The Green Deal is the Government’s flagship energy efficiency scheme, promoting the uptake of insulation and other heat retention measures. Loans of up to £10,000 will be issued to cover installation costs and these will be paid back with the expected money saved on energy bills.

The Government are targeting 14 million homeowners around the UK with the Green Deal scheme and it’s being introduced domestically after the large price hikes in energy prices. With gas and electricity prices spiking, the standard of living for many homeowners has deteriorated.

But despite the Government’s assurances that the Green Deal is a sound offer, the scheme itself has received criticism. This is particular because of the high interest rates and charges for salespeople visiting homes to make energy saving calculations.

Executive Director of Which?, Richard Lloyd, has two warnings for those considering the Green Deal. He says potential customers should first of all check the terms and conditions particularly carefully, whilst watching out for cowboys offering Green Deal products.

He told BBC Radio 4: “It all sounds very sensible in theory and for some people it might be a good deal but some people will be looking very sceptically at this.

“We don’t know enough about the detail yet. Our advice is, make sure you’ve shopped around. Don’t just take the first Green Deal offer that you’ve found. Be very careful about what you sign up to on the spot.”

But Chief Executive of the Green Deal’s Finance Company, Mark Bayley, quashes these fears, suggesting that the process is subject to oversight and energy assessors will merely suggest how people can save on energy bills. He also highlights that these advisors will be properly trained and accredited.

The credibility of the Green Deal scheme is based upon the ever-rising gas and electricity costs which homeowners wish to avoid.
And Ed Davey, Energy and Climate Change Minister at the DECC, says: “More and more families are being hit by the rising cost of fuel bills, and the best way people can protect themselves from increased costs is to use less energy.”

Deputy Prime Minister Nick Clegg also backs the scheme, saying it will support thousands of new jobs and help homeowners stay warm for less money.

Green Deal quotes

Without a doubt, making your home energy efficient should be one of your main priorities this year. Gas and electricity prices are expected to continue their rise over the next 12 months and thousands more homeowners will plunge into fuel poverty.

But is the Green Deal the answer?

For some, the answer is yes. Of course, finding the money for insulation measures is no easy thing and a loan would be your best bet. But these loans come at a cost and interest rates are expected to be 7%.

For anyone looking at home improvements, we recommend receiving quotes from Green Deal and non-Green Deal providers. Whether it’s double glazing, a condensing boiler, loft lagging or wall cavity insulation, find out if you could afford the upfront costs without the Green Deal loan.

This way, all money you save will go straight back into your pocket and you won’t have a loan tied around your neck. You can maintain a warmer home and start saving money straight away.