Better Energy: The National Upgrade Programme Factsheet 11 May 2011

Transcription

1 Better Energy: The National Upgrade Programme Factsheet 11 May 2011 Better Energy is a major step forward in Government s retrofitting programme. The Minister for Communications, Energy & Natural Resources announced today: An additional 30M in Government funding in 2011 The streamlining of programmes to offer a more accessible experience for consumers The involvement of the energy companies as partners The start of the process of moving to new financial models such as pay as you save What is Better Energy? Put simply, Better Energy is a programme designed to ensure that there are more opportunities for householders and businesses to reduce their energy consumption leading to real and lasting cost savings. Better Energy builds upon what was good about the existing grant schemes and adds a role for energy suppliers, a transition to an upfront discount rather than a retrospective grant and a national pay-as-you-save scheme. Better Energy will replace the three existing programme: Home Energy Saving Scheme (HES), Warmer Homes Scheme (WHS) and Greener Homes Scheme (GHS), under one umbrella. The Sustainable Energy Authority of Ireland (SEAI) will monitor all activity by recording the Building Energy Rating (BER) of every home before and after works are carried out, and verifying what measures have been carried out and by whom. Why make these changes? This will enhance the programmes to bring greater job creation, making it easier for consumers to upgrade their homes and lower their bills. The need to improve the way we use energy is no longer simply a question of environmental responsibility but one of economic necessity. There is a huge opportunity to reduce our costs and reduce our dependence on imported fuels. Existing programmes have been very successful. For example the Home Energy Saving Scheme has supported 88,000 home upgrades in the past two years, bring a total spend into the economy of a quarter of a billion euro and supporting up to 5,000 jobs each year. However, we need to be more ambitious to drive the market growth and energy savings our economy needs today. For this reason, the Better Energy envisages a different approach one that will prove more attractive to homeowners, deliver better value for money for the state and build a long-term high-quality retrofit market that supports jobs and lowers energy costs.

2 What benefits will the changes bring? The extra money given to the programme will support an additional 2,000 jobs in 2011, and deliver an extra 20,000 home upgrades. The 30M will leverage at least another 30M in private investment, and bring total energy savings worth 200M over their lifetime. Better Energy is a major step forward as it brings all energy companies in as partners. All sellers of energy (over a minimum size) will be involved: ESB, Bord Gais, Airtricity, to oil companies and solid fuel suppliers. These companies will now have formal targets to deliver energy efficiency upgrades, the size of their target being linked to their share of the market Energy companies can meet their target by directly offering upgrade services, or they may subcontract the work. One way or another, they need to show that a certain amount of energy savings have been generated by upgrades carried out by them or on their behalf. SEAI will monitor all activity by recording the Building Energy Rating of every home before and after works are carried out, and verifying what measures have been carried out and by whom. What will the changes mean for the consumer? Programmes will be brought together under one umbrella. Consumers will find it easier to access supports at one central point. Energy companies, each with an upgrade target to meet, will come to the market with new offerings and deals, giving the consumer greater choice and value. We are also starting the process of changing how upgrades are funded, making participation more affordable to all, first by offering the grants as upfront discounts, and then over the next two years working to move to a pay as you save model. Better Energy Where we are now? Most people could improve their comfort and reduce their energy bills by upgrading the energy efficiency of their home. Actions include improving insulation, upgrading the boiler or installing better heating controls Upgrades make economic sense given that heating bills can often be halved and so over a number of years the savings add up to more than the initial outlay Government grants cover about one third of the cost of typical upgrade measures, and are proving very popular. More than 1,000 upgrades are being carried out every single week This activity supports jobs, especially since upgrades tend to be labour intensive. More than 5000 full time jobs were supported in In the past two years, more than one quarter of a billion euro has been spent in the home energy upgrade sector in Ireland. What comes next? The next major evolution will be to find new ways to fund the upgrades so that more people can participate without the need to pay upfront to gain savings down the line. Innovative financing

3 models such as pay as you save lend money for upgrades with repayments linked to the savings. The ideal model is when a homeowner pays nothing upfront and repays the cost of an upgrade at a rate the same as the energy bill reduction generated. Work is underway to move to this new system by Frequently Asked Questions 1. What financial resources are being allocating to the programme? Capital funding of 60 million was allocated for energy efficiency initiatives in Budget A further 30 million is being made available for Better Energy, as part of the Jobs Initiative announced yesterday. This 30m will stimulate another 30m in private investment. The additional funds will be used to stimulate energy efficiency in private residential housing, lowincome homes, the public and commercial sectors. 2. How many jobs are being supported? The 30M additional funding will support an extra 2000 jobs for the rest of 2011 on top of 3,800 jobs supported by the existing budget allocation 3. What are the CO 2 and energy savings from Better Energy? The extra 30M will generated additional energy savings of 250 GWH p.a., worth up to 14M p.a. and over 200M over their full lifetime CO 2 savings generated from the extra 30M are 60,000 tonnes per annum (60kT) 4. What is the roadmap for Better Energy? Today s announcement marks an important milestone in the achievement our national energy efficiency targets. Our immediate priority is to ensure that all applicable energy suppliers sign up to voluntary agreements by the end of June. This will dramatically change the landscape of the Irish energy market, bringing new suppliers and offers to consumers. It is also essential to ensuring that our 20% energy efficiency target by 2020 is achieved. After this, focus will turn to transitioning the current grant arrangements to an up-front discount. In parallel, work on developing a national pay-as-you-save scheme will continue ahead of a transition by the end of 2013 to the new funding mechanisms. 5. What does the announcement mean to the typical homeowner The Better Energy Programme makes it easier for homeowners, irrespective of financial means, to access energy efficiency measures, be it through the energy suppliers or other contractors. There will be one point of contact for accessing Government supports in this area, including advice on what measures are best for any home. A typical family, spending 1,000 every year to heat the home, can choose from a range of measures, from attic or wall insulation, to upgrading the boiler and heating controls. The cost of the work will range from 2,000 for a simple upgrade to more than 15,000 for a comprehensive package. Grants of up to 5,560 are available. The family can shop around among contractors to get the best price. Their home will be noticeably more comfortable as soon as the work is complete, and they will also save as much as half of their annual heating bill.

4 6. What does the announcement mean to the typical business or public sector body? Part of the additional funding will be specifically assigned to supporting upgrades in commercial and public buildings. This will leverage at least another 10M in private funding, delivering upgrades with a savings value of 100 million over their lifetime. The upgrades will be used to prove and disseminate widely applicable technical solutions and also new business models. There is huge potential for new business and financing models, in the public sector for example, where the savings pay for the work and so organisations can have upgrades carried out at no initial cost. 7. What role is envisioned for the energy companies? The programme will involve 25 energy suppliers who each supply more than 75GWh of energy each year. These companies are being given until the end of June to finalise voluntary agreements with the SEAI, which will deliver 200GWh of energy saving measures in This means that each of the energy suppliers will need to individually, or collectively, agree voluntary agreements with the SEAI to deliver real energy savings to customers. Energy companies can meet their target by directly offering upgrade services, or they may subcontract the work. We hope that this will help stimulate innovation in energy services. Useful Facts Over 5,800 jobs supported in m in state support in 2011 One million homes and buildings to be upgraded by 2020 Reduced energy use of 8,000 GWh by Net societal benefit of 6 billion 2 Warmer homes with increased health and comfort 1 Every home in Ireland uses approximately 30 MWh or primary energy equivalent per year. 8,000 GWh equates to approximately 250,000 homes. 2 Source: SEAI data

5 Better Energy Support Levels Measure Support Level Roof Insulation 200 Cavity wall insulation 320 Internal Wall Dry-Lining 2,000 External wall insulation 4,000 High Efficiency Gas or Oil fired Boiler with Heating Controls Upgrade 560 Heating Controls Upgrade 400 Solar Thermal 800 BER After Upgrade Works (Only one BER grant per home) 80