The coalition’s flagship initiative to improve the thermal performance of the UK’s existing housing and non-residential properties has now gone live.
For those of you experiencing a sense of déjà vu, the scheme was initially launched on 1st October 2012, but scheme finance has not been available until now, thus giving Green Deal assessors, installers, providers and product manufacturers, not to mention government, a further opportunity to ready themselves.
There are 45 different types of measures currently available under the Green Deal, helping people warm up their homes and pay for some or all of the improvements over time through their electricity bill. Although many Green Deal eligible measures are outside the scope of joinery manufacturers, those within will include draught proofing, energy efficient glazing (windows) and high thermal efficiency doors. Both replacement and secondary glazing are within the scope of the measures.
The government is hoping that the opportunity to undertake property improvements at no upfront cost and secure net savings on energy bills will help kickstart the retrofitting revolution and deliver energy saving benefits. But although retrofitting can cut carbon emissions by at least half in homes, a recent report from the UCL has found that the costs of retrofitting houses are still significantly more than the likely limits on expenditure under the Green Deal.
Interest rates revealed
The Green Deal Finance Company (GDFC) has also confirmed that initial interest rate for finance packages available under the Green Deal energy efficiency scheme will stand at 6.96 per cent.
When operating fees are taken into account indicative interest rates on a financing package of £5,000 will range from 7.67 per cent to 7.96 per cent depending on the duration of the loan. Each Green Deal Finance Plan will also have an initial set up cost of £63 and an annual operating charge of £20, which Green Deal providers may choose to pass on to the household or business that has signed up to the scheme.
The GDFC is non-profit company backed by a group of 55 companies orchestrated by PwC, will offer funding to all accredited Green Deal providers at the same initial rate of 6.96 per cent per annum.
Campaign launched
Government has also unveiled a publicity campaign to tell people about the Green Deal. The ‘Green Deal with it’ campaign will help inform people about the benefits of the scheme and how they can sign up. This is supported by the cashback offer enabling households in England and Wales who use the Green Deal to get cashback on energy saving home improvements.
Measures eligible for cashback include:
Double/Triple Glazing (old single to A) – £20 per m2 up to a maximum of £320
Secondary glazing – £15 per m2 up to a maximum of £230
Solid Wall Insulation – £650
High performance replacement doors – £40
Further information on how the Green Deal cashback scheme works can be found here:
https://gdcashback.decc.gov.uk/
BWF Policy Executive Matt Mahony said,
“The message again for members is to hook up with the Green Deal providers and be in a position to take advantage of the Green Deal if the opportunities arise. Providers such as Grafton Group and Carillion have pledged to work with small, local companies to deliver their Green Deal obligations and the government is keen to be seen to be promote the benefits of the initiative to SMEs.
"Manufacturers should ensure that their products meet the criteria, which will again mean CE marking for some, and installers have their own obligations to meet. It is vital that consumers are given the choice to install the high quality energy efficient timber products that BWF members can provide.
"Given the political capital invested in the Green Deal, the government will be working hard to drive uptake. It has been suggested that Green deal assessments would have been better off branded as ‘Home Eco Audits’ and paid for by the launch funds.
"There are many questions yet to be answered and any feedback we can get back from members relating to the Green Deal is essential. Do you feel that you are being frozen out of the Green Deal? Would getting 'Green Deal approved' essentially be a foot in the door for other work? Have you uncovered better sources of finance for energy efficiency measures?”
Deputy Prime Minister Nick Clegg said:
“The Green Deal will help thousands of homes stay warm for less. Those people will benefit from energy saving improvements – and their energy bills will fall. The UK green sector is a success story – it is the sixth largest in the world and has a crucial part to play in building a strong economy. The Green Deal will support thousands of jobs – not just over the next few years, but in the long-term.”
For more information on how the Green Deal could work for you, log in and read our ‘easy guide to the Green Deal’.
