On 1st May 2012 E3G formally became a member of the Green Deal Finance Company (TGDFC) − a mutual organisation whose purpose is to provide cost-effective finance to back the UK Government’s Green Deal initiative.
Ingrid Holmes, Programme Leader, Low Carbon Finance said today: “We are hugely supportive of the Green Deal Finance Company’s mission, and look forward to working with the membership to develop workable low cost financing solutions for consumers."
The Green Deal Finance Company is a private sector initiative resulting from ongoing engagement with DECC on the development of the Green Deal initiative. In Summer 2011 an industry-led consortium consisting of British Gas, Carillion, Clifford Chance, E.ON, EDF Energy, Goldman Sachs, HSBC, Insta Group, Kingfisher, Linklaters, Lloyds Bank Corporate Markets, Mark Group, npower, PwC, RBC Capital Markets and SSE came together to investigate the best value option for financing the Green Deal for consumers. Together they developed a Business Plan for TGDFC to finance the Green Deal. The consortium stakeholders, together with Gentoo, Knauf Insulation, Scottish Power, Willmott Dixon, Newcastle City Council and Norfolk County Council have since incorporated TGDFC.
E3G has joined as part of the latest Membership intake.
• The success of the Green Deal requires the underlying cost of finance to be as low as possible. Low cost finance will support the delivery of Golden Rule compliant Green Deals by maximising the number of energy efficient measures included and minimising the level of Energy Company Obligation (ECO) subsidy required (the cost of which will be socialised across all energy bill payers). On average, for every 1% increase in the cost of finance, energy efficiency measures will have to reduce fuel bills by a further 7% to meet the Golden Rule.
• The Founding Members believe that TGDFC, as a collaborative, market driven vehicle to underpin the financing and administration of Green Deal Plans, will be able to achieve the highest possible credit ratings compatible with the Green Deal and corresponding low cost of finance by aggregating loans on a national basis. The principles behind the establishment of TGDFC are that it will offer:
o Membership which is generally open to all market participants;
o Financing provision to all accredited Green Deal Providers;
o Funding for Green Deal plans to be generally available to domestic and non-domestic energy consumers in the UK.