Why is the Green Deal Failing?

The Green Deal has been running for just over a year and already critics are claiming that it’s doomed to fail. So what’s the deal with the Green Scheme?

green fields

The Green Deal is a scheme that was pushed out by the government in October 2012. Intended to promote eco-friendly home improvements, it was hailed as being the biggest residential property initiative since World War 2. However the scheme has been running for just over a year and already critics are claiming that it’s doomed to fail. So what’s the deal with the Green Scheme, and should we expect it to continue in years to come?

In the Beginning

When the Green Deal was first introduced it was hailed as being a pioneering way of both promoting sustainability and providing homeowners with new ways to save money on their utilities. At the core of scheme was a new form of lending for homeowners, the repayments of which would be offset by energy savings. A number of independent affiliates were quickly sourced, who would provide both assessments and installations to interested property owners who wanted to upgrade or install anything in their homes from insulation to new boilers.

The Present Situation

It was reported by the BBC last week that the number of households which had agreed to participate in the Green Deal scheme had surpassed the 1,000 barrier. However this figure is misleading – of the 1,000 signed up, only 200 of these have actually had seen installations. And this figure of 1,000 is a mere 10% of the 10,000 which the government had expected to have signed up by the end of the year, despite over 100,000 assessments having been carried out.

Why are Consumers Failing to Participate?

There are a number of reasons for why homeowners are failing to participate in the government’s much feted Green Deal. However the most prominent and widely discussed reason seems to be that of the scheme’s complexity, which has discouraged many people – particularly the elderly – from signing up. Despite the scheme having been introduced to help people save money on their utilities, many people with pre-existing concerns about the cost of their energy bills have voiced concern about taking on another debt, particularly in the existing economic climate.

A Maze of Red Tape

In addition to the concerns of homeowners who are worried about taking on new debt, there are additional worried about the complexity of the policies and advice involved in Green Deal administration. Hidden costs, such as that of paying for an assessment, are also hampering the abilities of the government to effectively extoll the virtues of the scheme to already-worried homeowners. For this reason, it’s important for any interested consumers to thoroughly research the availability and pricing of their local Green Scheme provider, before agreeing to an assessment. This means properly assessing the potential that planning permission might be needed, as local authorities differ as to their expectations in this regard.

Government Spending on PR

In light of all the trouble surrounding the Green Deal, it’s no wonder that the government has already spent over £400,000 on PR to promote it. And it’s important that consumers are aware of this figure, because it’s indicative of the concerns currently surrounding the scheme’s potential future.

Article supplied by markgroup.co.uk

Image by Iain Thompson

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