LONDON, April 5 (UPI) -- London said that 22 organizations came forward to sign what the government describes as its Green Deal, a move to increase residential energy efficiency.
"The signing of this agreement between government and business pioneers represents a watershed moment in the development of the Green Deal," Climate Change Minister Greg Barker said in a statement.
The deal allows consumers to take out loans to cover the cost of improving insulation. The Guardian newspaper in London estimates that around 14 million homes don't have adequate insulation.
The initial 22 providers includes mostly small and medium-sized energy companies, though major companies like British Gas and German energy company E.ON were included in the initial tranche of providers.
"We will be working with these organizations to ensure they can fulfill the potential they have demonstrated today and become the first to offer Green Deals," said Barker.
Gearoid Lane, managing director for British Gas New Markets, explained that about 25 percent of consumer money is lost because of poor insulation.
"This is a green revolution in home improvements and it's vital that customers have confidence in the improvements and in the companies delivering them," Phil Gilbert, head of energy Innovation, E.ON, said in a statement.
The plan is to begin in October.
