The Government has revamped the Green Deal and introduced some new incentives to improve the scheme.
The Green Deal offers homeowners loans to pay for energy efficiency measures that are paid back over 10 to 25 years, with repayments added to electricity bills. The repayments should always be less than the energy savings, so a household’s monthly costs should not increase.
The Green Deal’s “golden rule,” states that estimated savings on bills have to equal or exceed the cost of the work.
The Green Deal Improved:
From June 2014, a £500 payment will be offered to anyone who installs energy-efficiency measures within 12 months of moving into their property. Previously, homeowners would have paid an assessment fee of around £120 just to find out what measures they could install!
The new look Green Deal means that homeowners will also be able to apply for further £1,000 cash back. This will be available to all, irrespective of when they moved in, if they fit any combination of two improvements from a list of 12. This includes double glazing, cavity wall insulation, replacement doors or flat roof insulation and, the most likely, a gas condensing boiler.
All of this means that homebuyers who install energy-saving measures within the first 12 months of moving into their new home will be able to claim new grants – typically up to £1,500.