The Green Deal, is it a deal or not?

The Green Deal has finally been launched today. This means that home owners are now able to pay for various energy efficiency improvements in their homes with almost no costs. In reality the loan will be repaid through the electricity bill and this has caused quite many concerns. 

The core rule of this saving scheme is that the loan repayment should not be higher than what is saved on energy bills.

  

Only when the electricity bill is paid off will the loan be considered repaid. This means that if the house is sold, the new owner will have to continue paying the bill. But maybe the new owner does not like some of the home improvements, the insulation, the materials used or other similar details. In this case the seller will have to pay the bill himself, so as not to lose a potential buyer. 

Perhaps one of the most concerning issues is whether the fees quoted for the improvements are going to be competitive. Some of the Green Deal providers include big energy companies, which are notorious for charging extra for things like new boilers. Checking which supplier has the best deals is therefore extremely important for avoiding any hidden costs that might take the consumer by surprise. 

If advice is needed for business gas or electricity Business Energy Store is an excellent resource, offering impartial advice. Knowing that businesses benefit from reliable resources is quite important, given that most of the energy bill saving advice is directed toward to home owner .

While opinions are not very convincing regarding the Greed Deal, the government has launched a £650 cashback scheme to encourage householders to sign up to the Green Deal. The initiative is quite laudable and the truth is that whenever a new plan is launched, there is a trial period as well as divided opinions. Some will see more advantages than disadvantages, while others will only see the disadvantages.

The main idea behind the scheme is to insulate the UK's aged housing stock is designed to save carbon emissions, keep people warm, and make energy affordable. The amount that anyone can borrow will be capped at £10,000.

Proper insulation and other similar amendments will have a positive impact in the end. According to a BBC article from December, Energy Saving Trust reckoned that British households are wasting an average of £270 each a year by wasting their heat. If you do the maths, this means £7.2bn for the country as a whole. A lot could be saved both on a personal and a whole scale if minor changes were made. And if for those minor changes there aren’t enough funds, the Green Deal might prove useful after all.

But it’s always a matter of choosing the most appropriate supplier and the best interest rate. It should all start with research and advice from utility brokers.