: we don`t like your kind.

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Cathy Debenham

Cathy DebenhamComment left on: 21 October 2010 at 12:53 pm

Good point - no one asked about DIY - or it didn't get to the top of the list.

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