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Green Deal revamp could cut energy bills

The new offer, available for a year from June, will reimburse those who have bought a property in the past 12 months for up to 75 per cent of the cost of improvements such as insulation and double glazing.

After an assessment, you apply to the fund for a voucher, which you hand to the tradesman after paying him for the work. Then the Government pays you its share. Formerly, the Green Deal gave loans which were repaid via your energy bills.

The average annual bill saving from installing major measures such as solid wall insulation in a three-bed semi-detached house is £270, while savings from other measures such as upgrading a boiler can knock around £100 off a customer's bill, according to government figures. Under the new incentive scheme, domestic energy customers can get:

up to £1,000 for installing two measures from an approved list; and/or

up to £6,000 for installing solid wall insulation; and

up to £100 refunded for their Green Deal Assessment.

The scheme also entitles those who have bought a property in the 12 months prior to application to qualify for up to an additional £500 if they carry out energy efficiency improvements.

People of all incomes will be able to apply for the new grants as there is no financial eligibility criteria.