Government establishes local grants and public sector loans for energy efficiency projects

A £10 million fund, called the Local Energy Assessment Fund (LEAF), is to be administered by the Energy Savings Trust. It will fund assessments as long as they are due to be completed quickly, by the end of March next year.

The Government is also making £20m available to public bodies to borrow to put energy efficiency measures in place. It will be available to schools, hospitals, universities and local authority buildings.

"Not only do we need to encourage energy efficiency in our schools, hospitals and universities, we also need to get green energy generation and energy efficiency into our communities," said Energy Secretary Chris Huhne. "That’s why we are also making £10million available for communities to help spur an energy revolution at a local level.”

"This fund is a great way for some communities to better understand their energy needs and opportunities, and will help them to react to Government policies such as the Green Deal," said Peter Lipman, the chair of Communities and Climate Action Alliance.

The Green Deal is a Government-backed scheme that will allow property owners and occupiers to fund the installation of energy efficiency measures such as double glazing or insulation at no up front cost, with work paid for through subsequent energy bills.

The loans for public bodies to improve buildings' energy efficiency will be made available for projects where the reduction in energy bills over five years exceeds the cost of the project.