£244m Green Deal Funding Package Agreed

13 March 2013

An agreement has been reached that will see the Government’s Green Deal scheme receive £244m in funding, it was announced today.

The Green Deal Finance Company (GDFC), which administers the Government’s new flagship scheme, will receive the funding from the Green Investment Bank (GIB).

Details of the agreement were reported by Mark Bayley, chief executive of the GDFC.

The news is good news for the Government, which launched the Green Deal back on January 28. To this point, the scheme has not had the necessary funds to move forward.

The £244m sum represents 40% of the £600m the Government has promised to the scheme.

After passing the Climate Change Act 2008, the GIB was set up in 2012 to generate funding for private sector improvements relating to lowering carbon emissions and generally improving energy efficiency. The GIB will loan the funding to the Government. Interest will be repaid via the Green Deal scheme.

The Green Deal offers householders access to an upfront loan or grant to pay for energy-efficiency improvements to their property.

The scheme requires the householder to first undergo an assessment to determine which improvements should be made. The list of 45 improvements covered under the scheme includes Cavity Wall Insulation and Solid Wall Insulation.

Following assessment, the householder signs a contract with an accredited Green Deal Provider. The provider then undertakes the necessary home improvements, receiving payment from the GDFC. The householder repays the loan amount via their electricity bill.

It has been reported that more than 1,800 assessments were carried out in the first month the scheme was active. However, a lack of funding meant that deals were left pending until the Government could issue payment to providers.

The agreement between the GDFC and GIB now means that Green Deal contracts can be drawn up and work completed.

The Government will now look to continue to push awareness of the scheme as it looks to lend to more than 75% of the country, whilst creating a host of new jobs in the process.

The big selling point for the scheme is the potential savings on offer. Those applying Cavity Wall Insulation to their property can save up to £140 per year on their fuel bills. Loft insulation can save up to £180 per annum, while Solid Wall Insulation offers the potential to limit the most energy loss of all measures.

With the money now in the coffers, householders across the UK can prepare to make savings.

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