Who will finance Green Deal loans?

The government has formed a Green Deal Finance Company (GDFC) which will supply money in the form of loans to the general public.

Members of the GDFC 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 idea is that the companies involved will supply the bulk of the cash needed to get the scheme working. The government is going to supply the ‘seed’ money for the scheme, currently around £200/500 Million while the private sector is expected to stump up the weighty £14 Billion that will form the majority of the finance.

The loans are expected to be below market value and thus enticing more of us to get involved in the Green Deal. We have developed an infographic to help explain the initiative.