The Government today (19th October) has announced a scheme that will help banks, building societies and wider financial institutions create ‘Green Finance’ products for homeowners, specifically aimed at people looking to improve the energy efficiency of their properties.
Up to £20million is being made available for lenders and other organisations, through the Green Home Finance Accelerator (GHFA) , designed to stimulate upfront and affordable finance for carbon reduction measures, such as insulation.
This initiative is part of wider efforts to ensure as many homes as possible get to Energy Performance Certificate (EPC) Band C by 2035.
Nearly 66% of owner occupied homes are currently below and EPC C rating. Getting these properties up to standard involves a mix of properly installed energy efficiency measures , ranging from small changes such as LED lighting or heating controls, to cavity wall and loft insulation.
All of the changes together could cost an average £6,500, which many households would struggle to afford in one lump sum. With the introduction of affordable finance products, it is hope that more people can easily access these measures and benefit from savings of hundreds of pounds per year on their energy bills.
Minister for Business, Energy & Corporate Responsibility, Lord Callanan has said “Todays funding will give more companies in the financial sector the opportunity to create and offer these products , and in doing so help households reap the benefits of both investment to their properties and in the savings, they can make on their energy bills”
Apart from reducing fuel bills, according to a recent pricing study conducted by The Department for Business, Energy & Industrial Strategy (BEIS), properties at EPC band C can be worth 5% more than those at D.
The GHFA is now accepting applications from businesses looking to offer ‘Green Finance Products’ The whole scheme is funded through the £1bn BEIS Net Zero Innovation Portfolio.
For more information on the scheme click here