SBS has joined a new task force, established by the UK Green Build Council, which is examining ways to reduce the current interest rate for the green deal.
The interest rate charged on domestic Green Deal plans has come under widespread criticism. The current rate being offered by the Green Deal Finance Company is 6.96 per cent, with the APR for Green Deal Plans ranging from 7.9 per cent to 10.3 per cent. Although these rates are competitive for long-term fixed rate lending, they have been highlighted as a potential barrier to households taking out Green Deal Finance.
Reducing the interest rate could allow more measures to meet the scheme’s Golden Rule principle and potentially reduce the need for customers to make any upfront payments.
The Task Group will also investigate the way Green Deal Finance is communicated to the public.
Christoph Harwood, Partner at Marksman Consulting LLP and Chair of the Task Group, said: “We aim to take a practical view on Green Deal interest rates and help policy makers understand their options. We are unlikely to come out with a silver bullet solution but what I hope we can do is inform the debate.”
Richard Twinn, Policy and Public Affairs Officer at UK-GBC, said: “It is no secret that the Green Deal has got off to a slow start, with the cost of finance repeatedly blamed.
“It is essential that we now shift the debate onto finding solutions so that we can make the Green Deal a success.”