Green Deal – Challenges andOpportunitiesSteven HeathExternal Affairs Director
First some context?   .. Europe’s Energy Bill..   €400 Billion a year
€270 bn of this can be saved with existing      cost effective technology…    That’s;    3 million barrels of oil a day   ...
… more energy is used in buildings    than in transport or industry       UK’s share = £3bn** - £7bn a year        (househ...
My house = £577 of £3bn
Roof
Windows
Floor
Chimneys
Walls
Heating System
=
The cost of upgrading the UK’s existing housing stock Circa £7bn−£11bn per year over the next 15 years* My house – c£12,00...
So what is Green Deal?     Green Deal                              Energy Company                                         ...
The Green Deal offer to customers   Customer Journey    An impartial Green Deal assessor recommends measures     specific...
What does success look like?         Finance?         Supply chain?         Customer (Private)?         Customer (Stoc...
How do we get        there?25/10/12                17
Supply chain?       single measure delivery   whole house solutions       Theoretical performance   real performance25/10...
Supply chain - Opportunities for installers Green Deal Measures - opportunities       Loft insulation       Rafter insu...
Opportunities for installers with KI Knauf Insulation training      ThermoShell Internal Wall Insulation      ThermoShe...
Customers?      Stock owners25/10/12              21
What can RSLs / LAs do to get best value for theirtenants?                 Economies of scale         Installation        ...
Why limit the economies of scale to your stock?   UK domestic building stock   26.7m homes in Great Britain   23m have l...
What’s your business model?    We as a company are being forced to look at our business model     under Green Deal;    T...
RSL approach to retrofit        1. At the very least – Green Deal / ECO offer the           chance to improve the energy p...
Knauf Insulation Contacts         Cavity Wall Insulation – Chris Nicholls 07553 354 023        Chris.nicholls@knaufinsula...
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Green Deal Challenges & Opportunities - Steven Heath, Knauf Insulation

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Green Deal Challenges & Opportunities - Steven Heath, Knauf Insulation

  1. 1. Green Deal – Challenges andOpportunitiesSteven HeathExternal Affairs Director
  2. 2. First some context? .. Europe’s Energy Bill.. €400 Billion a year
  3. 3. €270 bn of this can be saved with existing cost effective technology… That’s; 3 million barrels of oil a day 460 million tons of CO2 a year**Ecofys VII report for Eurima 25/10/12 3
  4. 4. … more energy is used in buildings than in transport or industry UK’s share = £3bn** - £7bn a year (household and business waste)** DECC (2010) Green Deal Summary proposals 25/10/12 4
  5. 5. My house = £577 of £3bn
  6. 6. Roof
  7. 7. Windows
  8. 8. Floor
  9. 9. Chimneys
  10. 10. Walls
  11. 11. Heating System
  12. 12. =
  13. 13. The cost of upgrading the UK’s existing housing stock Circa £7bn−£11bn per year over the next 15 years* My house – c£12,000 - £15,000 ECO spending circa £1.3bn. * E3G Financing the Green Deal25/10/12 13
  14. 14. So what is Green Deal? Green Deal Energy Company Obligation • Commercial loan, tied to • Primarily for low income and electricity bills to provide energy vulnerable households who saving measures cannot afford Green Deal • Also for ‘hard to treat’ households who cannot afford financing solely through the Green Deal 25/10/12 14
  15. 15. The Green Deal offer to customers Customer Journey  An impartial Green Deal assessor recommends measures specific to your house  You choose what improvements you have (Insulation, boiler etc)  A Green Deal Provider manages the install of measures  You pay back instalments through your energy bill  The amount you pay back each month has an upper limit fixed to the amount the assessment says you will save - THE GOLDEN RULE  Loan stays with the property not you (the occupant is not credit checked with the ambition being to have a common interest rate for all)
  16. 16. What does success look like?  Finance?  Supply chain?  Customer (Private)?  Customer (Stock owner)?  Customer (Commercial)? 25/10/12 16
  17. 17. How do we get there?25/10/12 17
  18. 18. Supply chain? single measure delivery whole house solutions Theoretical performance real performance25/10/12 18
  19. 19. Supply chain - Opportunities for installers Green Deal Measures - opportunities  Loft insulation  Rafter insulation  Cavity wall insulation  Solid wall insulation  Floor insulation Massive opportunity in solid wall insulation  7 million homes in UK housing stock  Current install rate of circa 30k per year  Major uplift needed to hit carbon reduction targets  Installation capacity needed to allow uplift  ECO funding – carbon target element includes solid wall insulation 25/10/12 19
  20. 20. Opportunities for installers with KI Knauf Insulation training  ThermoShell Internal Wall Insulation  ThermoShell External Wall Insulation  Cavity Wall Insulation ThermoShell Training Academy  Birmingham  Theoretical and Practical facilities On-site support  Regional Technical Managers Details & contacts  www.thermoshell.co.uk 25/10/12 20
  21. 21. Customers?  Stock owners25/10/12 21
  22. 22. What can RSLs / LAs do to get best value for theirtenants? Economies of scale Installation Product Costs costs Finance Costs Easier to meet golden rule
  23. 23. Why limit the economies of scale to your stock? UK domestic building stock 26.7m homes in Great Britain 23m have lofts 18.8m have cavity walls 7.8m have solid walls How many private properties would benefit from new windows, doors, roof repairs, boilers, re-rendering programmes nearby your stock? 25/10/12 23
  24. 24. What’s your business model?  We as a company are being forced to look at our business model under Green Deal;  The construction industry to date is siloed with few links between supply chains – if ‘whole house’ solutions are to succeed this must change.  As one of the main customers of Green Deal, RSLs and LAs must also look at their business models – their worst performing stock may now prove to be an important asset;
  25. 25. RSL approach to retrofit 1. At the very least – Green Deal / ECO offer the chance to improve the energy performance of that home 2. At best – the programmes offer RSLs GD provider or installer business models or even investment opportunities with sustained paybacks; possibly even partial freedom from unpredictable and intermittent Government grant funding cycles (with no limit like FITs) 25/10/12 25
  26. 26. Knauf Insulation Contacts  Cavity Wall Insulation – Chris Nicholls 07553 354 023 Chris.nicholls@knaufinsulation.com  External Wall Insulation – Kevin O’Keefe 07501 727 504 Kevin.OKeefe@knaufinsulation.com  Internal Wall Insulation – Craig O’Donnell 07739 446 412 Craig.O’Donnell@knaufinsulation.com 25/10/12 26

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