Building an ‘Able-to-Pay’ Loan Fund Business Case Report
Talan joined a partnership to create a Green Book compliant business case for a £100 million ‘Able-to-Pay’ loan for residents living in the South West.
Will TAYLOR
Principal Consultant - Retrofit
The Client's Challenge
Talan's Solution
Our Impact
Read Our Report
Download our full case study
Read our work with South West Net Zero Hub as we drive retrofit action across the country.
The Client's Challenge
The South West’s Net Zero ambitions are under serious pressure. Buildings are a major source of emissions, yet retrofit progress is far too slow. The sector faces the following challenges:
- 2.5 million heat pumps and 1.4 million insulation upgrades are needed to meet targets.
- Most funding focuses on social housing and fuel-poor households, leaving owner-occupiers behind.
- The retrofit supply chain and workforce are still underdeveloped.
Talan's Solution
A pioneering Able to Pay Retrofit Loan Fund has been developed by Talan and partners for the South West Net Zero Hub, offering a scalable solution to unlock retrofit finance for owner-occupiers.
- Structured as a revolving blended finance model: £40m public + £60m private investment.
- Offers affordable loans (min. £7,500) for energy upgrades like heat pumps, insulation, and solar PV.
- Targets households earning £40,000+, addressing the underserved “able to pay” segment.
- Uses a Limited Partnership structure for tax efficiency, investor appeal, and flexibility.
- Backed by a bespoke financial model and robust legal review to ensure viability and compliance.
Our Impact
The proposed Able to Pay Retrofit Loan Fund offers not only financial innovation but also measurable impact across carbon savings, economic value, and regional development.
- Carbon Impact: Delivers 376,509 tonnes of CO₂e savings over 20 years.
- Economic Value: Generates £212m Social Net Present Value.
- Jobs & Supply Chain: Supports up to 543 full-time jobs.
- Consumer Benefits: Provides affordable whole-house retrofit finance.
- Public Sector Efficiency: Requires just £13m net subsidy.
- Scalable & Replicable: Built to be flexible and scalable.
Let's Talk!
Will TAYLOR
Principal Consultant - Retrofit
