Green Deal
Green Deal Alan Yates Chairman - SHAP
Residential energy consumption
DTI 2004
Residential carbon emissions
ONS report 7th February 2012
Residential energy consumption by fuel source
O ECUK DTI July 2011
Electric Renewables
Gas
Oil
Coal
EPC band by tenure
OO - Owner Occupier PR - Private Rented LA - Local Authority HA - Housing Association
EHS 2010-2011
Housing Stock profile by age
EHS 2010-2011
External wall type by age
EHCS 2007
External wall type by tenure
EHCS
2007
4,512,400
1,286,860
496,750
361,760
Green Deal – why do we need it? • Carbon reduction targets – cutting greenhouse gas emissions by 22 per cent from 1990 levels by 2008-2012, as part of the Kyoto Protocol – cutting emissions of CO2 by 34 per cent and 80 per cent from 1990 levels by 2020 and 2050 respectively
• • • • •
Affordable warmth Energy costs rising above inflation Energy security Private investment – not Govt Create jobs & growth - £16bn PA
Green Deal - introduction • Biggest stock investment since WW2 • Energy Bill December 2010 • Intention to revolutionise the energy efficiency of British properties • Invest now, pay back over time • Saving on energy costs, additional charge on energy bill • Golden Rule – expected savings must be equal to or greater than the costs attached to the energy bill • Measures – must be approved – Must have been recommended by an accredited, objective Advisor – Must be installed by an accredited Installer
How will the Green Deal work?
How will the Green Deal work?
Green Deal Assessors • Assessors or “Green Deal Advisors” – National Occupational Standards qualification – Accreditation by UKAS
• Will draw on a pool of eligible measures to make their assessment • EPC will be improved to make fit for purpose for Green Deal
Green Deal - Measures • “An improvement made to a property which has been financed through Green Deal” • Can include “part-financing” where a customer has chosen to pay for some of the work themselves • There will be no “standard” Green Deal measures • May cover measures which generate energy as well as “energy efficiency” measures • If a measure is capable of paying for itself because occupiers use less energy as a result of the installation – it can qualify • Depends on a number of factors:– Work already done – Characteristics of the building – Geographical location Source: DECC – What measures does Green Deal Cover
Measures – three step approach • Step 1 – Is the measure eligible? • Step 2 – Is the measure suitable for the property? • Step 3 – Does the measure meet the Golden Rule for the property? • DECC has contracted the British Standards Institute to develop a Publicly Available Specification (PAS) for the retrofitting of energy efficiency measures in domestic and non-domestic buildings. • Installers must – Be authorised under the Green Deal authorisation scheme, – Comply with a Code of Practice
Measures Heating, ventilation and air conditioning
Condensing boilers Heating controls Under-floor heating Heat recovery systems Mechanical ventilation (non-domestic) Flue gas recovery devices
Building fabric
Cavity wall insulation Loft insulation Flat roof insulation Internal wall insulation External wall insulation Draught proofing Floor insulation Heating system insulation (cylinder, pipes) Energy efficient glazing and doors
Lighting
Lighting fittings Lighting controls
Water heating
Innovative hot water systems Water efficient taps and showers
Microgeneration
Ground and air source heat pumps Solar thermal Solar PV Biomass boilers Micro-CHP
The Golden Rule • If the estimated annual saving is expected to be equal to or greater than the expected annual repayment costs, the Green Deal “plan” can be said to meet the Golden Rule and can go ahead. • For certain measures an extra upfront subsidy could be sought via the new Energy Company Obligation, in a qualifying case • Alternatively a householder could choose to pay a top-up to bring down the repayment cost.
ECO – Energy Company Obligation • Replaces existing programmes – CERT (Carbon Emissions Reduction Programme) • Obligation on energy suppliers to achieve targets for promoting reductions in carbon emissions and reducing fuel poverty • Focus on vulnerable households • Electricity and gas suppliers will be obliged to promote things that: – improve energy efficiency, for example, loft and wall insulation – Increase amount of energy generated by renewables
– CESP (Community Energy Saving Programme) • • • •
Lower Super Output Areas Energy Suppliers required to meet carbon reduction targets Ends December 2012 External wall insulation, microgeneration, energy saving appliances and real time displays • Aims to promote a „whole-house approach‟ of energy reduction measures.
• Top up funding in addition to Green Deal
ECO funding • ECO will require energy companies to support the installation of energy efficiency improvements to homes and will be designed to integrate with Green Deal. • The targets will only be achieved within a certain householder group (lower income and vulnerable households where Green Deal finance is less likely to work) and/or with certain property types. 1. Carbon Saving obligation 2. Affordable Warmth obligation
Three approaches for Local Authorities 1. Provide – the Green Deal directly to their local residents and businesses, coordinating finance and delivery 2. Partner – work in partnership with commercial Green Deal providers and community partners to deliver and facilitate delivery 3. Promote – by acting as advocates for the Green Deal locally
Provide – Green Deal directly • LA could finance themselves i.e. PWLB or commercial sources either individually or in consortia • Birmingham Energysavers model • Benefits could include:– Control over strategic planning & local delivery to address local priorities – Ability to reinvest revenue streams into other local projects – Direct delivery through local supply chains, creating local training & employment opportunities
Partner – with Green Deal providers & community partners • Form partnerships with one or more commercial Green Deal providers • Deliver to local residents and businesses • Similar to relationships for CERT & CESP • Benefits include: – Retaining an influence over how Green Deal is delivered to local residents & businesses – The ability to draw significant new investment into the local area – Provide reassurance to local residents & businesses on delivery of Green Deal to maximise take-up
Community Green Deal
Promote – acting as advocates • Facilitate and/or support commercial Green Deal in an area • Benefits could include:– Retaining an overview of Green Deal is being delivered & contributes to local priorities – Ability to create local jobs and training and ensure local priorities are met may be limited
What role can a Social Housing Provider play in the Green Deal? • Social Housing Providers can play a number of different roles in delivering the Green Deal. For example, they could become Green Deal Providers in their own right or work in partnership with others to offer economies of scale. They could also have an important advocacy role. • The social housing sector could also help kick-start the market place. For example, the sector has an existing and skilled construction workforce that is used to working in occupied homes. Source: DECC
DECC – role of Social Landlords Social housing sector well-placed to play a central role in delivering the Green Deal due to a number of factors: • Experience of carrying out major home improvements, including energy efficiency works. • Managing significant numbers of properties, it offers economies of scale. • A natural market in their own tenant base, and good local engagement and visibility. • The sector has responded positively to the prospect of the Green Deal • Good examples of preparation work underway. This includes Gentoo, & Greater Manchester where Local Authorities and Housing Associations are working collectively.
Next steps…
www.shap.uk.com
Residential energy consumption
DTI 2004
Residential carbon emissions
ONS report 7th February 2012
Residential energy consumption by fuel source
O ECUK DTI July 2011
Electric Renewables
Gas
Oil
Coal
EPC band by tenure
OO - Owner Occupier PR - Private Rented LA - Local Authority HA - Housing Association
EHS 2010-2011
Housing Stock profile by age
EHS 2010-2011
External wall type by age
EHCS 2007
External wall type by tenure
EHCS
2007
4,512,400
1,286,860
496,750
361,760
Green Deal – why do we need it? • Carbon reduction targets – cutting greenhouse gas emissions by 22 per cent from 1990 levels by 2008-2012, as part of the Kyoto Protocol – cutting emissions of CO2 by 34 per cent and 80 per cent from 1990 levels by 2020 and 2050 respectively
• • • • •
Affordable warmth Energy costs rising above inflation Energy security Private investment – not Govt Create jobs & growth - £16bn PA
Green Deal - introduction • Biggest stock investment since WW2 • Energy Bill December 2010 • Intention to revolutionise the energy efficiency of British properties • Invest now, pay back over time • Saving on energy costs, additional charge on energy bill • Golden Rule – expected savings must be equal to or greater than the costs attached to the energy bill • Measures – must be approved – Must have been recommended by an accredited, objective Advisor – Must be installed by an accredited Installer
How will the Green Deal work?
How will the Green Deal work?
Green Deal Assessors • Assessors or “Green Deal Advisors” – National Occupational Standards qualification – Accreditation by UKAS
• Will draw on a pool of eligible measures to make their assessment • EPC will be improved to make fit for purpose for Green Deal
Green Deal - Measures • “An improvement made to a property which has been financed through Green Deal” • Can include “part-financing” where a customer has chosen to pay for some of the work themselves • There will be no “standard” Green Deal measures • May cover measures which generate energy as well as “energy efficiency” measures • If a measure is capable of paying for itself because occupiers use less energy as a result of the installation – it can qualify • Depends on a number of factors:– Work already done – Characteristics of the building – Geographical location Source: DECC – What measures does Green Deal Cover
Measures – three step approach • Step 1 – Is the measure eligible? • Step 2 – Is the measure suitable for the property? • Step 3 – Does the measure meet the Golden Rule for the property? • DECC has contracted the British Standards Institute to develop a Publicly Available Specification (PAS) for the retrofitting of energy efficiency measures in domestic and non-domestic buildings. • Installers must – Be authorised under the Green Deal authorisation scheme, – Comply with a Code of Practice
Measures Heating, ventilation and air conditioning
Condensing boilers Heating controls Under-floor heating Heat recovery systems Mechanical ventilation (non-domestic) Flue gas recovery devices
Building fabric
Cavity wall insulation Loft insulation Flat roof insulation Internal wall insulation External wall insulation Draught proofing Floor insulation Heating system insulation (cylinder, pipes) Energy efficient glazing and doors
Lighting
Lighting fittings Lighting controls
Water heating
Innovative hot water systems Water efficient taps and showers
Microgeneration
Ground and air source heat pumps Solar thermal Solar PV Biomass boilers Micro-CHP
The Golden Rule • If the estimated annual saving is expected to be equal to or greater than the expected annual repayment costs, the Green Deal “plan” can be said to meet the Golden Rule and can go ahead. • For certain measures an extra upfront subsidy could be sought via the new Energy Company Obligation, in a qualifying case • Alternatively a householder could choose to pay a top-up to bring down the repayment cost.
ECO – Energy Company Obligation • Replaces existing programmes – CERT (Carbon Emissions Reduction Programme) • Obligation on energy suppliers to achieve targets for promoting reductions in carbon emissions and reducing fuel poverty • Focus on vulnerable households • Electricity and gas suppliers will be obliged to promote things that: – improve energy efficiency, for example, loft and wall insulation – Increase amount of energy generated by renewables
– CESP (Community Energy Saving Programme) • • • •
Lower Super Output Areas Energy Suppliers required to meet carbon reduction targets Ends December 2012 External wall insulation, microgeneration, energy saving appliances and real time displays • Aims to promote a „whole-house approach‟ of energy reduction measures.
• Top up funding in addition to Green Deal
ECO funding • ECO will require energy companies to support the installation of energy efficiency improvements to homes and will be designed to integrate with Green Deal. • The targets will only be achieved within a certain householder group (lower income and vulnerable households where Green Deal finance is less likely to work) and/or with certain property types. 1. Carbon Saving obligation 2. Affordable Warmth obligation
Three approaches for Local Authorities 1. Provide – the Green Deal directly to their local residents and businesses, coordinating finance and delivery 2. Partner – work in partnership with commercial Green Deal providers and community partners to deliver and facilitate delivery 3. Promote – by acting as advocates for the Green Deal locally
Provide – Green Deal directly • LA could finance themselves i.e. PWLB or commercial sources either individually or in consortia • Birmingham Energysavers model • Benefits could include:– Control over strategic planning & local delivery to address local priorities – Ability to reinvest revenue streams into other local projects – Direct delivery through local supply chains, creating local training & employment opportunities
Partner – with Green Deal providers & community partners • Form partnerships with one or more commercial Green Deal providers • Deliver to local residents and businesses • Similar to relationships for CERT & CESP • Benefits include: – Retaining an influence over how Green Deal is delivered to local residents & businesses – The ability to draw significant new investment into the local area – Provide reassurance to local residents & businesses on delivery of Green Deal to maximise take-up
Community Green Deal
Promote – acting as advocates • Facilitate and/or support commercial Green Deal in an area • Benefits could include:– Retaining an overview of Green Deal is being delivered & contributes to local priorities – Ability to create local jobs and training and ensure local priorities are met may be limited
What role can a Social Housing Provider play in the Green Deal? • Social Housing Providers can play a number of different roles in delivering the Green Deal. For example, they could become Green Deal Providers in their own right or work in partnership with others to offer economies of scale. They could also have an important advocacy role. • The social housing sector could also help kick-start the market place. For example, the sector has an existing and skilled construction workforce that is used to working in occupied homes. Source: DECC
DECC – role of Social Landlords Social housing sector well-placed to play a central role in delivering the Green Deal due to a number of factors: • Experience of carrying out major home improvements, including energy efficiency works. • Managing significant numbers of properties, it offers economies of scale. • A natural market in their own tenant base, and good local engagement and visibility. • The sector has responded positively to the prospect of the Green Deal • Good examples of preparation work underway. This includes Gentoo, & Greater Manchester where Local Authorities and Housing Associations are working collectively.
Next steps…
www.shap.uk.com
