Announced in a blaze of publicity last week, the government has spent a total of £29million advertising the new "Green Deal" to encourage households to invest in energy-saving improvements to their homes. On the first day, just one homeowner signed up.
This should not be a great surprise as the deal could cost more money than it saves in reduced energy costs.
To qualify, homeowners are required to have their property inspected by one of just 40 'approved' firms to see if any energy-efficiency improvements would be worthwhile - charging home owners £180 for the 'Green Deal' certificate.
Householders who get approval under the scheme can claim a cash back from the government.
Some of the approved firms refund the cost of the certificate.
Cash back is available for certain improvements such as loft insulation (£100), cavity wall insulation (£250), double glazing (£320) and energy-efficient condensing boiler (£310).
Cash back money is only available if the work is carried out by one of 24 'authorised providers'.
Customers using Green Deal can make a one-off payment for the work or choose to have the cost of the work repaid over a number of years using a long term loan attached to the property.
All energy suppliers have agreed to accept loan repayments through customer's bills making current high energy costs even higher for those using Green Deal, even after reduced energy consumption savings.
It could well work out much cheaper to avoid Green Deal altogether and have the work carried out by a local company that is not signed up to Green Deal. Interest rates on a Green Deal loan are between 7% and 9% a year - far higher than available in the high street.
The loan is attached to your home and may make it harder to sell.
The government believes around 45 million homes would benefit with lower bills if they made some of the 45 Green Deal improvements available through the scheme
