The Green Deal Finance Company acquired
Elmhurst Energy is pleased to see some potential exciting news over the weekend.
The Green Deal Finance Company (GDFC) has been sold to Greenstone Finance and Aurium Capital Markets. Since the Government pulled funding on the GDFC last year, the Green Deal has effectively been left in limbo.
In a press release on the GDFC website:
“Greenstone Finance, which invests in organisations focused on financing in renewable energy and energy efficiency, and Aurium, a structured finance boutique with a focus on renewable energy, have acquired GDFC Services and its subsidiaries with immediate effect; the new ownership will continue to service the existing Green Deal loans and will commence financing of new Green Deal loans in Q1, 2017.”
All the major players in the acquisition are using encouraging words to support this new initiative:
“Minister for Energy and Industry, Jesse Norman, said;
"People living in more energy efficient homes can have lower bills and warmer homes, while producing fewer carbon emissions, which is why the Government has committed to improving the insulation of more than one million homes over this Parliament. This deal will help us to reach that goal."
Kilian Pender, Founder and CEO of Greenstone Finance, said;
"We believe that the concept of repaying your loan as you save on your energy bills is an excellent one and with the significant private investment that we have secured, we’re looking forward to rolling the Green Deal finance scheme out across the country. We will provide homeowners a cost-effective way to improve their homes and quality of life."
Nimesh Kamath, Partner at Aurium, said;
"This joint venture with Greenstone Finance adds to Aurium’s continued commitment to the UK renewable energy sector and, in particular, the objective of improving the energy efficiency of UK buildings for consumers and business owners alike, whilst supporting the wider goals of distributed energy generation and energy security in the UK."
The Financial Times caught up with the story and Kilian Pender continued; “We want to become the trusted brand in the home energy and renewable energy space,”
He said that over time, the new owners hoped that anyone wanting a new boiler, solar panels or a high tech thermostat system would come to their website first to get help finding the most suitable product; a trustworthy installer and, if need be, financing.”
The Financial Times also quoted Nimesh Kamath who said; “Without convincing and educating people it can never really take off.”
Mr Pender stated; “New energy efficiency standards for privately rented properties should also bolster the Green Deal. Landlords are now looking at quite significant capital expenditure bills in order to upgrade their properties. Green Deal loans potentially could be an attractive way for them to do this”.
Elmhurst had understood that the GDFC was in the process of obtaining new ownership last year. It looks as if the new organisation can and are willing to breathe new life into the pay as you save model. We also note that the private rental market is certainly an opportunity for Green Deal. In fact some commentators have said that the legislation on Minimum Energy Efficiency Standards, allow some landlords to avoid bring up their properties to the required E rating (EPC rating). With the re-launch of the Green Deal, this loophole looks like being closed.
The first task for the organisation will be re-launching the loan scheme and getting traction in the market place. This is definitely one to watch this year.
For more information:
The Green Deal Finace Company Press full release: http://gdfc.co.uk/press-releases