Tories' Pay As You Save plans

The Guardian yesterday reported that the UK Conservative Party's plans for a "green deal" include a Pay As You Save proposal that would allow householders to receive energy upgrades at no up front cost and pay for the work over time through their bills.

Alok Jha reports from a speech by Tory enegy and climate spokesperson Greg Clark:

Every UK homeowners will benefit from an allowance of up to £6,500 to make their properties more energy efficient, under a "green deal" proposed by the Conservatives today. The idea is part of a wider energy and climate change package aimed at kick-starting a green economy in the UK...

...Heating and powering homes accounts for 27% of the UK's overall carbon emissions and, speaking this afternoon, Clark set out how the green deal would aim to reduce this total. The money, to be sourced from the private sector, would not be given to householders directly; instead, energy companies or charities would insulate homes at no cost to residents and then recoup the money through energy bills. As the new insulation would reduce energy use, this should not result in extra costs for the homeowner. 

This does beg the question though - just how much of an energy improvement can you make to the average home with £6,500?