Green loans will help people improve their homes

March 10th 2010

Last week, the Energy and Climate Change Minister Ed Miliband announced the launch of a new scheme offering “green loans", which will help people improve the environmental credentials of their houses.

The pilot scheme has been taking place in Sutton, Birmingham, Stroud and Sunderland in an attempt to remove financial barriers that people face when trying to improve the energy efficiency of their homes. The money will be made available for improvements including the installation of solar panels and the improvement of insulation.

The scheme is interesting as it attaches the loan to the house itself, rather than to the people who own it at the time it is taken out. As a result, it doesn't matter if people have not have paid it off by the time they move.

Some 500 homes have trialled the scheme, which involves home owners paying back small amounts over a long period of time, which will enable them to enjoy the reductions in their energy bills while they live in their home. The final scheme will also offer the option of paying some of the upfront costs of the installation and materials.