# Energy efficiency investments made easy with relaunch of the Green Deal Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-20 Category: LIFESTYLE Category URL: https://financedigest.com/category/lifestyle Meta Title: Why Homeowners and Landlords are Investing in Energy Efficiency Meta Description: The Green Deal Finance Company offers accessible loans to improve homes with energy efficiency products, paid back through energy savings. Start investing in a Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/energy-efficiency-investments-made-easy-with-relaunch-of-the-green-dealhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/0o1a2449-632-1736843684555-compressed.jpg) The Green Deal Finance Company (“GDFC”) is a consumer finance company focused on providing customers with accessible loans to improve their homes by installing energy efficiency products. Loans are paid back through the energy savings generated and provide a fixed interest rate over the lifetime of the finance plan. Repayments are collected via the consumer’s energy bill and the loan is attached to the property, not the individual, meaning consumers do not have to worry that they will be left with a loan to repay if they leave the property. The GDFC [recently commenced financing of loans to allow consumers to retrofit their homes and improve](https://www.financedigest.com/polypropylene-fibre-market-witness-a-spike-in-growth-pace-recent-improvements-in-pricing-models-fmi.html "Polypropylene Fibre Market Witness a Spike in Growth Pace Recent Improvements in Pricing Models: FMI") their quality of living. _Why homeowners and landlords are investing in energy efficiency_ ![Kilian Pender](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/kilian-pender1-1736843684536-compressed.jpg) Kilian Pender There is a [huge environmental impetus when it comes to investing](https://www.financedigest.com/impact-com-announces-huge-investment-in-workforce-with-raft-of-new-hires-globally.html "impact.com announces huge investment in workforce with raft of new hires globally") in energy efficiency in the home. In the UK, 27m homes are responsible for 25% of the UK’s CO2 emissions, and the UK has one of the oldest and most energy-inefficient housing [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") in Europe (ranking 14 out or 16). The UK Energy Act of 2011 stipulates reducing [carbon emissions](https://www.financedigest.com/greenpeace-germany-sues-volkswagen-over-carbon-emissions-targets.html "Greenpeace Germany sues Volkswagen over carbon emissions targets") by 35% by 2020 and 50% by 2025 (compared to 1990 levels). Consumers may not feel directly responsible for the achievement of this goal, but the reality is that the level of pollution in UK cities is spiraling out of control much to the detriment of its inhabitants; [recent studies](https://www.financedigest.com/silicon-capacitors-market-to-garner-us-3100-million-by-2027-at-8-cagr-recent-study-by-tmr.html "Silicon Capacitors Market to Garner US$ 3,100 million by 2027 at 8% CAGR – Recent study by TMR") have indicated air pollution shortens the lives of about 40,000 people a year in the UK. However, whilst helping the environment is often not a strong enough incentive for many people to make the financial commitment of upgrading their property, investment in [energy efficiency measures](https://www.financedigest.com/eu-countries-eye-deal-on-more-energy-measures-within-weeks.html "EU countries eye deal on more energy measures within weeks") amongst both homeowners and [landlords](https://www.financedigest.com/property-letting-could-become-a-legal-minefield.html) looks to be on the increase for a number of reasons. Firstly, from the perspective of the homeowner, sometimes such investments are unavoidable. If a boiler breaks and needs to be replaced, [investing in a new product](https://www.financedigest.com/what-are-the-top-luxury-products-to-invest-in-for-2021.html "What are the top luxury products to invest in for 2021?") is a necessity rather than a choice.In addition, slower capital [growth and high moving costs mean that home improvements are becoming increasingly attractive as a means of investing in and adding value](https://www.financedigest.com/forestry-machinery-market-to-increase-value-growth-at-4-7-cagr-during-2021-to-2031persistence-market-research.html "Forestry Machinery Market To Increase Value Growth At 4.7% CAGR During 2021 to 2031:Persistence Market Research") to a property. Furthermore, according to the Committee on Climate Change (CCC), while low carbon policies added around £9 a month to an average household [energy bill](https://www.financedigest.com/uk-government-to-cap-energy-bills-for-businesses-bloomberg.html "UK government to cap energy bills for businesses – Bloomberg") in 2016, it was offset by a reduction of more than £20 per month as a result of energy efficient measures – saving around £290 per year.So installing home improvements has a positive effect on [energy bills](https://www.financedigest.com/explainer-why-europe-faces-climbing-energy-bills.html "Explainer-Why Europe faces climbing energy bills") in the longer term. [Landlords](https://www.financedigest.com/property-letting-could-become-a-legal-minefield.html) have an additional incentive; they must comply with the Minimum Energy Efficiency Standard (MEES) Regulations, effective from April 2018, which require landlords to ensure their properties have an EPC of at least E. _Offering consumers a financing lifeline_ According to the Office of National Statistics, around 50% of [homes in the UK have less than £1,700 savings](https://www.financedigest.com/greek-villagers-try-to-save-homes-as-wildfires-burn-for-eighth-day.html "Greek villagers try to save homes as wildfires burn for eighth day"), meaning they are unable to [finance](https://www.financedigest.com/) energy efficient measures themselves. Most homeowners also do not have access to subsidies to pay for home-improvements – 47% of homeowners from a recent YouGov survey cited lack of available [funds as the main issue holding them back](https://www.financedigest.com/norway-sovereign-fund-backs-teck-resources-in-battle-with-glencore.html "Norway sovereign fund backs Teck Resources in battle with Glencore") from carrying out improvements. The requirement for customers to fund a significant upfront portion of the cost of these measures [reduces](https://www.financedigest.com/white-bullets-collaboration-with-polands-sygnal-association-significantly-reduces-ad-funded-piracy-in-key-european-market.html "White Bullet’s collaboration with Poland’s Sygnał Association significantly reduces ad-funded piracy in key European market") their ability and interest to fund these measures, and represents a lost opportunity to upgrade the quality of the housing stock and reduce carbon emissions. When it comes to landlords, Paragon’s “ _18 years of buy-to-let_” report, released in 2014, suggested that 89% of UK landlords are private individuals. In the same year, Countrywide reported that 93% of its landlords have just one rental property. Further, there are many “accidental” landlords in this country, for example individuals who inherit property after a death, or a spouse who moves into their partner’s home and is left with an empty property. So whilst landlords might be subject to stricter [rules requiring them to upgrade their housing stock](https://www.financedigest.com/stocks-advance-u-s-dollar-retreats-as-china-drops-quarantine-rule.html "Stocks advance, U.S. dollar retreats as China drops quarantine rule"), the reality is that a large proportion of them will have to dig deep into their savings in order to do so. Fortunately, the [Green Deal](https://www.financedigest.com/spains-cepsa-signs-green-hydrogen-shipping-deal-with-rotterdam-port.html "Spain’s Cepsa signs green hydrogen shipping deal with Rotterdam port") – originally the UK government’s flagship energy efficiency scheme – has relaunched following the acquisition of the GDFC in January 2017 by Greenstone [Finance,](https://www.financedigest.com/) Aurium Capital Markets and Honeycomb Investment Trust. Taking out a Green Deal loans is just one way in which consumers can take a step towards reducing their [carbon footprint](https://www.financedigest.com/good-loop-adopts-seenthis-streaming-technology-to-minimise-carbon-footprint-of-its-purpose-led-ad-units.html "Good-Loop adopts SeenThis’ streaming technology to minimise carbon footprint of its purpose-led Ad units") and being smarter when it comes to energy usage. The roll out of smart [meters and the availability of products](https://www.financedigest.com/ph-meter-market-regional-industry-segmentation-analysis-by-production-consumption-revenue-and-growth-rate-by-2027.html "pH Meter Market Regional Industry Segmentation, Analysis by Production, Consumption, Revenue and Growth Rate by 2027") such as Hive contribute by giving people vastly improved visibility over how they use energy in their home. In addition, the GDFC is giving small investors the opportunity to embrace energy efficiency as the new green investment of choice, having taken to crowdfunding platform Abundance ( [www.abundanceinvestment.com](http://www.abundanceinvestment.com)) to help with raising finance for the wider rollout of the Green Deal proposition.The offer closes for [investment on 31 July or when the maximum investment amount – £4.2 million](https://www.financedigest.com/heineken-to-invest-300-million-in-brazil-to-expand-premium-beer-portfolio.html "Heineken to invest 0 million in Brazil to expand premium beer portfolio") – has been reached. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---