Under British Gas’s Home Energy Plan, customers will be subsidised to make their homes more energy efficient now – and then use the savings to pay off the cost of the additions over time.
British Gas is getting serious about saving energy – so serious, in fact, that it’s planning to subsidise customers so they can add a range of energy-saving additions to their homes.
Under the Home Energy Plan, householders will be offered a fixed-term loan agreement at 6.9% APR to cover the costs of additions such as cavity wall and loft insulation, energy-efficient boilers, smart meters and even solar panels.
Homeowners can choose to make repayments over a period of 5, 10 or 15 years. The idea is that the cost of repayments will be offset by the energy saved thanks to the new measures – there is even a finance plan available that sets repayments below the amount customers will save on their bills.
For interested customers, British Gas is offering a free house survey with room-by-room suggestions on how to improve energy efficiency – and estimates of how much you could save.
Citing research by the CEBR (Centre for Economics and Business Research), British Gas estimates that simple energy efficiency measures could reduce household energy bills by an average of £322 per year and cut gas use by 44% (based on figures the period between 2006 and 2010).
British Gas’s managing director of New Energy, Jon Kimber, commented, “Britain’s housing stock is some of the most inefficient in the developed world with £1 in every £4 spent on heating our homes wasted because of poor insulation.”
Moneyhighstreet comments: “While this is good news for both householders and the environment, the launch of the scheme comes just weeks after British Gas announced price rises of 18% on gas and 16% on electricity and might not be enough to calm consumers worried about the cost of increasing energy bills.
“If you aren’t a British Gas customer and you don’t want to switch, keep an eye out for the Government’s Green Deal scheme. Slated for launch later next year, it works in a similar way with energy-saving measures being installed upfront and repayments offset by savings on your bills.
“British Gas claims to be the first in the UK to offer this kind of scheme, but we expect other energy companies to follow suit as policymakers continue to push for greener homes.”