After dissing the government in my last blog, I am going to commend them on a far-sighted policy which will come into play in October-it’s called the ‘Green Deal’.
One of the great things about micro-generational renewable energy is that it will save you an absolute packet. It is like paying your next ten year’s energy bills up front with an 80% discount. There is one major drawback though, and that’s the initial cost. We all know that it will save you loads in the long-term but the fact is that its only people with some quite significant savings in the bank who can afford to do it.
This is where the ‘Green Deal’ steps in. The ‘Green Deal’ is a finance mechanism whereby money is made available to you, the customer to pay for your renewable installation. This could be solar panels, a heat pump, a biomass boiler or a whole host of other things. The money comes through the energy company that you use and it goes straight to the installer.
Now here’s the clever bit. It is calculated how much your installation will cut your energy bills every quarter. This amount is then added on to your energy bill until the installation has paid for itself. So let’s say you get a heat pump at £12,000 initial outlay but it saves you £500 a quarter. Your energy bill goes down £500 a quarter and then the repayment is added on to your bill-£500 a quarter. There is effectively no difference, except after 6 years your energy bill goes down £500 a quarter and there’s no more money to be paid back! Brilliant!
What’s more, you’ve got a swanky heat pump giving you clean energy which has got a good 20 years effective life in it. If you decide to move on then the pay-back just passes on to the next owner of the home and they will continue to reap the benefit of the heat pump.
It’s a great way to make renewable energy affordable to the majority of the population. Keep your eyes peeled for developments on this one. As an MCS accredited installer, you can be assured that BEC will be straight in there once accreditation becomes available and will be ready to provide for your renewable energy needs.
Watch this space…