Comparing Green Deal Financing – Not “apples with apples”

A Green Deal AppleThe Green Deal All Party Parliamentary Group was in quite a congratulatory mood when they met yesterday. The relief was near tangible in the Minister for Climate Change Greg Barker’s face when he joined the meeting partway through, and rightly so. The Green Deal is an ambitious and positive scheme that should allow many, particularly those in fuel poverty, access to funding allowing them to make home improvements and enjoy the warm, cosy homes most of us do. Have a look at our Green Deal Pages to see how the scheme works.

On joining the meeting, Barker immediately entered a discussion about the interest rate and gave a passionate defense. He argued that there is no other long term fixed rate financing available at such low rates, and that comparisons with mortgage rates are not comparing “apples with apples”. Fair point; but there really is no “apple” quite like the Green Deal. For those who do not have access to savings or cheaper loans from existing mortgages, then this scheme is vital. For others lucky enough to be in a more affluent situation, we would suggest more careful consideration before jumping into the Green Deal finance when cheaper sources of money might well be available. Green Deal Process

Later the DECC (Dept of Energy & Climate Change) spokesperson was able to confirm that measures could be fitted under the Green Deal and be entirely self-funded. This afforded the occupant of the home the security that the measures are to be fitted to Green Deal standards, without incurring the interest rate – although no mention of the cost of the Pre and Post assessments that would be required to comply with the Green Deal scheme. One got the impression that self-funders would be unlikely to take the Green Deal route, and if someone were going to self fund energy saving measures they would at best confirm the installer is Green Deal registered.

This is where we can assist you – let us find Green Deal and industry accredited tradesmen for your project. Our network of installers is fully accredited and stretches right across the UK, meaning that wherever you are, we can get you competitive quotes from trustworthy local tradesmen.

Also stressed by the Minister was that this scheme is new and evolving. Government have bravely created a market scheme that will evolve as the marketplace develops. No one can predict the innovations of entrepreneurs and how the scheme will be adopted by consumers, so for now watch this (potentially) exciting space.

Extra government funding is now available to help to boost and grow the scheme; the minister was looking for the areas where this would best be used. There is also a spoken commitment that government will promote the use of the local and smaller firms in the scheme, and they have made some progress towards this, though it is hard to see how it will progress further given their own admission that there are big players ready to enter the scheme with “budgets that will eclipse” their own merged £3 million advertising budget.

Let’s see what this particular “apple” brings. It is radical, it is different and no ones know how this will play out!

Green Deal with it

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