"Green loans" to make homes more energy efficient

Published 03rd Mar 2010

The Government has announced the details of a scheme to help homeowners reduce the environmental impact of their properties


Homeowners will be offered "green loans" to cover the cost of making their properties more energy efficient, under plans unveiled by the Government today.

The cash can be used to buy solar panels or other technology to generate electricity, spreading the upfront cost over a number of years. Households can also use the money to better insulate their property, cutting energy bills.

Some six million homes will be insulated by 2011 under the Green Strategy claimed Ed Miliband, the Energy Secretary. All lofts and cavity walls, where it is practical to do so, will be insulated by 2015 and seven million “eco-upgrades” will be offered to householders by 2020.

The scheme forms part of a strategy to cut greenhouse gas emissions from housing by 29 per cent by 2020, and the Government claims it will also reduce energy bills for householders and boost jobs. Installing some measures such as solid wall insulation could cut energy bills by an average of £380 a year.

Under the Pay as You Save scheme, loans will be tied to a particular house, rather than an individual, and stretched out over a long period of time so that the reduction in energy bills outweighs the size of the loan repayments.

Barry Hall, a spokesman for the Royal Institution of Chartered Surveyors, said: "It is imperative that information provided to consumers on the true costs of installation, expected lifetime, anticipated maintenance costs and savings achieved, together with the impact on property value, are clear, impartial and objective.

"For consumers to buy into such measures, they must have confidence in the advice, the products, their installation, and the supporting financial information provided."

All homes will have smart meters by the end of the decade and all social tenants will receive free energy upgrades on their homes from power companies - which could see bills cut by £300 a year.

Source: ' Times '

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