Green Deal Cash Back

At the end of October 2012 I wrote about the government’s new initiative “The Green Deal”. In addition to the savings available under that scheme the Department of Energy and Climate Change (DECC) have just announced a cash back scheme. In announcing the scheme Edward Davey the Secretary of State at DECC said "Energy saving has never been so attractive". Hundreds of pounds of cash will be made available to householders in England and Wales who make energy saving home improvements.

Householders who use the Green Deal to make improvements such as loft insulation, solid wall insulation, solar panels and new heating systems will qualify. The cash back packages could be worth over £1,000. The more work households decide to have done, the more cash they could receive. To qualify for the cash back scheme, households need to book a Green Deal property assessment so they are then ready to have improvements installed under the Green Deal from 28th January.

The cash back offer is in addition to the cash available for the improvements through the Green Deal. A householder (owner occupier or tenant) is loaned the money for the energy saving improvements, which is paid directly to the contractor. The loan is then repaid from the savings on the gas and electric bills over an agreed period of time. The bill payer will never pay more for their gas and electric than they did before the improvements.

Edward Davey also said: “Our Cash back Scheme is a generous offer but it’s first-come, first-served so householders need to be quick off the mark. Get an assessment, be ready to have home improvements done with a Green Deal when it launches on 28th January and then get your cash back. This also sends a clear message to the industry that the Green Deal is coming. Green Deal providers and businesses in the supply chain need to start gearing up to take full advantage of what promises to be an exciting new market.”

Neil Schofield, Head of External and Governmental Affairs at Worcester Bosch, said:
“The opening of the Green Deal cash back scheme really underlines the progress being made on the Green Deal ahead of the first plans being signed on 28 January. This is a great offer for consumers and will help us to attract early customers, so it’s good news for business too.
This is a clear signal that the Green Deal is building momentum and I’m delighted there is such a strong incentives scheme in place to encourage early take up. We’re excited about how this could open up the energy efficiency market.”

The Green Deal cash back scheme is a time-bound offer and is limited to one per household, but can cover a package of improvements and work done is overseen by an authorised Green Deal Provider. To qualify for the Cash back Scheme householders need to have a Green Deal assessment carried out on their property; then get and agree quotes from a Green Deal Provider.

Customers wanting to find out more about the Green Deal and book a property assessment can call the Energy Saving Advice Service on 0300 123 1234. A total of £125 million is available for cash back in the first year so hundreds of thousands of people could qualify. The rates of cash back currently available are guaranteed for the first £40 million of the scheme. Once the first £40 million has been allocated the rates will be reviewed.

The cash back scheme also applies to private or social landlords who can benefit if the property is empty and they are the registered utility bill payer. Landlords can also apply for the Green Deal with the permission of a tenant, however the tenant will qualify for the cash back.

Parkinson Property

21st January 2012

 

 
 
 
 
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