Colchester Green Strategy

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1 Asset Management Strategy Amendment Colchester Green Strategy 1. Executive Summary Colchester takes a keen interest in reducing the carbon footprint the housing stock has on the environment and strives to reduce carbon emissions where possible. It actively encourages tenants to change their behaviours towards saving energy and intrinsically links its capital programme to incorporate energy saving devices during routine replacements, major refurbishments and new build properties. Colchester has an action plan in place to adhere to the Home Energy Conservation Act and the following strategy sets out the intentions of how asset management contribute towards the plan and other government green policies and energy targets. Continuous improvement in this area will not only reduce the housing stocks CO2 emissions but will also lower tenant s bills and reduce fuel poverty. 2. Government Policies and Energy Targets 2.1 The majority of government policies are written and designed to address climate change and fuel poverty. This strategy will focus on social housing and the impact policies have on Colchester s housing stock. 2.2 Under the Kyoto/Burden Sharing Agreement of 1997, the UK agreed to cut greenhouse gas emissions by 12.5% by 2012 verses the 1990 base value. The Climate Change Act 2008 furthered this target to an 80% reduction in greenhouse gas emissions by 2050 against 1990 levels. An interim target of a 34% reduction by 2020 was agreed by the Climate Change Committee which will increase to 42% if international agreement is secured. UK housing emits some 27% of greenhouse gases and so the targets are very relevant to this sector. 2.3 Government incentive schemes and building regulations reflect the drive to reduce carbon emissions from housing. These are as follows: Code for Sustainable Homes (New Build) - Currently built to Level 3 with a target by 2016 that all homes are built to level 6 zero carbon. Feed-in Tariffs - To incentivise small scale low carbon electricity generation Renewable Heat Incentive - To incentivise micro-generative technologies. CERT (Carbon Emission Reduction Target) increases the obligation on energy suppliers to help households reduce carbon emissions.

2 CESP (Community Energy Savings Programme) community based schemes to reduce carbon emissions in deprived areas. Installation of Smart Meters - to every home by 2020 to provide people a better understanding of energy usage. Green Deal An offer to every household the ability to install energy efficient measures at little to no up-front cost. The loan is repaid through the energy bill by the savings made. 2.4 There are two main measurement tools Colchester use to measure the energy efficiency of a property Standard Assessment Procedure (SAP) and Energy Performance Certificates (EPC). 2.5 The table below shows the correlation between the two systems and the number of Colchester properties within each banding: EPC Rating SAP Rating Colchester Stock A B C D E F G Total SAP can be calculated from the property data held in the Asset Management Database and more accurately from a completed EPC. 2.7 An EPC inspection takes approximately 2 hours to complete and are currently conducted when properties become void. The certificate is relevant for 10 years and to date (August 2012) 1,900 properties have been inspected. An EPC will also list the potential for energy efficient measure a property has to increase its rating. 2.8 The current average SAP rating of the Colchester stock is and the Asset Management Strategy (2010) set a target of reaching and retaining a SAP rating of 72. Calculation methods have recently changed which lowered previous stock ratings. 3. Strategy 3.1 The Council s housing stock achieved the Decent Homes standard in December 2011 which included a basic energy efficient standard. To achieve the decent homes standard, a home must: Meet the current statutory minimum standard for housing; Be in a reasonable state of repair; Has reasonably modern facilities and services;

3 Provide a reasonable degree of thermal comfort. 3.2 The last criterion included properties having a SAP rating of more than 35 (2001 calculation), a programmable heating system and a degree of loft and cavity wall insulation. 3.3 The Housing Investment Programme includes the following installations which increase the energy efficiency of a property: A-rated gas combi-boilers for 1 and 2 bed properties; A-rated gas condensing boilers for 3 bed+ properties; Air Source Heat Pump (ASHP) where gas is not available; Electric Storage Heaters where planning permission is not given for an ASHP; Double glazing; Cavity wall insulation; Loft insulation to at least 250mm thickness; Insulation of hot water cylinders and pipework. Other environmental efficiency measures include: Aerated taps; Duel flush cisterns. 3.4 Stand alone project which have been completed where funding was available include: Solar PV on 563 properties; External insulation and cladding on properties with hard to treat walls; ASHP in 36 properties where gas is not available; Fuel switching. 3.5 Trials to date include: Voltage Optimisers in Sheltered schemes (PowerPerfector) and domestic properties (VPhase); Sun tube; LED Lighting; Solar Thermal panels. 3.6 There are some clear drivers Colchester believe that will underpin the Green Strategy: Regulatory Amendments to building regulations are already in place which require new homes to be built to a set standard and for major improvement works to properties to include a percentage of energy efficient measures. The Energy Act 2011 has also stated that properties with an energy rating below an E will be illegal to rent from April The Act also

4 states that landlords will not be allowed to refuse tenants requests for providing energy efficient measures within reason from April Ethical There is a corporate responsibility to reduce carbon emissions by providing energy efficient homes. Climate Change The Local Authority has set itself carbon reduction targets in line with the governments national target. Fuel Poverty - With the current and future impact of energy price increases it is important to assist tenants where possible in order to reduce furl bills. Fuel poverty extends past the financial element into health and condition of the property fabric. Future Proof Where incentive schemes and funding become available it is important to maximise opportunities as they arise. Energy efficient programmes should run in parallel to the HIP and where possible join it. 3.7 To maximise the highest level of carbon savings Colchester will succeed through the following approaches: Behaviours Without a lifestyle change the potential of many technologies will not fully realised. A huge amount of energy can be saved through simply changes in the way tenants perform every day activities. Resource is required in the training of staff and making tenants aware of what can be done. Green Fund The establishment of a Green fund will enable a planned approach to reaching an average stock SAP rating of 72. Products which fall outside of the HIP specification but can achieve savings by installing them during HIP works should be trialled, measured and introduced as part of the programme. It is anticipated that the Green Fund is made up from the annual budget allocation and the revenue income from those measures which attract a financial incentive. Trials It is key to keep trialling new technology to better understand what is more suitable for social housing and to ensure the performance of trialled technologies is gained to inform a future decision. Obtaining grant funding Funding can either be at 100%, part funded or attract a long term revenue income. Additional resource is proposed to search for funding and complete the lengthy applications and bids. Business cases should be written and discussed at the AMG to ensure opportunities are not missed. The financial cost to improve of a properties energy rating is exponential the closer it gets to an A rating. 4. Resources, Funding and Incentives

5 4.1 The main funding sources available to Colchester are: European Regional Development Fund (ERDF) Energy Saving Trust (FIT, RHI) Grants for power companies (CERT and CESP) The Green Deal 4.2 Staff are being training and taking part in energy courses and seminars to widen the knowledge of energy saving measures. 4.3 The design and implementation of the HIP tends to lead the specification into installing energy efficient technology. 4.4 Government incentive schemes allow outside investors to provide up-front capital in return for a percentage of the income. Equally prudential borrowing can be justified with a business case that shows a payback period and possible profit making scenario. 4.5 As the Government pursues its chosen line of energy generation, the incentives for installing that type of product become available. Colchester need to be able to react quickly to these opportunities in decision to allow procurement procedures to be adhered to. 5. Measuring Performance 5.1 The two measuring systems, SAP and EPC, will allow the energy performance of the stock to be monitored. 5.2 Performance of individual technology must be incorporated when trialling systems and when installing the technology. Resource will be required to monitor the installations either directly or through an on-going contract arrangement. 6. Technology 6.1 Colchester will continue to research into technology which can support this strategy. The following technology is being currently installed, trialled or considered by Colchester: Gas Combination Boilers Gas Condensing Boilers Solar PV Solar Thermal Voltage Optimisation Sun Tubes LED Lighting Gas Absorption Heating Systems Bio-mass Boilers

6 Ground Source Heat Pumps Air Source Heat Pumps Triple Glazing Draft Proofing Solid Wall Insulation External Wall Insulation Systems Combined Heat and Power Units Mechanical Ventilation with Heat Recovery Systems Wind Generation