Fears of liquidation have been put to an end, as it has been confirmed that the Green Deal Finance Company (GDFC) has secured a £50m rescue package. £34m of it will be provided by the Department of Energy and Climate Change (DECC) and the additional £16m will be provided by private investors which include British Gas, SSE, EDF, E.ON, Npower, and Scottish Power, as well as other private-sector firms such as Carillion, PwC and Insta Group. The GDFC believes the new funding will deliver a 300% increase in the size of the company’s current loan book.
“We are glad that our Green Deal providers now have even more certainty that funding is in place,” said Mark Bayley , the chief executive of the GDFC. “In addition to the strong backing that the pay-as-you-save model has received from DECC, we have funding from our private investors.”
This rescue package was well needed as there has been a huge increase in applications for Green Deal loans. “This time last year the GDFC had £5.97m finance plans in the system and 1,461 plan applications,” said a spokesman for the company. “This week there is £28.92m in the system across 8,088 applications. On top of that there are now 65 official Green Deal providers and a further 24 in the process of qualifying.”