What will green deal be like when its actually launched?
Although still open to consultation, this is what Green Deal is expected to do:
1. A Green Deal Provider (GDP) performs an Green Deal assessment of your home.
2. The assessment identifies measures where you could cut your energy bills.
3. The GDP, designs the systems and installations that will improve the energy efficiency of the property.
4. The GDP recruits a certified installer(s) to install the energy efficiency measures.
5. The GDP sub-contracts the installation to the installer and uses Green Deal finance to pay them.
6. The repayments for the finance are re-paid by a charge on the energy bills for the property. Whoever is responsible for paying the bills is responsible for re-paying the finance, regardless of whether they lived there when the installation was put in.
Green Deal essentially hinges on the reduction in the customers energy bills being more than the charge that repays them, such that the customer sees a benefit, though doesn’t suffer any up front cost.
For this to work, the advice given by the green deal advisor (who works for the GDP) must be very clear in terms of how the installations will cut the energy bills of the household and how they can generate savings on the back of this installation. Otherwise bills will go up.
For example, if someone has their heating set to a timer, such as night time storage heat, or even gas boiler that they like to come on for a few hours in the morning then again in the evening. In many cases the householders will not amend their timers, they will notice a more comfortable, warmer home as a result of the green deal measure (e.g. insulation) however they have not reduced their energy consumption. This is why advice is crucial to the success of Green Deal.
If the advice is given correctly and is followed up on to check that the householder is getting the predicted benefit – and if not, why not, then Green Deal will work, if householders are not given good advice then green deal finance could quickly be squandered with no reduction in household energy bills.