The UK’s government’s environment policy to kickstart a massive overhaul of the UK’s draughty homes to save energy passed the final hurdle to become law on July 2nd amid growing concern that the scheme has become too costly to succeed. It was revealed that the borrowing rate would be 7.5% over a compulsory term of 25 years, while borrowers who try to repay loans early will face heavy financial penalties. The maximum each household can borrow is £10,000. The money can be borrowed to fund the likes of renewable energy, loft and wall insulation or draught-proofing.
windows. Loan repayments will be taken from the home’s energy bills over the 25-year period. It is estimated that with a rate of 7.5% over 25 years, a household borrowing £10,000 would end up paying a total of £22,000, or almost £900 a year added to the average home’s £1,310 annual energy bill.
Energy in Demand - Sustainable Energy - Rod Janssen 