Gives homeowners the opportunity to minimise the up-front cost of installing energy efficient home improvements

 

Welcome to the Green Deal Finance Company

The Green Deal Finance Company's main activity now is ensuring that the systems it established around the sale of Green Deal Plans continues to run smoothly for the benefit of customers and investors. Although new plans are no longer being sold, existing customers should be assured that they will continue to benefit from the energy efficiency measures installed, their payments through the Pay As You Save system remain unchanged and that they continue to contribute to reduced CO2 emissions. The Green Deal Finance Company announced on 23rd July that it was no longer accepting applications for new Green Deal Plans. The decision was taken in response to the review by Department of Energy and Climate Change of energy efficiency policy and the subsequent decision not to increase the size of the current commercial loan between GDFC and DECC.

In 2012 the Green Deal Finance Company established a nationwide Pay-As-You-Save (PAYS) infrastructure. Since establishing this infrastructure it set up 13,800 Green Deal finance plans worth nearly £50m for households across the U.K. (excluding Northern Ireland).

As a not-for-profit company, the GDFC made use of the low default rate of payment of electricity bills to offer Green Deal finance for home energy efficiency measures with a high level of financial inclusivity. Over 80% of the adult population satisfied the credit threshold and all successful applicants for finance were offered the same interest rate and terms.

As a result of its policies, Green Deal Finance could be offered to the great majority of consumers who had less than prime credit scores giving them more competitive borrowing rates than conventional consumer finance. Green Deal Finance was were available to 30% of the U.K. adult population that otherwise could not have accessed credit on reasonable terms, if at all. The GDFC therefore created a new and competitive form of lending for home energy efficiency which achieved a high level of financial inclusion.

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