[citation needed] It was hoped the Green Deal would lead to the renovation of the UK's housing stock with an estimated 14 million homes seeing energy efficiency improvements ranging from; double glazing, cavity wall and loft insulation through to gas and oil boilers, and renewable technologies such as solar PV, solar thermal and heat pumps.
This financing was compared to home loans of similar duration, but had limited periods of fixed rates of 5 years or less, and secured against the house.
The Department for Energy and Climate Change said it took the decision to protect taxpayers, citing low take-up and concerns about industry standards.
[citation needed] The parliamentary Energy and Climate Change Committee said the Green Deal had "failed to live up to expectations" and that its implementation had been poor stating "Rather than facilitating access to energy efficiency measures and creating momentum in the market, the Green Deal has caused frustration and confusion for both consumers and the supply chain," the MPs said.
Former Climate Change Minister Greg Barker stated he was confident that the private sector would pick up the slack from the withdrawal of Government funding[13] [14] Homeowners would make energy-saving improvements to their home or business without having to pay all the costs up front through the Green Deal.
The funding for these measures is then issued by The Green Deal Finance Company (GDFC) Lastly, once the work was complete, the homeowner or tenant would pay off the cost in instalments through their electricity bill.
[18] Other worries include its limited projected coverage to consumer protection, its treatment of non-domestic buildings and lack of competition among suppliers.
Senior Conservative ministers, including Eric Pickles ( Communities and Local Government Secretary), called for the scheme to be scrapped as it could cost the so-called "squeezed" middle, thousands of pounds.
[20] There had also been doubts cast over whether the central tenet of the scheme - the so-called "Golden Rule" whereby the cost of repayments never outweighs the savings on the bill - will actually be successfully implemented.
[29] Then Prime MinisterDavid Cameron has defended the Green Deal, stating that despite the lack of interest from the general public and a slow take-up, the policy was never intended to start with a big bang, but rather to build slowly.
Trading standards officers have reported that cold callers are posing as Green Deal assessors while charging "administration fees".
[32] The 7% interest rate of the Green Deal Plan has been extensively criticized since it was revealed at the scheme's launch, as it is higher than available high street home-loans.
This led to some Green Deal providers such as Npower raising concerns about the high rates, adding that, unless they were reduced, the scheme would fail.
One potential outcome appears to be not achieving the stated energy cost savings, paying more than necessary for the changes via a limited pool of providers, financed by an uncompetitive loan, that subsequently renders the property difficult or impossible to sell or remortgage.
Buro Happold, in a report on the Green Deal, suggested there should also be more information on its wider implications, such as how it impacts fuel poverty, property value and re-saleability.
The researchers also warn that the as yet unknown impact on the resale value of homes from refurbishments and Green Deal debts attached to the property could deter uptake.
[34] Government guidance stated - If you move into a property with a Green Deal, the landlord or seller must show you a copy of the Energy Performance Certificate - this will explain what improvements have been made and how much you’ll need to repay.
[35] Buro Happold, in a report on the Green Deal, suggested there should also be more information on its wider implications, such as how it impacts fuel poverty, property value and re-saleability.
The researchers also warn that the as yet unknown impact on the resale value of homes from refurbishments and Green Deal debts attached to the property could deter uptake.
The risk of overheating has been overlooked in the "big rush to insulate and make homes airtight" in order to protect against the cold in winter.
This would be most likely to affect elderly or otherwise vulnerable residents living in urban areas in "top floor flats in 1960s tower blocks, and modern detached houses ... particularly if they were south facing.
Core offer 3 Householders can also claim a refund of up to £100 for a Green Deal Assessment Report (GDAR) that is less than 24 months old when they do work in this scheme.