Contractors sign-up to tackle Green Deal interest rate

25th October, 2013

Carillion and Keepmoat among 17 firms working on ways to remove finance as a barrier to taking-up the scheme

Contractors Carillion, Keepmoat and Willmott Dixon are among 17 firms appointed to a task group to investigate ways to tackle the high interest rate of the Green Deal.

The base interest rate for Green Deal loans from the Green Deal finance company is 6.96%, but when all costs are included this rises to between 8% and 10%.

The interest rate has been criticised as being a barrier to consumers taking up the scheme and making it less competitive than alternative finance options.

The rate, which is fixed for the duration of the loan, is considered quite competitive for an unsecured fixed loan, but many homeowners can get lower rates through their mortgage lender.

A lower interest rate would allow a home to receive more measures under the Green Deal’s golden rule, which states the savings on the consumers energy bills should be more than the cost of repaying the loan.

The task group, convened by the UK Green Building Council, is set to make recommendations in January for ways to reduce the rate and improve communication about the interest rate to the public.

Christoph Harwood, partner at Marksman Consulting LLP and chair of the task group, said the it aimed to “help policy makers understand their options”. 

He added: “We are unlikely to come out with a silver bullet solution but what I hope we can do is inform the debate.”

Richard Twinn, policy and public affairs officer at UK-GBC, said the cost of finance had been “repeatedly blamed” for the slow up-take of the Green Deal.

He added: “It is essential that we now shift the debate onto finding solutions so that we can make the Green Deal a success.”

Task group membership

·         Adca Investments

·         Bank of America Merrill Lynch

·         Behaviour Change

·         Carillion

·         Consumer Futures

·         E.ON Energy Services

·         Ecology Building Society

·         Energy Saving Trust

·         Forum for the Future

·         Gentoo

·         Keepmoat

·         Marksman Consulting LLP

·         Saint-Gobain

·         Travis Perkins

·         Verco

·         Willmott Dixon

·         The Green Deal Finance Company

Source: Building.co.uk

Energy Saving Trust will be exhibiting and hosting a workshop at Retro Expo on 05/06 December at the Business Design Centre, London alongside Travis Perkins and Willmott Dixon. To register FREE for Retro Expo, CLICK HERE.

05 December will also play host to the Retrofit Summit - where David Adams, Technical Director of Willmott Dixon will undergo a panel discussion on the future of ECO. To view the full speaker programme or book tickets to the Retrofit Summit, CLICK HERE.

The evening of the 05 December will play host to the Retro Expo Awards ceremony, where E.ON are sponsoring the Large Scale Retrofit Project of the Year award. To book tickets for the Retro Expo Awards ceremony, CLICK HERE.

The Retrofit London conference will take place alongside Retro Expo on 06 December, where Christoph Harwood, Partner of Marksman Consulting LLP will be discussing the Green Deal for homes and businesses. To book tickets for the Retrofit London event, CLICK HERE.

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