The Green Deal is a scheme set up by the government as a means to pay for and incentivise the installation of energy-saving home improvements. Green Deal finance can be taken out to cover the cost of various home improvements, such as;
• Micro-generation and renewables
• Windows and doors
• Hot water
The Green Deal operates to provide a special loan that encourages home owners to make alterations that will reduce their energy bills.
As opposed to other types of loans where repayments are paid monthly, the Green Deal loan is paid out of the predicted savings to be made on home energy bills. So, in theory, you will not be paying more for your energy bills after the changes than you would have been previously.
For example, if your annual energy consumption originally cost £800, your bills will not amount to more than this after the home improvements have been made. This includes your energy costs, the Green Deal loan repayments and any interest.
The Green Deal functions, in principle, as a method of paying for the installation of energy-efficient technologies through the savings made on electricity bills through increased energy efficiency.
Once the loan has been paid off over a set period of time, any savings the home-owner makes on their energy bills goes straight into their pocket.
The eligibility criteria for a Green Deal loan is less stringent than that of a normal loan and it’s estimated that in excess of 80 percent of homes are accepted.
In addition, there are financial grants and incentives for certain households with lower annual income.
If you are interested in seeing how the Green Deal, or any of the other incentives of installing green-energy in your home, could benefit you, fill in the below form to book your free green-energy consultation and find out what GreenGenUK can do for you.