Government to introduce new "Green Deal" (around the end of 2012)
The latest in a long line of Government initiatives to increase home energy efficiency is the Government's new "Green Deal". With this planned new legislation homeowners may be entitled to spend up to £6,500 improving the energy efficiency of their home. Repayment will be from savings in future energy bills - but with the homeowner still seeing an overall saving. Even if the property is sold, the repayment will continue to be made through the energy bills by the new owner.
The Coalition Government is optimistic that Green Deal is going to have a significant impact and help 14 million households in the UK in a "meaningful time scale".
The basic structure of the scheme is that the money available to householders, be they in rented or private accommodation, will not be in the form of a personal loan, a green mortgage or a charge on the property. The measures taken to improve the insulation and energy efficiency of the property will be repaid through the energy bill for that property over 25 years. If that owner moves away, the cost will simply transfer to the energy bill of the next occupant. If the occupant changes energy company, the cost will simply transfer to the new energy company. The Government claims that the householder should see not only an increase in the insulation in their home, a reduction in their carbon emissions and an increase in warmth and quality of life for them and their family, but importantly - a reduction in their total energy bill.
Green Deal isn't going to have any impact in the short term. It looks as though the intention is that Green Deal financing and the revised supplier obligations will both come into force at the end of 2012.