The Government’s Green Deal Initiative was finally launched on 28th January 2013, providing loans to cover the upfront costs of energy efficient home improvements to private householders. As many as 45 different home improvement products are covered by the scheme, under which the householder settles the Green Deal Loan with repayments added to their electricity bill. The Green Deal is based on the so-called ‘Golden Rule’ under which savings on energy bills as a result of the work done, must more than pay for the cost of the work done. But for some, there may be an even better ‘green deal’, the problem is, that although the Green Deal has been widely publicised, the ECO Affordable Warmth Scheme hasn’t.
The Energy Companies Obligation (ECO) was, according to a recent article in the Sunday Times, ‘quietly launched last month’, whilst the Green Deal Initiative featured in full page advertisements in practically every national newspaper. Under the ECO scheme, £1.3 billion has been made available by the big six energy companies to fund cavity wall insulation, loft insulation and repairs or replacements of inefficient and faulty central heating boilers. The funding covers the full cost of the installation and unlike the Green Deal there are no loans to repay, so the householder gets the full benefit of any savings due to better insulation or a more efficient boiler. To be eligible for a grant through the Affordable Warmth Scheme, you must live in your own home or a privately rented property, receive certain state benefits and have an inefficient and faulty central heating boiler. Householders will require a technical survey of their heating system to be carried out but even that if free of charge whilst the cost of a Green Deal assessment could be as high as £150.
Under the Energy Companies Obligation the big six energy suppliers have to offer these grants to homeowners so that they can meet their legally binding carbon-reduction target by March 2015. That the ECO Affordable Warmth Scheme has not been heavily publicised could be down to the reluctance of energy companies to fund this scheme, when they would prefer homeowners to use the Green Deal. Not surprisingly, some energy companies are claiming that if too many householders take advantage of the ECO Affordable Warmth Scheme instead of the Green Deal, there could be an increase in energy bills.
To see if you qualify for the Eco Affordable Warmth Scheme…..APPLY HERE