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Green deal

You might have got approached by sales people about the Green Deal, and he who might be more interested in making a sale told you how much you could save on your energy bill, and you don't need to pay for installation of such energy efficiency measures as insulation or new boiler. So what is the fact?

Green Deal is an initiative of the government to try and get people to increase the energy efficiency of their home by a loan for works through an energy supplier.

The way the Green Deal works is that a private company will offer to install an energy efficiency measure (e.g. Cavity wall insulation, external wall insulation, central heating, new boiler, double glazing etc). They will pay for this installation. However it is not free fore you. Your electricity will go up, and the extra you pay on your fuel bills will slowly pay off the loan for the work carried out. This is therefore a sort of finance package, whereby you borrow the money to do the improvement but pay it back through your electricity bills. You have to "pay up" the full cost of the work, plus the interest (which is set by the company providinG the loan). How quickly you pay it up will be worked out by an assessor who calculates how much you will save from your fuel bill - you then pay back the cost of the work with these savings. You can pay back early, but there may be an additional charge for this.

So you will not save any money - and you will have to keep paying back the cost of the work, through your electricity bill, until it is paid off.
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