U.K. Govt to Make 1.3 Billion Pounds a Year Available for Green Deal

The U.K. government plans to make 1.3 billion pounds ($2 billion) a year available for households to install energy-saving measures to reduce bills and cut emissions that account for nearly half of the country’s total greenhouse gas output.

The government will make the funds available under its “Green Deal,” The Department of Energy and Climate Change said today in an e-mailed statement. The program will help homeowners and businesses to install fuel-saving technologies such as insulation that curb heat loss and improve energy efficiency.

The U.K. is aiming to cushion consumers from energy price rises by improving inefficient, drafty homes to reduce energy waste. Leaky buildings account for about 43 percent of the nation’s greenhouse gas emissions, according to the statement.

Other measures set out under the secondary legislation published today include standards to protect consumers and specific support for low income and rural areas. An extra 100,000 homes in low income areas should benefit from today’s plans, compared with the government’s original proposal, DECC said in the statement.

The government also set out rules for its Energy Company Obligation, a subsidy from energy suppliers, that will provide additional support for households most in need and for properties that are harder to treat, DECC said.

The U.K.’s 3 billion-pound Green Investment Bank will prioritize offshore wind, energy efficiency and the Green Deal program. The bank should start business from April next year.