£600 million of public support for the UK’s ‘Green Deal’ energy efficiency program was recently approved by the European Union.
The Green Deal is a program designed to make investing in energy efficiency improvements, such as insulation, lighting, draught-proofing, hot water efficiency, modern boilers, etc, more affordable for homeowners. The loans are then repaid through energy bills, and transfer with the property, rather than the person who took out the loan.
“The UK Green Deal allows consumers and businesses to improve the energy efficiency of their buildings without making huge upfront investments,” EU Competition Commissioner Joaquin Almunia said in a statement.
This type of policy is known as Property-Assessed Clean Energy (PACE) financing in the US (despite the name, it has also been used for energy efficiency projects here).
The EU Commission works as a regulator for the members of the European Union, deciding matters to do with state aid and competition. According to the commission, the program is a well designed effort to improve efficiency in the UK.