With the government’s Green Deal ready for next year, a consortium has opened a not-for-profit organisation to help homeowners improve their property’s energy efficiency.
Included in the consortium are Goldman Sachs and UK bank HSBC.
The Green Deal Finance Company (GDFC) will lend money to suppliers and installers involved in the Green Deal.
As part of the Green Deal the government will offer loans against the house rather than the owner, so they can make energy saving improvements without the financial burden.
Payments are made back through the money saved on energy bills, once double glazing, wall cavity insulation or loft lagging has been installed.
Paul Davies, one of the leading partners on the GDFC, said: “By minimizing the cost of finance to future accredited Green Deal providers, it will create a highly competitive market that will compete on cost, reliability, lifespan and technology.
“It will maximize the measures that can be included within the Green Deal and for many potential providers will solve the question of where their finance will come from.”
The county’s leading energy suppliers are also in the consortium, including EDF Energy, Npower, E.ON and British Gas.
By the time the first installations begin in a year’s time, the group expect a number of local authorities and suppliers to have joined the organisation.
The government’s Green Deal comes off the back of reports saying a quarter of UK carbon emissions are from energy used to heat homes.
With the help of other schemes and incentives, it’s hoped emissions will be cut 34% from 1990 by 2020. This is a big target considered the reduction was only 7.4% in 2010.
Homeowners have also been urged to use renewable products with the Green Deal to make the most out of energy efficient homes.
Solar panels, heat pumps and wind turbines all generate free electricity throughout the year and help to reduce carbon.