The Department of Energy and Climate Change (DECC) recently announced a Pay As You Save (PAYS) initiative to test how they can overcome consumer concerns about the upfront costs of more expensive energy efficiency and micro-generation measures. The Energy Saving Trust was appointed to manage a pilot that will test the PAYS concept.

The Energy Saving Trust is now seeking to work with a range of partners who will be selected through a one stage application process.  The application pack will be available from the 8th October 2009 and must be submitted by 6th November 2009 with contracts to be awarded by late November.

The pilot will test the feasibility of the PAYS concept, as well as understanding consumer attitudes and preference for a variety of finance options. DECC has made £4m of funding available to cover the capital costs of the refurbishments, £2m of which is available until March 2009/10 and the balance in 2010/11. The pilot will look to test finance models through 4 billing routes:

• Local Authority
• Energy Supplier/DNO
• Registered Social Landlord
• An independent financial institution

Successful pilots will be expected to develop local partnerships to deliver a project that tests one or more of the above billing routes.  The pilot projects will offer financial package/es to householders that will allow them to spread repayments over a period of time.  Each project must aim to install multiple measures in a number of houses that will contribute to the overall project target of approximately 400 homes.

Evaluation will be ongoing throughout the pilot with interim results available in spring 2010 and the final results ready in Spring 2011.

For further information on Home Energy PAYS pilots please contact Fiona Dykes: Fiona.dykes@est.org.uk

For an application pack please contact Tom Chapman: tom.chapman@est.org.uk