As temperatures start to climb, insulating your home is perhaps the furthest thing from your mind. Nevertheless, as all of us in the UK are more than aware, this lump of rock that we call home is more than capable of the odd chilly summer night and the subsequent need to switch on the central heating.
One of the biggest impediments to improving a building’s energy and heat retention is cost – there’s little doubt that home insulation can be a very expensive business. In the past, one of the only ways to finance a large home improvement project like this was to take out a home equity loan. However, this left homeowners who didn’t have a lot of equity in their home without many options. It is for this reason that the Green Deal initiative is fantastic news for those homeowners who don’t have much equity and whose bank balances aren’t substantial enough to pay for insulation to be installed.
If your eyes glazed over upon reading “green deal” and you’ve written it off as just another political gimic, then it may be time to reassess as it could ultimately save you lots of cash and contribute towards saving the environment. So, exactly what is the Green Deal and how does it work?
So What Is The Green Deal?
At its heart, the Green Deal is an initiative put together by the coalition government with the aim of making homes more energy efficient and therefore cutting carbon emissions in the UK. The basic theory is that by reducing the heat loss from buildings via the installation of double glazing, modern boilers and better insulation, less energy will be required by homes and therefore less fossil fuel will be expended. All very logical to say the least.
Essentially, the scheme will provide loans to be paid back over time; this ensuring that home owners don’t have to invest a lump sum outright. The loans will cover any of the improvements listed above and will be carried out by approved Green Deal Providers therefore guaranteeing a professional service.
How Does It Work?
It will be surprisingly simple to take advantage of the initiative despite the overly confusing flow charts you may have seen online! Following an expression of interest, a homeowner will be visited by Green Deal assessor who will evaluate a home’s current energy efficiency and eligibility for the scheme. Should the building indeed by suitable, then the assessment can be taken to a Green Deal provider who will then carry out the improvements as suggested.
Upon completion, repayments on the loan will then be made via the building’s electricity bill. While the loan will not be interest free, it will have low rates and therefore should prove cost effective when put in the context of a buildings energy consumption and bill payments.
With the initiative due to launch in autumn, it is believed that further information will be available soon and subsequently homeowners will be able to register their interest in a visit from an assessor. So keep an eye on the news for more details!
For more information please refer to the governments Green Deal webpages.