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The Green Building Council proposes £10k loans for energy efficiency improvements

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Homeowners could have access to as much as £10,000 financing to green their homes under proposals put forward by the UK Green Building Council (UK GBC).

The UK GBC has proposed that the funding be loaned to home owners and landlords for energy efficiency measures such as solid-wall insulation and A-rated boilers. The money would then be repaid over time to the individual’s local authority.

The UK GBC has published its proposals to complement the government’s ‘Pay as you Save’ scheme which aims to help 7 million homes with “green makeovers.”

The UK GBC says its proposals are the most comprehensive analysis to date of how a Pay as you Save scheme could be practically implemented in the UK.

According to the UK GBC’s recommendations and findings:

  • up to £5bn of capital could be sourced from the private sector every year for investment in greening the UK’s existing housing stock. This money should be held by a third –party finance body underwritten by Government in order to keep interest rates low for householders.
  • A range of properly accredited ‘Low Energy Refurbishment Providers’, such as high street retailers, energy companies or builders, should be able to access this finance – up to £10,000 per household - and in turn offer the Pay As You Save proposition to the householder.
  • Primary legislation would be required to enable the local authority to create a Pay As You Save ‘Local Land Charge’ via which the money is repaid. The Charge attaches to the property and not to the owner and it does not appear on the title of the property at the Land Registry. Instead, it is kept on the Local Authority Register of Local Land Charges and in effect is ‘passed on’ to future owners until the charge expires after 25 years.
  • The local authority maintains a schedule of payments to be made for each property, issuing the PAYS charge monthly. Debt risk is managed by the local authority, with some debt risk potentially mitigated by a level of support from the government.

Paul King, chief executive of the UK GBC, said: “This innovative proposal would provide the finance to trigger a revolution in household refurbishment, creating thousands of new jobs and significantly cutting carbon emissions. Both Government and opposition parties have voiced their support for the principles of a scheme like this – what’s needed is to get on with it.”


  • Pilot Tidal Energy Scheme for North Wales Coast


    Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.

    The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.

    The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.

    Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.

    The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.

     
  • Micro-generation forms key part of Government's vision.


    Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.

    The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.

    The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.

    Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.

    “By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”

    More information can be found on the Microgeneration Strategy consultation web page

     
  • Green policies could hit UK manufacturing hardest.


    A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.

    The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.

    Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.

    The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.

    Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."

     
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