What is the Green Deal?
The Green Deal is a UK government drive to assist homes and businesses convert to renewable sources of energy generation without the need for upfront cost. The Green Deal, proposed in December 2010, is intended to speed up the conversion to renewable energy and hasten the race towards grid parity, where the price of energy generated from sustainable sources will equal or be less than national grid power. It also assists households employing energy saving measures such as loft and cavity insulation. No payment for the renewable energy system or energy saving measure will be made and the only payment mechanism will be by taking a percentage of the savings achieved from each energy bill.
Why is it Necessary?
Renewable energy sources, although a fantastic way to achieve free power and great savings, are still out of reach of so many UK homes and businesses due to the initial cost of installing the renewable energy system or type of insulation. Not everyone can qualify for grants or are able to gain approval for bank loans which rules out a large percentage of the UK population. If grid parity is to be reached sooner rather than later there must be easy mechanisms to install renewable energy systems in as many homes as possible and improve energy efficiency regardless of the income level of the family living there.
How does it Work?
Approved companies that are able to supply and fit energy efficiency measures or renewable energy systems to UK homes will be able to fit systems such as solar panels to homes and recoup payment through the consumer?s energy bill. The fail safe mechanism for the consumer is that the payments will only be due if there are savings being made. The payments are deducted from the savings element of the bill and so no payments will be due if the renewable energy system is not generating any savings. Because of this fact only specific technologies that are able to achieve maximum savings will be approved for inclusion under the Green Deal Finance scheme. It is reported that home improvements such as loft and cavity insulation, draught proofing, boiler upgrades, double glazing and solar PV panels will be eligible for Green Deal finance and be available for free to homes in the UK.
How Can I Get it?
The Green Deal plan is set to be introduced in the UK around autumn of 2012. Any household wishing to be considered must first contact a Green Deal Advisor who will produce a Green Deal Report which will highlight recommended energy savings measures and a Green Deal Plan will be generated. The Green Deal Plan is then taken to a Green Deal Provider if the consumer wishes to take the matter further and the Green Deal Provider will organize Green Deal Finance of up to £6,500. The Green Deal Provider will explain how the Green Deal Finance works and how it will be repaid via energy bill savings. Once agreed