Households to get up to £1,000 under Green DealGovernment cash for home energy efficiency

22 October 2012

Energy efficiency graph

Households could get up to £1,000 of government money to make energy-saving home improvements under the Green Deal, it was announced last week.

The Green Deal, which will be fully rolled out in January, is a new scheme that provides homeowners with a loan to install energy-efficiency measures, such as insulation and double glazing. 

The loan is then repaid over several years via the customer's energy bills. 

Which? supports helping people save energy and money through energy efficiency but the Government must live up to its promise to protect the consumer from mis-selling under the Green Deal.

Green Deal cashback vouchers

The government has pledged £125m for a new cashback scheme and believes that hundreds of thousands of households could qualify. The cash incentives will be offered on a first-come first-served basis.

To be eligible for the cashback, consumers must have a Green Deal assessment and agree to have Green Deal 'approved' energy improvements carried out in their home. You do not need to take out Green Deal finance but the improvements must be arranged by a Green Deal Provider.

Which? will be looking at whether the cashback deal will leave customers better off in the long run. For instance, we've seen some energy tariff offers that provide £100 cash upfront, but over the year are more expensive than other offers from the same energy supplier.

Consumers and the Green Deal

If you're thinking about applying for the Green Deal consider the overall value not just the cashback and the wider terms of the Green Deal loan.

For instance, look at whether you can get a better deal on home improvements, such as installing a new boiler or loft insulation, by going to a non-Green Deal company.

As with any financial product, we recommend shopping around and researching whether or not the product is right for you and offers real value for money. Read our advice on what to watch out for with the Green Deal.

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