Birmingham to pioneer financing of home energy makeovers

By on 07/12/2009 in News

Around 100 homes in Birmingham will be testing out new ways to finance whole house energy makeovers under the Government's Pay As You Save scheme.

Following an open competition, Birmingham City Council has been chosen to deliver one of the first ever UK trials.

The Home Energy Pay As You Save pilots will give households the opportunity to invest in energy efficiency and microgeneration technologies in their homes with no upfront cost.  Householders will make repayments spread over a long enough period so that repayments are lower than their predicted energy bill savings, meaning financial and carbon savings are made from day one.

The Government is putting £4million forward to fund the trial. A total of around 500 homes across England will take part providing evidence of how to foot the bill for the Great British Refurb - the Government's plan to make the 22 million existing homes in the UK more energy efficient.

Energy and Climate Change Secretary Ed Miliband said:“People in Birmingham will be testing out on behalf of the nation how we can finance the more expensive home energy refurbishments.

“Many householders want to reduce their emissions from their homes, but are put off by the upfront cost of installing insulation, solar panels or ground source heat pumps. Pay As You Save will trial different ways of paying for this work so it's affordable.

“Increasing the energy efficiency of homes not only helps reduce emissions, but will also help reduce fuel bills. One quarter of the UK's total emissions come from homes, so householders represent a key part of the solution to tackling climate change in the UK. Such strong domestic action shows leadership on an international stage as we enter the global climate talks in Copenhagen this week.”

Cllr John Lines, Cabinet Member for Housing at Birmingham City Council, said:
“We are delighted that the Government has recognised the excellent work that has been carried out in the city to find innovative ways of improving our housing stock.

“This project will not only improve housing, it will ultimately save our people money on their fuel bills, which means it is a real win-win for Birmingham.

“It also helps us build on the Birmingham Declaration on climate change that the council just agreed as a way to improve the city’s sustainability in the future.”

DECC is keen to learn whether the PAYS scheme is attractive to consumers and how, in the medium term, it could be a method for enabling more householders to invest in the energy efficiency of their homes.

Notes to editors:

1.   The PAYS pilot will run until April 2011.

2.   A total of £4m in funding has been awarded from DECC to pay for the pilots.

3.   The pilot is managed by the Energy Saving Trust. Four other partners will run separate pilots. They are British Gas, Stroud District Council, B&Q UK in London and Gentoo Group Ltd in Sunderland.

4.   Birmingham City Council

Birmingham City Council's activity will form part of the £35m Green New Deal (GND) project. For the PAYS project householders will receive whole house assessments. The project will be delivered in partnership with Birmingham Credit Unions which will manage the repayment process. The project will seek to co-ordinate other regional or local funding on behalf of householders.

For more details contact Kris Kowalewski on 0121 303 3621

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There Are 2 Brilliant Comments

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  1. Many people like myself have searched for several years to find a cheap affordable solution using solar panels for your residential home. Unfortunately the cost has always outweighed the benefit of being off grid. The upfront capital investment in solar panels would take 20 years to succesfully pay off and maybe more. Deep cycle batteries …

  2. lee says:

    “Pay as you save” a great scheme which allows for energy management technploagy to be installed without impeding company cash flow.