Renewable Energy - Govt urged to think about loans

29/02/2008

The government should offer homeowners interest-free £10,000 loans in order to help them install renewable energy systems, according to a trade association.

Government officials are keen to encourage greater use of solar heating, ground source heat pumps and wind turbines in domestic properties as they aim to meet EU targets for the utilisation of renewable energy.

Andrew Cooper of the Renewable Energy Association told the Guardian the current incentives on offer are not working and that a loan system would be more effective.

Under Mr Cooper's plans householders would be entitled to borrow £10,000 interest free to meet the upfront cost of installing microgeneration equipment.

The loan would only be repayable when the house was sold and the value added to the property by the presence of technology that helps to cut energy bills would ensure the homeowner does not lose out.

Mr Cooper added that the idea "could deliver large numbers of renewable heat and power installations to millions of homes in the UK".

Homeowners can currently obtain grants of up to £2,500 towards renewable energy systems, but the Department for Business, Enterprise and Regulatory Reform recently admitted take up of the funding had been disappointing.