social housing delivering the community green deal · our vision • leadership: promoting,...

SOCIAL HOUSING – DELIVERING THE COMMUNITY GREEN DEAL THE GREEN DEAL SUMMIT – 31 OCTOBER 2012

Rosemary Coyne, SHAP Co-Ordinator

5 December 2012

SOCIAL HOUSING

Delivering the

Community Green Deal

Introduction


Sustainable Housing Action Partnership

Our Vision

• Leadership: promoting, researching and disseminating best practice in the Environmental, Social and Economic aspects of Sustainable Housing.

Our Objectives

1. Identify & engage the leaders from all sectors of Sustainable Housing

2. Identify and secure funding to support our work .

3. Produce at least one “task and finish” Sustainable Housing project each year.

4. Influence European, National and Regional Sustainable Housing Policies and Strategies.

5. Engage key National and Regional Housing organisations to support the delivery of these Objectives.

Indicative Energy Performance Certificate profile of the UK housing stock


We are taking action …



Collaboration between Partners

to explore:-

• How to deliver retrofit measures

at scale

• How to finance retrofit measures

• How this could impact on the

economy in terms of jobs, skills

and the supply chain



Five building blocks for delivery:-

1. Identify needs, build on opportunities

2. Develop plans and programmes

3. Working together to achieve more

4. Establishing re-investment funds

5. Investing in the Supply Chain


Task & Finish Groups

• Early workshops identified key issues

• Consolidated and defined topics

• Cross sector working groups

• Input from Registered Providers Group

working with DECC

• SHAP as “Honest Broker”


Moving towards delivery

Mapping & gapping – decision tree

Green Deal delivery model

Provider

Partner

Participant

Passive player

Economic growth through jobs & skills

Challenges and opportunities for decentralised

energy generation


Matthew Rhodes: Encraft

5 December 2012

SOCIAL HOUSING

Delivering the


Grid Capacity Issues & SMART Grid


ACKNOWLEDGEMENTS

Grid Capacity Issues & Peoples Power Station

Task and Finish Group:

Chair – Tom Waite/Jim Allen Green Energy Networks

Vice Chair – Matthew Rhodes Encraft

Members –

Alan Hale EH Smith

Richard Baines Black Country Housing Group


Strategic energy

challenges we face Energy Challenges Adaptation

• 1/5 UK’s generation gone in 10 years.

• Global energy crisis and state of UK

economy.

• Demand on electricity is increasing.

• Doubling in costs for electricity and

increasing taxation on carbon.

• Which comes first SMART grid or the

SMART home?

• Two way power flows, demand side

management, reducing incentives and

dynamic energy tariffs.

• Community energy generation and

power of the people.

16

Current UK Capacity


The current electricity grid


What is a Smart Grid?

• Application of information and

communications technology to the ‘dumb’

electricity system

• Real time flow of information on the network

• Integrated demand management between

consumer, supplier and network operator

• Ability to shift demand, better manage the

network at peak times and consumers have

more control over their energy use


Future SMART Home


Integrated Smart Grid

21

VIDEOS are available at:

http://www.smartgridnews.com/artman/publish/Bu

siness_Smart_Grid_101_Resources/Now-

Playing-ConEdisonNY-Smart-Grid-Animation-

2857.html

and

http://www.youtube.com/watch?v=UxC_BzIOWKk

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Integrated Future Green Networks


Matthew Rhodes: Encraft

5 December 2012

SOCIAL HOUSING

Delivering the


Plug and play? Challenges and

opportunities for decentralised energy

generation.


Why do this?

The Peoples’ Power Station

We have choices

1. Build more power stations

- everybody pays, but no-one

has to think

2. Manage the system most

efficiently

- everybody benefits, but only if

we all take responsibility and

communicate


We have the technology

• Energy efficiency – Using less

• Energy generation – Heat pumps, solar PV, solar thermal, CHP etc.

• Energy demand management – Used wisely

• Energy storage – Power when and where needed


The economics can make

sense

£72,326.25

£6,750.00 £5,100.00

£135,000.00

£72,613.13

£2,975.00

£162,000.00

Community example (800 units) - Potential Revenue Streams (per year)

Group purchasing of energy

Switching fees

FIT

RHI

Savings from EE measures

Sale of onsite electricity at cost

Sale of onsite heat at cost


Social landlords are the

key agents of change

• Optimal scale is area-based

• Already existing communities (behaviour

change has a significant part to play)

• The ‘PPS’ approach delivers social and

economic outcomes too

• You can start today (technologies will follow)


Can we do this?

• The key technologies exist today

• ICT and smart meters are a critical enabler

• ….but

• Community engagement is fundamental

• You need the right mix of buildings and

opprortunities (~1000 houses, District, Island)

• You need a supportive regulatory structure


What is already happening?

• The 500kW unit at Great Dunkilns Farm, St Briavels. -

funded by 300 local residents installed September

2012.

• Isle of Wight independent energy island

• Many PV projects around the country by housing

associations

• Eigg Electric is a community owned company which

provides electricity for all island residents from the

renewable sources


Next steps

National

• Continued liberalisation of regulations (slow)

• Funding for pilots (must be via local DNOs)

Regional

• Volunteer pilot community

• Partnership approach to develop investment case


Cliff Horrocks: WHG

Richard Baines: Black Country

Housing Group

5 December 2012

SOCIAL HOUSING

Delivering the


What to considered if you want to participate

in Green Deal and ECO


ACKNOWLEDGEMENTS

Task & Finish Group

Cliff Horrocks Walsall Housing Group

Richard Baines Black Country Housing Group

Mark Bird Walsall Housing Group

Matthew Rhodes Encraft Ltd

Trevor Passingham WM Housing Group

Simon Wright Energy Saving Trust


Choosing a Green Deal

Role

Your options

• Green Deal Provider

• Green Deal Partner

• Green Deal Services

• Green Deal Producer

• Green Deal Promoter

• Not in the Green Deal

Things to consider

• Funding levels

• Legal implications

• Accreditation

• HECA requirements

• Responsibilities

• Are you sure?


Green Deal Provider

• You have to have the finance in place

• Green Deal finance has to be at


(Lead) Green Deal Partner

• The best way to achieve scale

• Crucial to Community Green Deal

• Smaller organisations will benefit

• Lead Partners need to be good at SPVs

• Legals will be more complex

• Operation will need dedicated management


Green Deal Services

• Customer Acquisition

• Assessment and Advice

• Specification development

• Installation Services

– Insulation

– Conventional Heating Systems

– Alternative Energy Systems

Green Deal:

• Code of Conduct

• Accreditation


Green Deal Producer

• Much more than just sign-posting

• Brokering Green Deal Activity

• Engaging multiple Green Deal Providers

• Maximising local benefits

• Maybe a useful response to HECA

• Only reputational risk to manage


Green Deal Promoter

• Probably the minimum LA response

• Only reputational risk to manage

• Satisfies HECA requirements

• Relevant if no retained stock


Not in the Green Deal

• This assumes you either:

– Don’t have any buildings

– Don’t have any responsibility to building owners

– Have buildings that are as energy efficient as

they can be

In which case you are probably not a landlord or a

local authority


SHAP Decision

Tree

• Pathway to

follow

• Hyperlinks to

detail

• No panacea

but:

– Simple

– Tested


Supporting Considerations

• The Energy Company Obligation (ECO)

• Consent Issues

• What We Don’t Know

• What Else Can I Do Now

• Where Do I Go Now

• Next Steps


Pat Laughlin: MEBC - Paul Davies: Wates Living

Space

5 December 2012

SOCIAL HOUSING

Delivering the


Seizing the Business Opportunity


ACKNOWLEDGEMENTS

Chair: Pat Laughlin, Midlands Environmental

Business Company (MEBC)

Vice Chairs: Paul Davies,Wates Living Spaces

Paul Dockerill, Inex Home

Improvements Ltd

Members: • Phil Wilson, WMCCE, Ben Onyido, Birmingham City, Prof. Mark

Gaterell, Coventry University, Martyn Juggins, Orbit Housing, Zoe

Durrant, Birmingham City Council, Chris Slezakowski, SIG, Victoria

Lambert, MEBC


Supply Chain & Skills Development

Task Group

• Membership from public, academic, private and third sectors

• Met between March and September 2012 company

• Remit:

1. Size and Scope the WM Retrofit and Green Deal Market

2. Understand the business opportunity

3. Identify the barriers to uptake

4. Scope skills needs

5. Recommend action



Task Group

Sizing the Market


Supply Chain & Skills Development Task Group

National Picture – total addressable need

£106 billion of easily identifiable addressable need

Tenure IWI EWI

Loft top

up

Loft

virgin CWI

Boiler

upgrade**

Fuel

switch

Double

Glazing*

Local

Authority

£778

million

£2.7

billion

£64

million

£30

million

£196

million

£1.6

billion

£1.4

billion £2 billion

Housing

Associatio

n

£872

million

£2.3

billion

£108

million

£93

million

£223

million

£1.6

billion

£1.4

billion

£1.2

billion

Private

rented

£4

billion

£7.3

billion

£167

million

£166

million

£308

million

£2.2

billion

£2.3

billion

£3

billion

Owner

occupier

£14.8

billion

£29.9

billion

£1

billion

£824

million

£1.8

billion £14 billion

£4.06

billion

£3.2

billion

ECO hard to treat

subsidy

ECO affordable

warmth subsidy Supported by Green Deal golden rule

* or secondary glazing

** assumes that boilers listed as non condensing are not "A" rated

Data compiled from EHCS 2007 and WLS cost data from Willenhall CESP programme



Task Group

ECO – Energy Company Obligation

Carbon Saving

Obligation

SWI/HTT CWI +

insulation measures

20.9mt co2

Assume 60% funded

£754m/year

58%

Affordable Warmth

Heating & Insulation

Measures

Non Social Housing

£4.2bn Notional lifetime

space /water heating

saving

Assume 100% funded

£325m/year

25%

Carbon Saving

Communities

All insulation

measures

15% LSOA’s

6.8mt co2

Assume 100% funded

£188m/year

14%

CSC Rural

£33m/year

3%



Task Group National picture – Measures Supported by ECO

Social Housing Sector Private Rental Sector Owner Occupied Sector

Data extracted from DECC Green Deal and ECO final stage impact assessment



Regional Picture – Measures Supported by ECO

Social Housing Sector Private Rental Sector Owner Occupied Sector

2013 2014 2015 2016 2017

SWI £39m £75m £97m £99m £101m

CWI £16m £16m £15m £14m £12.5m

Loft insulation £2.7m £3m £3m £2.6m £2.6m

Total £57.7m £94m £115m £115m £116m Data

extr

acte

d fro

m D

EC

C G

ree

n D

ea

l a

nd

EC

O f

ina

l sta

ge

im

pa

ct a

sse

ssm

en

t



Task Group

Local Picture – Skills and Jobs SWI

General labouring

Installing insulation board

Installing loft insulation

Plastering

Rendering

Carpentry

Decoration

Tiling

Basic plumbing

Basic electrics

Basic roofing

Scaffolding Access

Electrics to Part P

Gas safe



Local Picture – Skills and Jobs to deliver the DECC projection

Ratio of jobs to capital spending for housing repair and maintenance is 32.6 jobs per £1m

output (construction skills)

1 installer supports 4.75 other supply chain jobs (innovas report 2009)



Task Group

Other Market Opportunity



Task Group Product Opportunities

Opportunity Examples of Product Requirement

New building materials Polymer based Natural breathable materials

High performance insulants High K value products for external insulation and internal linings Floor insulation Vapour permeable products

Air tightness & thermal bridging Door/window junctions Eave vents Sealant tapes

High performance windows Low U value – passivhaus standard Thermal breaks Triple or vacuum glazing

Renewable energy and heating sources

Solar pv Biomass or bioenergy systems Solar thermal collectors Battery technologies and fuel cells Ancillary products – brackets and fixings



Task Group Product Opportunities

Opportunity Examples of Product Requirement

Heating & thermal storage Small combi boilers (



Task Group Service Opportunities

Opportunity Examples of Service Requirement

Customer Service Consumer awareness programmes Consumer confidence and plan validation teams

Energy Assessment and Installation Plans

Standardised Energy Assessor programmes Extended Product Knowledge

Whole House Installations – Multi-trade requirements

Consortia of Providers (buying and supplying) Flexible Labour Pool Multi-skilling multi-skilled trades and craftspeople (affordability)

Maintenance and Aftercare Services

Teams of multi-skilled trades and craftspeople



Task Group

Skills Considerations



Task Group

Skills Issues

• Multi-skilling – Move Away from Traditional Construction Trades

• Customer Care Skills Essential for Delivery

• Support Maintenance and Monitoring – Green Deal Measures Need Ongoing Aftercare

• Cross-Engagement with Other Industries (Green Deal and Manufacturing) – Share Training Models

• Introduce Flexibility – Flexible Apprenticeships



Task Group

Skills Issues

Level Skills Target Example

Level 1 Low Level Skills –NEETs/Long term Unemployed

Draught proofing. Top-up Insulation, Hot water tank insulation

Level 2 New employment – re-skilling External and Internal wall insulation, Customer Care, Surveying

Level 3 Current & new employment, graduates, manufacturing, assessment, specification, design, procurement, finance

Gas boilers, Renewable energy, project management, etc



Task Group

What We Can Do To Deliver the Opportunity

1. Collaborate/work together – establish market /create market size

including focus on commercial and industrial premises (est 39% of carbon emissions in Birmingham)

2. Encourage Government to:

• Publish long term strategy for sustainable construction, e.g. German model

• Introduce whole house policy and ‘whole life’ costing standard

• Set and publish technical improvement standards

3. Increase public sector knowledge of provider base


Supply Chain & Skills

Development Task Group

What We Can Do To Deliver the Opportunity

4. Develop local Skills, Training and Employment policy/needs

statement including (Flexible Apprenticeships model)

5. Encourage local business innovation especially to increase

affordable products and services

6. All-region public awareness raising campaign – the benefits of eco-fit

(e.g. as a home improvement)



Task Group

Proposed Key Actions

• Create regional (local) directory of qualified SME installers and

craftspeople for consumers (Trusted Trader scheme) consumers

• SME-focused accessible PQQ system – appropriate turnovers and

financial criteria

• Advise on and support with specialist accreditations

• Market-led innovation programme focused on improving affordability

of products and services (MEBC & SHAP ERDF bid)



Task Group


• Regional consolidation of:

– business support programmes – aimed at progression

– Consolidation of training and employment initiatives

• Create and support independent pool of experienced and skilled labour

• Develop and invest in ‘flexible’ apprenticeships

• Make available affordable modular crafts and trade skills training with a

certificate of competency for each module



Task Group


• Create a standardised, ‘kite-marked’ customer facing entrance and

energy assessment programme

• Independent energy assessment agency

• Improved awareness and training in sustainable building, energy

efficiency technologies and a whole house retrofit approach for

planners and building inspectors



Task Group

A Local Example – Stoke Workshops diversification

into retrofit product manufacture

• Run by Stoke Disability Employment Ltd (SDEL)

• Core business – metal engineering

• Employs >30 people with disabilities

• Entered new market – manufacture brackets for solar pv

• Created 10 new jobs


COFFEE


BIRMINGHAM ENERGY

SAVERS


ENERGY SAVING CO-OP


REGIONAL ROUND-UP

Accord ERDF Bid Retrofit & Smart Grids • £3m project • 6 demonstrator homes covering 3

themes – Air tightness & insulation – Building envelope & renewables – Near to market technologies

• 50 home virtual Smart Grid • 250 home retrofit programme • Business Engagement

– Procurement & Supply Chain – Showcasing & technology exemplars – Business Support

Targets • Engage 100 SME’s • Encourage 30 SME’s to

diversify/undertake R&D

• Increase regional suppliers by 10

• Create 30 new jobs • Reduce CO2 • Reduce energy costs in

250 homes • Increase SAP ratings in

250 homes

Public sector sustainable procurement to stimulate innovation and save costs

• A Community Interest Company, providing best in class procurement solutions, which deliver economic, social and environmental value.

• Solar PV Framework Contracts awarded to local and regional suppliers and has been used to facilitate over 1500 installations:

Products kept pace with innovation in market Costs Significantly Below Market Prices 40 jobs created from target communities Domestic Fuel Bills reduced by an average of £125 Average of 527kg of Co2 Saved

• Energy Efficiency Frameworks Contracts currently being procured – available for use Q1 2013:

• Supply & Install of Green Deal Measures • Supply & Install of Control & Verification Products • Energy Efficiency/ Microgeneration Consultancy

Case study

Preparing for Green Deal

(whg perspective)

stock and background

19,000 properties

decent Homes achieved

3,500 hard to treat

17 hi rise blocks

70 lo rise blocks

1,500 houses

2,500 still to do

(1000 work in progress)

about us "a truly outstanding housing

organisation dedicated to the

success of our neighbourhoods

and people."

In the last eight years we have invested over £350

million in our homes and we have developed a

range of services that go beyond our traditional

role as a landlord. We own 19,000 properties and

we work hard to make sure that they are well

managed and maintained so that our customers

can enjoy them in safety and comfort.

We have set a new and challenging mission for our

work during 2011-2014, which is to be ‘a truly

outstanding housing organisation dedicated to the

success of our neighbourhoods and people’.

Over the next three years we will continue to

change and grow.

whg overarching solution

Build on CESP work and experience

Stock investment for hard to treat, with ECO funding boosting our resources

Provide green deal service for other tenants

Engage in commercial activity to provide green deal and other retrofit services to the private sector

Open for other providers to join at scale

delivery

Joint Venture Partnership Whg / procured partner (expect this to be contractor or energy co.)

Model detail to be negotiated / worked up with partner based on best fit examples in business case. Agency

New 50/50 deadlock JV company

Work subcontracted via frameworks to partner and/or whg

Work to whg hard to treat stock defined and guaranteed (anticipated partner guarantees access to ECO)

Commercial green deal offer to private sector (anticipated this is a growing market with slow start)

Mechanisms for other Housing Providers to use framework contracts / join the JV (anticipated organisations will want different benefits and terms)

Steps to delivery model

Outline proposal

Legal and organisational requirements / issues

Outline business case Soft market testing

Prospectus for other RPs

Procurement of partner Initial bids

Negotiation with preferred bidder(s)

Funding arrangements (eg green deal finance co limited / SHAP?)

Refining the business case (in line with final Green deal rules)

Legal Agreements

JV set up

Look for the positives For whg

Retrofit delivers corporate goals and direction

Best use of borrowing facility? (or reserves)

Commercial activity profits gifted back

For a partner

Business that has a solid base with scale / guaranteed work

potential to grow

Deliver corporate targets re carbon reduction and ECO

For joining RPs

Options for ECO / investment approach or green deal financing approach

Compliant contracts without up front procurement cost

Can act as producer and use as delivery vehicle (see wider community benefits)

For tenants

Lower energy bills / Warmer

(not under heating)

Associated or extra works

Confidence / engaged (life chances)

For wider community

Local business opportunity

Better neighbourhood kerb appeal (value of property)

Community engaged with each other (cross tenure)

Environmental awareness

Carbon reduction

Sustainable Building Futures

About the project

Run by the Faculty of Engineering and Computing until

June 2015.

This £5.2 million project is 50% co-financed by the

European Regional Development Fund (ERDF)

The project aims to provide business assistance to SMEs

in the West Midlands Region in sustainable building

technologies

About the project

• Product development

• to develop, test and demonstrate existing commercial products,

software/control systems

• Access to state-of-the art equipment supported by dedicated technical staff

• to enable the development and test of next generation environmental

technology products, materials and services (in both real and simulated

environments)

• The provision of a building monitoring, measurement, and environmental

data archiving service

• Use of portable sensor technology to monitor buildings over a period of

time. Support to inform organisational energy management strategies

• Stimulation of business-led research projects into the impact of human

factors and behavioural change

For more information, contact

[email protected]

mailto:[email protected]


THANK YOU

[email protected]

www.shap.uk.com

mailto:[email protected]:[email protected]:[email protected]


To ensure the effective dissemination of information it is the intention of this

and other West Midlands based bids that Sustainable Housing Action

Partnership (SHAP) gather, analyse and disseminate evaluation findings from

the funded projects in the region to maximise the benefit.

The elements are shown below:

1. Capture the ambitions and planned activities from all West Midlands project bids to

DECC and identify additional synergies which could be explored.

2. Review the ambitions and proposed activities in the WM bids submitted against those

which are successful - for the benefit of designing future projects and informing ongoing

projects.

3. Monitor and report on those interim evaluation findings, including any barriers to

delivery and engagement, that are shared with us during March 2013

4. Hold a dissemination event for all participating WM Local Authorities before the end of

March 2013 to discuss findings from project evaluations.

5. Produce a draft report by the end of March on lessons learnt, any early indications on

behavioural change, publicising innovation and good practice case studies.

6. Establish a mechanism for Local Authorities to share their finalised evaluations with

other WM Local Authorities after the end of March 2013, to inform an on-going learning

network.

social housing delivering the community green deal · our vision • leadership: promoting,...

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