East Midlands CouncilsRegional Retrofit – a model

Emily Braham, LHA-ASRA

Ellie Horwitch-Smith, NCH

Fifteen MembersFifteen Members

130K homes in EEM, another 40,000 across other partners

Context

Pressures• CO2 targets• Fuel poverty – energy

price rises• Worklessness and skills

gaps• Limited public funding• Rising affordable rents• 102K vs. 500K p.a.

Opportunities

• PAYS models emerging• New income streams

(FIT, RHI)• Opportunity to influence

direction• Local control• Green economy job

creation

NB: For more background on Feed in Tariffs, Renewable Heat Incentive and Green Deal, please see last 2 slides

What we’ve done to date

What we’ve done to date

Our ambition moving forward…

(Please also read notes attached to slides)

The challenges we face

• Different type of ‘membership’ organisations• Time pressures e.g. FIT step down• Legal, financial and other risks• Scale of ‘eligible’ properties for PAYS approach• Property level solution, area based model• Guaranteed savings for tenants – ‘golden rule’• Equitable investment in properties• Co-ordinated approach to refurbishment /

retrofit, and regeneration• Need organisation to manage fund

What roles exist in this model?What role do we see each of us having?

Fund ManagerEfficiency East

MidlandsIndividual

Organisations

Developing financial model

Best value in procurement Defining the project(s)

Assessing project viabilitySupply chain management

Managing delivery

Setting up & managing fund

Marketing and communications material

Managing tenant engagement

Secure lowest cost investment

Defining the opportunity e.g. stock interrogation

Maintenance and repair

Bidding for fundingCentralised coordination

What we already have

• Supply & Install Solar PV Framework• Materials framework • Effective procurement to assist local supply chain• Working Neighbourhoods Fund with Leicester City

Council• Structure and governance advice• Supportive fund managers• Open dialogue with DECC• Momentum and wide ranging interest

What we need to do

• Marketing and communication materials• ‘How to’ guides – solar PV installation, stock

assessment, tenant engagement?• Pilot projects to assess opportunity and reality of PAYS• Suite of legal documents to draw from (solar PV initially)• Set up suitable governance structure• Work closely with funding partners to create model• Risk analysis• Roll out training programmes

What benefits will our proposals bring?

• Associate membership of EEM – all Councils• Immediate access to Solar PV Framework• Review of your standard tenancy agreement – for solar

PV installations • Access to all developed resources• Opportunity to set up and share local training

programmes• Long term aspiration to provide access to finance for

retrofit investment• Direct engagement/ influence over Green Deal

development

Thank you

• We will be holding an open discussion meeting on Tuesday 17th May 2011

• Please email in advance any questions or comments to Emily Braham so we can ensure we answer these on the 17th May.

emily.braham@lha-asra.org.uk

07912 085490

Additional information on Feed In Tariffs, Renewable Heat Incentive and Green Deal

What is the FIT and RHI?

Feed in Tariff • Per kWh payment - up to 5MW• Rate for 20-25 years, target

ROI ~ 8%• 27,000 registered installations

(solar PV 19,800+)• Recent developments:

– >50kW+ PV tariffs reduced from 1 April (32.9p – 19.0p)

– Anaerobic Digestion tariffs >250kW increased

– Comprehensive review closes 6 May (10% saving by 2014-2015)

– Any new tariffs/ procedures to apply from 1 August 2011

Renewable Heat Incentive• Reduce 44 MtC by 2020 (20

new gas power stations)• Per kWth payment – all sizes• Installations since 15 07 2009• Industrial, commercial, public

sector, community– 20 year tariff– Solar thermal <200kWth = 8.5p;

Biomass <200kWth 7.6+1.9p

• Households– RHI Premium Payment: 25,000

(£300-£1,250) – eligibility criteria– Tariff to start with Green Deal in

2012

What is Green Deal?

• Process involves:– Energy Assessment of home– Recommendations for retrofit plus finance offer– Work carried out– Repayments made via energy company

• £7bn private loan finance• Golden Rule: energy savings > loan repayments• Likely to be delivered via community-based partnerships• Call for Evidence just ended on costs & energy savings• Securing finance partners• Work underway on: accreditation, assessment process,

workforce capacity