The Green Deal scheme

[espadrille 10]

Are we now going to see the low carbon economy become a reality?

 

The cheapest and best way of cutting carbon is not to use energy in the first place. A quarter of UK carbon emissions come from housing and our homes in the UK are chronically inefficient.We need to future proof our homes through energy efficiency. Under the new Green Deal, householders will pay nothing upfront with finance provided by the private sector and the cost recouped through savings on our bills.

There will be a renewed focus on those in fuel poverty and from 2012 when the Deal begins in earnest, energy saving packages worth thousands will be installed in millions of homes.

So is this the start of our ability to achieve a target of cutting emmissions from 20 to 30% and also to get landlords to embrace this opportunity?

[espadrille 10]

More information here

 

http://www.decc.gov.uk/en/content/cms/what_we_do/consumers/green_deal/green_deal.aspx

[espadrille 10]

I guess that no one can see the long term benefits of this then?

[Mr Peacock 10]

Over the coming months, the Governments new flagship energy efficiency scheme, for improving existing properties, will appear more in the media.

 

Like all new schemes it will be met with both positive, and negative responses.

 

I was wondering what other peoples thoughts were on the scheme, and which of you will be taking up the scheme for your own properties.

[Simpletom 10]

Its complicated when it doesnt need to be

[dongle 10]

We have just sold our house on the epc it recommends solar water heating to make the house more energy efficient, the indicative cost is 6k with typical savings of £68 over 3 years. But available with the green deal, I have no idea what the green deal is.

[Mr Peacock 10]

Its complicated when it doesnt need to be

 

Please explain why you think it is more complicated than it needs to be. How would you like to see it work?

[retired 10]

For me the Green Deal is not appealing. The savings made then get loaded onto the electricity meter as a standing charge and last for up to 25 years. So lower gas bills but higher electricity bills?

 

Anybody who is considering this scheme I strongly advise you to read the small print.

[Mr Peacock 10]

We have just sold our house on the epc it recommends solar water heating to make the house more energy efficient, the indicative cost is 6k with typical savings of £68 over 3 years. But available with the green deal, I have no idea what the green deal is.

 

The Green Deal is new scheme which is designed to help people to improve the energy efficiency of their property at no up front cost. As a nation we need to hit carbon reduction targets that the government agreed to when we signed up to the kyoto treaty.

 

Because of the costs involved to bring houses up to a higher standard, they came up with The Green Deal. Under the Green Deal, a home owner or tenant can have a Green Deal assessment done on their property. The assessment starts by producing the EPC, which gives the recommendations for improving the property.

 

A second assessment is carried out, called The Occupancy Assessent, which looks at the way you set your heating to come on and off, the temperature you set your thermostat to (if you have one), how you dry your clothes, how many baths / showers you have etc to name just a few. It also looks at your fuel bills. The information from this second assessment is used to calculate a financial figure of what annual savings could be made by installing the technologies recommended on the EPC.

 

As long as the savings from the installed technologies meet "the golden rule" then can be installed at no up front cost. Essentially the savings must be equal to or greater than the cost of repaying the cost of installing the technology (plus interest circa 6.9%) over the technologies expected life span.

 

---------- Post added 27-01-2013 at 11:50 ----------

 

For me the Green Deal is not appealing. The savings made then get loaded onto the electricity meter as a standing charge and last for up to 25 years. So lower gas bills but higher electricity bills?

 

Anybody who is considering this scheme I strongly advise you to read the small print.

 

Under the golden rule, the savings from the installed technology must be equal to, or greater than the cost of repaying the green deal loan, over the life expectancy of the technology.

 

So the repayments are loaded onto the electric bill, but there are savings made, so worst case is that the bills stay the same. You will have still improved the comfort and value of your home.

 

Its true that it wont be for everyone, e.g. If you have can afford to pay for the technology yourself, you don't incur any interest.

 

It is also worth pointing out that under the ECO (Energy Company Obligation) part of Green Deal, some people will qualify for funding that doesnt have to be paid back i.e. if you are in receipt of certain benefits, or you live in a difficult to treat solid walled property.

[dongle 10]

If something costs 6k to install and saves you £68 over 3 years it doesn't seem very good at all?

You would save more by turning the tv off stand by over the 3 years and not have to pay more for your electricity

[heating-eng 10]

The green deal seems like another way for the rich boys to make money, costs to much for small company's to get involved in.

 

---------- Post added 27-01-2013 at 15:07 ----------

 

I have been on the training and they tell you, if the customer has the money then it is cheaper for them just to buy the boiler etc outright.

[Mr Peacock 10]

If something costs 6k to install and saves you £68 over 3 years it doesn't seem very good at all?

You would save more by turning the tv off stand by over the 3 years and not have to pay more for your electricity

 

Unfortunately the indicative costs on the EPC for how much the technology is to install is way out of touch with todays actual prices. You would never pay £6000 for a solar thermal system. The true cost is under half that.

 

Solar thermal is a poor example to be fair because it only delivers low savings, while being expensive to install. Whereas loft insulation can save you hundreds, for only a few hundred pounds installed.

 

Again, you are not being charged more for your electricity, because the savings should always meet the golden rule, which should mean that in the worst case your bills will remain the same.

 

---------- Post added 27-01-2013 at 15:39 ----------

 

The green deal seems like another way for the rich boys to make money, costs to much for small company's to get involved in.

 

---------- Post added 27-01-2013 at 15:07 ----------

 

I have been on the training and they tell you, if the customer has the money then it is cheaper for them just to buy the boiler etc outright.

 

Once again, its stating the obvious to say that you are better paying for it yourself. Of course it is, as you won't be paying any interest, in the same way you wouldn't buy a car on finance if you'd got the cash to pay for it outright.

 

But ECO under the Green Deal scheme, also provides access to free funding for people who are on benefits or who have difficult to treat properties. Anyone with solid walled or narrow cavity properties that can't have cavity fill insulation should really take up the green deal without delay.

 

For the early adopters of the Green Deal, there are cash back incentives for each of the technologies you have installed, upto a maximum of about £1000.

Edited January 27, 2013 by Mr Peacock
none factual