Banks, building societies and other financial institutions will be able to use the money to develop, test and pilot green finance products to help homeowners make their homes more energy efficient.
This is part of the government’s aim to get as many homes to an energy performance certificate (EPC) rating of C by 2035.
The money will be available through the Green Home Finance Accelerator which is funded through the BEIS Net Zero Innovation Portfolio, a scheme which funds low carbon techonologies and systems to reduce the UK’s emissions.
The competition for the Green Home Finance Accelerator opens today and there is no restriction on the kind of organisations which can apply for the fund. Applicants must demonstrate that their project will result in a green finance product that they can deliver and partnerships, such as a lender teaming up with an energy efficiency supplier, are welcomed.
Keeping homes warmer for longer
This follows the government’s Green Home Finance Innovation Fund which was launched in 2019, and helped the likes of Monmouthshire Building Society and Lloyds Banking Group to develop online home energy saving tools and green mortgages.
Lord Callan, minister for business, energy and corporate responsibility, said: “Driving up the energy efficiency of homes won’t only reduce our impact on the climate, but will also help houses stay warmer for longer.
“Green finance products will allow households with greater means to spread costs over time, empowering them to be able to invest in their properties, improving their energy efficiency and resale value.
“Today’s funding will give more companies in the financial sector the opportunity to create and offer these products, and in so doing, help households reap the benefits both in the investment to their properties, and in the savings they can make on their energy bills.”
Rewarding energy efficiency
Andrew Asaam, homes director for Lloyds Banking Group, added: “Around two-thirds of homes don’t currently achieve an EPC C rating, meaning millions of people are living in colder, draughtier, more expensive-to-heat homes than they need to.
“We are committed to helping people improve their properties, cut their carbon emissions, lower their fuel bills, and live more comfortably in their homes. We will continue to develop, test, and launch products that incentivise, support, and reward energy efficiency home improvements.”
