The UK Government are planning to axe their free insulation scheme and replace it with a pay as you save scheme. The Green Deal will replace the Carbon Emissions Reductions Target (CERT) and end years of free and subsidised insulation and fuel savings for households in the UK.
The Green Deal approach provides homeowners an opportunity to obtain energy efficiency measures without footing the upfront costs. Homeowners will need an initial survey to establish which energy efficiency measures they require and which best suits their home and lifestyle. A Green Deal will then be arranged to pay for the measures and the energy efficiency products will then be repaid over an extended period via the consumer’s electricity bill. The individuals Green Deal must however meet the Golden rule of the scheme which states that the financial savings made from the energy efficiency measure must be greater than the charge to the electricity bill.
There is a degree of scepticism in some quarters and some firmly believe that the scheme will have low ‘take up’ due to what is perceived to be a ‘personal loan’. Even though the Green Deal is attached to the homes electricity bill and not linked to the homeowner many believe homeowners will still see the Green Deal as a financial burden on them or possibly hinder the sale of their home.
The scheme designers don’t support this theory and deem the Green Deal will provide millions of homeowners an opportunity to improve the energy efficiency of their home without having to worry about the financial outlay. Green Deal will also introduce many other energy saving options to the homeowner that are not currently available under CERT such as solar PV, solar thermal, external wall insulation, internal wall insulation, double glazing, ground source heat pumps, air source heat pumps, boilers and many other items.
After all is said and done no one can be certain whether the scheme will be a success or not but it’s fair to say the scheme designers and industry leaders will not want the scheme to fail. The scheme will undoubtedly provide a vital route for certain UK citizens that do not have the necessary funds to purchase energy efficiency measures.
The Green Deal is due to ‘soft’ launch in October 2012 and will be available to all in January 2013.
The CERT scheme which provides free cavity wall insulation and loft insulation including pipe and tank lagging will end in December 2012. The CERT insulation scheme is available to all homeowners and is completely free to standard size homes even the larger four bedroom detached properties. Homeowners who do not want to pay towards the cost of cavity wall insulation or loft insulation are being urged to apply immediately for Cert funding and avoid the last minute rush.
Viridian Energy Solutions has access to funds and will provide free surveys for cavity wall insulation and loft insulation in Kent and Sussex.