Doncaster Council Home Energy Conservation Act (1995) 2013 Report

Doncaster Council Home Energy Conservation Act (1995) 2013 Report

Contents: Page 1. Report Introduction 1 2. The National Context 1 The Energy Act 2011 1 Green Deal 1 Energy Company Obligation 1 2 Renewable energy targets and incentives 2 Memorandum of Understanding 2 3. The condition of housing in Doncaster 3 Progress made following the stock condition survey 3 4 Household Energy Management Plan 4 5 (highlighting the past 2 years priorities) 4. The measures that take advantage of financial 5 6 assistance and other benefits offered from central government initiatives 5. The measures developed to implement street by 6 street approaches Summary of Street by Street installation results 6 for 2012 6. Time frame for delivery and national partners 6 7

1. Report Introduction The Department of Energy and Climate Change (DECC) have requested that all English authorities with housing responsibilities prepare a report setting out the local energy conservation measures that they consider practical, cost-effective, and likely to significantly improve the energy efficiency of residential accommodation in its area. Councils play a crucial role in leading energy efficiency initiatives and in maximising opportunities to stimulate jobs and green growth. Doncaster Council is one of those taking advantage of new initiatives such as the Green Deal and the Energy Company Obligation (ECO). Reducing the amount of energy businesses and residents require to heat and manage their properties will help generate financial savings that can be invested into the local economy. It will also help vulnerable residents unable to heat their homes to a healthy temperature improve their quality of life. This report highlights some of the achievements and ambitions Doncaster Council has realised and aims to continue over the next 2 years. 2. The National Context The Energy Act 2011 The UK has a legally binding target to reduce its greenhouse gas emissions by at least 80% by 2050, to be achieved through action at home and abroad. In June 2011, the Government enshrined in law a new commitment to halve greenhouse gas emissions by the mid-2020s. Both targets are against a 1990 baseline. In October 2011 the Energy Bill received Royal Assent and became the Energy Act 2011. The Act provides for a step change in the provision of energy efficiency measures to homes and businesses through the Green Deal and a new Energy Company Obligation. It also includes measures on energy security, low carbon technologies and fair competition in the energy markets. The Council recognises its duty in helping to delivery some elements of the Act. Green Deal The Green Deal is a user-friendly, flexible framework which enables private businesses to offer consumers the opportunity to make energy efficiency improvements to their homes and businesses without the upfront capital costs. Proposed by the Government, the Green Deal is aimed at improving the energy efficiency of the UK s building stock, reducing carbon emissions and supporting the UK s 2050 emission reduction target Energy Company Obligation The Government s new domestic energy efficiency programme which has replaced the existing Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP) programmes, both of which come to a close at the end of 2012. ECO works alongside the Green Deal to provide additional support for packages of energy efficiency measures. ECO also provides insulation and heating packages to low income and vulnerable households and communities. 1 P a g e

ECO creates a legal obligation on energy suppliers to improve the energy efficiency of households through the establishment of three distinct targets: The Carbon Emissions Reduction Obligation (20.9 million lifetime tonnes of carbon dioxide). Focusing on hard to treat homes and, in particular, measures that cannot be fully funded through the Green Deal. Solid wall insulation and hard-to-treat cavity wall insulation are the primary measures that the Government intends to be promoted under this target. Other insulation measures and connections to district heating systems are also eligible if they are promoted as part of a package that includes solid wall insulation or hard-to-treat cavity wall insulation. The Carbon Saving Community Obligation (6.8 million lifetime tonnes of carbon dioxide). Focusing on the provision of insulation measures and connections to district heating systems to domestic energy users that live within an area of low income. This target has a sub-target, which states that at least 15% of each supplier s Carbon Saving Community Obligation must be achieved by promoting measures to low income and vulnerable households living in rural areas. The Home Heating Cost Reduction Obligation ( 4.2bn of lifetime cost savings). Requiring energy suppliers to provide measures which improve the ability of low income and vulnerable households (the Affordable Warmth Group ) to affordably heat their homes. A heating qualifying action is the installation of a measure that will result in a heating saving; including the replacement or repair of a qualifying boiler. Renewable Energy Targets and Incentives The 2008 Renewable Energy Directive sets a target for the UK to achieve 15% of its energy consumption from renewable sources by 2020. In April 2010 the Government launched Feed In Tariffs (FITs). These are designed to encourage the installation of small scale, low carbon, and electricity generating technologies, such as solar photovoltaics or wind turbines. For every unit of electricity generated, the owner receives a guaranteed payment (FIT) from their electricity supplier. They also receive a payment (export tariff) for any surplus electricity they export back to the grid. In March 2011, the government announced the details of the Renewable Heat Incentive. This scheme is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating to renewables such as ground source heat pumps and wood chip boilers. Memorandum of Understanding In March 2011, the Secretary of State for Energy and Climate Change, and the Vice Chair of the Local Government Association, signed a Memorandum of Understanding, designed to recognise the pivotal role that local councils have in taking action to: Reduce energy consumption from their own estate and operations and from homes, businesses and transport infrastructure Create more appropriate renewable energy generation Participate in national initiatives at the local level, particularly the roll out of the Green Deal, smart metering and renewable energy deployment 2 P a g e

3. The condition of private sector housing in Doncaster The latest private sector stock condition survey (2008) suggests: The average SAP (Standard Assessment Procedure) rating for private properties in Doncaster is 59, compared with a national average of 51 (based on an a rating system of 1-100, with 100 being the best rating) 7,318 fail to meet the Decent Homes standard for energy efficiency 2,648 have a SAP less than 35, which deems them to be a CAT 1 safety hazard for excess cold 3,358 dwellings lack any form of loft insulation 9,804 dwellings have a loft insulation level less than 100mm 18,775 dwellings meet the 100mm loft insulation level 35% of cavity walled properties are un-insulated 8,233 require an upgrade from single glazed windows to double glazed 95.2% of the stock has mains gas heating 35,112 households are in fuel poverty (source: National Energy Action 2009) Progress made following the stock condition survey Doncaster Council has a strong track record of delivering large scale energy efficiency programmes, with a focus of improvements in some of our most vulnerable communities. Escalating electricity and gas prices continue to place more and more households in fuel poverty. Significant improvements have been made to traditional post 1930 s built properties with the Council operating schemes since 2002, delivering insulation improvements to over 45,000 privately owned households across South Yorkshire. The Council has also concentrated its efforts to identify poorly insulated homes with SAP ratings less than 35, and improve them to realise a SAP rating greater than 65. Over the past 12 months, the Council has been working with energy companies to improve nontraditional and pre 1930 s built properties. This has resulted in over 1,500 privately owned households receiving external wall insulation; some of which have also received boiler upgrades, loft insulation and new low e glazing. Doncaster has a private sector housing stock which includes 14,500 solid walled homes that could receive external / internal wall insulation. The Council is working with local Doncaster based contractors to develop schemes to focus on hard to treat housing. The results of this will not only reduce fuel poverty and reduce carbon emissions; it will help create and safeguard jobs working in this industry. In 2011 the Council took a decision to bring forward its energy efficiency works included in the Decent Homes programme to maximise the funding opportunities being made available through CERT and CESP. This decision enabled the majority of energy efficiency work to be delivered to the Council s own stock. Those energy efficiency improvements which remain will be considered for support from central government initiatives. Figure 1, below, displays the outputs of the recent energy efficiency drive. The Council has set targets to achieve an average SAP rating of 75 for its own housing stock. It is the Council s ambition to continue to build on these programmes and utilise the new funding opportunities through Green Deal and ECO. The Council will be working with landlords to help them prepare for the new energy regulations their properties will be subjected to. 3 P a g e

With the relaxation in the Welfare Reform Act in 2012 with regard to how household benefit data can be used; the Council will actively target households who can access free energy efficiency works to ensure those with limited finance maximise the opportunity to reduce bills and keep warm. External Wall Insulation Cavity Wall Insulation Boiler Upgrade Central Heating Upgrade Loft Insulation 1103 56 4112 2994 2582 Figure 1 displays the past 12 months energy efficiency works on Doncaster Council s social housing stock. Household Energy Management Plan (highlighting the past 2 years priorities) Performance Indicator SHDP1.3.4 SHDP1.3.5 SHDP1.3.6 SHDP1.3.7 Action (Priority Task) Target the most vulnerable households and deliver effective energy efficiency measures to reduce fuel poverty No. of homes receiving energy efficiency improvements Provide all non-decent SLH properties with effective energy efficiency measures to achieve minimum SAP rating of 75 % annual reduction in CO2 resulting from domestic household energy use Outcomes/Impact Measures of Success Vulnerable Households are taken out of fuel poverty 1,000 households Deliver energy efficiency works to 2,000 homes Completion of the Decent Homes Works (heating, insulation and glazing works) Project. Energy efficiency and renewable energy improvements Timescale & Progress March 2013 SHDP1.3.8 SHDP1.3.9 SHDP1.3.10 SHDP1.3.11 Promote and encourage up-take of the government s Green Deal (loan for energy efficiency works) Effectively promote and encourage up-take of the Warm Front grant before it ends in 2012 Deliver Community Energy Saving Programme / ERDF responsibilities in Wheatley No. energy saving improvement measures delivered to private sector housing To move from a grant based system to long term loans for energy efficiency. Starts 2012 2009/10 we delivered energy efficiency improvements in 1,857 homes. The national budget has been reduced by 60% and ends in 2012/13. To maximise external funding sources to deliver "whole house" energy efficiency improvements. 6,000 energy efficiency measures installed To enable take up of 200 loans in 2012/13 and 300 loans in 2013/14 Assist 1,000 households in 2011/12 and 1,000 in 2012/13 4 P a g e

SHDP1.3.12 Deliver a proactive area based approach to energy efficiency improvements in all housing Investigate and assess the suitability and benefit of the Feed in Tariff (FiT) to Doncaster s housing and residents Investigate and assess the suitability and benefit of the Renewable Heat Incentive (RHI) to Doncaster s housing and residents Investigate and assess the suitability and benefit of undertaking air pressure tests on existing properties to identify leakage which, if addressed will reduce heat loss, reduce carbon emissions, improve comfort levels and reduce cold related illness caused by cold, draughty homes Continuation of area based initiative to target vulnerable households living in energy inefficient housing, resulting in more high energy efficient homes (SAP more than 65) and fewer low energy homes (SAP less than 35) This is an aspiration / opportunity we will pursue This is an aspiration / opportunity we will pursue This is an aspiration / opportunity we will pursue Figure 2 taken from Doncaster Council s With the exception of Warm Front, all of these targets will extend into 2013-15. 1,000 households per year To establish a project by December 2011. To establish a project by Dec 2011 To establish a project by Dec 2012 4. The measures that take advantage of financial assistance and other benefits offered from central government initiatives Since 1999, Doncaster Council has worked with central government and energy companies to maximise opportunities being made available to help fund energy efficiency works on housing. We estimate around 40m has been made available by energy companies to assist both Doncaster s social housing and privately owned housing over the past 13 years. Around 16m of this has come through in the past 12 months via CERT, CESP and European Regional Development Fund (ERDF), benefitting over 1,800 households across 5 of Doncaster s most vulnerable communities. Doncaster Council recognises the benefits that energy company funding brings to our residents, housing, business and the local economy. The Council has actively worked to assist with the take up of renewable energy technologies. Prior to the first reduction in the FiT, Doncaster was ranked no.1 in the Country for FiT (2011) aided Solar Photovoltaic installations. The Renewable Heat Incentive (RHI) has not featured as much in our work, however, as a Council; we have utilised this funding through the installation of biomass fuelled heating in our buildings. The Council continues to review its role in the developments of the Green Deal. At this stage, a partnership approach working with Council s and local businesses through the Sheffield City Region (SCR) and Local Enterprise Partnership (LEP) is being considered. The partnership will consider; i) how we can collaborate as a region, ii) the scale of Green Deal and ECO in each local authority area and regionally, iii) how we might procure a Green Deal partner(s). 5 P a g e

Whatever the outcome of the regional work, the Council will actively seek to work with and support Green Deal providers. However, our priority will be to enable as many households as possible to access fully funded measures through ECO. 5. The measures developed to implement street by street approaches Since 2008, the Council has undertaken an area based initiative to actively target households to enable them to benefit from energy saving advice and home improvements. Neighbourhood Energy Action was set up following a successful bid for Community Energy Efficiency Funding (CEEF) from Defra. CESP enabled this work to be taken to a greater level, providing private households with access to fully funded whole house energy efficiency works. The Council s active role has enabled over 1,800 households to benefit over the past 12 months, regenerating 5 of our most vulnerable communities; enhancing the appearance and value of properties and making them more affordable to heat. The Council has already made progress to ensure this valuable approach continues through into ECO. Two further communities have been identified, with 600 privately owned homes being targeted for improvements. Summary of Street by Street installation results for 2012 Area External Wall Insulation Boiler Upgrade Loft Insulation Draught Proofing Askern 100 3 12 0 Dunscroft (CESP) 374 50 (including 12 solid fuel to gas upgrades) 80 0 Dunscroft (CERT) 135 4 10 0 Hexthorpe 270 (further 700 planned and underway) Mexborough 38 3 30 150 9 (solid fuel to gas upgrades) 0 0 Wheatley 434 235 130 12 Figure 3 displays the past 12 months energy efficiency works on Doncaster Council s private housing stock as a result of the CERT and CESP programmes. 6. Time frame for delivery and national partners The Council has worked very well with energy companies ever since the introduction of government carbon reduction obligations. Over the past 12 months, the Council has worked with 4 out of the big 6 energy companies. The Council recognises the importance of working with energy companies. Helping them meet their obligation will help Doncaster residents and the Doncaster economy. 6 P a g e

Work is already underway to extend these partnerships; the Council expects to work with other regional Local Authorities to combine resources and make these partnerships more attractive to energy companies post May 2013. Other successful partnerships include working with the Department of Health (DoH). Warm Homes, Healthy People funding has enabled the Council, NHS and Age UK to take a partnership approach to target those most vulnerable to the cold weather. The partnership has enabled multiple services to be identified through one point of call, ensuring households maximise the services available. This service started in December 2012 and runs through to May 2013, with the objective of assisting 400 households. This is the second year the DoH has made funding available which the Doncaster partnership has been fortunate to benefit from. Preparations are being made to build on our successes should further funds be made available later this year. There is some fantastic work happening in Doncaster. Real progress is being made with key outcomes relating to finance, health, housing and the economy, being realised by households and business across the borough. Numerous funding and partnership opportunities are being explored and adopted. This is evident through the regeneration of communities and housing, the creation and safeguarding of jobs and the development of local business leading into an exciting era of ECO and the Green Deal. Report Author: Richard Smith Energy Manager Director Regeneration & Environment Peter Dale 7 P a g e