A consortium including banks Goldman Sachs and HSBC and UK energy companies plans to open a not-for-profit organization to help finance the government's program for home energy efficiency, the firms said in a joint statement.
The Green Deal Finance Company (GDFC) will lend money to suppliers and installers involved in the state program -- the Green Deal -- which provides consumers with a mechanism to pay for home energy efficiency by offsetting payments for installations through monthly savings on energy bills.
"By minimizing the cost of finance to future accredited Green Deal providers, it will create a highly competitive market that will compete on cost, reliability, lifespan and technology," said Paul Davies, lead partner on the GDFC at consultancy PwC.
"It will maximize the measures that can be included within the Green Deal and for many potential providers will solve the question of where their finance will come from."
Companies taking part in the consortium also include UK energy suppliers British Gas, E.ON, EDF Energy, RWE npower and SSE.
The group expects suppliers, installers and local authorities to join the organization over the coming months.
The first installations under the Green Deal are expected in the autumn of 2012.