The Green Deal Finance Company has confirmed that it has secured the funding needed for Green Deal Plans to start being offered immediately. The agreement signed on the 12th of March by 16 stakeholders (including the Big Six energy firms) as well as DECC and the UK Green Investment Bank released funding of £244 million which will allow registered Green Deal Providers to start agreeing Green Deal Plans with the first of over 9,000 customers to have had a Green Deal Assessment carried out since the scheme started. It’s projected that around £3 billion of funding will be needed to meet total Green Deal demand, and the Green Deal Finance Company is negotiating with the European Investment Bank to secure further funding towards this target.
The way that the Green Deal works is that each customer must have a Green Deal Assessment carried out by a qualified Green Deal Advisor. This Assessment suggests energy saving improvements that will pay for themselves in savings, making the loan worthwhile. Customers can then take their Assessment to Providers to agree the financial terms for the Green Deal loans on their improvements, also known as their Green Deal Plan. For more information on the Green Deal scheme, visit our Green Deal pages. Until now, Providers had not been able to arrange Plans with customers because the investment needed to provide the Green Deal loans had not been secured by the Green Deal Finance Company, which controls this aspect of the scheme.
The funding will come as welcome news to customers and industry alike, as the recent upsurge in Green Deal assessments has meant that many people have had an assessment but have had no way of progressing their Green Deal journey further. Mark Bayley, Chief Executive of the Green Deal Finance Company, said on the 11th April that the first Green Deal Plan was ‘Good to go’ and that two more were in the process of being confirmed.
Because the funding for the Plans is now in place, the initial interest rate for the Green Deal loans can also be confirmed –a rate of 6.9% will be offered on all Plans for the first year. Set up and early repayment feeds are likely to vary between Providers however, and shopping around will be the best way to get a great deal. You can compare Green Deal Advisers in your area quickly and easily by visiting our Green Deal directory.