Government to launch green energy loans
The government has launched a scheme to encourage homeowners to make their homes both warmer and more energy efficient.
Citywire reports that plans announced by Energy Secretary, Ed Mililband, hope to generate a reduction of 29% in UK household carbon emissions by 2020. As well as reducing carbon footprint, the scheme will help make homes warmer and enhance the value of a property by reducing its annual energy bills.
The scheme will allow homeowners to borrow money over a 30 year period to help spread the cost of making their home more eco friendly. The 'pay as you save' initiative means homeowners will be able to implement eco-home improvements such as solid wall insulation and gradually pay the cost back through their standard energy bills.
The Department of Energy and Climate Change has announced that on average, £380 can be saved in energy bills per annum, per household by utilising green technologies such as wall insulation and upgrading current heating systems.
Under the regulations of the scheme, any 'green debt' will be passed on with the home, not with the borrower, so homeowners will not have to keep borrowing more money if they decide to upgrade to another house.
The government hopes that the new scheme will create up to 65,000 green construction jobs in the housing industry, with pilot schemes in Birmingham, Sunderland, Sutton and Stroud, already implementing plans.
Answering critics who are worried about the levels of debt being sold on with homes, Mr Miliband stated on BBC News: ''You'll find that the energy bills are significantly lower so, say you'll be having a few hundred pounds off your energy bills and offsetting that, you'll have a couple of hundred pounds in payments.''
Miliband concluded his argument by commenting: ''So you'll think, well I'm actually better off, because this house has significantly lower energy bills, although its got this repayment built into it.''
Author: Sarah Howard
Keywords: construction jobs