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Green Deal finance consortium formed
An industry-led consortium has signed a Memorandum of Understanding (MOU) to develop the business plan for a not-for-profit organisation, The Green Deal Finance Company (TGDFC), to finance the best value Green Deal option for consumers. The MOU signatories include British Gas, Carillion, Clifford Chance, E.ON, EDF Energy, Goldman Sachs, HSBC, Insta Group, Kingfisher, Linklaters, Lloyds Bank Corporate Markets, Mark Group, npower, PwC, RBC Capital Markets and SSE.

The consortium is already working closely with DECC, the European Investment Bank (EIB) and local authorities, with a view to maximising its assistance to the Green Deal market.

Paul Davies, PwC lead partner on The Green Deal Finance Company, said: “The success of The Green Deal Finance Company will be a fundamental building block in the overall success of the Green Deal programme. By minimising the cost of finance to future accredited Green Deal providers, it will create a highly competitive market that will compete on cost, reliability, lifespan and technology. It will maximise the measures that can be included within the Green Deal and for many potential providers will solve the question of where their finance will come from.”

Over the next few months many more new associate members are expected to join the consortium, including suppliers, installers, providers, local authorities, and industry and consumer representative bodies. The GDFC will be a national aggregator that can provide finance to all Green Deal Providers on an equal and open basis. By operating at a national level, it will minimise the operating and administration costs of Green Deals and will quickly be able to access the cheapest sources of finance in the market at the highest possible credit rating. Martin Lawrence, managing director of Energy Sourcing and Customer Supply at EDF Energy said: "Key to the success of the Green Deal programme is access to low cost finance – home owners need to see the benefits of implementing energy efficiency measures in their homes and must not be put off because accessing these measures is costly or difficult." Chris Huhne, Secretary of State at the Department of Energy and Climate Change, said: “This is an exciting initiative with the potential to reduce interest rates on Green Deal finance, while also supporting healthy competition among Green Deal providers including small businesses. New firms like the Green Deal Finance Company are testament to the attractiveness of the Green Deal framework and its potential to offer a better deal to consumers.”