NEWS

Consumers Advised to Check Green Deal Product Guarantees

20 February 2013

Following the official launch of the Green Deal, householders are being advised to pay close attention to guarantees offered under the Government's flagship energy-saving scheme.

The warning call comes after it became apparent that not all guarantees cover the full Green Deal loan repayment period.

Green Deal Guarantees

The Green Deal – which launched on January 28 – has been implemented in order to offer householders the opportunity to improve the energy efficiency of their property. The scheme was created by the Department of Energy and Climate Change (DECC) and will be administered by Ofgem.

Under the scheme, householders can apply for a loan to cover the upfront costs of products such as Cavity Wall Insulation, glazing, boilers, and Solid Wall Insulation. This loan is then repaid over a set period of time via the householder’s electricity bill.

Many of the improvements listed by the Government as acceptable under the scheme are also covered by a guarantee, insuring against defects in materials used and workmanship. However, it has become apparent that not all of these guarantees will last the duration of the loan period.

A recent report cited the upgrade of entry doors as being one such culprit. Guarantees on new exterior doors generally last for five years. However, under the Green Deal householders could be repaying for these doors for up to 10 years. The result then is that the householder may be paying for a door that is not guaranteed, and would subsequently be at risk of having to pay additional amounts for future repairs or replacement.

Cavity Wall Insulation Guarantees

One improvement where householders will not need to worry about the guarantee running out is Cavity Wall Insulation.

Overseen by the Cavity Insulation Guarantee Agency (CIGA), installation of this form of insulation is covered by a 25 year guarantee, providing it has been fitted by an approved installer. With repayment of Green Deal loans capped at 25 years, the installation will be covered for the entire duration of the loan.

Cavity Wall Insulation is one of the spearhead improvements under the scheme. As the installation process is fairly inexpensive, the cost of funding can potentially be recovered much quicker through lower bill costs. The same is true of Loft Insulation.

In addition to Cavity Wall Insulation being covered by a 25 year guarantee, it was recently confirmed that Solid Wall Insulation is also guaranteed for 25 years by the Solid Wall Insulation Guarantee Agency (SWIGA).


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