Green Deal launches today
Government backed loan scheme to finance energy efficiencies
January 28, 2013
Homeowners can now take out loans secured against their homes to fund energy efficiency measures. There are 45 different works which can be funded through a Green Deal Plan. The Department for Energy and Climate Change insists that the scheme will benefit all who use it because of the Golden Rule which ensures that only measures which will save consumers money in the long run will be implemented. To find out more about how the Green Deal could work for you click here to read a blog by our energy efficiency expert Dr Paula Owen.
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.”
However, the Green Deal has faced criticism, most significantly for the interest rate home owners will be charged. The lowest rate they can get will range from 7.67 per cent for the longest period on larger packages of measures, to as high as 9.34 per cent over shorter periods on small packages. It has been argued that this is too high as many people will be able to extend their mortgage for a much lower rate and even unsecured personal loans can be obtained at more competitive rates. Only time will tell if the scheme, which aims to improve the efficiency of 14 million homes by 2020 is up to the task.