Yet Another Green Deal Thread..

[Berneray]

And here is another slant on the Green Deal................Have a look on the interent and in the Home Improvement sections of the newspapers at the number of companies that have suddenly appeared with Green Deal in their name....for them its like Solar all over again.

Its a simple marketing opportunity with the backing of the government. They can let the UK Government market and publicise the campaign...then they can piggy back on the legitimacy of the scheme.....while at the same time completely miss-selling a whole range of Green Deal products.....and will use their own in house fiance instead of Green Deal finance....

Take windows and doors for example. They will never ever make the Golden Rule. So why are Anglian, SaveHeat, Cold Seal ect ect all running adverts for windows under the Green Deal banner....

Simple. Becuase they can use the legitimacy of the scheme to sell windows....financed not by Green Deal but by their own finance...

And exactly the same will happen with the larger solar companies....They will use the Green Deal banner .....to sell solar. As both solar and windows will appear on Energy Performance Certs as recommendations...but with Organge NOT Green ticks...so where will the shortfall come from....Inhouse finance of course...

Watch this space.....​

Read more: http://www.electriciansforums.net/p...m/71017-green-deal-press-2.html#ixzz2J6vnBe3h

 

[Eco Deal]

[h=1]25/1/2013: Green Deal Finance Company launches competitively priced finance open to all[/h] With the Green Deal set to go live next week, The Green Deal Finance Company (TGDFC) is completing its finance ready to lend to providers for the first Green Deal plans, immediately following their installation, and to meet demand for Green Deal Plans for 2013 and beyond. Unlike personal loans, TGDFC will offer funding to every accredited provider and will offer the same competitive rate of finance to the widest possible range of consumers. Rates will be comparable to the best high street rates for long-term unsecured loans. But whilst these are accessible to barely half the population, TGDFC will lend to over 80%.
Green Deal Providers will determine their own all-in package to consumers. However, on the basis of the finance agreements being put in place, TGDFC are now publishing the interest rate and charges for finance to Green Deal Providers. TGDFC's initial interest rate will be 6.96% per annum. Each Green Deal Plan will have a set up charge of £63 and annual operating charge of £20 payable by providers who may choose to add this to the overall cost of finance to the household, depending on the size and length of the Green Deal Plan.
The following table gives indicative all-in cost per annum for Plans of £5000, taking into account administration costs. The minimum Plan term is ten years.

[TD="width: 369"] Overall interest rates
[/TD]
[TD="width: 265"] £5,000
[/TD]

[TD="width: 369"]25 years
[/TD]
[TD="width: 265"]7.67%
[/TD]

[TD="width: 369"]20 years
[/TD]
[TD="width: 265"]7.73%
[/TD]

[TD="width: 369"]12 years
[/TD]
[TD="width: 265"]7.89%
[/TD]

[TD="width: 369"]10 years
[/TD]
[TD="width: 265"]7.96%
[/TD]

Because of the fixed costs of setting up and administering these loans, the more energy efficiency measures a household takes out over the lifetime of the product, the cheaper the all-in annual cost. So, if providers pass on all charges, someone doing the basics for £1,500 (on a 25 year deal) would pay a maximum all-in cost of 9.34%. But if that person takes out the full package of measures suitable for them, including solid wall insulation, loft insulation and other improvements totalling £5,000, they would only pay 7.67% - all funded by the expected savings on energy bills.
The most effective large scale, energy efficiency measures such cavity or solid wall insulation, can be financed over 10 - 25 years at interest rates of 7.96% - 7.67%. The "golden rule" is designed to ensure that expected savings on bills should be at least as big as the total repayments, including any interest rate. Those taking full advantage of the scheme could also currently benefit from over £1,000 in cash back from the Government.
Mark Bayley, Chief Executive Officer of The Green Deal Finance Company said:
"Our all-in cost of finance shows that the more energy efficiency measures a household takes advantage of, the better the long term return in terms of savings, and the lower the cost of overall finance.
"The Green Deal Finance Company has been formed to deliver transparent, competitive long term finance to as many households as possible, helping people to install the maximum number of energy efficiency features that can be self-financed through savings in their energy bills. This finance will be widely available and inclusive. We estimate that four out of five energy bill payers in the population will be able to access this finance. We know of no other source of low-cost credit which is this inclusive.
"While we're committed to financial inclusion, we will only lend responsibly. That means finding other ways to help those already in default on their financial obligations. We will work with leading local authorities and providers to see how tailored local support, combined with the Government's £540m Affordable Warmth and Carbon Saving Communities programmes, can reach those who need additional help. "
Lucy Shadbolt, head of green deal, Instagroup, one of TGDFC's founding members, who are launching their offer to consumers on Monday, said:
"Many of our customers are hard-pressed families struggling with rising fuel bills and aspiring to improve their homes. We are delighted to be able to offer such a competitive rate of finance which most of our customers would not normally be able to access. Because TGDFC is not-for-profit, our customers can be assured they are getting a good deal."

 

[Berneray]

Sorry but I have no idea what the previous post is about......

 

[Earthstore]

Very informative post, however just because something is said to be a not for profit does not guarantee that it is the best deal.

Also how can they compare their rates with an unsecured loan when the Green Deal adds a charge to the property, if a charge is not secured then I do not know what is.

And why have we got so many Green deal threads?

 

[sparkless]

And why have we got so many Green deal threads?

it launches Monday

 

[moggy1968]

surely if it meets the golden rule and is deducted from your energy bills at source then someones credit Hx makes no difference, and those who need these measures the most probably have poor credit Histories.

This is a can of worms waiting to explode. Looking at the way these firms sold PV I can see thousands of households being sold stuff that will never meet the golden rule and paying though the nose for it for years to shady high pressure sales companies. It's a shambles.

rip off companies will make millions while vunerable customers suffer.