London, England, United Kingdom (AHN) - British Energy and Climate Change Secretary Ed Miliband rolled out on Tuesday a green loans scheme to help Britons fund energy efficient improvements to their residences.
Under the scheme, loans would remain attached to the units where insulation, solar panels or other energy efficient technologies were installed. The government established the green loans after studies showed that Britons moved houses every nine to 12 years, and it is not long enough for people to pay back the loan to make their units energy efficient before they transfer homes again.
The Energy and Climate Change Department have actually pilot tested the Pay As You Save program, which had an initial fund of $5.97 million (4 million pounds). The pilot program covered 500 homes in Birmingham, Sunderland, Stroud and Sutton.
By stretching the loan repayment period over a longer time, savings on energy are expected to exceed repayment costs.
The green loans are part of the government's Warm Homes, Green Homes program, under the Household Energy Management Strategy. The aim of the strategy is to have all households installed with loft and cavity wall insulation - if it is practical to do so - by 2015 to help cut by 29 percent Britain's non-traded carbon emissions from its household sector.