The end of funding for renewable energy from sources such as the Low Carbon Buildings Programme has made it more difficult for householders to take advantage of green energy due to the often large upfront costs. The government has, however, funded pilot schemes offering a new way to help consumers use renewable energy and make other eco upgrades to their homes through a green finance pay as you save programme. The green finance pay as you save programme pilot schemes have now come to an end and evaluations were fed back to the government in
2011.
A green finance pay as you save programme would basically make it possible for householders to take out green loans for energy efficiency and renewable energy measures. The loans would be intended to cover the initial cost outlay with the consumer then able to pay back the loan and make savings due to lower bills. The funding itself would come from the private sector including banks and it was intended that new legislation would make it possible to tie the green loan to the property rather than the person so that the potential of paying back a loan on a property you no longer own wouldn’t put consumers off the green finance pay as you save programme.
The initial intention was that the scheme will begin in earnest in 2012 with a ‘significant new market’ established by 2015. The government was also planning to put together a web portal for the green finance pay as you save programme which will allow consumers to compare the green loan products available. The Department of Energy & Climate Change is currently undertaking a consultation (ends January 2012) on the Green Deal after which more information should be available.
More information on the green finance pay as you save programme can be found at the Energy Saving Trust website.
Source: www.est.org.uk 2012
