Home owners will be helped to pay for energy efficiency improvements to their houses thanks to a loans scheme from the government.
The loans on offer will be attached homes. Without this move, householders may not have long enough to pay back the money before they move house.
Details of the “green loans” scheme are due to be announced by energy and climate change secretary Ed Miliband. It has been specified that the loans in the project will be attached to the house where insulation, solar panels or other green technology was installed, with the aim of overcoming the financial barriers and upfront costs the householders meet when they are trying to make their homes more eco-friendly.
Around 500 homes in Birmingham, Sunderland, the London borough of Sutton and Stroud have been testing out a £4M pilot for the Pay As You Save programme.
In the pilot scheme, homeowners are making repayments for the green technology over a long enough period so payments are lower than the predicted savings on energy bills, though the financial packages also include options in which they pay some of the upfront costs.
The whole house energy makeovers, which the Government wants to roll out to improve the energy efficiency of the UK’s 22 million existing homes, will provide a range of technologies including insulation and small-scale renewable energy devices such as solar panels or ground source heat pumps to provide energy.