Transition St Albans’s open meeting on the ‘Green Deal’ in April 2013 included a presentation by Andrew Allen an active member of the TSA Energy group, who has an MSc in Environmental Management.
The presentation highlighted that the Green Deal may not be a simple choice. While there is no upfront cost and the loan is attached to the house, you may be able to find better deals by shopping around.
The Green Deal process has four stages:
Image supplied by the Energy Saving Trust
What is the Green Deal?
The Green Deal is a scheme designed to enhance the energy efficiency of the UK housing stock. It has arisen from the need to reduce national carbon emissions.
The Green Deal looks at 45 energy efficient measures such as loft insulation, boilers, wall insulation, windows and micro generation such as solar panels.
How much does the ‘Green Deal’ cost?
- There is no upfront cost (except for Green Deal assessment) -some measures may require part funding. There is cashback available for early adopters – capped at 50% of installation costs.
- Golden Rule – Measures installed will not increase the energy bill if there is no change in behaviour
- It is a 10-25 year loan that stays with the property
- All suppliers have to meet the Green Deal Quality Mark
- If your GD assessor recommends loft and cavity wall insulation you must install those measures to get cashback on any other measures for example £250 for cavity wall insulation or £390 for flat roof insulation.
Should I go with the Green Deal? It depends…
- How long are you intending to stay in your current home?
- If you are not intending to move there are more cost effective ways of installing energy efficient measures
- What measures do you want to install?
- Some companies offer short payback periods – again these may be cheaper ways to finance these measures than Green Deal
Green Deal Loans
- The Green Deal loan is minimum 6.96% and between 10 and 25 years; longer than most other finance products
- however the rate could be more due to charges imposed on the Green Deal installer
- Other loans of up to £15000 for 5 years (some up to 10 years) can be found for around 5% and remortgaging for less than 4.5% over the same time period so its worth taking time to consider.
Links for further information:
- Transition Streets St Albans
- Energy Saving Trust Green Deal
- green deal initiative
- Which Video on four steps to the Green Deal
Transition Streets is a local project you can take part in, which helps residents understand more about energy saving measures.
Of all properties, homes make up 40% of Greenhouse Emissions in St Albans
Whether or not you choose to use the ‘Green Deal’ scheme, you can do a lot to reduce carbon emissions by making your home more energy efficient.
St Albans City and District Council expect to reduce greenhouse emissions in the area by 5% a year. Analysing emissions by property they showed that homes made up 40% of greenhouse emissions in 2011/12, closely followed by Leisure Centres at 36%.
Find out more about reducing your carbon emissions and read the 2011/12 Greenhouse Emissions report in full on the council’s Climate Change pages.