The Green Deal UK

Energy Efficiency

Great Britain is known for its draughty homes. Many people live in older houses that simply have not been brought up to modern energy efficiency standards. If you happen to own one, you may be considering the Green Deal as a possible way to improve the energy efficiency of your house. Theoretically, applying to the scheme should be a winning scenario for both future buyers and yourself. But, you need to handle the process in such a way that the scheme and any attached financial obligations, will not make it difficult to resell your house shouldn you decide to move at some point in the future. This means looking for the best deal and the most attractive interest rates

Because the loan is basically attached to your home and not to you, potential buyers may be hesitant to buy your home if you haven’t done your homework ahead of time. Some things you should consider before you sign up for the scheme.

Interest Rate

Depending on the Green Deal Provider, the interest rate on your loan may range anywhere from 6.9% to over 10%. Consequently, it pays to talk to more than one provider to get the best interest rate possible. When the time comes to sell your house, having the lowest interest rate possible on your home’s Green Deal loan will avoid a potential turnoff for interested buyers.

Yoiu may find that the interest rates you are offered when compared to those you can obtain elsewhere in the financial market, seem to be excessively high. This is one aspect of the scheme that has come under criticism form industry commentators

Energy Savings

The Advisor who does the original assessment will provide you with a worksheet estimating the energy savings for the assessment’s recommendations. The assessment will take into consideration the number of people living there as well as the condition of your home. If you have 5 people living in your home when the Advisor makes the assessment, your estimated energy savings may be significantly higher than it would be for a couple of empty nesters. Consequently, if your energy savings are barely over the monthly payments for the Green Deal loan, you may have trouble convincing future buyers the finance attached to the home is cost effective for them.

Your aim as a homeowner should be to try and engage a project that is projected to make savings over and above the repayments through your energy bill and therefore represent a net saving over what you currently pay

Pick Your Improvements 

Your Green Deal Assessment will contain recommendations for energy improvements that will save you money. But, you can pick and choose the improvements you want to make. You do not have to make all of them. You should consider which energy improvements would increase the value of your home in order to get the greatest benefit from your Green Deal loan. Since the person who buys your home will be assuming the responsibility to pay the remainder of the loan, you may want to avoid making energy improvements that do not have easy to see energy savings.

Shop Around for an Installer 

Your Green Deal Provider may recommend an Installer, but you do not have to go with the recommendation. You can use the one you think is best. So, you should shop around to find the installer who will give you a good deal. A lower cost installation means a lower loan. Having the smallest loan attached to your home as possible will make purchasing it a much more attractive option to future potential home buyers.

The Golden Rule

The scheme’s Golden Rule guarantees that you will save more in energy costs than the cost of the loan, but if the loan makes it harder for you to sell your home in the future, the whole process probably loses some of its appeal. However, by getting the lowest interest rate, picking your improvements, and finding the right Green Deal Installer, you can make the it more appealing to future homebuyers.

Older Rural Prperties

Not the Most Energy Efficient

Older Houese

Home Energy Audit

Where is your Home Leaking Energy?

Conduct your own home energy audit with this thermal leak detector

And so it seems that with some carful planning, knowing what it is you want to acheive and by being strong minded enough to have your say in how the project progresses, there is a chance that the scheme could be beneficial to you. It may also improve the value of your home and make it more rather than less attractive to future buyers.