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Green Deal reaches 10,000 finance plans

The number of households making energy efficiency improvements with Green Deal finance plans has now reached 10,000, after a sixfold increase in applications since January 2014.

The number of households making energy efficiency improvements with Green Deal finance plans has now reached 10,000, after a sixfold increase in applications since January 2014.

The new statistics, published by the government-backed Green Deal Finance Company (GDFC), shows that it is now financing 10,050 Green Deal plans, with over 500 households requesting Green Deal plans every week. 

The pay-as-you-save finance scheme allows households to pay for energy efficiency improvements through their resulting energy bill savings.

The achievement is welcome news for the national Green Deal scheme, which has been subject to criticism after slow uptake and stop-start funding since its launch in 2013. Ministers originally expected the scheme to deliver 10,000 plans in its first year. 

‘Gaining traction’ 

Mark Bayley, chief executive at the GDFC, said: “The GDFC is now on a consistent and strong upward trajectory and is beginning to gain traction, with more than £35.5 million worth of ongoing Green Deal finance plans.

“This time last year we had £6.5 million worth of applications. We can see strong and consistent growth."

Cash incentives

A key boost for the scheme has been the popular Green Deal Home Improvement Fund (GDHIF) initiative, which offers cash vouchers to households installing certain energy efficiency measures. 

The two rounds of GDHIF funding that have taken place to date were both largely closed shortly after launching due to high demand. 

The government has recently announced that the deadline to cash in on vouchers awarded during the first wave of GDHIF funding has been extended to 31 March to help maximise uptake. 

Supply chain growth

The growth in Green Deal plans has been mirrored by a consistent rise in the number of Green Deal Providers - companies that provide finance for plans following a Green Deal assessment of a property. 

48 companies are currently in the process of becoming Green Deal Providers, on top of the 63 that are already accredited.  

“We have proven to be one of the constants in the life of a Green Deal Provider through the provision of our trading finance”, said Bayley.

“Our finance is making the GDFC a strong and constant support for SME business growth in the energy efficient market.”