Voluntas 4th Annual Conference. 15th November 2012. Green Deal - The Role of Social Housing Providers. Matt Roberts, Director of Asset Management and Development. Wigan and Leigh Housing.

1. Green Deal – The role of Social
Housing providers.
Matt Roberts
Director of Asset Management
and Development
Wigan and Leigh Housing

2. “The biggest home improvement
programme since the Second
World War”…?
OR
“a useless middle class
subsidy” ?

3. It’s here!
• Commenced October 2012
• Green Deal plans 28th January 2013

4. What next?
Do nothing!!
Do everything!!
Or something in between...

5. Options Available
• Do nothing
• Green Deal Provider
• Provide part of the service – survey / installation
• Signpost
• Using Green Deal / ECO to improve homes

6. Become a Green Deal Provider

7. Become a Provider – the financial backer
• Can access loans at low rates (DECC)
• Has a sizeable customer base
• Are experienced in communicating with residents
• Have supply chains for doing the works
• Have an interest in ensuring the homes are of good
quality

8. Advantages
• Reduce tenants’ bills
• Lead on reducing carbon in customers homes and
potentially others.
• Generate a new income stream
• Maintain a closer understanding of properties and
resident needs
• Ensure quality of work
• Focus activity on reducing fuel poverty and encourage
behavioural change
• Employ local people
• Be seen as an innovator

9. Risks
 Calculation of the Golden Rule
 Energy efficiency is not always easy to sell.
 Providers will take on default risk of Green Deal
charges.
 Liable for guarantees and warrantees put in
place.
 Still unclear how lenders will view Green Deal
finance – stock revaluation
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10. The Golden Rule

11. New Barracks Estate
• 78 early Edwardian
properties
- Inadequate heating
- limited insulation
- damp
- draughty
- condensation
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12. Some graphs!!
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13. Appropriate measures
• CO2 savings (kgCO2 saved per year)
• Cost of energy saved per year
• Capital cost per kgCO2 saved
• Capital cost versus running cost saving
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14. Methodology
1. Retrofit Options Appraisal
a. Projected savings
b. Projected benefits
c. Forecast SROI
2. Data Collection
a. Questionnaire
b. Utility data
c. Focus groups
3. Results
a. Utility Cost
b. Comfort
c. SROI Analysis
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15. The Measures
• Internal wall insulation
• Windows and doors
• Mechanical Ventilation Heat Recovery (MVHR)
• Top up loft / cavity wall insulation
• High efficiency condensing boilers
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16. Projected Results – SAP Utility Cost savings
Projected Savings Estimated
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17. 17

18. Results - Whole house comfort levels
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19. £353 saving
47.7% of pre
retrofit average
annual gas spend
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20. The Golden Rule – What is the saving?
• Estimated 40% saving close to actual.
• Further savings taken in increased comfort.
• How much physical / behavioural?
• Variation based on occupants.
• Increase in electrical costs – rebound affect?
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21. Marketing and Engagement

22. The Benefits of Wall Insulation
 Reduced bills
 Improved appearance
 Increased comfort
 Reduced carbon
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23. Private Sector Offer
• CESP discount
• Contractor arranged
• Payback calculation
• Signposted funding
MARKETING AND COMMUNICATIONS!!
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24. Or dis-benefits
“It is of our opinion that as a result of this
work, our properties have been de-valued by
at least £20,000 each, therefore it is our
intention to seek legal advice on the
possibility of suing the council for £20,000 per
household as compensation”.
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25. Need to overcome natural inertia
Changed Supplier in Last 5 Years
28%
Yes
No
72%
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26. Recognise benefits (or disbenefits)
But maybe…..
Before After
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27. Providing part of the Service

28. Provide Part of the Service – Possible model
Green Deal Provider
Registered Third party Funding
provider business sources
Green Deal
assessment Provides finance
and installs
measures
Homes Electricity
Payback supplier
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29. Assessment
• Trusted
• Know the properties – public and private
• Know the people
• Experience of retrofit
• Independent – nothing to sell
• Serious about behavioural change
But who pays for lack of take up?
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30. Trust
 There is a tendency for people to adopt the opinions,
judgements and behaviour of others
 People are more likely to install an energy efficiency
measures if one of their family or peers have done so.
 Research suggests that engaging individuals as
members of a community, rather than only as consumers
of energy, is an important strategy for changing
energy-related behaviours
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31. Installers
• Frameworks delivering retrofit
• Experience of working in peoples’ homes
• Success in achieving training and apprenticeships
• Mechanisms for performance monitoring
• Quality assurance / management – PAS 2030
• Commitment to local labour
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32. There is an appetite!
Would you be prepared to pay towards energy
efficiency measures if you made a bigger saving as a
result?
13%
Yes
No
26% Blank
61%
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33. Working through other Green Deal
Service Providers

34. Non Provider - Signpost
 Can’t do nothing
 Communication with tenants
 Working with Green Deal providers
 Watch and wait
 Focus on providing through Asset Management plans
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35. Risks
 Works carried out without consent or knowledge.
 Not seen to be involved.
 Potential income stream.
 Not able to direct work to local businesses.
 Not being seen to combat fuel poverty.
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36. Need to understand the implications.
May / will need to…
 Assess Green Deal providers in your area –
accreditation and experience
 Upskill EPC assessors to assess advice given.
 Support the marketing of the service by adding your
brand.
 Develop a corporate approach to Green Deal enquiries.
 Keep up to date records of where Green Deal
undertaken – lettings / void cost.
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37. Word of warning – Green Deal must address the fuel
poor
There is a risk that the Green Deal could in fact make
fuel poverty worse unless:
• There is an accurate assessment of a home, its
occupants and their behaviour in order to make the
correct diagnosis and the economics of paying for
them.
• We recognise that different customers need different
approaches.
• We build trust in Green Deal among the fuel-poor, and
overcome the mistrust that many people on low
incomes feel towards official initiatives.
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38. Using the Green Deal to improve your homes

39. Using the Green Deal to Improve your Homes
 Understanding your stock – maintain a strong asset
database
 Integrate Asset Plan and Energy Efficiency Strategy
 Maximise your investment programme – trigger points
 Maximise level of funding through partnerships /
innovations
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40. Conclusion

41. Lessons Learnt
• Behaviours vary as do savings!
• Analysis is resource intensive
• Education and advice is essential
• Marketing is key (and expensive)
• Take up will start slow
• The industry is lagging behind
• There is a role for housing providers
• Consider long term asset planning
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42. Thank You
Questions
?
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