Why Would You Wait For The New Government Insulation Scheme?
With the extreme cold weather of last Winter still fresh in our memory, the fact that the Green Deal isn't due to start until 2012 means that many people in the UK go into this Winter wondering whether to hold off until 2012 to get their home insulated.
The details of this new Government Insulation Scheme are still to be fully clarified but it looks as though the Green Deal will: - Aim to improve the Energy Efficiency of 14m homes within a decade.
- Offer an up-front grant of up to £6,000 per household to spend on approved Energy Efficiency measures, with the household paying back the loan through savings on their energy bills over a 25 year period.
The loan rates themselves will be similar to those achieved through a personal mortgage, and they are likely to be provided by the private sector.
Significantly, the loan will be attached to the energy bill of the property, not the resident.
As such, if the resident moves, the loan remains with the house.
Subsequent occupants who will also benefit from the energy savings will continue to repay the loan.
The Green Deal loan will be available to everyone regardless of income or circumstances, all of which makes the Green Deal look a good deal.
Except, you will have to go through at least two more Winters before you can access it.
So what should you do? You have two options.
1.
Wait two years, go through two more cold Winters and pay higher than necessary heating bills, then get the work paid for through the Green Deal.
2.
Or, you can get the work carried out now through the Carbon Emissions Reduction Target (CERT), the current Government Insulation Scheme.
Why wait? Ofgem have warned that with wholesale gas prices likely to increase by 13% before next April, the average annual gas bill will go up to around £706.
In fact, British Gas recently followed Scottish and Southern Energy by announcing that Gas and Electricity prices will increase by 7% in December 2010.
In all likelihood, before the Green Deal kicks in, typical gas bills are likely to continue increasing.
Of course, if you heat your home using electricity, oil, coal or LPG, the increases are likely to be even higher.
The easiest way to reduce your fuel bills is to cut down on your energy use.
And the easiest way to do that is to insulate your home as much as possible.
The National Insulation Association (NIA) is campaigning to raise awareness of the fact that houses in the UK lose typically around 60% of their heat through the roof and walls.
You can retain this heat at a relatively low cost by simply insulating your loft and cavity walls.
Under the existing Government Insulation Scheme (CERT) for private households, after the grants have been applied, you can expect to pay just: - £149 for loft insulation - £199 for cavity wall insulation - £298 for both loft and cavity wall insulation If anyone in the property is aged 70+ or anyone is in receipt of certain benefits, tax credits or allowances, the insulation may be installed completely free of charge with a 100% grant.
All grants are paid for by the six main energy companies and they do not have to be repaid.
Without grant funding, costs can be in the region of: - £400 for loft insulation - £600 for cavity wall insulation - £1,000 for both loft and cavity insulation If you are heating your home with a gas boiler, insulating your home to the required standard will save you in the region of: - £110 per year from cavity wall insulation - Between £40 and £145 per year from loft insulation, depending upon how much loft insulation is already in place.
Given the level of savings, and the low costs thanks to grant funding, does it make sense to wait two years just to reduce your initial outlay? By the time the Green Deal starts, most people taking advantage of insulation grants now will have recovered any initial contribution towards the cost.
Remember that even though the Green Deal is paid for with a loan, you still have to pay the loan back out of the reductions in your energy bills.
Pay for the work now with an insulation grant through the current Government Insulation Scheme (CERT) and you get two Warmer winters and pocket the savings for yourself.
Now that's what I call a good deal.
The details of this new Government Insulation Scheme are still to be fully clarified but it looks as though the Green Deal will: - Aim to improve the Energy Efficiency of 14m homes within a decade.
- Offer an up-front grant of up to £6,000 per household to spend on approved Energy Efficiency measures, with the household paying back the loan through savings on their energy bills over a 25 year period.
The loan rates themselves will be similar to those achieved through a personal mortgage, and they are likely to be provided by the private sector.
Significantly, the loan will be attached to the energy bill of the property, not the resident.
As such, if the resident moves, the loan remains with the house.
Subsequent occupants who will also benefit from the energy savings will continue to repay the loan.
The Green Deal loan will be available to everyone regardless of income or circumstances, all of which makes the Green Deal look a good deal.
Except, you will have to go through at least two more Winters before you can access it.
So what should you do? You have two options.
1.
Wait two years, go through two more cold Winters and pay higher than necessary heating bills, then get the work paid for through the Green Deal.
2.
Or, you can get the work carried out now through the Carbon Emissions Reduction Target (CERT), the current Government Insulation Scheme.
Why wait? Ofgem have warned that with wholesale gas prices likely to increase by 13% before next April, the average annual gas bill will go up to around £706.
In fact, British Gas recently followed Scottish and Southern Energy by announcing that Gas and Electricity prices will increase by 7% in December 2010.
In all likelihood, before the Green Deal kicks in, typical gas bills are likely to continue increasing.
Of course, if you heat your home using electricity, oil, coal or LPG, the increases are likely to be even higher.
The easiest way to reduce your fuel bills is to cut down on your energy use.
And the easiest way to do that is to insulate your home as much as possible.
The National Insulation Association (NIA) is campaigning to raise awareness of the fact that houses in the UK lose typically around 60% of their heat through the roof and walls.
You can retain this heat at a relatively low cost by simply insulating your loft and cavity walls.
Under the existing Government Insulation Scheme (CERT) for private households, after the grants have been applied, you can expect to pay just: - £149 for loft insulation - £199 for cavity wall insulation - £298 for both loft and cavity wall insulation If anyone in the property is aged 70+ or anyone is in receipt of certain benefits, tax credits or allowances, the insulation may be installed completely free of charge with a 100% grant.
All grants are paid for by the six main energy companies and they do not have to be repaid.
Without grant funding, costs can be in the region of: - £400 for loft insulation - £600 for cavity wall insulation - £1,000 for both loft and cavity insulation If you are heating your home with a gas boiler, insulating your home to the required standard will save you in the region of: - £110 per year from cavity wall insulation - Between £40 and £145 per year from loft insulation, depending upon how much loft insulation is already in place.
Given the level of savings, and the low costs thanks to grant funding, does it make sense to wait two years just to reduce your initial outlay? By the time the Green Deal starts, most people taking advantage of insulation grants now will have recovered any initial contribution towards the cost.
Remember that even though the Green Deal is paid for with a loan, you still have to pay the loan back out of the reductions in your energy bills.
Pay for the work now with an insulation grant through the current Government Insulation Scheme (CERT) and you get two Warmer winters and pocket the savings for yourself.
Now that's what I call a good deal.