By its name, people will already have a hint on what the Green Deal is all about in the first place? However, what is it, in fact, telling the people? In a general sense, it is a new initiative of the UK government to further motivate both the home owners and businesses to employ more green systems and technologies to their properties. It is a new policy that is about to start in October this year. Hence, how this deal, indeed, works?
How the Green Deal Works?
In a general perspective, the idea behind this is that a business or even a household can install renewable energy technologies into their property with not costs for upfront payments at all. The pay back will only begin through the energy bill of the installer over a specified period.
Firstly, what the prospective installers need to do is to approach a Green Deal provider. If the installer or applicant is a home owner, there will be an assessor who will survey the home or property of the applicant where the latter will install the technology. After that, the said assessor will come up with a report on the performance of that house in terms of energy efficiency as well as to the possible improvements that the home owner can do in order to have a more effective green system.
The minimum requirement is that the energy that the household will be able to save should be higher or greater than the cost of the improvements they need for the loan. If the households or applicants meet this requirement, then they can apply for this Green Deal loan scheme. Upon completion of the works, the payment of the loan for improvements and installation is through the electricity bills.
Is Green Deal Like the other Renewable Energy Loans?
This new deal from the UK government is also a form of loan. However, this is not similar to the previous renewable energy loans for several reasons. One explanation of this is that the payment for the loan or the financing will stay, not to the applicant or installer, but with the property until the time that the payment of the loan is already complete. Hence, what this means is that if the original applicant of the said Green Deal moves from that house and transfer to the other, the new occupant of the said house will be the one who have to pay for the said loan, through the electricity bills.
This article was written by Enviko.
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