The Green Deal Finance Company (“GDFC”) has begun financing loans through a number of select Green Deal Providers (“GDPs”) for the first time since July 2015, following the acquisition of the company from the UK Government and its shareholders in January 2017.
Relaunching Green Deal finance is part of a soft launch of GDFC, ahead of a wider rebrand and roll-out expected later in 2017. During this phase, the company will concentrate on the continual assessment and improvement of the Green Deal loan product and service offering to customers – including the route to market, customer experience and quality control.
Kilian Pender, CEO of the GDFC, said: “We are extremely pleased to announce the relaunch the Green Deal scheme and Green Deal loans. Since acquiring the business in January, we have received a very significant amount of support from government, energy efficient focused organisations, manufacturers and installer organisations amongst others, all of whom are eager to see the scheme continue where it left off and build further momentum.”
He continued, “Whilst there is still work to do to develop and improve the Green Deal product, we are delighted to be able to take this significant first step of making loans accessible to homeowners again to improve their homes through Green Deal finance. Given our focus on quality control and providing high levels of service to our customers and installer partners, we have taken the decision to start slowly through a select number of GDPs, although we hope to offer finance through a wider number over the coming months.”
Green Deal loans provide consumers with accessible financing to improve their homes through the installation of energy efficiency products. The loans can help landlords and tenants who wish to improve the comfort, value and energy efficiency of their property, but cannot afford the upfront cost of doing so. Loans are entered into between consumers and GDPs, and are financed by the GDFC. To begin with, Green Deal loans will be offered through a small number of approved GDPs, spread across the country, with other high-calibre installers set to be phased in over time.
The GDFC is currently raising debt finance through the peer-to-peer finance platform Abundance Investment (“Abundance”) in order to accelerate the development and implementation of an improved technology platform, aimed at simplifying and improving the customer journey. More than £2 million has been raised via Abundance in a little over four weeks since the raise was launched. The raise is now more than 50% subscribed, with £2 million of further investment available. Abundance’s GDFC bond offer carries an annual rate of return of 12% for 3 years. The bonds are eligible to be held in Abundance’s Innovative Finance ISA, so offering people a chance to earn a tax-free return.