countdown to low carbon homes- guide to community scale delivery

Countdown to Low Carbon Homes

A GUIDE TO COMMUNITY SCALE DELIVERY OF HOME ENERGY IMPROVEMENTS

The Countdown to Low Carbon Homes project is a partnership of three organisations:

Severn Wye Energy Agency

An independent charity and not-for-profit company established in 1999 to promote sustainable energy and affordable warmth through partnership, awareness-raising, innovation and strategic action. With a focus on local and regional action, it works from its two office bases, in Gloucester in South West England and Llandrindod Wells in mid Wales.

Catrin Maby ([email protected]) Sam Evans ([email protected])

The Aristotle University of Thessaloniki

The largest University in Greece and in the Balkans with 95,000 students, 2,300 teaching and research staff and 1,800 technical and administrative staff. Founded originally in 1926, it is highly recognised internationally, participating in more than 35 international academic associations and collaborating with more than 1,200 Universities worldwide.

Grigoris Papagiannis ([email protected]) Dimitris Tampakis ([email protected])

Cyprus Energy Agency

A non-governmental, non-profit organization established in 2009 with co-financing from the European Commission through the “Intelligent Energy for Europe” programme and the Cyprus Union of Communities. The objectives of the Cyprus Energy Agency are to promote renewable energy, energy efficiency and sustainable transport and mobility. It is based in the capital, Lefkosia.

Anthi Charalambous ([email protected]) Maria Ioannidou ([email protected])

Disclaimer: This guide is aimed at anyone considering the practicalities of delivery of home energy improvements, it is not intended to be a comprehensive manual. The information provided is not advice and does not include any financial advice. While reasonable steps have been made to ensure that the information is accurate and complete, Severn Wye cannot be held liable for any direct, indirect or consequential loss or damage that may result.

Severn Wye do not guarantee that any of the tools meet the required standards or regulations and therefore all materials that are created should be thoroughly checked to ensure all current regulations are met. The toolkit documents have been created over a number of years for various projects so the information contained may not have been up to date at time of printing.

OCTOBER 2014

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www.countdowntolowcarbonhomes.eu | 1

1. INTRODUCTION 2Improving the energy efficiency of homes

2. MODEL 5Community scale delivery for home energy improvements

3. REACHING HOMEOWNERS 8Outreach and marketing

4. ENERGY ADVICE 18Identifying, prioritising and supporting actions

5. TECHNOLOGIES 24The main technologies for home energy improvements

6. INSTALLERS 35Finding, connecting and communicating

7. REGULATIONS 40Understanding building and planning rules

8. SUPPLIERS & RETAILERS 42Finding supplies and promoting improvements

9. FINANCE 45Accessing or establising finance programmes

10. MONITORING & EVALUATION 53Measuring achievement and improving quality

CONTENTS

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2 | www.countdowntolowcarbonhomes.eu

Improving the energy efficiency of homes

Improving the energy efficiency of homes is a major challenge facing governments and citizens across Europe. This is an essential part of moving towards a lower carbon future to avoid further climatic impacts, and of maintaining security

of energy supply. With rising energy prices, economic problems and wealth and health inequalities, a significant additional concern is that of fuel poverty and the risk of household debt for energy bills, with the impacts on health and well-being of thermally inefficient homes.

Everyone wants to be comfortable in their homes at a price that they can afford. A major part of comfort is to avoid being too hot or too cold, and in the latter case to get rid of uncomfortable draughts. The key to this is energy efficiency, both in terms of the fabric of the building and its ability to keep the warmth in or out – and the energy-consuming equipment that we use for heating or cooling.

One part of the solution is to build new efficient homes, but in real life the replacement of the housing stock is a slow and expensive process – added to which we place great aesthetic and historic value on our built heritage. So the focus must be on making energy improvements to existing homes. This is often referred to as ‘retrofit’.

INTRODUCTION



As we moved into the second decade of the 21st century it was clear that while a range of tried and tested technologies are ‘out there’, a big part of the challenge is in implementing and deploying these. To achieve the level of improvement in energy efficiency needed will, in practice, mean making effective use of the full range of technologies – not just the quick return measures: insulation of all parts of the building envelope, efficient heating and lighting, as well as making the most of appropriate opportunities for renewable heat and power.

Countdown to Low Carbon Homes is a research and development project, which builds on practical experience of promoting home energy improvements at local and community scale, and seeks to share this knowledge and the barriers and solutions encountered in developing and trialling a community scale delivery programme.

The concept behind this project is that it may be more effective to deliver such in-depth improvements at local level, where advice and support can be made accessible and tailored to practical needs and realities. The majority of home improvements, repair and maintenance work is delivered by small or micro building companies primarily active locally or regionally, and local authorities have a crucial role in housing and regeneration broadly as well as sustainability and energy efficiency in particular, land use planning and the regulation and control of building works, and the health and well-being of residents. Health and social care agencies, environmental groups and a wide range of community organisations acting locally are important intermediaries, and specialist local third sector groups such as energy agencies may act as delivery agents or facilitate partnerships for delivery.

The Countdown to Low Carbon Homes project ran from January 2012 to December 2014, and is a partnership between three organisations who are active within their communities as well as within national and EU communication networks. This guide forms one of three project outputs, the other two being a research report and a set of case studies. This collaboration enabled us to take a bird’s eye view on the market for making home energy improvements in each of three very different areas, in order to develop a perspective on what a community scale delivery model might consist of. The three areas were:

• an area of small cities, market towns and villages in north west Europe

• a medium sized city in southern Europe

• an island, with cities, villages and rural areas, in south east Europe

INTRODUCTION



This guide is aimed at anyone considering the practicalities of delivery of home energy improvements. While much of the experience that has led up to it has been gleaned from the three partner countries, we have made it as generic as possible, so that it may be of use in any country. It is not intended to be a comprehensive manual, but we hope it will be a useful starting point.

At the end of each section you will find sample tools with a short decription. A complete version of the tools can be found at: www.countdowntolowcarbonhomes.eu and www.severnwye.org.uk.

INTRODUCTION



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Community scale delivery for home energy improvements

This section sets out a generic outline for a community scale delivery model for home energy improvements, indicating the many parts of this jigsaw and how they might fit together. The following sections take each of these items

and goes into them in more detail.

In developing a community approach, we recommend the model be assessed from the standpoint of each of the key actors, in order to help identify any gaps or barriers. While working in three diverse regions has highlighted that there are variations in detail and the strength of the role of each of the categories of key actors, the overall requirements are the same. The key differences appear to be:

• Whether specific actors cover more than one role

• The order in which things happen and the point at which the homeowner first engages with the supply chain

• Who, if anyone, drives things through to conclusion

MODEL



Enquiries may come from a variety of sources, and the first step in the model set out below is to make the availability of advice and support known to people. Once they have made contact, initial advice may lead on to a detailed home energy assessment to assess the energy performance of their home and identify and quantify appropriate measures and savings.

Having decided on the measures they want to install, the homeowner will need to find installers and decide how to finance the work. The suppliers of materials and products have a role to play, generally (although not necessarily exclusively) via the installers. At this stage any outstanding planning and building control issues will also need to be resolved. The last piece of the jigsaw is to establish systems for monitoring and evaluation.

Key components of community-scale model for delivery of home energy improvements

MODEL

Suppliers• of energy saving

measures and products

Monitoring and evaluation

• technical quality• customer satisfaction

• energy/carbon savings• reduced fuel debt

• improved comfort/ health

Outreach and marketing

• direct to homeowners• indirect via

intermediaries

Finance• grants• loans

• tax credits• feed-in tariffs

Installers• of energy saving

measures

Home energy surveys

• assess energy performance

• identify measures• estimate costs

and savings• prioritise actions

Contact hub• provide advice

• arrange surveys• inform on finance• refer to installers• support to action

Planning and building control

• permissions• safety

• acceptability of visual impact



In order to develop a support programme for home energy improvements, it is necessary to consider the different stages of the ‘customer journey’. Linking to the elements of the support programme outlined above, an idealised view of the possible journey is set out below.

In practice the journey is often not linear. For example, a home owner may hear about a special finance offer, and start from that point, or from a friend or neighbour that a particular technology has improved their home and so start by seeking to install that technology. Impartial advice may then be given at this stage to ensure that this is the right technology for that home and owner to invest in. While the expense of a home survey may not be essential in all cases, it is a form of structured and quantified impartial advice.

This kind of programme does not exist in isolation, and is at its most effective if tied in with a wide range of other local providers of services, community groups and intermediaries – so that referrals may be made both to and from the programme. Examples might be a debt adviser referring someone with a high fuel bill for energy advice, or a health worker noticing that a home is cold and damp. Referrals out from the programme could be to a provider of grants or loans, or to an installer.

The homeowner journey to retrofit

MODEL

Step one: Enquire about what is

available

Step nine: Get user behaviour advice

Step four: Receive report and recommendations

Step eight: Book installations

Step five: Decide on (first) measures

Step seven: Find installers and get

quotesStep six: Identify finance available

Step ten: Enjoy the

savings – and tell your friends and

relatives!

Step three: Book energy survey

Step two: Get initial advice



Outreach and marketing

The most perfectly planned project is still a failure if it doesn’t reach its target audience, and while this is not rocket science, it does need a carefully thought out plan and expert delivery. The guidance provided here is just the

tip of the iceberg, and intended to highlight the main things to consider and some suggestions, rather than provide all the answers.

Planning and response

The starting point in planning outreach and marketing has to be the numbers the programme aims to reach – and this will in turn relate to the numbers of homes to be improved, and any targets around energy and carbon savings. In making these plans, account must be taken of the drop-out rate at each stage – also known as the ‘conversion’ rate.

It may all seem like wishful thinking at the start of a programme, but if you don’t have a dream, how can your dreams come true?

For reaching any substantial numbers, outreach and marketing must be planned – but with enough flexibility to enable opportunistic actions, in reaction to weather or external events. It is also essential to have alternative plans if things do not work.

REACHING HOMEOWNERS



Finally, it is crucial to plan for different response rates as nothing is more disheartening than not being able to respond effectively to a better than expected response! And if the response is poor, be ready to deploy staff to do more outreach or something else useful...

Defining the target group

A community scale programme may have a defined geographical boundary or a fuzzy one, and the scale could be anything from a village or parish through to a small region. Assuming the target group is all homes within an area, there are a number of ways this group might be broken down into smaller categories in order to tailor outreach and marketing and ensure the coverage wished for:

• By tenure

Whether the home is owner-occupied, privately rented or social housing will impact on the options for financing work, and who can decide on major improvements. This is a fundamental division to be aware of, therefore any programme needs to be tailored to the needs of each tenure group. Landlords may have limited interest in running costs, but can be made aware of the increased quality of their property and potential for increased value as a result of energy improvements. An additional factor is the possible impact of energy performance ratings – in the UK for example a minimum energy rating for rented homes is to be introduced in future.

REACHING HOMEOWNERS

5,000 enquiries received

3,000 home energy assessments booked

2,000 homeowners get quotes for work

1,000 homes improved

2,300 measures installed

x kWh and y tonnes CO2 saved

Example of possible conversion rates at each stage to achieve 1,000 homes improved



• By household age or income level

The significance of running costs and high energy bills, and the impacts of a home being too cold (or too warm in hotter countries) will of course be higher for lower income households. Their ability to make improvements is likely to be limited by lack of access to capital – however there may be grants and subsidies available. Both of these things may also be true for older people or families with young children.

Better-off households may be more motivated by comfort, environmental protection or the status conferred by home improvements. On the other hand, a group that are often highly motivated by savings on energy bills are those that fall just outside of categories eligible for financial assistance (the nearly fuel poor).

Helping households to access such financial help and keeping up to date with changes in what is available is a major part of managing a home energy improvement programme.

• By house type and age

Certain types of home will be more susceptible to high heating or cooling requirements, and targeting these especially can be one way to reach people. Homeowners may respond well to marketing that features a home like theirs, especially owners of older homes who may think there is nothing they can do to improve the energy efficiency of their property.

This idea may be expanded on with the idea of exemplar homes – real examples of local homes that have been assessed for energy improvements and information about the improvements that can be made, the costs and potential savings. This is useful even if not all the work has been done yet – they don’t have to be ‘show-homes’. The reality of progressing improvements gradually may be a more helpful example, as it looks more achievable for others.

Exemplar homes might be showcased through a website, brochures, or open homes events – these can be a fun way for a community to learn about how typical local homes can be improved and what some of the real experience is from the owners themselves. Such events are also a good way for local energy assessors, installers and builders to make their work known in the area.

REACHING HOMEOWNERS



• By specific characteristics related to energy improvement potential

A sub-campaign may be to promote a particular technology. One effective way to do this could be to target marketing at those homes that have been identified as having the potential for energy imporovement, where this is possible. An example of this is to use satellite or aerial photography to indicate south facing roofs suitable for solar panels. Another would be to target UK homes built between 1935 and 1980 for cavity wall insulation.

• By geographic sub-areas

Intensive area-based marketing can be effective, as long as there is a clear offer for each type of home and household in the area. This can be promoted by engaging the local community through local networks and leafleting and knocking on every door.

• By detailed market segmentation

This takes the approaches above a step further, to fine tune the target group and the way you approach them by taking into consideration such things as jobs, lifestyle, interests and attitudes as well as income level and age. This leads to the development of categories, such as ‘empty-nesters’ to define households where the children have grown up and left, with the implication that they may have money to spare to plan for their next phase which is likely to include retirement and then old age.

There are agencies that specialise in this (at a cost of course), and it is a useful approach to bear in mind even if you do not use an agency.

The message and the messenger

A major part of effective outreach is to get the message right and send it via the right messenger. Who is trusted in the community when it comes to practical advice?

The key message may vary with different target groups, but the overall image of the programme will be implied by the brand - so most programmes start by developing a brand and logo, and clarifying the partners involved and their profile within delivery.

REACHING HOMEOWNERS



In general the endorsement of local authorities is seen as positive in that it differentiates a programme from commercial offers. It also reassures a homeowner that there is someone to go to if there are problems, and that they will not disappear from the market or refuse to speak to them.

Health and social care workers are an important link to those that may be particularly vulnerable to fuel poverty and its impacts.

Homeowners also gain a great deal of information from installers themselves, and if this is endorsed by the local authority or energy advisers/assessors, this can help to overcome the potential barrier of thinking they are being sold extra products that they don’t need. Installers themselves get information from merchants and suppliers, and are often in contact with local building control personnel – so it’s worth ensuring that information is consistently available from each of these sources to confirm the same message.

Home energy improvements have multiple benefits, so there are a number of options for the emphasis in the brand and key messages conveyed, such as:

Key message Examples

Comfort Warm and Well, Cosy Devon, Keep Newcastle Warm, Warm Up Wearside, Warmer Bath, Warm@Home, Keep Warm Keep Well

Security Nest, Safe and Warm

Saving money Monergy, Save Energy Save Money, Green Deal, Energy Bill Revolution, I save I renovate,

Home improvement Smart Homes, Be Energy Smart, SuperHomes, WISE Homes

Protecting the environment Countdown to Low Carbon Homes, ECO, Green Key, Act on CO2

REACHING HOMEOWNERS



Routes and media

There are two distinct channels of communication:

• Direct to the target audience

This may involve mail-outs or door-to-door leafleting, street canvassing or a presence at community events, retail outlets or public places such as shopping malls or libraries. If experienced energy advisers deliver these activities, you can combine actual advice delivery with outreach.

A targeted version of this that has been popular in the UK is to approach those waiting for the annual flu vaccinations, as these are provided free to those with relevant health vulnerabilities, for whom flu would be particularly dangerous. This same group are at risk of health problems if they have inadequate heating and so are an important target group for energy advice and home improvements.

Another approach is to tap into local events and to use the local media such as newspapers, radio, television and community newsletters. It can be possible to get a regular slot for features around a related topic such as home improvements, or a phone-in advice programme for example.

The programme website and its links and profile on other websites is a standard basic requirement, which needs constant attention to keep it fresh and active.

Increasing focus is given to the use of social media, and this is evolving rapidly – at the time of publication, key routes are Twitter and LinkedIn. This is a way to reach a very large number of potential customers at minimal cost. Watch this space!

REACHING HOMEOWNERS



• Indirect, via intermediaries

Working with intermediaries has a number of potential benefits:

✓ A way to reach a specific target group through those they already know and trust

✓ The raised awareness of the intermediary themselves, with its ‘multiplier’ effect and potential for longer term impact

✓ An opportunity for feedback on your programme and ways to improve it from those that observe its impact for more than one household or home and so may have a useful perspective

Some suggestions for intermediaries for reaching households are:

› Health and social care agencies, especially for reaching vulnerable households

› Local authorities, including housing, planning and building control

› Merchants and retail outlets for building materials and DIY (Do It Yourself) products

› Major local employers – for example tying in with work to enhance energy or wider resource efficiency at work

› School and colleges – for example, linking to educational activities around climate change and sustainability, or energy efficiency within the school or college buildings

› Landlords groups and fora

› Community and neighbourhood groups of all kinds

REACHING HOMEOWNERS



REACHING HOMEOWNERS

Engaging the supply chain

A particular approach which deserves separate attention as it is a very specific kind of intermediary is the installers of energy improvements themselves. This is particularly important as they are really the ‘front-line’ in terms of contact with homeowners, as they move towards getting works carried out. They are also key to spotting opportunities for energy improvements within general building work, whether this is repairs, new kitchens or bathrooms, or major work such as an extension or loft conversion. Some ideas for developing the partnership with installers are described in Section 6.

Rules, Regulations and Protocols

At all stages of marketing a programme, it is essential to observe the rules, regulations and any specific protocols for the programme partnership. As these change over time, this guide is not attempting to be comprehensive on this point, rather to highlight the areas to check at the outset and periodically throughout delivery. It is recommended that a marketing protocol is drawn up and agreed at the outset, and amended as necessary. Areas to consider include:

• Advertising standards rules

• Consumer credit regulations and licence requirements, if referring people for loans

• Partner or funder requirements for acknowledgement and correct use of logos and so on



REACHING HOMEOWNERS

Fuel poverty staff briefing- Short briefing for partner

agencies working with those potentially at risk on the signs

and dangers of fuel poverty.

Open homes poster- Poster promoting an event aimed at encouraging people to find out more about sustainable and renewable energy technologies.

Fridge magnet- Handy reminder of the advice line phone number for anyone looking for energy saving advice.

Thermometer cards- Handy flyer with

thermometer strip to help keep the room at the right

temperature, as well as some simple energy efficiency tips.

Sample tools



REACHING HOMEOWNERS

Warm and Well advice flyer- Basic flyer to send to partner agencies for them to distribute, encouraging homeowners to get in touch.

MOT your home leaflet- Four-page booklet

explaining the steps to take for home energy

improvements.

Sample tools



ENERGY ADVICE

Identifying, prioritising and supporting actions

The provision of advice is central to a home energy improvement programme. The purpose of the advice piece of the delivery model jigsaw is to:

• Help homeowners and households to identify and prioritise energy saving actions

• Quantify likely costs and savings on energy consumption, energy bills and carbon emissions

• Identify and access sources of finance for measures

• Find installers, and deal with questions arising in getting works done

• Optimise user behaviour for energy efficiency, comfort and convenience

• Support and encourage homeowners to keep going through the process and not give up



The contact hub

The local contact hub is at the centre of our model. Advice needs are both multiple and multi-stage, and one of the benefits of a community based contact hub is that the contact can be personalised, with real people with names and faces, and can support people right through the process of improving the energy efficiency of their home.

A contact hub can use a variety of contact methods, and the more options that are available to people, the better in terms of maximising reach. These will typically include:

• A telephone advice service, ideally set up so that calls are free for the caller. This service should have set schedules for cover and enough lines and advisers so that a high percentage of calls are answered ‘live’ and no-one is kept waiting for a long time. An answering service with call backs within a set time frame should operate out of hours.

• An e-mail enquiry service option.

• A website with a good range of general information that people can refer back to so they don’t always have to ask for written details of standard things, such as a description of a technology or the eligibility criteria for financial support.

• Advice ‘surgeries’ – advice sessions in places with public access such as libraries, local authority offices, general or housing advice centre or health centres.

• Advice stands at public events or shopping malls.

Home energy assessments

The term ‘home energy assessment’ broadly describes a technical energy survey of a home, to assess current energy performance and the potential for improvements. Alternative terms often used to mean the same thing are ‘energy audits’ or ‘home energy surveys’. This will normally result in a report or certificate of some kind – and there are a range of systems in use across Europe to set ratings for homes against a standard, which enables comparisons to be made between homes. The Energy Performance of Buildings Directive established the requirement for an Energy Performance Certificate for homes being sold or rented out, which has fine-tuned this approach to produce A to G ratings for homes (although the way this is done varies according to different national approaches to transposing this Directive).

ENERGY ADVICE



The main benefit of a home energy survey beyond the verbal advice given over the phone or at an advice stand is that it is specific to the practical details of the home in question. This includes (more or less detailed) quantification of energy performance and potential savings from different measures. These are typically given in terms of energy consumption per annum, carbon emissions and running costs. As such a wide range of different systems are in use, the most useful comparator is probably energy consumption and carbon emissions per floor area – but for the individual household the running costs and potential savings per annum may be what they most want to know.

Home energy assessments generally use standardised assumptions about occupancy, as a basis for comparing homes, and not households. This can be confusing in delivering advice, and needs to be explained. If the standards used are clear (such as the number of hours of heating or cooling and target room temperature, and the number of people the hot water consumption is based on) people can then assess where they stand in relation to these to get a better perspective. Some home energy assessments do include an additional element which takes into account the actual occupancy of the home in question.

Skills and standards

Giving energy advice requires technical knowledge and communication skills, as well as awareness of social issues and needs. It also requires a thorough and up to date knowledge of relevant sources of financial assistance and local services.

A key issue and service standard is commercial independence, in other words no bias towards any specific technology, installer or provider. This requires commercially independent funding – although careful adherence to advice rules and ensuring complete independence (such as a ‘Chinese Wall’) between sales and advice may be possible. The next best alternative is transparency – where any commercial bias is clearly stated to service users, and attempts are made to make them aware of the existence of alternative providers.

Other key quality issues to observe are:

• Technical accuracy and range

• Clarity of communication

• Record keeping (and data protection)

• Response times

• Lack of bias in all communications such as with regard to age, gender, race, sexual orientation or socio-economic status (a potential pitfall in local projects is prejudice about the part of town people might live in...)

ENERGY ADVICE



While a useful background may be a technical or housing degree, specific professional qualifications for giving energy advice have now been developed in many countries. In the UK there is now a National Occupational Standard against which such qualifications may be set.

Home energy assessments and energy audits are regulated through specialist accreditation bodies to ensure consistency, and the qualifications are usually tied to these accreditations and the use of particular software and protocols. Nowadays these are linked to the production of an Energy Performance Certificate. In the UK the government has, in the past few years, led development of the ‘Green Deal’ framework for energy assessments, energy saving products, installations and loans providers.

In developing an advice team and assessing skills and qualifications, it may be useful to consider several levels of energy advice. There is no perfect way to categorise this, but presented below is a suggested set of levels based on experience.

Level Description1 Single contact

verbal adviceSimple answer to a question or referral on to related services

2 In-depth verbal advice

More complex issues such as investigating a problem with a supplier, finding a better tariff or understanding how to use a new heating system

3 Home visit verbal advice

As above, but with home visit to investigate further and/or demonstrate – such as how to set a complicated programmer

4 Home energy assessment

Survey of home with written report and recommendations

5 Handholding Help to identify, select and install energy saving measures

6 Project support with detailed technical advice

Help to design a low carbon home or major refurbishment

ENERGY ADVICE



ENERGY ADVICE

Warm and Well website- Energy advice website which provides useful information and a way of contacting trained advisors.

Knauf energy advice tool- Interactive tool rating the energy usage of a property.

Energy Ambassadors form- Checklist tool for

third party organisations to use when delivering energy

advice in the home.

Home visit report- A Home Energy Report is provided

to householders following a home visit.

Sample tools



ENERGY ADVICE

Greek EPC example

Savings summary- Report to show the potential pay back time for each measure based on individual client quotes.

Feed-in Tariff fact sheet- One of a variety of fact sheets on the technologies and funding available.

A step-by-step guide for homeowners- Booklet providing guidance to

homeowners on upgrading the energy efficiency of their homes.

Sample tools



The main technologies for home energy improvements

The main technologies available for making improvements to the energy performance of existing homes can be categorised as set out below. The focus is mainly on the standard fixed items, but it should be noted that

there is also a wide range of energy-consuming electrical appliances which are generally removable and replaceable by the household – such as for laundry, refrigeration, cooking, entertainment and ICT. The opportunity to influence homeowners to purchase energy efficiency appliances may arise as part of retrofit work, and user awareness and energy use behaviour is an issue to be considered at all stages, wherever possible.

This guide is intended only to highlight the main areas for consideration by those wishing to develop and manage a programme of improvements, and the opportunities that may arise for making improvements – it is not intended as a technical manual for designers or installers.

TECHNOLOGIES



Typical examples of the main technologies currently available are:

Thermal insulation

• of the building fabric, including the walls, roof and floor

• of services such as those carrying hot or cold water

• replacement high energy efficiency windows and doors

• secondary glazing, insulated shutters or thermal curtains to existing windows (for colder climates)

• internal or external shading devices (for climates with hot summers)

Equipment for provision of heating, cooling and hot water

• whole heating or cooling systems, to replace the use of point heating or older inefficient systems, for example:

› high efficiency boilers within a wet system of pipes and radiators, or under-floor heating

› ground source heat pump – for example with under-floor heating

› air source heat pumps

• replacement heating or cooling units

• upgrading time and temperature controls on existing systems

Lighting

• efficient lighting fittings such as LED

• replacement lamps in existing fittings, as more efficient ones become available (such as compact fluorescents in place of incandescent)

• lighting controls such as dimmers, timers and movement sensors

Ventilation and draught-proofing

• draught-proofing of doors and windows

• heat recovery extractor systems, especially for kitchens and bathrooms

• passive stack ventilation, where suitable

TECHNOLOGIES



Renewable heat and power

• solar thermal system for the production of hot water

• solar assisted central heating system

• biomass boilers and stoves

• solar photovoltaics

Energy efficient appliances

• Including cooking, laundry, entertainment and information and communications technologies

Devices to inform, influence or support energy efficient user behaviour

• Such as power-down plugs or ‘standby-killers’, energy consumption or generation monitors with consumer-friendly display, smart meters

Issues to consider

In delivering programmes for home energy improvements certain major issues arise in relation to the choice and implementation of technologies. These are described in general terms below, followed by a table which links these issues to some of the main individual technologies, to highlight some of the barriers and opportunities.

High quality energy advice is a crucial part of effective delivery, and can help homeowners through some of these issues.

Return on investment and comfort versus savings

Making energy improvements to the home is an investment in the property, and generally results in an improvement in one or more of the following:

• Improved comfort, with internal temperatures more controllable, and a reduction in uncomfortable draughts or cold spots. A common feature of poorly insulated homes is the feeling of a cold ‘side’ where your body radiates heat to a cold surface such as a wall or window near where you sit.

• A reduction in energy consumption and bills. While some improvements in energy efficiency may be taken up in improved comfort, there are often significant actual savings to be gained. These may be offset against the initial cost of making the improvements in a ‘payback’ calculation, which indicates how long it would take to repay the investment in savings.

TECHNOLOGIES



This ‘payback’ or cost-recovery time is a useful bit of information to compare different measures, and for the home owner to consider in relation to how long they expect to stay in a particular property.

Home energy assessments (or audits) carried out by qualified experts, and independent of commercial bias with regard to the technologies recommended, can be useful in quantifying and raising awareness of potential savings.

To avoid complicated assessments on the level of ‘comfort take-back’, which is very subjective, standardised occupancy (and occupant behaviour) assumptions are generally used as part of energy assessment processes, such as those used in producing the Energy Performance Certificates (EPCs) required in all EU countries when selling or renting a property (under the Energy Performance of Buildings Directive). It’s important that households understand this, and that their own energy-use behaviour can alter the outcome.

Linked to this is the issue that households trying to manage on low incomes in a country with cold winters and high energy prices may cut back on heating, and take much more of the benefits of energy efficiency improvements in more warmth rather than energy savings. This needs to be recognised when advising such households and in developing finance that involves loans, in particular where repayments are linked to anticipated savings.

The impact of energy improvements on the energy performance rating given in the EPC may also bring a return in higher rental or sale values, although this is not assured and may take time and increased public awareness to have a substantial impact.

Disruption and mess

Most building work creates some mess, and there will inevitably be some disruption to everyday life. Energy improvements are no exception to this, although some measures are a good deal less disruptive than others. These tend also to be the quickest return measures that require the minimum labour and ‘finishing’ work – such as loft insulation, cavity wall insulation and simple boiler upgrades.

Many very significant measures, such as solid wall insulation or window replacement, are far more disruptive. The negative impact can be greatly reduced by good communication between builders/installers and homeowners, and explanation at the outset of what this might entail and who will be responsible for clearing up and removing rubbish.

In planning improvement works, it is important to be aware that optimising the order of building works can greatly reduce disruption for the household. This is discussed further below.

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Trigger points and opportunities

As described above, many of the most significant energy improvements involve fairly major building works and disruption. Another way of looking at this is to note that when major home repairs or improvements are needed for other reasons, this offers an opportunity for energy improvements. By taking this opportunity, both the additional disruption and the cost can be seen as marginal extras.

Some examples of such opportunities are indicated in the table at the end of this section. These may be clear practical connections, such as re-plastering, redecorating or rewiring providing an opportunity to apply internal wall or ceiling insulation, or lifting floorboards to lay heating pipes offering a chance to install under-floor insulation. Less obvious but significant are to improve insulation when replacing a boiler or installing a new heating or cooling system – ideally before calculating heating or cooling equipment requirements, to avoid oversizing.

Undertaking an extension, loft or garage conversion, or major home renovation offers a wide range of such opportunities.

In delivering a programme of energy improvements it is also important to be aware of the ‘trigger points’ at which households are more open to carrying out improvements. This may be moving into a new home, or at a time of change when planning for the future is likely to be considered, such as retirement or starting a family. If these trigger points are missed it may be years or even decades before such an opportunity arises again.

Whole house versus bit by bit

For many households, it is never feasible to carry out a major home renovation all at once, due to space, cost and disruption. While it may be most practical and cost effective to do the whole house at once, real life means that it only happens bit by bit or room by room. It is still worth having an ‘energy action plan’ based on an energy assessment of the home, so that these opportunities can be taken when they come up and not overlooked.

Barriers, risks and unintended consequences

Every action has an impact... and buildings are complex systems interacting with the occupants and external climate and conditions. While this guidance is not attempting to be technically comprehensive, there are certain typical issues that arise that a programme coordinator will need to be aware of, such as:

• Visual impact

Some energy improvements may be visible and change the appearance of

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the property, either inside or outside. This may affect historic character or other aesthetic appeal, and there may be local planning restriction and/or permissions required.

• Internal space limitations

Many buildings present space limitations to applying thermal insulation. Even small changes in room size may be a problem in terms of space for furniture or fittings, floor or ceiling insulation affects head room, and installing double or triple glazing requires depth of reveal, or alterations to allow for this.

• Ventilation and condensation

Removal of uncomfortable draughts must be accompanied by ensuring adequate appropriate ventilation – every room needs at least a background level of ventilation for fresh air and the removal of water vapour, odours and contaminants. A higher level of controllable ventilation is needed in rooms where more water vapour is produced (typically bathrooms and kitchens), and where combustion appliances are present, specific guidelines for ventilation are crucial to efficiency and safety.

Loft insulation, while one of the simplest and most cost-effective measures, can also pose problems if there is insufficient ventilation of the loft space – by cooling the air down further, condensation may be encouraged. A major contributor to this risk, however, is moisture from the living space rising with warm air through gaps in the ceiling, such as those around services or loft hatches. Installing loft insulation can be a good time to address these.

In terms of ventilation, the most helpful approach in the long term is to use the installation of insulation or draught-proofing as a positive opportunity to address these problems and put them right, rather than a reason not to insulate at all.

A particular dilemma facing those installing insulation to walls is the risk of interstitial condensation (within the wall structure) which may arise where it didn’t exist before, because of shifting the temperature gradient in the wall and changing permeability.

In all of the above cases, the risks can be avoided by the most appropriate installation details and choice of materials, combined with any relevant remedial action.

The table on the following pages is a selection of measures and is intended to show a general approach, rather than to be technically comprehensive.

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Measure Opportunities Barriers and potential risks

Cavity wall insulation

Can be carried out at almost any time – very little finishing work required.

Risk of transfer of damp if cavities are not clean, or in an area of driving rain. Material slippage can result in cold spots risking condensation damp.

External solid wall insulation

When renovating external finish/in combination with window replacement.

Change in external appearance, local planning restrictions. Space limitations such as overhang of walkways, and access to enable installation. Trapping damp if already there when insulating.

Internal solid wall insulation

Re-plastering and redecorating, rewiring or other major refurbishment.

Loss of internal space, need for redecoration and refitting of services and fittings, including door and window surrounds. Trapping existing damp in wall. Potential for interstitial condensation.

Loft insulation (including loft hatches)

When household is having a clear out. Combining with draught-proofing doors and windows to capture ceiling sealing at same time (loft hatch and services).

Possessions stored in loft space. Lack of or risk of blocking ventilation in roof space (or lack of scope to introduce it due to restrictions on appearance) can cause condensation in roof space.

Flat roof insulation (external)

When waterproof roof covering needs repair or replacement.

Change in external appearance, local planning restrictions. Loading issues or ballasting may be required.

Flat or sloping ceiling insulation (internal)

Re-plastering and redecorating, rewiring or other major refurbishment.

Lack of head room and need for ventilation of rafters. Trapping damp within structure or causing interstitial condensation.



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Underfloor insulation

Replacement of floor covering, or major refurbishment.

Access to under floor area. Head room if raising floor level. Space for underfloor ventilation if timber joists. Blocking underfloor ventilation can contribute to damage to timber joists.

Draught proofing of doors, windows and loft hatch

Replacement of doors and windows, or general redecoration. Review of ventilation needs and provision generally in the home. Address ceiling draught sealing at same time.

Need to maintain background ventilation levels for all habitable rooms – so if the incidental ventilation causing draughts was all there was, need to provide controllable and comfortable alternative in tandem with draught-proofing.

Replacement boilers When boiler breaks down and is not repairable. Assess insulation opportunities before sizing.

Availability of fuel, potential for flues and existing pipe-work may pose restrictions. Avoid oversizing of boiler, for example if the heating demand of building has been reduced through extra insulation. Need to set boiler correctly so a condensing boiler actually condenses.

Heating controls upgrade (7 day timer, room and radiator thermostats

When servicing or replacing boiler or whole heating system.

Layout of heating system may pose restrictions. Need for user advice and appropriate settings.

Advanced heating controls

When servicing or replacing boiler or whole heating system. Can include optimising start/stop, weather compensation, smartphone control apps.

Heating demand may already be too small to justify. Need for user advice and appropriate settings.

Flue gas heat recovery

When a new boiler is being installed. Space above boiler for device to be fitted. Not suitable for all boilers.

Waste water heat recovery

When bathroom is being renovated. Space available to install system. Not suitable for all boilers.



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Aerating shower head

Any time. Appearance of device fitted. Shower flow may be reduced too much for occupant.

Flow reducer fitted to shower

Any time. Not suitable for electric showers. Shower flow may be reduced too much for occupant.

Ground source heat pump

Major refurbishment with ground works outside. Works well with under-floor heating.

Ground available and suitable for heat loop. Headroom needed if used with under-floor heating. Setting the heating time right for the occupancy.

Air source heat pumps

Replacement of heating system. Acceptability of running noise/positioning in home. Need to set the heating time appropriate to occupancy.

Passive stack ventilation

Refurbishment and redecoration/rewiring.

Space for adequate stack. Access to clean filters to maintain effectiveness. Incorrect installation can cause air flow to be reversed.

Heat recovery extractors

Refurbishment and redecoration/rewiring.

Acceptability of running noise/positioning in home, especially if the type intended to be on continuously.

LED lighting Refurbishment and redecoration/rewiring.

Cost and appearance of replacements, and matching required output (brightness and colour).

Lighting controls Refurbishment and redecoration/rewiring.

Limitations of some types of light fittings, and existing wiring. Reduction in lighting in some situations may risk accidents, such as in corridors or on staircases – need to take account of physical abilities of occupants and visitors.



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Solar thermal hot water

Replacement of heating system. Roof repairs or replacement.

Orientation and over-shading of roof. Restrictions on visual impact. Needs space for hot water storage cylinder, which may not be present if instantaneous system in use.

Solar photovoltaics Roof repairs or replacement. Rewire/overhaul of home electrical installation.

Orientation and over-shading of roof. Restrictions on visual impact. Possible restrictions from electricity network operator on system sizes. Siting of inverter – ideally not in warm space such as loft.

Biomass boilers Replacement of heating system. Fuel availability and storage. Options available for siting of flue. Household ability to cope with manual handling where required. Increased maintenance and efficiency issues if poor quality fuel is used. Need to maintain boiler, flues and provide adequate ventilation for safety from fire or carbon monoxide.

Voltage optimisation Any time. Existing supply voltage may already be low enough. Savings will not be achieved on resistive electrical equipment – panel heaters, kettle, cookers etc.



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Sample tools

Target 2050 Wall insulation- One of a variety of fact sheets

providing details of the technologies available.

Cost calculation sheet

Technology brochures- Range of comprehensive booklets covering a range of subjects including: biomass, heat pumps, wind turbines, solar photovoltaic and solar thermal.

Create a home garden to save energy- Comprehensive booklet covering issues

like shading and intelligent planting of trees to keep the home cool.



Finding, connecting and communicating

A major challenge for homeowners seeking to get home improvements done can be finding the right installers. There can be a great deal of confusion over what to look for in terms of accreditations or guarantees, what sort of costs

to expect, and how to find one that is reasonably local. Creating a new quality mark at local level is a very expensive thing to do and requires careful monitoring and evaluation. It also risks creating a ‘closed shop’ – while improved quality and prices may be better achieved by capacity building and bringing more local installers into the programme.

For many of the relevant technologies there are accreditation schemes in existence. Some have lists to find members in a particular area – but unless the area concerned is a capital city there may be few names listed that are based locally. This does not always mean that they do not exist, just that they have not registered on national listings.

A simple approach developed in our community model is to create a local network for all installers of relevant technologies operating and active in the local area – and to work hard to promote this and populate the lists.

The local network can then be linked to a portal for homeowners to find installers as close to them as possible. This can include a checklist of the accreditations and guarantees that are (a) essential and (b) desirable, so that the difference between these is clear.

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Benefits for the local companies to join the network include:

• Referrals for local jobs, either through the portal, the contact hub or other companies offering different services

• Networking events to share information and learn about government incentive schemes or new regulations

• Joint training programmes, and a group with which to bid for support funding where this is available

• Group discussions and presentations from product suppliers

• Joint marketing or even purchasing of supplies

• The endorsement of independent advice for their products

• ‘Hot leads’, saving them time in marketing and explaining about the products

Benefits for the homeowner include:

• Finding installers close to home, and obtaining comparable quotations

• Being able to get local references, or even being able to see other work done by the same installer

• Easier follow up if there are problems post-installation

An issue that frequently arises in relation to installers is that of effective communication between them and the homeowner. There are many opportunities for misunderstanding and dissatisfaction which go beyond the main issues for each which are, on the one hand, good quality work and on the other, being paid for it! Some of the issues that arise, for example, are around timing, others around mess and clearing of rubbish.

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Good communications checklist for homeowners getting works done

In addition to questions about the detail of the work to be done and agreeing the price, there are a number of practical issues that can arise during building and retrofit work. To help with good communications and a harmonious relationship, below is a suggested list of things that the homeowner could ask the builder/installer before they start work...

✓ Have you given me the total price for the job, or could there be extras? If so how will you warn me/get my agreement to this?

✓ What are the payment arrangements – for example is it in stages or all at the end, and what types of payment can you accept?

✓ Are the installations eligible for any special financial help, such as grants or loans or Feed-in Tariffs, and do you help with applications for these?

✓ Are there guarantees for any of the work or materials, and if so when will I get these?

✓ Do I need to contact planning or building control or are you dealing with this?

✓ How long do you estimate this work to take? When will you start/finish?

✓ Is the work done in stages, if so can you describe these and how long will each one take?

✓ Will there be times you have to go off site during the job – roughly when do you think that will be, so I can plan for it?

✓ What kind of waste will be produced and who will get rid of it?

✓ Will you need to use my electricity?

✓ Will there be an impact on my garden/drive and if so where– so I can plan for this?

✓ (In the case where the work is part of a major refurbishment) Are there any other trades you are likely to be bringing in and who are they? Homeowners need to tell the installer/tradesperson if the work is one of multiple improvements as there may be additional benefits to trades communicating and planning beforehand, for example with windows and insulation, or windows and builders.

✓ Is there anything I need to do or prepare beforehand? If so what?

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INSTALLERS

Link to Energy leaflet- Leaflet to promote the

Link to Energy Network to installers.

Link to Energy network meeting agenda- An example agenda for a Link to Energy meeting for local installers.

Link to Energy website- Screenshot of the Link to Energy website where

clients can search for local installers.

Installers Fair poster-Poster to promote the Stroud Open Homes Installers Fair.

Sample tools



INSTALLERS

Technical guide- Pair of guides which provide

technical advice about Knauf solid wall insulation systems.

External insulation technical guide- Information about the Fibran system of solid wall insulation.

Cyprus Energy Agency online database- A searchable webpage where

homeowners can look for suppliers and installers in their area.

Sample tools



Understanding building and planning rules

Building and planning regulations vary in each country and often by region or local authority – it is also an area which changes over time. Here are some of the main points that may arise as potential barriers to home energy

improvements:

• Changes to the external appearance of building – or ‘profile’, affecting the choice of windows, external wall insulation, solar panels etc.

• Rules about flues and chimneys that affect the choice of heating equipment

• Clean air rules, affecting the use of solid fuel, typically in inner cities

• Changes to buildings of historic character – this may be very general or applied only to certain features, and tends to be applied to the use of internal wall insulation or double glazing

As things progress, however, building and planning regulations are tending more towards encouragement of energy improvements, with increasing standards for the energy performance of new buildings and some potential inroads into improvements to existing buildings, such as:

• Controlled fittings: restrictions on replacing certain items such that you cannot replace them with a less efficient one (such as boilers or windows)

REGULATIONS



• Renovation of thermal elements: requiring insulation when renovating, such as re-plastering more than a certain proportion of the wall area

• Consequential improvements: requiring energy improvements to another part of the house as a condition of permitting a major improvement such as an extension, loft conversion or conservatory

It is important to keep up to date with the regulations in the region, as these will impact (positively or negatively) on a community scale home energy improvement programme.

Typically, buildings with the most important historic significance are exempt from sustainability requirements, or at least the preservation of historic features takes precedence (in the UK these are either specifically ‘listed’ or in areas designated as ‘conservation areas’). This does not prevent making improvements to and finding suitable solutions (and compromises) for the much large number of more common older homes (also part of built heritage).

REGULATIONS

Installer Accreditations-Table to show the types

of work covered by Building Regulations and

the relevant Competent Person Scheme.

Sample tools



Finding supplies and promoting improvements

Another part of the home energy improvement jigsaw is the suppliers of energy saving products. These can be an important part of the community delivery model, in ensuring the right supplies are available, promoting

energy improvements, and carrying and passing on advice and information materials.

There are a number of variations on the ways that manufacturers, suppliers and installers interact in forming the supply chain for energy improvement measures. These in turn offer different opportunities for interaction and collaboration with the community scale delivery model. Here are some of the variations on this theme:

• Manufacturers supplying direct, or via large supplier outlets in bulk to major contractors who carry out the installations

• Large chain builders’ merchants with retail outlets as well as their own installation teams for certain products

• Large chain builders’ merchants with retail outlets selling to all

• Local independent builders’ merchants

• Retail outlets with main focus on DIY (although these may be used by builders too, and some may have separate trade and non-trade counters in the same store)

• Web-based or catalogue suppliers

SUPPLIERS & RETAILERS



In developing a community scale delivery model, it is wise to research how installers locally obtain supplies, and seeking opportunities for collaboration with the supply chain, such as:

• Arranging supplier or manufacturer training for local installers in use of their products (in some cases this may be a necessary part of obtaining a guarantee)

• Joint promotions, or outlet for marketing materials

• Referrals for advice and home energy assessments

• Identifying supply gaps and issues and working together to try to close these





Sample tools

Knauf training course- Information on the Knauf

training course available for installers, the course was

funded by Severn Wye from government funding.

Thompol website- Supplier specialising in solid wall insulation.

Epiphaniou Energy- Consortium of suppliers

offering home energy improvements through

a single website.



Accessing or establishing finance programmes

The cost of making energy improvements to the home, or access to the capital at the right time can be a serious barrier, and as such one part of the jigsaw to make up the complete picture for the local delivery model must be finance.

This may be either in helping homeowners to access national or regional sources of finance, establishing agreements with suppliers of finance to channel funds into the local areas, or establishing new finance programmes at a local level.

In practice, finance programmes are subject to political changes. They come and go, and a successful local programme may continue over many years, and need to span several programmes. In order to meet the needs of all local homeowners the programme may also need to draw in several schemes at the same time, and help individual homeowners to link up multiple sources of finance for the same improvements or package of improvements. This section describes the main types of finance, and attention is focused on one particular type that may be possible to develop at the local level.

In describing and analysing schemes or ‘products’ for financing retrofit of existing homes, it is possible to set out a handful of broad categories, within each of which there is nevertheless considerable variation. There can be significant interaction and overlap between the different approaches, and many of the more developed existing programmes in different countries themselves feature a mix of products to cover various tenures, household incomes and characteristics, and age or built form of housing.

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In practice this might form a comprehensive approach within any one region or country, but can also be seen as presenting a confusing mix of policies and interactions. Within the mix can be found national, regional and local programmes, and public, private and third sector provision.

Summary of approaches to financing home energy improvements

The most significant divisions in terms of target group appear to be:

• Whether owner-occupied or rented.

• Whether single or multi-family homes (more typically thought of as ‘houses or blocks of flats’ in the UK). A variation on this is the two family home arrangement found in some countries – an individual house purpose-built as two independent units.

• Household economic status – either in terms of income and mortgage value, and ability to make repayments, or eligibility for public sector support.

The broad categories of types of finance identified are:

• Grants

These are typically tailored to fit the needs of different income groups and/or set at levels designed to incentivise matching private investment.

• Loans or advances

These can take the form of personal loans, mortgages or mortgage extensions, or advances - for example against savings in fuel bills. There is a very wide range, from a mortgage right through to microcredit (avoiding the administrative cost and bureaucracy of conventional loans). Critical issues affecting who can access these and what they can be used for in practice include the costs to the ultimate beneficiary (for example for set-up, administration, interest applied), maxima and duration of loan. On the finance provider side, securitisation and guarantees are highlighted. This is discussed in more detail on the next page.

• Tax credits

This can, for example, be against income tax, local or property taxes. In UK terms it could be a reduced level of annual Council Tax or tax on sale/purchase.

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• Feed-in tariffs

The provision of guaranteed feed-in tariffs for on-site renewable energy generation, or the provision of a similar payment for renewable heat (as in the UK renewable heat incentive). Whether financed through the public purse or the fuel suppliers themselves, this offers an income stream to the investor and so features as a specific financial product.

• Third party finance/energy performance contract

A general description of the approach where a third party provides the capital finance for an energy performance improvement and takes (all or part of) the resulting income stream as repayment. For example this can be through energy savings or payments for (sale of supply from) on-site generation.

Setting up a local loans programme for home energy improvements

If there is a gap in the provision of necessary finance, it may be necessary to try to fill this gap with a local programme. This is a major undertaking and only worth doing if it is a long term commitment. We set out here some of the major issues to consider.

Measures to cover

It may be decided to cover specific measures only where these are seen as failing to achieve the level of take up needed. This allows for a simpler loan approach – but may achieve less in the long run than a more flexible loan which covers any home energy improvement measure. It is also necessary to be realistic about the need for ancillary works in many cases, and not create extra barriers by being overly restrictive; for example where a boiler upgrade needs new pipe-work or flues, or insulation requires the creation of access hatches, scaffolding or finishing details.

Another argument in favour of flexibility in terms of measures to cover is to encourage more comprehensive whole-house approach. This is a way to capture a greater degree of energy improvements at the trigger point opportunities that arise – they may not happen very often in the life cycle of the house in question.

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Loan details

There are a number of fundamental questions to decide upon, such as:

• How long the loan is for: a long term loan would enable it to be paid back slowly, but in total would cost the homeowner more, and may be longer than the time they expect to live in the home. An advantage of a longer term loan, however, is that it may be possible to set repayments at a level that links to the saving in energy bills from applying the improvements, so that there is no net additional cost to the homeowner – as intended in the UK Green Deal concept.

• What the maximum loan is, and what proportion of the total costs of the works it will cover: the arguments given above for flexibility apply again here. There can be some unintended consequences to setting too low a maximum, such as partial insulation of the building envelope, or choosing a cheaper measure than the one first envisaged. On the other hand, from the lender’s perspective requiring own funds from households can reduce the financial risk and allow higher leverage.

• Whether a loan can be drawn down in more than one stage (or whether multiple loans are permitted): in practice there are many reasons why the measures may be implemented in stages. For example if a household needs to renovate part of the house first so that they can continue to live in the other part, or because they can only raise part of the matching finance needed.

• Whether eligibility criteria are set for borrowers: this can be a difficult decision, as the aim of the loan is to enable those who cannot otherwise afford to make the necessary improvements. A decision has to be made, however, as to the level of risk the lender is willing to take with borrowers who may not be able to repay. This relates also to the next section.

• Whether the loan will be personal to the owner in question, or linked to the home: and therefore possible to pass on to a new owner if they sell (as in the UK’s Green Deal)?

Source and cost of capital

At the time of writing this is a major barrier, due to current economic conditions and recent history within financial services and lending practice. Some of the considerations are:

• The full cost of capital on offer, including the interest charged, and any arrangement and administration fees, both initial and ongoing, and any penalties for late payments or early repayment of the full loan.

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• What security is set for the loan, and who checks this and/or pays for the checks to be made. Some possible ways to achieve this are:

› Registering a legal charge on the land registry, so that the loan would show up if the home owner tried to sell without paying it off.

› Registering a legal charge on the local land charges register through the local authority, to achieve the same purpose.

› Setting up a guarantee fund: to underwrite losses to the lender should borrowers default. This approach is a way to ‘soften’ the loan and make it more widely available, potentially even at a lower cost as it reduces the risk to the lender. As the loan is to many private individuals, the size of the guarantee fund can be linked to an assessment of likely maximum default, which is just a proportion of the full loan fund.

› Carrying out credit and affordability checks on potential borrowers.

• One off costs of setting up a finance programme and mobilising sources can be significant.

Loan repayment details

The way in which the loan is repaid is a critical issue for borrowers, and can add considerably to the costs of administration of the loan.

One of the questions is the way in which interest and capital repayments are spread across the duration of the loan – this affects the impact on lender and borrower if the borrower wants to pay the loan off early, which is likely if they move house, unless the loan is set up to be portable to the next owner. If the interest payments are front-loaded, this means the lender earns more for their loan if the loan is paid off early than if it is evenly spread or the capital repayments are front-loaded.

Looking at this from the lender’s point of view, early repayment on a large scale represents risk to the lender, the cost of which may either be built into the interest rate charges or by charging one off early repayment penalty fees.

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Credit and financial advice standards and regulations

There are standards and regulations related to making loans. Financial regulations apply to those providing credit, and may involve obtaining a licence and meeting strict criteria for this. This can also apply to giving information or referring people for loans (credit brokerage) which may be the role of the contact hub in the community scale delivery model. This also relates to marketing the programme and is highlighted in Section 3 of this guide.

Other regulations that require scrutiny are ‘responsible lending’ to make sure that the borrower is really able to take on the loan, and it will not put them in a difficult position financially.

The home energy assessment can be a useful additional piece of information in relation to the latter as it provides an estimate of potential energy bill savings from applying energy improvement measures. This can then be set against the loan repayment costs. This is not of direct benefit to the lender, except in so far as it helps to ensure the borrower can repay.

A crucial quality standard as regards loans is the communication and clarity of information to the borrower, and the transparency of costs and risks.

It is important at the outset to decide which organisations will carry out which roles and ensure that this is covered by the licence or permission that the organisation holds.

Practical issues

The provision of finance can be complex, and we have included here a brief list of practical issues derived from experience:

• It can be useful or even necessary to combine finance options, but be aware that rules governing them may conflict. In designing local finance specifically aimed to complement national or regional schemes, scrutinise the details in advance to avoid problems in matching these – such as eligibility criteria, measures covered, inclusion of the cost of ancillary works and so on.

• Particular issues to check are State Aid and VAT, as well as credit and financial advice regulations and standards (as above).

• It is very difficult to follow a generous programme of incentives with a less generous one – people generally need time to accept the change.

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• It is difficult to gauge in advance what the take up might be – even with the best market research, things can change, or small details can affect results. For this reason it is crucial to design an approach that can flex as you learn more, and to build in a system to accept and respond to feedback from homeowners, advisers and installers.

• Setting up a small scale finance programme which has the potential to grow with the demand can be more economical and less risky.

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Stroud Target 2050 Loan booklet- A booklet for clients to follow each stage of the process in applying for the loan. This also contains the details of the loan and eligibility.

Stroud Target 2050 Loan flyer- Flyer for basic information

on the loan.

Sample tools



FINANCE

Savings at Home poster- Poster advertising the

funding programme, Saving at Home.

Greek Banking website- Information regarding green banking.

Sample tools

Detailed customer journey-Customer journey to clearly show each stage in the application process for the South Gloucestershire Home Energy Loan and the organisation responsible for the action.



Measuring achievement and improving quality

The starting point for monitoring and evaluation is the aims of the programme in terms of outcomes. Add to this the consideration around quality of service and added value, and the effectiveness of different parts

of the overall delivery programme. At the other end of the scale is to consider what is measurable. The challenge is to find practical and affordable ways to join these up...

The outcomes you are aiming for may for example be:

• A reduction in carbon emissions related to home energy use

• A reduction in energy demand from homes

• Reduced risk of health problems or debt due to fuel poverty

• Improved comfort and use of all parts of the home

• Increase in economic activity and/or jobs created or retained in the home energy improvements supply chain

MONITORING & EVALUATION



Quality and efficiency considerations may include:

• Customer satisfaction with the advice, the installation or the overall programme

• Response times, such as how long a homeowner waits for:

› the contact centre to return a call or reply to an e-mail

› an energy assessment after placing a request for one

› the installation after confirming the order

• The rate of response to different marketing or outreach activities

• The ease of use of different technologies, and household understanding of their best use

• Homeowner understanding of and response to energy assessment reports

Monitoring methods and tools that are typically used include:

• Technical monitoring of a sample of installations of each technology - this may be covered for at least some technologies within existing regulatory regimes or grant programmes

• Customer satisfaction surveys

• Delivery agent monitoring of response times and results, using tools such as maintenance of a detailed ‘customer relationship management system’ – a database on which to record details and progress for each customer

• The use of ‘campaign codes’ on the database to track number of calls from specific marketing campaigns

• Calculation of estimates for potential energy, carbon emission and energy bill savings, based on total numbers of installation of each technology and/or against specific home energy assessment reports. It can be useful to look at these in several ways:

› per annum

› in total, taking into account the expected lifetime of the measure

› per home

› before and after energy ratings

› before and after annual energy use, fuel bills or carbon emissions per annum per square metre of floor area




For more in-depth evaluation of your programme and reflection on quality and ways to improve delivery and outcomes, you might consider the use of focus groups or action learning groups.

A focus group is a form of research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members. In this context you might run a focus group of homeowners, of advisers or installers, each to review aspects of the programme, and make suggestions for improvement.

Action learning is essentially learning within a programme of action, and using the reflective process to inform changes you might want to make. For example you could get together the whole delivery team or representatives of different groups within it on a periodic basis throughout the programme such as a contact hub adviser, an assessor, an installer, a supplier, a planner, a building control officer, and of course a homeowner.

A variation on this theme may be to hold learning sessions on specific topics where there are barriers, for example:

• on solid wall insulation where there are multiple barriers such as visual impact, internal space, disruption, cost and technical questions around the risk of damp

• on energy efficient windows, where there are issues around visual impact and matching to older building types, selection of frame materials, ventilation and cost





Sample tools

Warm and Well customer satisfaction report-

Example of a customer satisfaction report for partner organisations.

Warm and Well end of year report 12.13- Carbon savings reported for the Warm and Well scheme yearly.

Energy Ambassadors results report-

a page from the final report.

Achieve final report- Carbon savings reported at the end of the Achieve project.


Cyprus: DESMH 2009-2010 by the Research Promotion Foundation of Cyprus.

Greece: The General Secretariat for Research and Technology (GSRT), the official body for the planning and implementing of science and technology research policy in the country. The GSRT designs, manages and implements national and European research projects.

UK: The Technology Strategy Board, a business-led executive non-departmental public body established by the Government. Its role is to promote and support research into, and development and exploitation of, technology and innovation for the benefit of UK business, in order to increase economic growth and improve quality of life.

The UK part of the project was also supported by the Sainsbury Family Charitable Trusts Climate Change Collaboration.

The local delivery pilot in the UK was supported by Forest of Dean District Council, South Gloucestershire Council, Stroud District Council, and Wiltshire Council.

The project partners would like to thank the households, installers, local authority personnel and advisory group members who participated in the project for their valuable contribution, without which the project could not have gone ahead.

Countdown to Low Carbon Homes was funded by the ERA-Net Eracobuild programme. ERA-Net Eracobuild is a network of national R&D programmes focusing on construction and the sustainable built environment, with the aim of developing synergies between national programmes by sharing strategies and establishing joint programmes and projects.

Countdown to Low Carbon Homes was funded under the Sustainable Renovation theme, addressing the challenge of sustainable renovation of the existing built environment, and providing opportunities for industries, research, academic and other organisations to take part in multilateral cooperation in this field.

Six EU countries participated in the theme, and the project was found to have specific synergies with national funding priorities in three: Cyprus, Greece and the UK.

SUPPORTING ORGANISATIONS AND FUNDING BODIES

Severn Wye Energy Agency Unit 15 Highnam Business Centre, Highnam, Gloucester GL2 8DN

Tel: +44 (0)1452 835060 Email: [email protected] Web: www.severnwye.org.uk

Twitter: @Severn_Wye

Charity no. 1083812

Working for a future powered by local energy and free from fuel poverty

Severn Wye are an ISO 14001 registered company – EN1679

This toolkit was produced by Severn Wye Energy Agency, an independent charity and not-for-profit company, working in partnership with Cyprus Energy Agency

and the Aristotle University of Thessaloniki.

Printed in Gloucestershire on 100% recycled FSC certified paper using vegetable oil based inks and electricity generated from 100% renewable sources.

countdown to low carbon homes- guide to community scale delivery

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