Integrated energy company E.ON and BNP Paribas Personal Finance are piloting a new energy efficiency financing scheme for UK consumers.
The aim is to make energy efficiency makeovers more accessible to all UK consumers.
Around 19 million UK households, 71% of the 27 million homes in the country, are not retrofitted with energy optimisation technologies in line with the Energy Performance Certificate Band C rating.
This means these households are missing out on energy savings of up to £380 a year
The pilot is part of the Energy Efficient Mortgage Action Plan initiative and is expected to help the UK government achieve its Clean Growth Strategy to improve consumer efficiency and reducing energy costs and carbon emissions.
BNP Paribas Personal Finance will provide consumers with loans to implement energy efficiency plans whilst E.ON will provide a managed service to install, operate and maintain appropriate energy efficiency solutions.
Consumers will have access to the solutions at discounted prices.
Michael Lewis, chief executive, E.ON UK, said: “We need to find ways to radically increase interest and action on energy efficiency in homes, but property owners often face a significant financing barrier when wishing to do so. In the UK, attempts have been made in the past to tackle this barrier through schemes like the Green Deal, but they have not been successful, in part because they weren’t designed with the customer front and centre.
“Green mortgages have the potential to be a game changer in the delivery of affordable finance and we are ready to meet the challenge for home-owners motivated to take the step into energy efficient living.”
The loans will fund technologies such as buildings insulation, heating systems or increase their energy independence through solar panels, batteries or virtual storage.
Energy efficiency and smart grid funding is a key track at the upcoming European Utility Week to be held 6-8 November in Vienna, Austria. Click here for more information and to register.