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£200 million funding injection into Green Deal

Posted by Chloe Bennett on 24th November 2011

Today our ambitious government have announced a new funding scheme to help encourage the UK’s householder into making their home more energy efficient.

This scheme, called the Green Deal, will kick off in October 2012 with 200 million pounds worth of incentives to encourage homeowners to take out loans and invest in energy saving measures. The ‘golden rule’ is that the homeowner’s savings will be greater than the loan repayments.

The £200 million funding from the Treasury could be worth hundreds to those that take up the deal in the first year however how this incentive is actually being delivered is yet to                                                                                  be announced.  Discounts on council tax and cash back offers                                                                                  are amongst the few that have been mentioned at present.

This announcement also combined details of the eagerly awaited Renewable Heat Incentive (RHI) which will officially start next week. The launch of the first phase of the scheme was delayed due to EU state aid appeal but is now back on track and open for business. The RHI itself is an incentive scheme similar to the Solar PV Feed in Tariff (FIT), which was launched back in April 2010, where financial support is provided to individuals, communities and business for switching from using traditional fossil fuels for heating to renewable courses such as wood pellets using biomass boilers and water fuel using solar thermal technology.

Although it is obviously good news that the government are still investing big bucks into this industry, those that have been affected by the recent FIT cuts might be cautious of this new funding announcement. However there is one thing we can be sure of; where there are incentives there will be demand, when there is sufficient demand there may be revisions so it’s always best to get in first.


Categories: green deal, decc, government, solar pv