Resized Pictured here is my Chairman Eddie Hyams, talking to Secretary of State Ed Miliband MP at the launch of the Government’s Low Carbon Transition Plan at the Science Museum on 15 July.

The model insulation house showed examples of loft, cavity wall, internal solid wall, ceiling and under-floor insulation – giving a practical example of the measures needed to cut CO2 emissions from homes.

The Low Carbon Transition plan sets out how the UK will meet its target of a 34% reduction in CO2 emissions on 1990 levels by 2020. Plans for a low carbon future include more green jobs, energy efficient house makeovers, more renewable energy, and lower carbon transport.

Pay As You Save Pilots

The part of the Low Carbon Transition Plan I’m most excited about is the Pay As You Save Pilots. On behalf of Government, the Energy Saving Trust will be managing pilots of long term household finance including the Pay as You Save concept.  The pilots will be designed and developed during 2009, and will commence in late 2009/early 2010 and run throughout 2011. 

The aim is to trial innovative new finance mechanisms that encourage consumers to undertake a whole house energy efficiency retrofit. We want to assess the uptake of Pay as you Save financing (PAYS), which helps householders by providing the upfront monies needed to purchase a comprehensive package of energy efficiency and microgeneration measures (or whole house packages). Householders then repay this finance through instalments that are offset by their energy bill savings. We will also be exploring other household finance options including low interest loans to test consumer interest and the practicalities of delivering finance packages to households.

The Energy Saving Trust will be working with a wide range of partners in delivering these pilots across a range of house types, both owned and rented.  As we develop the programme we will be actively engaging with key partners and will keep interested parties updated on progress. The banks might be struggling to lend, perhaps we can do our small bit to fill the gap!