In simple terms the Green Deal is a way to fund improvements in the energy efficiency of your home. In short it is a loan which is paid back through the savings in your energy bills that energy efficient improvements have created. For example if you insulate your property and get a bill saving of £200 p.a., the £200 you save will go towards paying back the Green Deal loan required to pay for the insulation in the first place.
However like all government schemes it’s not quite as straight forward as this! An assessment of your property has to be carried out by a Green Deal Adviser who will create a Green Deal Report. The report will highlight what energy efficient improvements can be made to your property and the likely bill savings you could expect from carrying out these improvements. Only energy efficient measures where the loan repayments are less than the predicted bill savings will be funded by the Green Deal – this is called the Golden Rule. The loan repayment will be collected via your energy bills and there will be interest charged on the loans but the rate as yet has not been fixed but is likely to be between 7% and 8%.
In order to get Green Deal funding the installation of the energy efficient improvements must be carried out by a Green Deal installer such as EnergyMyWay. Improvement to insulation, heating systems and renewable energy installations will be able to be funded via the Green Deal.
If you would like to know more about the Green Deal contact EnergyMyWay on 0845 371 3181