Homeowners will be able to take out loans for thousands of pounds in order to pay for insulation and solar panels, according to a new legislation that was proposed by the government. Due to the costs of these energy saving products, homeowners are expected to borrow more than £7 billion over the next decade in order to meet the government’s energy saving targets.
Local authorities will even be encouraged to borrow the money that they need to make their buildings greener as well. The government wants all of these buildings to meet local carbon emissions reduction targets. This is the kind of thing that has to be done if the government is going to be able to meet its carbon emission goals.
Energy suppliers will also be required to meet about 60% percent of the estimated £18.6 billion cost of insulating most of the UK’s homes. This is to ensure that the poorest households will not have to pay, meaning that only the well off homeowners will be taking out loans to make their homes more energy efficient. Suppliers will, in time, pass this cost for insulating all of these homes onto their customers. However, the energy secretary, Ed Miliband, said that these targets will not lead to additional utility bill increases.
The idea is for homeowners to take out big loans to install insulation and solar panels in their homes. The loans would be fixed to the house, not the homeowner. So, if the borrower moves out, they would not have to continue to pay on the loan. The new owner would then have the joy of inheriting the annual charge to pay for this green improvement. However, on that same note, they would continue to benefit from lower energy bills.