The Green Deal finally saw the light of day last week – to be greeted with less enthusiasm than expected.
The Green Deal is the government’s long awaited flagship policy designed to reduce energy consumption in homes. It works by funding energy efficiency measures which are re-paid through the homeowners’ electricity bill. The ‘golden rule’ is that the cost of any repayments should never be greater than the saving in energy costs. You can find out more here.
The ‘Golden Rule’
In short, you pay nothing upfront, you reduce your energy use and some (or all) of that saving goes to re-pay the cost of whatever energy efficiency measures were installed. Once the Green deal loan is repaid, you get the full benefit of any energy savings. Moreover, the calculation is based on the savings you would make at current energy prices. If energy costs rise, your reduction in energy use will represent a bigger saving than estimated. Continue reading