green deal finance interest rates

[TedM]

The 25 year figure is just the assumed lifetime by DECC for the purposes of defining the maximum period that a Green Deal loan can be taken out over.

The Green Deal requires that there is a 5 year Installation Guarantee - apart from cavity and solid wall insulation which needs 25 years. This requires the GD Provider to rectify all problems with the installation free of charge. (I assume they will cover this in their contract agreement with a Green Deal Installer but maybe they will self-insure this aspect in order to save money).

And there also has to be a Consequential Damage Guarantee for 10 years from the date of installation, covering the building fabric.

Details are here - http://www.legislation.gov.uk/ukdsi/2012/9780111525227/schedule/3

 

[Eco Deal]

Measure	Plan Life
Cavity walls (all types)	25*
Loft insulation (virgin)	25*
Loft insulation (top-up)	25*
Solid wall (internal and external)	25*
Draught proofing	10
Hot water cylinder insulation	10
Double glazing	20
Boiler upgrade	12
Heating controls	12
Mini-wind	23
Photovoltaic panels	23
Solar water heater	25
Ground source heat pumps	20
Air source heat pumps	20
Biomass – wood pellet boiler	20

 

[TedM]

Which DECC document is that from Michael?

The latest DECC document I can find is this - https://www.gov.uk/government/uploa...ta/file/69753/InformationSupplyChainFINAL.pdf

4. In order to provide greater clarity for the supply chain on what the eligible measures are and what key assumptions the assessment tools make, DECC commissioned BRE to produce this document.

5. This document provides further information on:
a. How the Green Deal assessment tools describe the measure;
b. The circumstances in which it will be recommended, including whether it will be recommended in the domestic or non domestic properties (or both);
c. Other information about assumptions including costs, savings and lifetime estimates.

6. DECC does not define eligibility for finance at the product level, however Green Deal Providers, manufacturers, distributors and installers can use this information to help them determine whether products or product–types qualify. The performance assumptions contained in this document are also a helpful baseline for understanding the level savings assumed for the generic measures.

It is dated 28th January 2013.

This is what it says about PV:



(@SRE you will also be interested in p27 which shows that a replacement external door may save £6 a year, and could in no way be fully funded by Green Deal)

 

[Berneray]

Its started already.....Large double glazing and PV Solar Companies....are now marketing their GREEN DEAL APPROVED products with INTEREST FREE finance.

So when customers compare Interest Free with 7% Green Deal Finance with annual fees and set up costs ect ect... ....they will forget or miss the fact that these companies prices will have been inflated to cover the Interest Free in the first place...

Green Deal is a government approved, backed, and marketed license to miss-sell....Its a heaven sent opportunity for these companies....and they do not even need to be Green Deal Approved......as their customers will not be using Green Deal Finance..

 

[Orffyreus]

Green Deal is a government approved, backed, and marketed license to miss-sell.

That Berneray, just about sums it up.

 

[Berneray]

Why would anyone want to take out a 25 year loan for home improvements?

 

[Earthstore]

Why would anyone want to take out a 25 year loan for home improvements?

It all depends how it is sold to them...

Also where do DECC get their figures from?
£9000-£14000 for a 2.5KWP system... really....

 

[Ian-LS]

It all depends how it is sold to them...

Also where do DECC get their figures from?
£9000-£14000 for a 2.5KWP system... really....

Thats whats on the EPC certificates at the moment I think. Based on prices that are 18 months out of date

 

[Orffyreus]

So where did DECC conjure these figures from? Looks to me as if they are using annual production figures as electricity saving.

Edited.... looks like a few of us were wondering the same thing.

As it happens, I have a 2.45kw system and although production is 2280Kw per year my electricity saving is about 800Kw. I work from home so all washing cleaning cooking etc is done during the day before the boss comes home so I think I would be hard pressed to get a saving of 1717Kw.

 

[Ian-LS]

oh dear oh dear. Its based on 100% in house savings and also modest shading for a south facing roof....can they just give the calculations to someone that knows what they are doing please?

 

[Earthstore]

So, based on their figures for a house to use all the energy produced, then base that on a system with no shading and a 4KWP system with an up to date price, then surly that would meet the golden rule, hmmm, so what do you think will happen here then when the salesmen figure that out, if they haven't already...

 

[Berneray]

I think the point is that PV will not need to meet the Golden Rule......because the funding will be the hard sell pv and window company's own in house finance via Barclays or whoever...... which the salesmen will make look a much better deal on paper than the Green Deal....All these companies will need is the Orange Tick on the EPC box...They have no interest in doing Green Deal Plans...It is a means to an end.

And the spin will be...why would you want Green Deal Finance at 7% with an annual fee...when I can offer you unsecured Interest Free Finance...(see earlier post)...

Said it before Green Deal is manna from heaven for these type of companies....because it gives them an amazing government backed opportunity. They will use the Green Deal as a means to sell their own lucrative finance.....and will get many many deals they would not otherwise get...

From door knockers to telecanvassers to living room salesmen phoning their managers to "get your fiance deal approved"....the commissions will come rolling in....

Like an earlier poster said...."I just don't get it"......."But mother...the King is wearing no clothes"

 

[SRE]

I tweeted to Martin Lewis asking why there hadn't been any analysis and a few hours later he tweeted back saying it was on the website now. Here it is, I'm still wading through it but I've found quite a few mistakes with the calculations £500 saving for solid wall insulation, not £400 as from EST and no allowance for comfort use as Ted identified. I was a bit disappointed really but then I thought if this is the best description so far - and I haven't seen anything explained better yet, then no wonder the householder is totally confused and take up is too slow.

Regardless of whether it can work - it's just too complicated & boring!

The Green Deal Mythbuster - energy saving improvements for no extra cost - Money Saving Expert

 

[whinmoor]

I feel really sorry for Mr Ivor Coldhome!