Pay As You Save (PAYS) is an innovative finance solution that will give households the opportunity to invest in energy efficiency (such as solid wall insulation) and microgeneration technologies (such as solar panels) in their homes with no upfront cost.
Householders will make repayments spread over a long enough period so that repayments are lower than their predicted energy bill savings, meaning financial and carbon savings are made from day one.
The Department of Energy and Climate Change (DECC) has asked the Energy Saving Trust to conduct a pilot scheme to trial and assess elements of the PAYS concept and is providing £4m of funding to cover capital measures with £2m available in 2009/10 and the balance in 2010/11.
The pilot scheme has been launched with around 500 homes from Birmingham, London Borough of Sutton, Sunderland, Stroud, Surrey and Sussex being offered the chance to receive a whole house energy makeover.
What are the objectives of the PAYS pilot?
The objectives are to:
1. Test consumer interest in elements of PAYS finance packages in particular the relationship between repayments and savings.
2. Provide lessons on how to market and communicate these finances packages.
3. Test which types of partners consumers prefer to make repayments to (energy bills or council).
4. Test the required levels of subsidy to overcome the barrier of high capital costs for more expensive energy efficiency and microgeneration measures.
5. Test the viability of setting up the different finance models with partners and provide recommendations for partner organisations.
How can you apply to take part in the PAYS pilot?
The pilot will be run by five separate partners. For further information and details of how to apply please visit the pages below:
Gentoo Group Ltd: Registered Social Landlord, Gentoo Group Ltd will be working with householders in the North East.
British Gas: British Gas will use its market research to test householder’s reactions to finance options. Homes will receive a whole house audit and a personalised energy saving report.
Birmingham City Council: Birmingham City Council’s activity will form part of the £35m Green New Deal (GND) project. For the PAYS project householders will receive whole house assessments.
B&Q UK: B&Q UK will lead a PAYS project in partnership with the London Borough of Sutton and the Bioregional Development Group (BDG).
Stroud District Council: As part of Stroud District Council’s (SDC) wider programme of carbon reductions – Target 2050, it will work with Severn Wye Energy Agency (SWEA) to deliver energy saving home improvements in local homes.
For general enquiries about the PAYS pilot please contact PAYS@est.org.uk.
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