14 DAY TRIAL // At times when the UK government cannot safeguard home owners from the growing gas and energy prices, greening up households through a national project appears to be a tempting option. However, the uncertainty which surrounds the total costs and benefits of the Green Deal might work against the entire strategy.
The UK government committed to support the development of renewables; yet, this future plan, once implemented, can add up to £280 to the utility bill every year, within the next 10 years, reports the Telegraph. Homeowners would have to pay more for smart meters installed in their households, meant to monitor and control their energy consumption.
The bills have already increased by 20% in 2011, and the Energy Secretary Chris Huhne says the government plants to tackle this issue through the expected Green Deal.
Energy preservation measures drawn out by the national program forecast financial savings of up to £94 annually, by 2020. The people who will embrace the Green Deal will take £1,285 out of their pockets, while the skeptics who won't manifest their interest towards the governmental initiative won't experience the same deduction, as they will still have to pay £1,379 for the energy they use.
“The new innovative Green Deal financial mechanism eliminates the need to pay upfront for energy efficiency measures and instead provides reassurances that the cost of the measures should be covered by savings on the electricity bill,” state the officials from the Department of Energy and Climate Change.
The plan sounds good on paper, but some of the experts are saying that, if the strategy isn't widely embraced by the public, the energy bills might actually increase their value.
At this point in time, the costs of greening up a household are still unknown; yet, people fear that they will have to contract loans to support eco-conscious improvements.
It is hard to change the conduct of thousands of inhabitants when no guarantees are offered. The Green Deal's costs are unknown and so appear to be this program's benefits.
As the current value of the energy bill exceeds £1,200, a segment of the population might indeed be captivated by the idea of making their homes more energy-efficient, hoping they will be able to recoup their investment in a few years.
All in all, the government's plan appears to be an equation difficult to solve at this point in time.