stoke.gov.uk

Green Deal in Stoke-on-Trent

Iain PodmoreHousing Enabling TeamHousing ServicesTel: 01782 235537Email: Iain.podmore@stoke.gov.uk

Scale of the ChallengeThe Challenge

Government commitment to reduce emissions by 80% by 2050

-85% of existing houses will be standing in 2050

Climate Change Committee target for 2022: 90% of all lofts and cavity walls insulated

10.1m additional lofts

7.5m additional cavity walls insulated

13m boilers to be replaced with efficient boilers

The Solution

The Introduction of Green Deal – which will allow consumers and businesses to make energy

efficiency improvements to their properties without upfront costs

A new Energy Company Obligation (ECO) to replace the existing Carbon Emissions Reduction

Target (CERT) and Community Energy Saving Programme (CESP)

Green DealA regulatory framework enabling companies to offer householders and businesses':

accredited advice and recommendationshome energy efficiency improvements at no up-front costreassurance that work is of a high standardthe ability to pay via electricity bills over the long term (e.g. 25 years), making use of the money saved on fuelonly to pay whilst they remain in that propertybacked up by a new Energy Company ObligationThe Green Deal will include owner-occupiers, the private and social rented sectors and the commercial sector.

Energy Company Obligation post 2012It is estimated the cost of ECO over the next three years will be in the region of £1.3bn

Carbon Saving Target (75% of ECO cost)

Tenure: All tenures

Measures: External Wall Insulation (EWI). Other measure may be included if part of EWI package

Target: 0.5 MtCO2/yr by 2015

Assist: Target will assist an est. 515,000 homes with EWI over 3 years and 1.5 million by 2022

Eligibility:Property has solid wall

Affordable Warmth Target (25% of ECO cost)

Tenure: Private Sector only

Target: £3.4bn reduction in notional lifetime costs of heating for low income and vulnerable households by 2015

Assist: Target will assist an est. 325,000 households by end of March 2015

Eligibility:Proposing similar eligibility to CERT Super Priority Group

Stoke-on-Trent ChallengeThe Challenge:

All 19,300 social homes meet Decent Homes Standard (DHS).

In comparison, nearly half of all private sector homes fail the DHS

There are c.25,000 pre-1919 solid wall properties in the private sector

1,050 flats across (17) high and (26) low rise blocks in need of improvement

Fuel poverty has risen sharply over the last 4 years

To offer a solution to all c.112,000 properties in Stoke-on-Trent

The Solution:

Informed by lessons learned from previous programmes

Informed by local intelligence on housing stock & population data

A balance between social obligations and corporative objectives

Has to be something that residents/ occupiers want

Profile of Energy InvestmentProgress:

*estimates

DECC have released figures which shows that in terms of % of housing stock insulated, the City is:

the best performing authority for installing insulation measures in the West Midlands Region. in the top 11% best-performing LA areas in the UK for installing energy-saving measures.

Our Partners

Lessons Learned from CERT and CESP Energy company-managed: typically, these schemes are funded, project managed and delivered

by the energy company involved, often using the company’s own energy services businesses to carry out installation;

Client-managed: direct funding relationships, whereby the schemes are managed by either the relevant local authority or the HA, with the energy company funding the CESP measures and overseeing the carbon accounting, quality assurance and monitoring;

Area based initiatives have proved successful by providing competitive and transparent business models accessing thousands of homes. It has to be underpinned by a solid network of local providers. Voluntary agencies assist in reaching the most difficult to reach households.

Appropriate resourcing, skills and knowledge. The scale of delivery would not have been achieved with out a dedicated local team. A sufficiently resourced team will be required to achieve an area based whole house programme of improvements across the city over the next 25 years.

The local authority removes risk for investors. The local authority has had responsibility for a number of roles; planning; customer engagement and management; tenant/ householder sign up/ acceptance; financial administration; access to local market intelligence; all of which could be chargeable or costly for any outside organisation tasked with local delivery.

Local IntelligenceMapping

Area Plans Identify key “enabling” areas - Carbon

Rich Income Poor communities

Vulnerable fuel-poor households may:

be debt averse represent a credit risk to lenders Thermal comfort element means

wont re-pay savings.

Identify all other Home Improvement Works to be carried out (e.g. kitchens, bathrooms, dividing walls etc)

Work with health services to ensure all residents receive support and assistance to stay warm in winter

Amalgamate Green Deal Plan and ECO funding to create district heating opportunities

Local IntelligenceMapping

Local IntelligenceMapping

Local GD & ECO Policy Objectives1. Has to address fuel poverty and climate change agenda:

Reduce fuel poverty and housing related CO2 emissions Increase the security of energy supply To future proof properties by getting them ready for district heating connectionImprove the energy performance of homes with particular emphasis on hard to treat homesDelivery model has to sustain itself financially – possibility of charging for provision of some services

2. Opportunity to link into home improvement; public health; & economic growth agenda’s?

Assist local businesses to be ready/ equipped for emerging low carbon marketsGenerate and maintain jobs and apprenticeships Increases levels of stock meeting decency standards in the private sectorReduce health and financial inequalities

3. The objectives have to be attractive enough to bring in the private sector investment!

Reduce risk for investors – planning, procurement, legal, supply chain?To provide certainty on level of take up and number of measures to be installed

Delivering Green Deal and ECO Green Deal, without significant support from ECO, will have a limited impact in Stoke-on-Trent

Policy focus to secure and maximise ECO investment in the City

Maintain an area based approach to delivery (Green Deal and ECO brokerage) Cost effective resource strategy Strong Leadership and Effective Community Partnerships Well organised and well resourced supply chain A trusted delivery organisation with a clear offer that is relevant to local need An understanding of customer demand (and potential barriers) Framework Agreement to cover all Green Deal and ECO eligible works

Role of local authority to de-risk investment by creating the conditions on the ground that make it attractive for partners to invest in the City e.g. community engagement, planning, data etc

Building upon success of North Staffs Warm Zone, the local authority will negotiate high levels of ECO funding and identify all other programmes/ funding to support retrofit:

Energy Company Obligation; Department of Health; Home Equity or Home Improvement loans; Renewable Heat Incentive and Feed in Tariff income; Green Deal Finance

Local authority will work with CORE to ensure that the local authority and the supply chain has all necessary and correct qualifications and accreditations to deliver Green Deal and ECO.