green deal in social housing
DESCRIPTION
Voluntas 4th Annual Conference. 15th November 2012. Green Deal - The Role of Social Housing Providers. Matt Roberts, Director of Asset Management and Development. Wigan and Leigh Housing.TRANSCRIPT
Green Deal – The role of Social Housing providers.
Matt RobertsDirector of Asset Management and DevelopmentWigan and Leigh Housing
“The biggest home improvement programme since the Second World War”…?
OR
“a useless middle class subsidy” ?
It’s here!
• Commenced October 2012
• Green Deal plans 28th January 2013
What next?
Do nothing!!
Do everything!!
Or something in between...
Options Available
• Do nothing
• Green Deal Provider
• Provide part of the service – survey / installation
• Signpost
• Using Green Deal / ECO to improve homes
Become a Green Deal Provider
Become a Provider – the financial backer
• Can access loans at low rates (DECC)
• Has a sizeable customer base
• Are experienced in communicating with residents
• Have supply chains for doing the works
• Have an interest in ensuring the homes are of good quality
Advantages
• Reduce tenants’ bills
• Lead on reducing carbon in customers homes and potentially others.
• Generate a new income stream
• Maintain a closer understanding of properties and resident needs
• Ensure quality of work
• Focus activity on reducing fuel poverty and encourage behavioural change
• Employ local people
• Be seen as an innovator
9
Risks Calculation of the Golden Rule
Energy efficiency is not always easy to sell.
Providers will take on default risk of Green Deal charges.
Liable for guarantees and warrantees put in place.
Still unclear how lenders will view Green Deal finance – stock revaluation
The Golden Rule
11
New Barracks Estate
• 78 early Edwardian properties
- Inadequate heating- limited insulation- damp- draughty- condensation
12
Some graphs!!
13
Appropriate measures
CO2 savings (kgCO2 saved per year) Cost of energy saved per year Capital cost per kgCO2 saved Capital cost versus running cost saving
14
Methodology
1. Retrofit Options Appraisala. Projected savingsb. Projected benefitsc. Forecast SROI
2. Data Collectiona. Questionnaireb. Utility datac. Focus groups
3. Resultsa. Utility Costb. Comfortc. SROI Analysis
15
The Measures
• Internal wall insulation
• Windows and doors
• Mechanical Ventilation Heat Recovery (MVHR)
• Top up loft / cavity wall insulation
• High efficiency condensing boilers
16
Projected Results – SAP Utility Cost savings
Projected Savings Estimated
17
18
Results - Whole house comfort levels
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£353 saving
47.7% of pre retrofit average annual gas spend
20
The Golden Rule – What is the saving?
• Estimated 40% saving close to actual.
• Further savings taken in increased comfort.
• How much physical / behavioural?
• Variation based on occupants.
• Increase in electrical costs – rebound affect?
Marketing and Engagement
22
The Benefits of Wall Insulation
Reduced bills
Improved appearance
Increased comfort
Reduced carbon
23
Private Sector Offer
• CESP discount
• Contractor arranged
• Payback calculation
• Signposted funding
MARKETING AND COMMUNICATIONS!!
24
Or dis-benefits
“It is of our opinion that as a result of this work, our properties have been de-valued by at least £20,000 each, therefore it is our intention to seek legal advice on the possibility of suing the council for £20,000 per household as compensation”.
25
Changed Supplier in Last 5 Years
28%
72%
Yes
No
Need to overcome natural inertia
26
Recognise benefits (or disbenefits)
Before After
But maybe…..
Providing part of the Service
28
Provide Part of the Service – Possible model
Registered provider
Third party business
Funding sources
Homes Electricity supplier
Green Deal Provider
Green Deal assessment Provides finance
and installs measures
Payback
29
Assessment
• Trusted
• Know the properties – public and private
• Know the people
• Experience of retrofit
• Independent – nothing to sell
• Serious about behavioural change
But who pays for lack of take up?
30
Trust
There is a tendency for people to adopt the opinions, judgements and behaviour of others
People are more likely to install an energy efficiency measures if one of their family or peers have done
so.
Research suggests that engaging individuals as members of a community, rather than only as consumers of energy, is an important strategy for changing energy-related behaviours
31
Installers
• Frameworks delivering retrofit
• Experience of working in peoples’ homes
• Success in achieving training and apprenticeships
• Mechanisms for performance monitoring
• Quality assurance / management – PAS 2030
• Commitment to local labour
32
There is an appetite!
Would you be prepared to pay towards energy efficiency measures if you made a bigger saving as a
result?
61%26%
13%
Yes
No
Blank
Working through other Green Deal Service Providers
34
Can’t do nothing
Communication with tenants
Working with Green Deal providers
Watch and wait
Focus on providing through Asset Management plans
Non Provider - Signpost
35
Risks
Works carried out without consent or knowledge.
Not seen to be involved.
Potential income stream.
Not able to direct work to local businesses.
Not being seen to combat fuel poverty.
36
Need to understand the implications.
May / will need to…
Assess Green Deal providers in your area – accreditation and experience
Upskill EPC assessors to assess advice given.
Support the marketing of the service by adding your brand.
Develop a corporate approach to Green Deal enquiries.
Keep up to date records of where Green Deal undertaken – lettings / void cost.
37
There is a risk that the Green Deal could in fact make fuel poverty worse unless:
• There is an accurate assessment of a home, its occupants and their behaviour in order to make the correct diagnosis and the economics of paying for them.
• We recognise that different customers need different approaches.
• We build trust in Green Deal among the fuel-poor, and overcome the mistrust that many people on low incomes feel towards official initiatives.
Word of warning – Green Deal must address the fuel poor
Using the Green Deal to improve your homes
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Using the Green Deal to Improve your Homes
Understanding your stock – maintain a strong asset database
Integrate Asset Plan and Energy Efficiency Strategy
Maximise your investment programme – trigger points
Maximise level of funding through partnerships / innovations
Conclusion
41
Lessons Learnt
• Behaviours vary as do savings!
• Analysis is resource intensive
• Education and advice is essential
• Marketing is key (and expensive)
• Take up will start slow
• The industry is lagging behind
• There is a role for housing providers
• Consider long term asset planning
42
Thank You
Questions
?