funding news
08/03/2010 - Green Home Loans Scheme Announced
Energy Secretary Ed Miliband has unveiled details of a new loan scheme to help improve household energy efficiency.
Announced as part of the Government’s new Warm Homes, Greener Homes strategy, the so-called “pay as you save” green finance initiative will enable homeowners to get loans that cover the upfront costs of installing energy efficient and microgeneration technologies.
Legislation will be introduced so that loans offered through the programme can be linked to the actual property rather than the occupants, meaning that if people move house they don’t have to “take” the loan with them to their new home.
Loan repayments will be financed by the savings made through lower energy bills as a result of improved efficiency.
The scheme has already been piloted in around 500 homes across Birmingham, Sunderland, Stroud, and the London borough of Sutton, with ministers already putting plans in place for the law changes needed before it can be rolled out nationwide.
Launching the strategy, Mr Miliband said:
“Making homes more energy efficient will help protect people from upward pressure on bills, tackle climate change, and make us less reliant on imported energy.
“New ‘pay as you save’ green finance, a new alliance between energy companies and local authorities to help people in their communities, as well as moves to encourage landlords to stop ignoring energy wastage in their properties, will help deliver the radical transformation that’s necessary.”
The Warm Homes, Greener Homes strategy is the Government’s ten-year blueprint for carrying out a “green transformation” of UK housing. It outlines plans to insulate six million homes by the end of next year, to have insulated all lofts and cavity walls by 2015, and to ensure that all homes are fitted with smart meters by 2020.
To read the Government’s full Warm Homes, Greener Homes strategy, visit the DECC website (opens a new window)
Source: Department of Energy and Climate Change, 02/03/2010
