Go green, get £1,000 cashback The take-up has been slow, to say the least. The DECC has admitted that only two households have registered for the scheme. In an effort to drum up some interest, the department announced a £125m "cashback" scheme, offering homes up to £1,000 if they signed up as "early adopters." Amounts range from £100 for loft insulation to £650 towards solid-wall insulation, for instance. A DECC spokesman said: "We will only be able to provide examples of savings once the early adopters have come through and start to see the real savings. We cannot publish savings estimates, because the Government cannot guarantee how much households will save because there are too many variable factors. However, the spokesman pointed out that households would be unable to sign any contracts until interest rates on the loans were agreed. Greg Barker, the minister for energy and climate change, remains bullish about the impact of the scheme. "The Green Deal is great news for anyone worried about rising fuel bills or wanting to make improvements to their home," he said. It will create more choice for consumers who will get the most cost-effective solutions for their property and will help transform Britain's housing stock. How much you can borrow varies, but will depend on any negotiation with product providers. However, the Government estimates that households will not borrow more than £10,000, as to do so would make it tricky to meet the official "Golden Rule" - that is, the expected financial savings must be greater than the cost of the improvements. But how do you pay back the loan, and what about interest rates? How much is your loan going to cost? Interest rates have yet to be set by the installers and providers, but the DECC has estimated them to be between 6pc and 8pc. Based on a £5,000 loan with an interest rate of 7pc, householders would be required to pay back around £10,600 over 25 years and would therefore need to achieve energy efficiency savings of £425 a year to cover their annual repayments. In a similar way to your mortgage statement, you will be notified annually of the amount you have paid off and the debt outstanding. Any money that is borrowed will be attached to your property's energy bill rather than you as an individual. So should you move home, the debt does not move with you, but instead stays with the property. However, some lenders are concerned that a Green Deal loan will restrict the saleability of a property as it may be more difficult to get a mortgage on, and therefore be less attractive to buyers. Jonathan Harris, director of mortgage broker Anderson Harris, said: "Given that it is already harder to get a mortgage than it was a few years ago, this may be an added hassle that prospective buyers simply don't want to take on." Mr Harris pointed out that sellers must disclose the Green Deal loan early on in the selling process and certainly before the buyer's lender has approved any application for funding, as it needs to have all the facts before making a lending decision. However, if a buyer refuses to take on the Green Deal loan, the seller will have to repay it early and may have to pay an exit penalty. This is because the provider is entitled to claim for the interest that would have been charged had the deal continued to the end. Also worth considering is that savings are not guaranteed, so if a household's lifestyle changes they may not achieve the savings predicted. Householders should also check the warranties attached to their plan, because they may not last as long as the repayment period. As a result consumers could find themselves still paying for equipment after it has stopped working. It is vital that you check the terms and conditions before you sign up, said Clare Francis, a consumer finance expert at Moneysupermarket.com, the comparison service. Always check the small print and make sure you know exactly what you are signing up for. You need to know that you'll be able to stick with it and reap the benefits," she added. It is equally important to check all your financial options before signing a contract as there are a number of alternatives on the market. "It is worth noting that consumers don't have to take out Green Deal finance to qualify for the cashback incentive," said Audrey Gallacher, director of energy at Consumer Focus. Some households may also be able to access free and discounted measures, such as insulation. For instance, many householders in older properties, and those on benefits or low incomes, may qualify for extra financial assistance. If you are over 70 or on benefits, you may be able to get insulation and energy-efficient boilers free of charge through the Energy Company Obligation scheme. To find out if you qualify, contact the Energy Savings Trust on 0300 123 1234 or visit energysavingtrust.org.uk. The big six energy firms all have insulation offers available at the moment so it's worth finding out if you qualify. How does Green Deal work? For those interested in taking up the Government's offer, the first thing you need is a Green Deal assessment. Many different organisations - including energy companies, DIY stores and local tradespeople - are authorised to do this. To find a Green Deal assessor in England and Wales, call the Energy Saving Advice Service on 0300 123 1234. In Scotland, call 0800 512012 to be directed to your local Energy Saving Scotland advice centre. However, before getting a Green Deal assessment, find out whether the advice is tied to a certain provider and how much the assessment costs. After the assessment, you will be given recommended improvements that are appropriate for your property and an indication of payback time. The next step is to approach one or more of the 400-plus Green Deal providers for a quote for the installation of one or more of the recommended measures. You are entitled to shop around with your assessment, so ensure you get a minimum of three quotes. Once you have agreed the work, you will receive a Green Deal Plan, which is a contract that sets out the work that will be done and the repayments.