The Green Deal and GDHIF are dead!
It was announced last Thursday that the Government have decided to cancel the GDHIF scheme which had previously allowed households in the UK to claim grants to help cover some of the cost of installing energy saving measures in the home, like our External solid wall insulation.
On top of cancelling GDHIF, the Government have also cancelled the Green Deal scheme – which was the finance option some people again were using to help cover the cost of installing these measures.
When the Government originally launched the Green Deal scheme it was expected to be the initiative that changed the face of the energy efficiency market in the UK. For the first time, people would not simply get things installed for free; instead they would pay for the measures through their energy bills.
It was to mark the end of the subsidy junkies, those who claimed new boilers, loft insulation and cavity wall insulation knowing they wouldn’t need to pay a penny to get these measures installed.
Well, after 18 months the scheme has now been killed off. Launched initially in February 2013, hundreds of thousands of people in the UK have since had Green Deal assessments, but only a fraction of these people have then gone on to take up the Green Deal finance. In total it is has been estimated the Green Deal has cost in excess of £0.5 billion to date – and the Government could simply not afford to keep propping up the scheme financially.
Finance rates too high and just overly complex!
Speaking to our friends over at TheGreenAge, one of London’s leading energy consultants (and a Green Deal assessor organisation), James Alcock their MD said that although the principle of the system was good, in reality it was highly complicated to get the Green Deal finance in place and also the interest rate was too high despite being offered over 25 years for some measures.
The good news is that for us here at BeConstructive there will be no change in operations – we have found in recent months, about 80% of our customers are paying for the works outright – be it the external solid wall insulation or simply re-rendering the existing property. Having said that, if you do have a solid wall insulation voucher under GDHIF and are still looking to get the works carried out – we recommend moving fast. The deadline for getting the works carried out will soon be upon us so if you would like to ensure you don’t miss out, please give us a call – we do still have some availability to install EWI over the next few months.