Green Deal aims to help to pay the upfront costs for energy improvements such as insulation, heating, draught proofing, double glazing and renewable energy technologies. Launched in January 2013, the Deal was also announced to be a help to support jobs. Nevertheless, one criticism was the high interest rates on loans. The Green Deal Finance Company confirmed that the interest rate would be less than 7%. However, if a total cost is made which includes all of the administrative cost the lowest interest rate would be no less than 7.67% paid over 25 years. An early repayment would face a interest rate of 7.96 %. This makes the Green Deal not so attractive for consumers. Therefore, having a more appealing interest rate could help to meet the UK’s national carbon emissions target.
Besides the high interest rate of the Deal, a poll for ECA (Electrical Contractors’ Association) showed that 62% of the people are not aware of the scheme due to a lack of marketing around the Green Deal.
