Finally, the countdown to the government’s green deal is on its way with the Energy Act 2011 which has now become law. This will begin in autumn 2012 and will permit householders to install energy saving equipment without having to pay any upfront costs. Instead the green deal will pay the costs which will then be repaid from the savings on each home owner’s energy bill.
Before any work is carried out the home owner will have an assessment of the work of the property to establish which energy saving options will be the most beneficial. At the present time the Department of Energy and Climate Change (DECC) believe that over fifty per cent of UK properties have insufficient insulation. Although many homes do have some level of loft insulation, considerably fewer premises have cavity wall insulation.
Double Glazing is another way in which energy is conserved within the home rather than just disappearing through windows, and in many older properties window frames which, in comparison with new properties, aren’t as tightly fitting. Even small gaps can cause hot air inside the property to disappear. Single glazing doesn’t help in trapping the warm air inside the property.
If a property is deemed to require loft and cavity wall insulation, together with double glazing these can be provided under the green deal scheme. However, once the property has been assessed, and there is confirmation that the above items would be beneficial, then the next thing which will be looked at relates to the financial part of the deal. For a home owner to have improvements carried out under the green deal banner, the work done will be paid for the home owner, who then repays the cost through savings on their energy bill.
On that basis if loft and cavity wall insulation, together with double glazing were to be carried out, the cost to the home owner each month may be – this is just an example, and not to be taken in any way as actual figures – say £10. As long as the savings on the energy bill after the improvements have been made are greater than £10 per month then the work should be approved.
The same principle will apply to every proposal, and as long as the savings are greater than the amount to be repaid then the work can proceed. The home owner doesn’t make payments each month to repay the cost – these are automatically taken from the energy savings, and therefore the energy bills will be adjusted accordingly.
This won’t mean that energy bills will increase; far from it, even with the cost of the work being added to the bill, the savings will be greater, which will result in the home owner’s bill being lower.
The first step is to have the property assessed which will confirm the improvements which should be undertaken, provided that the calculations ensure an overall reduction in the energy bills. The improvements may include solar heating, or new boilers for central heating. It is individual to each property.
