Skip to content

Renewable Energy

Green Deal launched by UK government

by Ian Youngman 12 Nov 2010
Green Deal launched by UK government

Many people would like to install energy saving home improvements such as roof, wall and cavity insulation, more efficient boilers and double-glazing. But those most in need of help to reduce energy bills are those least able to afford to undertake the improvements.

You can go a bank or other lender. But the cost of lending, if you can get any, is very high and may cost more than you save on lower energy consumption over a short period

Estimates vary from £380 to £580 on the amount that the average home could save on energy by being fuel-efficient. With higher fuel prices expected and the increased number of gadgets in the home, not to mention electric cars, the cost of home energy could double or triple within the decade. The cost of upgrading the average home is around £10000. If you move home less than ten years after the work was done, you will probably have paid out more than you save.

The previous government piloted a Warm Homes; Greener Homes strategy. This pay as you save initiative idea was that people who have an eco-upgrade get significantly reduced bills. The really clever idea, which the Coalition government has 'borrowed', is to have the loan attached to the home, not to the homeowners.

The term of the finance is long enough to cover the cost of loft and cavity wall insulation, new boiler or heat pump out of bill savings, through installments that are lower than their energy bill savings.

The Green Deal is the Coalition Government's variation on PAYS to support the implementation of energy efficiency measures to households and businesses without needing to meet any upfront costs. Legislation to introduce the Green Deal is expected before the end of 2010, with a targeted implementation date of Autumn 2012.

The logic is to make energy efficiency affordable and accessible for homeowners, without the risk of spending money upfront for little return if you sell or move. Audrey Gallagher, at Consumer Focus comments, "Green Deal is a total game changer in how householders can make their homes more energy efficient, and it will need careful work to get it right for consumers.

It has the potential to help consumers access a range of measures to stop their houses from leaking heat, without being off-put by high upfront costs. However, to make sure consumers are the winners from the changes, the government must make sure the rules are clear and are written in consumers' favour. There are a lot of potential risks that need to be looked at including getting the finance package for consumers right, robust accreditation and training for installers, and making sure all consumers - particularly those on low incomes - get access to the help they need."

Measures also extend to improving the energy efficiency of the private rented sector. Landlords will face no upfront costs when improving their properties. The forthcoming Energy Bill will create powers allowing any tenant asking for reasonable energy efficiency improvements to receive them from 2015 onwards. It will also allow local authorities to insist that landlords improve the worst performing homes.

David Salusbury of the National Landlords Association comments, "The Green Deal proposals represent a new opportunity for landlords to improve the energy efficiency of their properties, reduce their tenants' utility bills and play their part in tackling climate change. It should provide landlords with an innovative new avenue to invest in their properties, creating warmer, greener houses while simultaneously improving the fabric of the private rented housing stock."

British Gas has just launched British Gas Green Deal, where it will invest £30 million in installing energy efficiency measures in its customers' homes at no up-front cost. Repayments from customers will be made via savings in their energy bill. Phil Bentley of British Gas explains, "With rising energy prices there has never been a better time to improve the energy efficiency of Britain's homes."

The key to Green Deal is a new financing framework to enable the provision of energy efficiency measures to all householders, and some small businesses and landlords. It is funded by a charge on energy bills. A loan from a bank or finance company pays for the work, mainly loft and wall insulation.

But the householder does not pay back the company directly or have any upfront costs. The money is repaid via electric and gas bills, with the energy company passing the money to the lender. It is not a personal loan, so if you move home, the bill/loan is paid by the new occupier/owner, not you.

With electric cars and more devices, the demand for electricity in the home is expected to double in the next few years. As with all initiatives, the number of people actually taking it up will be much less than the government claims. How effective it is will depend very much on the detail in the legislation and how it is implemented.

Before work is done or an energy loan agreed, there will be an independent energy survey of the property, giving clear advice on the best energy efficiency options, such as loft or cavity wall insulation. The reason for the delay in implementing the deal is that work will only be carried out by accredited companies, and money loaned by accredited finance providers. It is likely that national companies will be the main ones for both categories, but how companies are accredited and monitored, has so far been skated over as a minor technicality.

For those who want to go further than passive measures on insulation, you can consider renewable energy such as solar panels, wind turbines and wood-fuelled stoves. As well as saving on energy bills, you can have a feed-in tariff where you not only get paid for the electricity to produce, but you can sell any excess electricity to the national grid.

The soon to be launched Renewable Heat Incentive will pay you for installing renewable heat systems such as solar hot water panels and wood pellet boilers.

href="https://earthtimes.org/environment/solar-energy/index.html">Solar Energy /

Trending Eco-Friendly Clothing

Love My Planet Women's Relaxed Fit Hoodie
Earth
Quick Add
Close
Notify me
Notify me
Love My Planet Women's Relaxed Fit Hoodie
Love My Planet women's eco-friendly relaxed fit hoodieSize Guide Centimeters 8 10 12 14 16 18 Bust 84 88 92 97 103 108 Waist 66 70 75 80 85 91 Hips 91 95 99 104 109 116 Bust: Measure around the fullest part of...
£38.00
£38.00
Close
Notify me
Notify me
Penguins Hate Push-Ups Men's Pullover Hoodie
Earth
Quick Add
Close
Notify me
Notify me
Penguins Hate Push-Ups Men's Pullover Hoodie
Penguins Hate Push-Ups men's eco-friendly pullover HoodieSize Guide Centimeters XS S M L XL XXL Height 171 175 179 183 189 195 Chest 86 93 99 104 116 129 Waist 71 76 81 89 99 112 Chest: Measure all round your chest just below...
£38.00
£38.00
Close
Notify me
Notify me
Lightning Bolt Kids Long Sleeve T-Shirt
Earth
Quick Add
Close
Notify me
Notify me
Notify me
Lightning Bolt Kids Long Sleeve T-Shirt
Lightning Bolt kids eco-friendly long sleeve t-shirtSize Guide Centimeters 3-4yrs 5-6yrs 7-8yrs 9-10yrs 11-12yrs Height 98 112 125 136 147 Chest 60 66 70 75 84 Chest: Measure all around your chest just below your armpits. Height: Your natural height If you fall between...
£18.00
£18.00
Close
Notify me
Notify me
Notify me
Union Jack Tote Bag
Earth
Quick Add
Close
Notify me
Notify me
Union Jack Tote Bag
Union Jack eco-friendly colour tote bagProduct Specification Organic Cotton Tote Bag. Twill Weave (170gsm). 37 x 42 cm (7cm gusset.) Made in India / Designed on the Isle of Wight. Wash Cool, Hang Dry.
£16.00
£16.00
Close
Notify me
Notify me
Prev Post
Next Post

Eco-Friendly Shop

Women's Clothing

Eco-Friendly Clothing for Women Our online shop offers a wide range of sustainable women’s clothing products, including t-shirts, hoodies, vests, sweaters, shorts, and...
Shop Now

Men's Clothing

Eco-Friendly Clothing for Men Our online shop offers a wide range of sustainable men’s clothing products, including t-shirts, hoodies, vests, sweaters, shorts, and...
Shop Now

Kids Clothing

Eco-Friendly Clothes for Kids Our online shop offers a wide range of sustainable kids clothing products, including t-shirts, hoodies and jumpers. Our garments...
Shop Now
Someone recently bought a
[time] ago, from [location]

Thanks for subscribing!

This email has been registered!

Shop the look

Choose Options

Earth Times
Sign up for exclusive updates, new arrivals & insider only discounts

Recently Viewed

Edit Option
Back In Stock Notification
this is just a warning
Login
Shopping Cart
0 items

Before you leave...

Take 20% off your first order

20% off

Enter the code below at checkout to get 20% off your first order

CODESALE20

Continue Shopping