Explaining the Green Deal Golden Rule
So how will the Green Deal Scheme really save you money? Yes, you’re getting free upgrades to your home, the property you own or the property you rent – but you have to pay for it all at some point, right?
Of course you do. But the Green Deal Scheme, uniquely in the annals of Government initiatives, has built in protection for every tenant, landlord and homeowner. That protection is called the Green Deal Golden Rule.
Simply stated, the Golden Rule says this:
You’ll never end up paying more in your energy bills than you would have done if you hadn’t taken the advice of your Green Deal advisor. Provided that your energy consumption remains the same, that is. If you were to increase the energy consumption in your property, for example by renting rooms in the home out, then the overall monthly payments would go up.
The Golden Rule states that your savings will be equal to, or less than, the amount paid monthly under the average current usage.
Repayments on Green Deal financing are made through future energy bills. Your Green Deal advisor is there to help you understand the future commitment you make when you sign up for the Scheme. And he, or she, won’t let you make any modification whose cost negates the saving you make when you’ve installed the new equipment.
This is why the Green Deal Scheme is so ideal for families living at the lower end of the income scale – people whose energy bills represent a significant drain on their resources, but who are in no position to finance improvements of their own. In the long term, he improvements endorsed by the Green Deal advisor benefit the infrastructure of the country by minimising drain on precious natural resources. And they benefit the individual inhabitants of homes in poorer areas by maximising their ability to consume vital services without overspending.
The Green Deal Golden Rule is there to protect investor and consumer alike. By limiting the amount of finance granted to no more than the average energy bill, the Golden Rule ensures that every Green Deal Scheme customer saves: while every Green Deal Scheme provider lessens its lending risk.