What is
the Green Deal?
This is scheduled for introduction
in autumn of this year, and will enable accredited retailers such as Tesco and
B&Q to supply, without no upfront cost, quality assured services to
homeowners and businesses looking to improve the energy efficiency of their property.
The full cost of the measures
will be recovered through instalments on the energy bill over several years,
and because the Green Deal is not a personal loan or an advance payment scheme,
there is no obligation to continue paying the instalments when the owner moves
home.
Qualification
for the scheme depends on a simple calculation, known as the “golden rule”– whereby
the predicted savings from the energy efficiency improvements to the property
must equal or exceed the cost of installation.
How
will it work?
Those wishing to participate in
the Green Deal will require a full property assessment carried out by an
independent and fully accredited advisor. This initial consultation will provide
householders and business owners with an opportunity to learn about the current
energy performance of their properties and the specific measures which they
would have access to under the Green Deal to improve this performance.
If it assessed that the
homeowner or business owner qualifies (see above) then a comprehensive quote,
clearly breaking down the total cost of energy efficiency installations for
your property, the size of repayment instalments attached to utility bills, and
the estimated length of the repayment period will be issued.
This will be supervised by the accredited
advisor who carried out the survey and the work will only be financed if it is
carried out by approved Green Deal installers.
How will it be financed?
The finance will be through an
instalment plan attached to the utility bill and which will be attached to the property
rather than the individual.
Although
a Green Deal finance plan requested by a homeowner or small business is not a
personal loan, it is likely to be considered a fixed term credit arrangement
and customers will therefore be protected under the Consumer Credit Act.
How
will installation work?
Once a Green Deal finance plan
has been approved, installation will be arranged and carried out by certified
Green Deal providers.
Will the Green Deal help to
save money in the long term?
Only time and a track record
will tell!
The
current language used by the Government suggests they are also not sure of the
probable outcome of the measures. Upon
being pushed by a commentator on this subject the Department of Energy and
Climate Change stated: "[People] should still save money compared to what
it would have cost to heat their home in that way without a Green Deal."
How will the Homeowner and
Business Owner be able to monitor and track progress once the initial application
of interest is registered?
We are currently working on a
tracking system which can be used by the home owner and business owner to
record and track key stages within the process and to create at the end of the
procedure a property log book for transferring the records and information to
the next owner.
For further information on the
Green Deal feel free to email me
David Pett
Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk
