NEW GREEN DEAL START DELAYED
27 April 2017
Despite claims made last month, we are still waiting for the new owners of the Green Deal Finance Company to make the first new loans and make public the names of the companies involved as Green Deal Providers.
The GDFC told us last month: “In order to provide high-quality service, we’ve chosen to relaunch with eight installers, whose details will be on the GDFC website in April when we start loan origination again,” but this hasn’t happened so far.
A spokesperson for the organisation told us today: “The GDFC had provisionally planned to begin origination of Green Deal loans again in April, however this has not happened; though they expect to be recommencing loans shortly.
“As such, we also can’t provide you with the names of the 8 new GDPs yet. We’ll be sure to let you know once it goes live.”
This is likely to be disappointing for assessors who were hoping to see the scheme get underway again, but do doubt they will have their fingers crossed that this is just a short delay and that the GDFC’s new plans will get into gear shortly.
When they do go ahead, these will be the first GD loans since the plug was pulled on finance for the Green Deal Finance Company in July 2015 by the Department of Energy and Climate Change, which was itself shut down by Theresa May when she came to power a year later.
This time around the scheme will be run with private finance attracted by a partnership of two specialist organisations, renewable energy finance specialists Aurium, and energy efficiency financiers Greenstone Finance – though it’s still not clear what the interest rate will be on loans.
Kilian Pender (right), Founder and CEO of Greenstone, said that the GDFC will be launching a new brand later this year, but the Green Deal scheme will still be subject to the Energy Act 2011 and the Consumer Credit Act – and clearly he has no plans to fall into the Government trap of quoting ambitious loan targets, which were never met with the original scheme.
He told us last month: “Our focus for 2017 is on improving the Green Deal product and service offering to customers – including the route to market, customer experience and quality control. As such, we don’t have ambitions of originating a vast number of loans in 2017. We are here for the long-haul and will focus on loan origination targets only once we have improved the service offering.”
He added: “The GDFC will offer all 45 products currently allowed under the Green Deal legislation and the Energy Act 2011. We have ambitious growth plans and aim to become the leading platform for consumers in the UK in the home energy space.
“However, we will take care to ensure any product we offer has the appropriate customer support behind it before making it available to the market, and will look to add other appropriate measures to this list over time, for example battery storage.”
EAM was also also told that the scheme will be getting an extensive revamp which should see over-complex procedures improved and streamlined, and the scheme promoted to the public proactively with a new web portal and direct marketing over coming months.
See also – Relaunch for New Green Deal