BEIS seeks views on green homes finance initiative

BEIS seeks views on green homes finance initiative



The government has stepped up its plans to help homeowners improve the energy efficiency of their homes with a pilot project which aims to attract private investment to decarbonising homes.

The Department for Business, Energy and Industrial Strategy (BEIS), the Carbon Trust and PwC are hosting a market engagement event to hear industry views on the forthcoming Green Home Finance Accelerator (GHFA) scheme, which is to launch this autumn.

The accelerator aims to help “reduce consumer barriers to finance domestic low carbon heating and energy efficiency measures” by making it easier for high street banks to support people looking to improve the efficiency of their homes.

It will also look to bring private funding into home insulation, low-carbon heating such as air-source heat pumps, and other initiatives such as solar power for domestic homes.  Many homeowners are currently discouraged from making home energy improvements due to high insulation costs.

The GHFA aims to pilot a range of financial incentives for high street banks to help pay for home energy improvements. Banks will initially be given £20m of grant funding to launch the pilot schemes.

The project forms part of a £1bn net-zero innovation portfolio backed by BEIS. It notes that the cost of ensuring all homes meet the Energy Performance Certificate (EPC) rating of C or above by 2035 would cost around £65bn.

The GHFA aims to pilot a range of financial incentives for high street banks to help pay for home energy improvements. Banks will initially be given a £20m of grant funding to launch the pilot financial schemes. 

In recent years, a number of initiatives  to improve the energy efficiency of homes have failed. Last year, MPs slammed the government’s green-homes grant scheme as damaging to the net-zero agenda. 

The now-scrapped scheme aimed to give homeowners vouchers to apply for a range of grants to improve their homes. Only 47,500 homes were upgraded out of a target of 600,000 properties.

Meanwhile, the initiative delivered only a fraction of the jobs that were expected and accounted for £314m of the original £1.5bn budget, according to parliament’s public accounts committee.

The engagement event for the GHFA is to be held on 20 July.




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