South Warwickshire Landlords Forum

David Jullien(Act on Energy)

12 November 2014

Benefits of Energy Efficiency in Privately Rented Homes

For Tenants

For Landlords• Lower fuel bills• Warmer homes• Healthier environment• Less debt• More disposable income

• Less complaints• Less condensation damage• Less tenant illness• Less rent arrears• Improved reputation

Support for Energy Efficiency

Measures

• Insulation• Double glazing• Heating improvements• Hot water improvements• Renewable heating• Renewable electricity

• Green Deal (loan) + HIF?• ECO (grant/subsidy)• RHI (payment)• FIT (payment)• Landlord Energy Saving

Allowance (tax deduction)

Source

The Energy Act 2011- provisions to regulate private rented sector

Private Rented Sector- Energy Saving

• From April 2016- landlord can’t refuse a tenant’s request for EE improvements (if available through Green Deal or ECO)

• From 2018- can’t rent property with EPC band F or G

(England 9.2% homes in band F/G)

• Currently- landlord and tenant have to agree before GD loan is taken out

X

New fuel bill

wall insulation

double glazing

HE boiler

roof insulation

GREEN DEAL- How it Works

GD loan repayment

*3 ECO Grant

*1 cost meets golden rule

doesn’t meet golden rule

total saving £1,400

*2 Top-up needed

Add Improvement measures

repayment more than saving

Funding options

*1 “Green Deal” from Green Deal provider-commercial loan repaid through electricity bill

*3 “ECO”- grant from energy supplier (£1.3b/yr) £780m- carbon saving obligation (private sector)£330m- affordable warmth obligation (benefits)£160m- carbon saving communities (private sector)£ 30m- carbon saving rural communities

*2 Personal savings, mortgage or other loan

£2,800

=

£2,200

£1,950

£1,800

£1,400

A

E

D

C

B

EPCband

F

fuel bill

£1,350

SAP

G

1

100

21

39

55

65

81

92

ave

typical older property

• Home Heating and Cost Reduction Obligation (HHCRO)

• Carbon Saving Community Obligation (CSCO)

• Carbon Emission Reduction Obligation (CERO)

2014 ECO rules changed

Reduced by 33%

No change

Same target but extended to 2017

Excess can be carried over to following years

RESULT- targets reached / schemes stopped / more in April 2015 ?

Energy Company Obligation (ECO)

• Feed in Tariff

• Solar electric

• Wind

• Combined Heat and Power

• Renewable Heat Incentive

• Heat Pumps

• Biomass

• Solar water heating

• Combined Heat and Power

Renewable Energy

Landlord’s Energy Saving Allowance

Tax reduction of up to £1,500 (Tax Return)

• Loft, Wall and Floor insulation

• Draught proofing

• Hot water system insulation

DIY installation- claim materials not labour

Gov.uk website https://www.gov.uk/green-deal-energy-saving-measures

Ofgem websitehttps://www.ofgem.gov.uk/environmental-programmes/energy-

companies-obligation-eco

Act on Energy: Freephone 0800 988 2881www.actonenergy.org.uk

Contacts