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Green Deal Increases in Popularity

To date over 10,000 homeowners have taken advantage of the Green Deal Loan scheme. The scheme, which was first launched in January 2013, has been slow to catch on but is now finding favour with up to 500 new applicants each week applying for loans to improve the energy efficiency of their homes. 

The Green Deal loans were intended to allow homeowners to improve the energy efficiency of their homes without having to pay upfront costs. The scheme works by the homeowner applying for a loan to cover, say, a new boiler. Once the initial application is approved then the work can go ahead provided it is done by a Green Deal approved installer. Once the work is completed then the loan is paid out and this helps cover the cost of installation. The homeowner only pays back what is saved in bills by virtue of the fact that the new boiler is far more energy efficient. This ensures that the homeowner benefits from a much warmer house without actually having to pay for a new boiler upfront. If the homeowner wishes to remove then this should not be a problem as the loan is attached to the property and not to the householder. The loan should not put off potential house buyers as this will be offset by the perceived benefits of having a new, reliable and energy efficient boiler.

It appears that problems with administration and bad publicity caused the scheme to start slowly with less than 2,000 loans approved in the first twelve months of its operation. The Green Deal Finance Company (TGDFC) was established to fund the loans but this had to be bailed out by the government as large investors failed to back the scheme. However this has now changed with TGDFC currently administering £35.5 million worth of Green Deal Finance plans. Indeed, they are now reporting a strong and consistent growth in the market.

It must be stressed that any installers who wish to secure Green Deal Finance for their customers are required to work with an accredited Green Deal provider such as Th!nk Energy as not all providers offer Green Deal Finance.