The Green Deal Challenges and Opportunities Installation and supply chains

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1 The Green Deal Challenges and Opportunities Installation and supply chains Nigel Banks MEng CEng MCIBSE Head of Energy & Sustainable Solutions Keepmoat Installation and supply chains [ 2 ] 1

2 Installation and supply chains [ 3 ] Contents 1. LAs/RPs need to prepare their supply chain 2. Working with supply chain partners 3. Installation challenges 5. Key next steps Installation and supply chains [ 4 ] 1. LAs/RPs need to prepare their supply chain 1.1 Coming to your tenant s door from October 2012? 2

3 Installation and supply chains [ 5 ] 1. LAs/RPs need to prepare their supply chain 1.2 Issues with an open door policy? MAINTENANCE: Who repairs boilers? Which manufacturer under GD offers? LEGALS: Signing agreements with multiple Green Deal providers MANAGEMENT: Confusion as to who to call if boiler breaks down? Database of all Green Deals on stock holdings? VALUE: Potential issues with charges impacting value of stock (as solar PV)? PLANNED WORKS: How linking with planned maintenance? Installation and supply chains [ 6 ] 1. LAs/RPs need to prepare their supply chain 1.3 Options for LAs & RPs 1) LA/RP is Green Deal Provider, finance and manage Maximises low cost of finance, full control over Green Deal in stock 2) LA/RP Green Deal Provider and manage (no finance) Partner with finance provider (incl. ECO), 3) LA/RP finances and partners with Green Deal Provider Partner provides full service with low cost of public borrowing Increasing control 4) LA/RP partners with Green Deal Provider Partner provides full service to housing stock Decreasing risk 3

4 Installation and supply chains [ 7 ] 2. Working with Supply Chain Partners 2.1 What do you want to get from Green Deal? CARBON SAVINGS: Meet targets/declarations future HECA requirements? ADDRESS FUEL POVERTY: Maximise ECO subsidy and behavioural change? JOB CREATION & TRAINING: Local employment, help long term unemployed and tackle youth unemployment? LOW CARBON ECONOMY: Local manufacturers, long term income streams? OTHERS? Tackle non-decency in private stock? Regenerate communities? Installation and supply chains [ 8 ] 2. Working with Supply Chain Partners 2.2 What roles do you need partners for? 4

5 Installation and supply chains [ 9 ] 2. Working with Supply Chain Partners 2.3 What roles do we see ourselves delivering? & non-gd works Installation and supply chains [ 10] 2. Working with Supply Chain Partners 2.4 Accreditations in your supply chain Green Deal Provider s Code of Practice Consumer Credit Act licence (regulated by OFT) PAS2030 installation standards (covering all measures) Green Deal Assessors/Advisors (updated DEA/NOS syllabus) Green Deal Installers qualifications (gas safe, MCS, etc) 5

6 Installation and supply chains [ 11] 3. Installation challenges 3.1 Wide range of measures in whole house retrofit Whole House Retrofit package requires a mix of funding sources Level of ECO subsidy will impact on contribution required from landlord, householder (Green Deal or upfront payment) Installation and supply chains [ 12] 3. Installation challenges 3.1 Wide range of measures in whole house retrofit Minor measures Loft insulation (including loft top up) Cavity wall insulation Draught proofing Hot water tank insulation Insulation for piping Tap aerators Heating controls Major measures Solid wall insulation internal & external Secondary glazing Double glazing Boiler upgrades (from G to A/B) Under floor heating Flat roof insulation Floor insulation Wood burning stoves (secondary) Wood chip boilers (primary) Photovoltaic panels Micro wind turbines Micro hydro turbines Heat pumps Solar hot water 6

7 Installation and supply chains [ 13] 3. Installation challenges 3.2 The right approach at a house scale 1) Technically lead approach Change to non-fossil fuel heating when appropriate Fabric first Then solar PV 2) Whole house retrofit Typical Home 3) Funding lead approach Fully retrofit Insulate when funding available Free Solar PV (FIT) Free ASHP (RHI) Installation and supply chains [ 14] 3. Installation challenges 3.3 The right approach at an estate scale 1) Street by street approach Mop up First Street Second Street 2) Area based delivery Typical Estate Retrofit Estate 3) Pepper-potted delivery Third wave, mop up Initial interest Second wave 7

8 Installation and supply chains [ 15] DECENT HOMES & RETROFIT: Before: Volume delivery Disruptive works Efficiencies of scale Estate regeneration Resident Liaison Local employment & training After: Installation and supply chains [ 16] GREAT BRITISH REFURB: Explaining/selling retrofit works Bespoke energy assessment Whole house energy makeover Energy savings outside SAP Increased house values 8

9 Installation and supply chains [ 17] CESP & CERT SCHEMES: Absurdities of funding rules Offering to all homes in area New ways of tackling SWI Disruption in every room Linking with planned works Re-skilling a social enterprise Installation and supply chains [ 18] PRIVATE SECTOR RENEWAL: Benefits of close work with LA Low interest loans/equity release Out of hours visits Securing significant levels of uptake Wide range of measures wanted Improved property values 9

10 Installation and supply chains [ 19] TSB RETROFIT FOR THE FUTURE: Low cost 80% CO 2 reductions Low disruption solutions Low embodied energy Post occupancy evaluation Passivhaus principals C. Baker Installation and supply chains [ 20] FIT FUNDED SOLAR PV: Raising private finance PPP models with LA/RP consortia Agreeing leases/legals Working with DNOs Fast changing supply chain 10

11 Installation and supply chains [ 21] AFFINITY SUTTON FUTUREFIT: Represented 70% stock There are no archetypes Surveys/assessments Behavioural change Range of budgets ( 6-25k) Delivery across UK Installation and supply chains [ 22] 4.2 What haven t we learnt from these pilots? MARKETING & UPTAKE LEVELS Public Borrowing BES Private Finance ASSESSMENT & ADVICE METHODS Originating, Managing Collecting and allocating FINANCE STRUCTURES & OFFERS DELIVERY STRATEGIES BEHAVIOURAL CHANGE METHODS Marketing Surveying Installing Maintaining Delivery Partner Benefits Green Deal Agreement ECO Generator meter (if PV is fitted) Green Deal Payments Feed in Tariff Energy Companies Green Deal Payments colected via energy bil 11

12 Installation and supply chains [ 23] 5. Key next steps 5.1 Developing your Green Deal offering Review ability to take on roles/responsibilities of a Green Deal provider Review ability to finance Green Deal offers Understand the challenges/opportunities in your stock and surrounding areas Engage with your supply chain partners to see what they can do Test your Green Deal delivery model this Spring through pilot projects The Green Deal Challenges and Opportunities Installation and supply chains Any questions nigel.banks@keepmoat.com