State aid: Green light for UK's Green Deal

State aid: Green light for UK's Green Deal


Author: Sarah Livestro

The European Commission has given the green light to a £600m funding package to support the UK's Green Deal - a new way for consumers to pay for energy saving improvements to their property.

Under the scheme, private companies will be able to offer upfront energy efficiency investments - such as insulation, double glazing or a new boiler - and recoup payments through the customer's energy bills each month.

State aid approval means that the Government can use public money - to be provided through various State bodies and the Green Investment Bank - to support the scheme.

One suggestion is that the money could be used to lower the interest rates charged to Green Deal customers. It has also been reported that the Government may want to link other green energy subsidy schemes - such as the Renewable Heat Incentive - to the Green Deal, although this would require further State aid clearance from Brussels.

State aid approval may not be the only hurdle that the Government has to clear to get the Green Deal up and running.

According to a recent YouGov poll conducted soon after the scheme was launched, 39% of people questioned had heard of the Green Deal; but of those, only 8% felt it would make a big difference in helping people improve their home's energy efficiency.