Encouraging start for the Green Deal – but do consumers know the risk?
Figures show over 1,800 assessments carried out in first month
March 14, 2013
1,803 Green Deal assessments have been carried out in the first month since the scheme launched on 28 January newly released figures have shown. This is an encouraging start for a policy which has received widespread criticism from the outset. The Green Deal allows households to get energy efficiency measures installed in their homes paid for by a loan which is repaid through the energy savings on their electricity bill. Click here to find out more
Energy and Climate Change Secretary Edward Davey said the scheme had got off to “an excellent start. We’re seeing clear signs of a promising new market gathering momentum,” he said. “In little more than a month, there have been 1,803 Green Deal assessments and that shows genuine interest from consumers.”
However, there are several concerns that have been raised that question the value of the scheme for most households. The loan used to pay for the works has an interest rate of at least 7 per cent which can be as high as 9 per cent. This means that for many people extending their mortgage is a much cheaper option. Moreover, it is unclear whether having the loan may reduce the value of your home when it comes time to sell (the loan is attached to whoever owns the home not who took it out). Many may see this as an additional burden they do not want to deal with. These are just two of the many concerns about the scheme that homeowners need to know about before they commit to it. If you’ve had a Green Deal assessment we would love to hear about your experience – email us directly to firstname.lastname@example.org