BUILDING FOR TOMORROW, FREE OF THE COMPROMISE OF TODAY, BECAUSE WE ALL SHARE THE SAME HOME

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1 BUILDING FOR TOMORROW, FREE OF THE COMPROMISE OF TODAY, BECAUSE WE ALL SHARE THE SAME HOME

2 AGAIN > THINK CUSTOMER Imagination is the beginning of creation. You imagine what you desire, you will what you imagine, and at last, you create what you will. George Bernard Shaw Get closer than ever to your customers. So close, in fact, that you tell them what they need well before they realise it themselves. Steve Jobs Let your imagination run free. Imagine there were enough homes. Enough to slash waiting lists. Enough for a reasonable choice of home for everyone. Residents, tenants, occupiers, leaseholders. Whatever language we use they are all customers. Imagine all homes were comfortable. Well heated and insulated. Imagine all homes were affordable. Reasonable rents and low energy costs. Imagine all homes were well built. Easy and cheap to maintain, warm and attractive to look at. Imagine all homes were healthy. No damp, no cold, no mould. In other words, imagine housing customers being in control. All this is possible, and relatively soon, if government, social housing providers and the construction industry are ready to be practical, passionate and creative. Energiesprong understand the nation s housing problems. And we are positive that between us we already have the skills to solve them. Imagine what we can achieve if we think again. The customer experience in social housing is lacking in many areas. Today s customer may put up with second best, but tomorrow s customer, the Millennial, won t. Energy costs are far higher than they can be with proper energy efficiency measures. Mould and damp are common, leading to health problems and an expensive and unnecessary burden on the NHS. But the biggest problem facing social housing is that we are simply not building enough affordable homes. Waiting lists for social housing continue to grow, forcing more and more people into the private sector where living standards are lower and the risks are higher. Imagine if we could build homes that don t need retrofitting in 30 years and don t cost the earth? We can! An Energiesprong home generates as much energy as is needed for the house and household appliances. They can be built off site in an industrialised process that improves quality and the solution comes with a 30-year warranty on both the indoor climate and the energy performance. The extra over cost of a much better standard is paid for by the money that would normally be spent on energy bills and maintenance work. Ultimately, residents get a better, more comfortable house without any additional monthly costs. 2 3

3 BIG We can t solve problems by using the same kind of thinking we used when we created them. Albert Einstein The housing sector is facing major problems in two critical areas of its supply chain, energy and construction. Four in 10 homes below living standard >> Millions living in cramped, inadequate and unaffordable housing, report reveals. PEOPLE POWER C Hundreds back affordable housing bid Joanna Wardill GREED OF ENERGY SHARKS Power firm s profits surge by 38% as your bill goes up by a QUARTER Quarter of homes now in fuel poverty Exclusive Soaring energy bills leave millions of households struggling Cold comfort ort for UK carbon emissions: the stench of missed targets Summer group Energywatch, accused SOCIAL HOUSING PROTESTS Polluting coal-fired power plants to stay open for long after they were scheduled to close WER Cli Climate change is here now Energy bills add squeeze on incomes As British Gas make 606M profit from freezing winter... ENERGY BILLS TO ROCKET BY 100 Energy is a significant issue in three areas in particular fuel security, fuel poverty and carbon emissions. The UK has been a net importer of energy since 2004 which impacts upon our economy, security of supply and foreign policy. In England today some 2.35 million households live in fuel poverty. 10% of the population is suffering ill-health, stress and anxiety, reduced educational attainment and social isolation as a result. And 36% of the nation s carbon dioxide emissions are produced by housing which shows the huge potential of energy efficiency measures. Piecemeal retrofit is however relatively expensive and inefficient. In October 2016, The Farmer Review of the UK Construction Labour Model concluded that the construction sector must modernise or die. The review suggests that the UK s construction industry faces inexorable decline unless its long-standing problems are addressed, notably a dysfunctional training model, a lack of innovation and collaboration, and a non-existent R&D culture. It finds that high levels of cost inflation, driven by labour shortages, have caused numerous housing schemes to stall as their costs have risen prohibitively. As more people leave the industry each year than join it, the construction workforce is shrinking, placing increasing constraints on its capacity to build housing and infrastructure. However, there is little incentive for contractors to invest in longterm training when they are increasingly reliant on a fractured supply chain and self-employment. Large scale problems demand large scale practical solutions. Solutions capable of delivering hundreds of thousands of new and transformed homes and closing whole power stations. 4 5

4 ENERGIESPRONG > Every million Energiesprong renovations will close two power stations The huge potential benefits should entice both local and central government to support the development of Energiesprong in the UK. The Westminster Sustainable Business Forum Energiesprong offers a radical new approach to retrofit and regeneration which has been developed and trialled successfully in the Netherlands. It involves wrapping an existing dwelling with prefabricated wall and roof panels to deliver a super insulated, low maintenance house with an assured energy performance. A comprehensive retrofit, resulting in a net zero-energy and highly desirable home, is completed via a single intervention in a short amount of time. This minimises disruption for tenants, maximises efficiency for landlords, and can raise the speed and scale of retrofit significantly compared to the usual piecemeal approach. What is particularly innovative is the whole life approach to finance, with the price of the works, estimated at over 30,000 in the UK, equal to the expected planned maintenance costs and energy savings over a 30 year period. Tenants don t receive energy bills but commit to an Energy Service Plan, a fixed allowance similar to a mobile phone bundle. The revenue from this plan, together with the maintenance savings, funds the initial investment which is fully guaranteed by the contractor. Initial market entry costs are 75k but with volume are planned to be less than 40k which can be catered for from expected planned maintenance costs and energy savings over a 30 year period. Energiesprong has been developed and trialled successfully in the Netherlands where it has become a significant industry. Over 2,000 homes are already completed, financing is in place for another 110,000 homes, and a large and successful supply chain has been established. Energiesprong offers local solutions to deliver: High quality homes which are desirable, comfortable and healthy A 30 year construction and energy performance warranty A near net zero energy home bringing significant costs savings Application of modern off-site construction methods More importantly, Energiesprong offers a radical approach to construction and finance which can: Deliver millions of new and transformed homes Modernise the construction industry to increase productivity Create 5,000 new jobs for every 5,000 homes refurbished or built Eradicate fuel poverty Cut NHS costs by 105m for every 5,000 homes refurbished or built Close two power stations for every million homes refurbished or built Energiesprong refurbishments involve: Solar PV built into a thermally insulated roof cassette manufactured off site New thermally-efficient wall envelope insulation panel system manufactured off site New low-maintenance glass panelled wall kitchen and bathroom manufactured off site Air or ground source heat pump and heating system Removal of gas to create an electricity only property Low energy cooker and shower 6 7

5 COLLABORATION Coming together is a beginning; keeping together is progress; working together is success. Henry Ford Energiesprong has the potential to change the social housing world and bring huge benefits to society and government in housing, energy, construction, employment and health. Central Government Facilitator Realising this potential requires a positive and innovative partnership between the demand side, the social housing sector; the supply side, the construction industry; and the key facilitator, central government. All three should seize the opportunities which Energiesprong presents. Social housing should be prepared to change the face of its stock and its approaches to fuel poverty and energy efficiency. The construction industry should take The Farmer Review seriously and invest in modern production methods at scale. Central Government should take the lead in facilitating this partnership for the benefit of the economy and the environment. Social Housing Demand Side Construction Industry Supply Side We d love to discuss collaboration. Perhaps you think differently too and can see a way for us to work together. Please us at: think@energiesprong.co.uk 8 9

6 PAD 10 11

7 Energiesprong UK Ltd The National Energy Centre Davy Avenue Knowlhill Milton Keynes MK5 8NG The Transition Zero project has received funding from the European Union s Horizon 2020 research and innovation programme under the grant agreement No August 2017 think@energiesprong.uk

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