According to the Department of Energy and Climate Change (DECC) March saw a 332% increase in the number of assessments carried out as part of the Government’s energy efficiency scheme, with 7,465 assessments lodged. It’s a massive jump on February’s figures: in the first full month of the Green Deal just 1,729 assessments took place, and in January a mere 74. Since the scheme was introduced back in January, there has been 9,268 Green Deal assessments.

Both individuals and businesses alike are starting to embrace the scheme, which aims to tackle Britain’s poorly insulated ageing housing stock by offering homeowners the opportunity to make their homes more efficient, and lower their energy bills, without having to shell out for the measures upfront. DECC’s figures have revealed that more than a thousand inviduals have been approved to carry out Green Deal assessments, with 108 companies officially certified as Green Deal assessors. They work alongside 831 approved Green Deal installers, and 48 authorised Green Deal providers.

Energy and Climate Change minister Greg Barker is encouraged by the latest figures, saying it shows “real momentum”. He said in a statement: “9,268 Green Deal assessments taking place in just over two months is very encouraging and shows a genuine interest from consumers.”

There is currently no data as to the number of assessments which have actually been converted into Green Deal finance packages. These figures aren’t expected to be published until the summer at the earliest.

In related news, the Green Deal Finance Company officially opened for business yesterday (11 April), offering Green Deal plans with an annual interest rate of 6.96% initially. Finance plans are also subject to a one-off set up charge of £63 and will cost £20 a year to operate.

The scheme enables homeowners to take out loans to pay for energy saving improvements such as cavity wall insulation and double glazing. The loans are subject to interest rates of approximately 7 per cent. Mr Davey believes this is a fair rate to pay for long-term loans that are affixed to properties, not people.

The Climate Change Minister said: “I won’t concede that loan costs are too high. You have to compare it with unsecured loans and not mortgages. This is a great deal”.

Responding to criticism of the complexity and commercial appeal of the Green Deal, Mr Davey added that he never expected a rush of applications during the scheme’s infancy. Declining to state exactly how many households have applied for finance under the Green Deal, Mr Davey noted that comprehensive statistics would be available in the near future.

Mr Davey said: “Our plan is to issue monthly reports starting this spring. There is already a good pipeline of work, good signs of momentum. Assessors are there in big numbers and increasing all the time”.

Capita Symonds director, Richard McCarthy, believes the Green Deal is hard to understand and offers little value for money.

Speaking to the Guardian, Mr McCarthy commented: “Perception is all. Not enough people truly understand what the Green Deal is about and don’t see the incentive”.

The former civil servant added: “The relative cost of the loans is higher than most mortgages. People are challenged by the numbers. It adds fuel to their fears of taking up more debt. “More credit checks are occurring. You can understand, but [one might argue] that this will make it harder for some householders to access finance. There is more room to be flexible and to bring costs down”.

Regardless of whether the Green Deal can provide homeowners with a reasonable return on their investment, questions are already being asked of its fitness for purpose. If relatively few households apply for loans under the scheme, the government’s flagship environmental policy will fail to achieve its aim of reducing Britain’s residential carbon footprint.

But don’t be put off by the lack of publicity. The Government is apparently set to implement a major PR strategy for 2013. The Green Deal still has the potential to revolutionise energy efficiency and energy savings amongst some 14 million of the UK’s most ageing and poorly insulated housing stock.  By enabling households to upgrade their heating and insulation without having to put their hands in their pockets So what do you need to do to get started? Essentially there are 4 stages to the Green Deal: assessments, finance, installation and repayment.

Stage 1 – Getting your property assessed

Before you can sign up for a package of Green Deal home improvements you will need to arrange for a Government approved assessor to pop out to visit your property and carry out a Green Deal assessment. Once your home has been assessed the representative will recommend a package of Green Deal measures which you and your home are eligible for as part of the scheme. You might have to pay a fee for the assessment, and this could be as much as £150. However, it’s not a fixed fee; some Green Deal assessors may charge to carry out this service or do it for free. You will only need one advice report. So once you’ve armed yourself with an assessment that’s you done. You can now request quotes from approved Green Deal providers.

Stage 2 – Choosing a finance package

The first Green Deal finance packages became available on 28th January, when the scheme became fully operational following an earlier soft launch. It’s the job of a Green Deal provider to provide adopters with an unsecured loan which is subject to interest. The minimum payment period is ten years, with 25 years set as the maximum. The amount of interest charged will vary from provider to provider. To finance the loans, providers apply to the Green Deal Finance Company, who charge providers an APR of 6.96% to borrow cash. Therefore Green Deal adopters can expect to pay between 7-11% interest on loans. Like most loans you’ll have to pay an additional fee, an early redemption penalty, if you want to pay off the loan early. Just something you need to be aware of if you take out a loan for longer than 15 years.

Stage 3 – Getting your home improvements installed

Okay, so you’ve had your home assessed and you’ve been approved for Green Deal finance. Well now the real fun begins. Yes, it’s time to get an approved installer in to make those all important energy efficiency home improvements. Don’t forget that only Green Deal approved installers can carry out work as part of the initiative. So make sure you look out for their Green Deal Quality Mark.

Stage 4 – Making the repayments

It’s up to your Green Deal provider to let your electricity supplier know that you’ve taken out a Green Deal Plan. They will arrange for payments to be taken from your energy bill. Your supplier will get in touch to confirm details of the Plan and a date for when they will begin to take payments from your electricity bill. The amount of money you pay back won’t be more than the money you’re saving on your energy bills.

For more information about the scheme visit our Green Deal frequently asked questions page.

Targeted marketing is going to be key to Green Deal uptake, but rather than encouraging people to take part in the energy efficiency scheme cold calling, junk mail and spam email is proving to be a real turn off for consumers. The Energy Saving Trust surveyed more than 2,000 UK households and discovered that a third of are being sent inappropriate marketing information on a daily basis, with a whopping 80% targeted with irrelevant information once a week at least.

When it came to the methods employed, phone calls proved to be the most popular means of communication; half of the surveys participants were contacted by telephone. Direct Mail accounted for 37% while 36% of people had a salesperson knock at their door. 16% of homeowners had received spam email.

The EST found that energy efficiency measures are in demand but although households are keen to implement energy efficient home improvements one in five are confused about which sort of Green Deal measures would benefit them the most. Installing new energy efficient double glazing is a popular choice with homeowners, with 44% expressing an interest in new glazing, while 45% of those surveyed said they were keen to better insulate their homes. Surprisingly, just 39% said they wanted to fit a new energy efficient boiler.

In light of their survey – conducted between 28th September and 2nd October 2012, the EST is advising businesses to target consumers more accurately if they want to be successful in encouraging uptake of the scheme.

Commenting on the results of the survey Chief Executive Philip Sellwood said that “targeting, targeting, targeting” was key to selling Green Deal home improvements successfully: ”Catching homeowners at the right time with the right energy efficiency measure for their home has always been crucial for business, and will continue to be the case under the Green Deal.”

He added that while there is clearly a market out there as more households are realising the benefits of running an energy efficient home, it’s vital to build up consumer trust through sending out information that is relevant to them. And by marketing more efficiently businesses will be able to save money.

The funding comes courtesy of the Department of Energy and Climate Change and the Green Deal scheme, a revolutionary initiative set to overhaul at the UK’s ageing house stock by giving homeowners the opportunity to install eligible home improvements without having to pay for them upfront.

The cross borough project will see residents in Haringey and neighbouring Islington receive free home energy assessments to determine what measures would be worthwhile implementing to reduce their energy bills. For example, this could be double glazing, loft and cavity wall insulation or fitting any energy saving new boiler. The free survey – which in normal circumstances could cost anything up to £150 – will assess the property’s energy efficiency and identify a suitable range of measures for the householder. If interested, residents will be put in touch with Government approved Green Deal providers who are responsible for offering a package of measures, as well as arranging for a Green Deal approved installer to carry out the work.

Part of the funding will be utilised to establish a network of approved Green Deal installers across Haringey, Islington, Enfield and Waltham Forest. In the meantime the council will engage community groups and local businesses to help them get the message out to the community.

“This funding will help us reach those households that might not know how they could improve fuel and energy efficiency in their homes and businesses, as well as saving money,” said Haringey Councillor, Joe Goldberg.

Although he wasn’t able to attend David Cameron’s launch of the Green Deal last week, Schwarzenegger made his presence felt by way of a video message in which he spoke passionately about the environment and gave the UK’s revolutionary energy efficiency drive his thumbs up.

Congratulating the Prime Minister and Climate Change Minister Greg Barker, Schwarzenegger praised them both for their “great leadership” and  addressed the importance of energy efficiency strategies. Schwarzenegger himself is no stranger to such plans and strategies. As the former Governor of California he’s very proud of the state’s accomplishments in terms of implementing its own energy efficiency drives. California is in fact the most energy efficient US state – 40% more energy efficient compared to the rest of the US.

Schwarzenegger said he believed that Cameron was committed to helping the Britain become as energy efficient as California. Commenting on the Green Deal’s launch he said he would loved to have been able to attend the press conference launch but had a prior engagement to speak about energy and the environment in Vienna. “I cannot be in two places at the same time. They don’t clone people yet. I’m not a machine, I’m not really The Terminator, I only play it,” he joked.

The Green Deal, which was launched last month, aims to help households become more energy efficient by signing up to a package of Green Deal home improvement measures including insulation, double glazing, renewable energy technologies and energy-saving boilers. There’s no upfront cost involved, although you will have to pay an assessment fee to have your home assessed for suitable improvements. The loan is paid back through energy bill savings.

To see The Terminator, sorry, Mr Schwarzenegger talk about the Green Deal, check out the YouTube clip below.

On Friday the GDFC announced its initial interest rate for the coalition Government’s flagship energy efficiency home insulation scheme. Homeowners taking a Green Deal loan package of £5,000 over a 25 year period, taking into account operating fees, can expect to pay 7.67% whilst an interest rate of 7.96 will apply for a ten year loan. 

While 8% to 9% had original been predicted, the set interest rate has been met with a fair amount of criticism. Luciana Berger, Labour’s Shadow Climate Minister has hit out at the GDFC for setting “sky high interest rates”, calling it a “bad deal for the public”.

“The whole point of the Green Deal is that households are meant to save money on their energy bills – but with rip off interest rates, hidden charges and penalty payments the Green Deal could end up costing people more than they save,” commented Berger.

Labour has calculated that a household signing up for a £10,000 finance package at a 6.96% interest rate paid back over a 25 year period would actually end up costing the householder near on £21,000.

According to the GDFC each Green Deal will be subject to an initial £63 set up charge in addition to a £20 operating charge which would be payable annually. Green Deal Providers will be responsible for paying these additional administration fees, but it’s likely these associated fixed costs will be added to the overall finance package.

Households and businesses who sign up for a wider range of improvements under the Green Deal scheme will get a better interest rate. For example, carrying out basic home insulation as part of a Green Deal finance package of £1,500 would see a maximum interest rate of 9.34% applicable. However, undertaking work as part of package which costs £5,000 would cost up to a maximum of 7.96%, depending on the period of payback.

Commenting on the interest rate, chief executive Mark Bayley said: “Our all-in cost of finance shows that the more energy efficiency measures a household takes advantage of, the better the long term return in terms of savings, and the lower the cost of overall finance.”

The Chairman of the Residential Property Surveyors Association, Alan Milstein has also criticised the so-called competitively priced interest rates, saying other sources of finance may be more cost effective and customers should consider funding the new home improvement measures themselves.

On paper the Green Deal sounds like a great deal. After all, it offers the perfect opportunity to completely update Britain’s ageing housing stock. But more than that, the Green Deal will offer a whole new way to pay for energy efficient home improvements, allowing millions of homeowners living in some of the country’s most poorly heated and insulated homes to become more energy efficient.

The scheme will target cash strapped families and households already struggling to keep their energy inefficient homes adequately heated, thanks to escalating fuel costs combined with poor levels of insulation. By embracing the Green Deal households will have the opportunity to cut their energy bills by installing a number of energy saving home improvements at no upfront cost, including:

• Cavity wall insulation
• Loft insulation
• Underfloor heating
• Air source and ground source heat pumps
• Biomass boilers
• Solar photovoltaic panels and solar water heating
• Energy efficient condensing boilers
• uPVC windows and doors

The Green Deal is essentially a personal loan but one that remains with the property rather than the homeowner. The cost of carrying out the work will be paid back over an agreed period of time through savings on energy bills. As an added incentive the Green Deal cash back scheme has also been introduced which will enable homeowners to receive up to a maximum of £1,000 for implementing energy efficiency measures. For example anyone installing solid wall insulation will be entitled to £650 cashback, while cavity wall insulation and loft insulation will benefit from £250 and £100 respectively.

To get the ball rolling interested homeowners in England and Wales will firstly need to arrange for a Government approved Green Deal assessor to visit their property. The assessor will carry out a home assessment to determine what type of home improvement work they would be eligible for under the Green Deal. Most Green Deal assessors will charge a fee for this service, anything up to £150 in fact. However this cost is usually refunded if the homeowner decides to go ahead with the work. But a recent survey carried out by the Guardian has revealed that Green Deal assessment fees are just one factor deterring potential Green Deal adopters from taking part in the scheme.

The Energy Saving Trust (EST) conducted a survey which took in the opinions of more than 2,000 people across the UK. It revealed that 52% of the country’s homeowners are keen to install new windows. With the launch of the Green Deal at the end of January the Energy Saving Trust is anticipating an increase in demand for the home improvement measure, alongside a boost in other green home improvement upgrades. The survey also revealed that in the last 12 months 22% of homeowners had new windows installed.

Homeowners in the North East seems to be more inclined to embrace this kind of home improvement, with 71% of  homes having double glazing installed. It’s a different story in the South, with double glazing a feature of just 49% of London homes.

The Energy Saving Trust is UKAS accredited to provide Green Deal Installer certification, and any double glazing installers interested in becoming an accredited Green Deal installer should register their interest with the organisation. Homeowners keen to make their homes more energy efficient by fitting new double glazing as part of the Green Deal will only be able to use the services of installers certified to carry out work as part of the Government scheme.

Take Anglian Building Products for example. The commercial division of Anglian Windows is one of the latest to receive Green Deal Installer certification with the Energy Saving Trust. Commenting on the process involved to achieve certification, company spokesman John Fairweather said it was “thorough and professional and easy to navigate”.

As the Energy Saving Trust’s certification manager, Tom Lock said that part of the role the EST had to play in the Green Deal involves registering installers. Utilising the services of trusted and reputable tradesmen is key to the success of the scheme which needs to provide reassurance to the public if it is to reach its full potential.

“Part of the Energy Saving Trust’s role is to register Green Deal installers who can then use our trusted backing to boost their business. Getting certified provides reassurance to members of the public, and can help turn consumer interest into actions.”

Between 28 September and 2 October in an IPSOS Mori survey the EST also determined that insulation was a popular green upgrade with 21% of those surveyed. Energy monitors were also popular with 14% expressing an interest in the technology.