Why the Green Deal is Essential Now More Than Ever

Green Deal, UK, is shrouded by a lot of confusion from the general public. What is it? Why is it important? How does it work? Before delving into all of that, it’s important to recognise some important facts about the world we live in today.

The Two E’s

The environment and the economy: two of the biggest, if not the biggest, concerns sitting firmly on the UK government’s shoulders at the moment. And so they should be. It’s no unknown fact that carbon emissions being released into the atmosphere is a bad thing. Damaging the environment we live in, it should be agreed by all that there should be some attempt to reduce the carbon emissions currently being pumped out excessively by energy inefficient buildings across the UK. The Green Deal aims to go some way in reaching the government’s 2050 carbon reduction target, whilst simultaneously acknowledging the current financial climate of the country.

The Big Six

As people continue to live in inefficient and draughty homes, energy prices soar; by the end of 2012 five out of the “big six” energy companies will have raised their gas and electricity prices significantly. This is an extremely unwelcome change to a country where fuel poverty is ever increasing. Fuel poverty is when a household spends 10% or more of its income on energy bills. Here’s where Green Deal home improvements come in. The first step in becoming a participant in the Green Deal scheme will be the assessment of a property by a trained Green Deal Assessor. They will then advise the property owner on which measures could and should be taken to maximise the energy efficiency of the building. These will be things such as double glazing, insulation and new, efficient boilers. The advisor’s role is essential here, with each house or business building having completely different needs.

The Finance

So, the environmental side of things seems fairly simple, but how will all of these improvements be financed? Not many people can afford the upfront cost of say, for example, having double glazing fitted and their property re-insulated. However, with the Green Deal Loan, this problem becomes obsolete. The scheme will be financed by Green Deal Providers and the money it costs to have a house improved will be paid by via monthly instalments, which will only ever be allowed to equate to, or be less than the money the property owner saves on utility bills. Further, the loan will be attached to the property, not the person.

So there you have it, a scheme that goes some way in tackling the environmental concerns of the country, without adding to its financial burden. With rising energy costs and cold winters, it’s safe to say the UK should welcome the Green Deal Scheme with open arms.

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