Insulation manufacturer Knauf Insulation has joined with B&Q parent company Kingfisher and several energy providers and County Councils to form the not-for-profit organisation, The Green Deal Finance Company Limited.
TGDFC has been working closely with DECC – and through them the Green Investment Bank and the European Investment Bank (EIB) – as well as with a wide range of local authorities with a view to maximising its assistance to the Green Deal market.
By operating at a national level, TGDFC intends to minimise the operating and administration costs of the Green Deal and will aim to access the cheapest sources of finance in the market at the highest possible credit rating.
Steven Heath, External Affairs Director for Northern Europe at Knauf Insulation, says: “TGDFC represents a vital piece of the new Green Deal landscape and Knauf Insulation is happy to play its part in TGDFC’s incorporation, helping to minimise the cost of finance to all future accredited Green Deal providers.
“The Green Deal has the potential to radically transform the UK’s housing stock, enabling homeowners to install energy efficiency measures with no up front cost – which is currently a big hurdle for many struggling householders. However, if loans are not set at affordable interest rates from the beginning, it will be more difficult to meet the Golden Rule.”
“With a national aggregator now in place in the form of the TGDFC, there is a good chance that manageable interest rates for home energy efficiency improvements will be available from the early days of the scheme.
“However, the finance agreements are just one aspect that needs to be in place to ensure the Green Deal’s short and medium term success. We believe that fabric improvements are vital if better heating systems and renewables are to be effective, but a balance needs to be struck between solid wall and other insulation upgrades.”