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Pay As You Save Scheme Looks to Reduce CO2 Emissions in Homes.

The Department of Energy and Climate Change (DECC) has asked the Energy Saving Trust to manage a pilot that will be testing a range of innovative finance solutions with consumers in order that they can install larger energy saving measures. This could play an important role in the reduction of carbon emissions for the UK. People tell the Energy Saving Trust that the biggest barrier that stops them from making their homes more energy efficient is the need to find money to pay for the upfront costs.

Research shows that householders are more likely to make larger investments, including micro generation and solid wall insulation, if the costs can be spread through the savings they make on their energy bills.

The primary objective of the pilots is to test consumer appetite and the feasibility of Pay As You Save (PAYS) and other finance models in order to overcome the higher upfront capital costs of more expensive measures like solid wall insulation and micro generation.

The pilots will run in select areas in England and not nationwide. The intention is to retrofit around 400 homes in a minimum of 4 areas so the need is not to promote the pilot to citizens. The retrofit is based on an average cost of £10,000 per home, met by the capital costs of the pilot scheme. However, the aim is that the £4m that Government has invested might be match funded by external partners e.g. a financial institution or local authority so we would hope to retrofit more homes in total.

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