For those who are looking at their electric bill for their homes and wondering how they can be reduced, you may have heard of the “Green Deal”. Understanding what the Green Deal is, how it works and how it can be used for your benefit can help you save money on your utility bills.
What is the Green Deal?
Basically, the Green Deal is a program designed to help you pay for energy saving improvements. It is a low interest loan that is used to pay for proven methods of energy savings and generation, for example;
- Double Glazing of Windows
- New Boilers
- Solar Panels and more
The Green Deal is designed primarily to address energy saving devices that take a considerable amount of investment. By helping to defray some of the initial cost, the energy savings can then be better utilized in paying off the loan and helping customers enjoy their new, more energy efficient homes.
The Green Deal is a four-step process that helps families in most income brackets to place energy-saving devices or generation sources in their homes. The four steps consist of the following;
Essentially, the needs of your home are assessed for the type of improvements that are required, plus your financial status as well to see what can fit within your budget. The loan is then offered and installation of the new devices comes shortly afterwards. The repayment is generally assessed by the amount of money that is saved each month.
Unlike normal bank loans, the repayment is based on the amount of money that is saved by the use of these devices. For example, solar panels which use solar energy to generate electricity reduces the amount needed from utility companies. That savings in turn is what is used to repay the loan each month. The Green Deal loan is also attached to your property, not you as an individual so if you move the new devices stay in place.
This can work very well for those who want to take advantage of the new solar photovoltaic panels that use less space, but generate more electricity than their older counterparts. Solar power is one of the most popular uses for the Green Deal loan.
Will the Green Deal work for Me?
If you own your property and plan to keep it for a long time, then the Green Deal is best suited for your needs. However, if you plan on selling your property soon, then you will probably not get to enjoy the benefits although such improvements may be seen as a selling point for your property.
The Green Deal works because it helps reduce electrical needs while providing up-to-date energy saving and generating devices for the home. Even simple savings from adding insulation or double glazing the windows can be paid off relatively quickly so that home owners can enjoy keeping more money while larger expenditures, such as adding solar panels can have beneficial effects beyond just the money that is saved on utility bills.