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Double Glazing Blogger: Green Deal Instead Of Scrappage Scheme

Wednesday, August 4, 2010

Green Deal Instead Of Scrappage Scheme

The petition for a windows scrappage scheme has come to an end, with the Government posting this response:

The Government agrees that energy efficiency has an important part to play if we are to achieve our carbon reduction targets. The benefits of energy efficiency for households are clear: saving money on energy bills, reducing reliance on imported energy and helping householders reduce their carbon emissions.

However given the high cost of replacement windows (typically £5,000 to £10,000 for a small home), the marginal improvement in performance, particularly when replacing like-for-like double glazed windows; and given that band C windows will be the minimum standard permitted by building regulations from October 2010, a window scrappage scheme is unlikely to be cost effective on energy efficiency and carbon savings grounds.

We believe everyone should have the opportunity to benefit from energy efficiency measures and the energy bill savings they can bring. However, we also recognise that the cost to retrofit homes can be substantial – our ‘Green Deal’ will allow consumers to fund the upfront cost out of energy bill savings. It is expected that double glazing will be one of the measures that can be installed under the Green Deal.

So what is the 'Green Deal'? The idea is that homeowners will be entitled to up to £6500 to put towards home improvement in order to reduce energy bills. The money saved on energy bills will be put towards repayments, but with the homeowner still making a saving. Also, if that person was to move, the new owner of the property will be responsible for the rest of the repayments.

I can see the point made about the cost effectiveness of replacing windows. However they've said they would expect to include replacement windows in the Green Deal which is positive. Hopefully this will continue to provide the double glazing industry with more opportunities in which to gain a stronger foothold in an economic recovery.

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4 Comments:

Anonymous Anonymous said...

What does it all mean? It is not clear at all! Do I have to install new windows, pay for them and then just to look forward to cheaper energy bills? Is this to be the government's "Green Deal"? Or can I have my windows replaced without paying for them and then I will pay in installments, equal to the savings I will make on my energy bills? If so, who and how would be able to assess what savings I would be making? It all sounds quite ridiculous! Can you explain?

August 4, 2010 at 8:11 PM  
Blogger Double Glazing Blogger said...

We've had a look into it and I think this is how it may work - the customer applies for the grant from the Government, the Government pays for a company to carry out the home improvements, then the customer will pay back the money via savings made on their energy bills.

There are two sticking points here though. Firstly, it looks like companies will have to compete for contracts. The customer may have to get several quotes to put forward. Secondly, the amount of time it takes for the repayments to be made will depend on how well the home improvements work. The Government slipped up in it's response to the e-petition. They talked about C rated windows becoming the benchmark, when many businesses offer A rated windows.

There are lots of potential pot holes involved in this, but potentially I can see it working.

August 4, 2010 at 11:33 PM  
Anonymous Anonymous said...

To whom should one apply for this grant? Where to find exact info and from what date it will apply?
My council is being replacing our windows right now. We did not ask for it and had no influence on the type and rating of them, but since we are leaseholders we are going to face a bill for them some time next year. Could we still apply for any grant and to whom?

August 7, 2010 at 9:35 AM  
Blogger Double Glazing Blogger said...

Anon - I suspect that because they have just been done that you won't qualify for a grant. The details for who to go to for the grant, how to apply etc are yet to be announced. We are just waiting for the Government to flesh out the scheme.

August 8, 2010 at 1:25 PM  

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