Green Deal to offer cash back

Reports have emerged that homeowners will be able to access attractive cash back offers through Green Deal in a bid by DECC to boost early uptake in the scheme.

The Guardian understands that the Department of Energy and Climate Change (DECC) is currently considering ways of using £200m set aside by chancellor George Osborne to help get the scheme off the ground.

Although no details have yet been confirmed, DECC has indicated that payments would be a one off sweetener and such a financial incentive would only be offered on a time-limited basis in order to encourage early adopters.

With Green Deal scheduled to launch in October, any incentive package would detract from criticisms that interest rates levied on money borrowed under Green Deal are likely to put off homeowners.

It is also believed that alternative plans for stamp duty or council tax breaks have now been rejected by DECC in favour of a more direct financial inducement.