Energy secretary Ed Davey: Green Deal interest rates not excessive

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Ed Davey has defended the interest rates on the Government's flagship Green Deal scheme.

The energy secretary claimed that the interest rates of around seven per cent were not excessive.

Speaking to delegates at Ecobuild, Mr Davey said: "I would not expect many people to apply for finance yet. It's a bit too early,

"I won't concede that loan costs are too high. You have to compare it with unsecured loan and not mortgages. This is a great deal.

We are not trying to pretend that we have everything right. There will be issues to address. We will be responsive to get rid of the niggles."

The Green Deal was introduced by the Government at the end of January. It is designed to offer home owners a loan on ways of improving energy efficiency within their house.

In conjunction with energy suppliers, this work can include anything from fitting solar panels, to a new boiler to help cut down on heating and electricity bills.

Around 40 firms are already approved as Green Deal providers, with a further 75 organisations classed as assessors. According to Mr Davey more than 600 installers have also already been trained.

Prior to its launch, research suggested up to four in five people had not heard of the Green Deal. Further research in the weeks after launch also suggested around two-thirds of people still were not aware of the deal.

Mr Davey did not comment on if take up on the deal had improved now it is almost a month and a half since launch however, instead commenting that the Government planned to issue monthly reports starting in the spring.

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