The Green Deal - What is it and why is it important?

In recent years, there has been an increasing awareness of green issues, and a growing realisation that we need to look closely at improving the energy efficiency of our homes. Whether approached from the climate change viewpoint or simply as a means of saving money at a time of spiralling energy costs, the arguments are difficult to ignore. Compared to our European neighbours, this country probably has a larger percentage of older properties amongst its housing stock, and many of these properties fall well below the necessary standards of thermal insulation and energy efficiency. As a result our homes account for a huge proportion of the country's energy consumption.

In recent years the Government has introduced various incentives intended to encourage homeowners to improve the energy efficiency of their properties and to invest in micro generation systems. The recent proposals to slash the feed in tariff scheme received widespread media coverage and resulted in a rush to install equipment such as photovoltaic panels before the initial December 12th deadline. Legal action by Friends of the Earth and several installation companies has resulted in a ruling against the Government's proposed timing, and the reduction is now likely to be implemented in April. The whole regime is also anticipated to change with the introduction of the Government's Green Deal this October. This will allow occupiers to obtain loans for the installation of approved energy-saving measures. These loans will be attached to the property, and repayments will be capped at an amount less than the anticipated saving in fuel costs.

The details of the scheme have yet to be finalised, and there remain numerous unanswered questions as to how it will work in practice. If homeowners are tempted to take advantage of the funding there are a number of matters that they should consider. As part of the process an energy assessment will be undertaken and the occupier will receive a report from a Green Deal Adviser. This will recommend improvements to the property and lifestyle/ occupation changes that could cut fuel costs. However, there will be various other considerations that most Green Deal Advisers will not be able to deal with. Energy-saving measures cannot be looked at in isolation and the property condition must be thought about before embarking on expensive alterations. Defects such as damp walls and draughty roofs will limit the effectiveness of improved insulation. Some systems such as roof mounted solar or PV panels could adversely affect the stability of the roof structure or result in wind damage to the coverings. Building Regulation approval will generally be required for these works and not all advisers or installers will be able to deal with this. Finally, homeowners should consider the effect on their property's value. Some "improvements" can be visually unattractive and make the property less enticing to purchasers, who might not feel that the energy-saving is sufficient to encourage them to buy a property which is saddled with a large debt. Before investing in any energy-saving measures, therefore, homeowners should consider all of the implications and obtaining the advice of a Chartered Surveyor could well avoid a costly mistake.