The new DECC Green Deal Grants system, Newport, South Wales 

   

The Government's new Green Deal insulation grant system for Newport homes. Grants for energy efficiency, loft insulation, cavity-wall insulation, help and advice like ...

  

The proposed new Green Deal energy efficiency grant system, coming October 2012

If your home was not built in the past twenty or thirty years, then you may well be living in housing stock from the 1940s or earlier. These properties are solid built, but are not usually energy efficient (they cost a great deal to heat). If you live in such a home then you may well be entitled to a new Government Green Deal grant, but that grant is not simply a handout as many believe, that grant is a type of loan, the repayment of which is added to your home as an attachment for when you sell it, and your electricity bill will be altered to start collecting the cost of the work undertaken. When you sell your home, in years or decades to come, you or your children will have to repay the cost of the energy efficiency grant less the balance already paid

 

The benefit of the new Green Deal grant scheme is that you pay little now, and for the next decade you save money by benefiting from the energy savings, but the cost savings of a lower electricity bill will be offset by a repayment factor being added back onto your household electricity bill. That bill should reduce with the energy savings, and then rise again with repayments for the work done.

The government's planned "golden rule"

This is the government's a stated principal (as well as being something of a hope really), that the cost of the work carried out should be covered by the energy savings witnessed across many years. Naturally, you will have to live at the property for at least 5 years or more to balance the savings against the cost of the work carried out on your home.

                                  http://www.decc.gov.uk/en/content/cms/tackling/green_deal/green_deal. aspx

"The Energy Act 2011 includes provisions for a new UK energy company Green Deal, which intends to reduce carbon emissions cost effectively by revolutionizing the energy efficiency of British properties. The new innovative Green Deal financial mechanism eliminates the need to pay upfront for energy efficiency measures and instead provides reassurances that the cost of the measures should be covered by savings on the electricity bill."

                          

Energy efficiency grants for businesses

The governments new Green Deal energy efficiency grant system is not just for homeowners, it extends to business properties as well. There are many small businesses that work out of large and old housing stock, such as your local doctors, dentists, solicitors, accountants, all working out of premises that were once domestic residences. 

          http://www.decc.gov.uk/en/content/cms/tackling/green_deal/gd_customer/gd_nondomcust/gd_nondomcust. aspx

There would need to be a non-site assessment made - as with a domestic property like, and the Golden Rule would still be applied, in that the cost of the planned improvements undertaken should not exceed the expected savings gained over many years.

In a controversial move (that will see many problems and legal action), a tenant business may supposedly gain the Green Deal grant for insulation work  without permission from the landlord, despite the fact that the tenant business would have signed a lease agreeing no major building works without the consent of the landlord. The two fly in the face of each other. The landlord, however, must seek the tenant's permission for works for commence.

Government appointed sellers and installers (in association with the large energy providers)

Both private and business applicants for the new Green Deal energy efficiency grant scheme will need to use accredited sellers and installers for the work, they cannot have the work done and apply retrospectively. Beware of builders making claims, and of assessors that are not qualified. If you have work done that is not agreed and properly licensed then you will have to pay for it as normal.

When a home owner applies for a Green Deal grant they are not applying directly to the UK Government or dealing with the Government, you are dealing with middle men as sellers of the Green Deal. Such people are (hopefully) accredited and licensed by the Government.

                    



The "hoped for" long term benefits of the new scheme

If you own, or live in, an older property (that gets very cold during the winter) and you plan on staying there for 10 years or so, finally leaving the property to your kids, then you may make back several times the value of the work done to make the property energy efficient. The longer you stay the greater the savings, it's as simple as that.

  

Summary of the new scheme

If your Newport home is old and cold, and it costs you a fortune to heat each winter, then you may want to spend money on energy efficiency. The up-front cost of that work might put your off, and you may not be able to afford it right now. The Green Deal allows the work to be done for no upfront payment, but an increased or level electricity bill for many years, and finally when you sell the property any remaining balance is paid off.

The benefit will be that you will be snug and warm of a cold winters night, not that you'll have a great deal more money in your pocket each week, but the hope is that you will also save some money from the energy efficiency. And, collectively, we all benefit from less carbon emissions - which is a good thing.

Green Deal system, required house surveys

In order to qualify for the UK governments new Green Deal home insulation scheme, you will need a survey carried out of your home or business, and you will need 3 separate quotes for the proposed energy efficiency work to be done. Those quotes will need to be sent to the seller of the Green Deal, who is not the person doing the building work - they are separate.

A Green Deal adviser or seller will be qualified and accredited to carry out the work, and may work for a Green Deal Supplier such as an energy company. That adviser will inspect your property and make an assessment, giving you a written assessment, and they will highlight your various options under the Green Deal.

If you have already had cavity wall insulation added to your home, and your loft if insulated, there may be little left under the Green Deal that you can benefit from, except solar panel and solar thermal systems. You will need to ask your adviser for details of qualification.

Note. If you property is a modern build, and already has an energy efficiency rating, then there will be little under the scheme that applies to you (you need to live in an old house).

  

Green Deal scheme grant packages

Many UK homeowners (and even tenants), will be able to apply for energy efficiency improvements under this proposed new scheme, all enjoying the benefit of no upfront costs.

The up-front costs of the insulation work to be done will be added to the properties energy bills, as well as an attachment against the property for when it is sold. It is hoped that electricity bills will not rise much after the work is done, and that the cost of the work will be spread over many years. It is hoped, by the government, that each recipient of the deal will be better off.

Typical insulation work might be £5,000 - £8,000, so as you can imagine that will take a long time to pay off that amount as a small amount added to an electric bill. The householder should be much warmer, but will see the energy savings paid for as part of a higher electricity bill.  

      

Background to the new UK Green Deal scheme

The Energy Act 2011 included provisions for the UK Government's new Green Deal energy efficiency scheme, which aims to reduce carbon emissions cost effectively by revolutionizing the energy efficiency of British properties, by retrofitting older properties with cavity wall insulation, loft insulation as well solar PV or solar thermal systems.

The Green Deal financial grant system aims to eliminate the need to pay upfront capital costs for energy efficiency measures and instead provides the opportunity for the cost of the work done to be covered by savings on the energy bill.

Note. Those proposed savings will be negated in part by an increase in energy bills to cover the cost of the work. The Green Deal is not a freebie, you will have to pay the cost of the building work back.

"ECO" - Energy company obligation

A new Energy Company Obligation will operate hand in hand with the proposed Green Deal, allowing supplier subsidy and Green Deal Finance to come together into one seamless offer to the householder.

 

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