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BirminghamEnergySavers

DaveAllportProjectManager

Birminghamdeliverswholesaleeco‐refurbishmentofdomes@candnon‐domes@cbuildingsandbecomesaleadinghubof

thelowcarboneconomy

TheBirminghamEnergySaversVision

BirminghamEnergySaversObjec7ves

BirminghamEnergySavers

Social Environmental

Economic

Annual City Energy Bill • 6,463,000 t CO2

• £1.3 billion

Reduction Targets• 60% by 2026• 80% by 2050

Domestic Energy Bill• 2,154 000 t CO2• £400m

Birmingham’sEnergyConsump7on

The2026CarbonReduc7onTarget

Current and future phases “Themostexci@ngdomes@cPVandrefurbishmentprogramme

intheUK”

• Phase1;July–November2010 £0.5M=60proper@es

• Phase2;January2011–September2022 £13m=2,020proper@es

• Phase3;January2012–March2015 £100m=10,000proper@es

• 2015onwards upto£2bn=200,000proper@es

Environmentalheritage• Housing heritage of the Industrial Revolution

• Built with pride but hard to insulate

• Switching to renewables reduces CO2 and fuel costs

Cutsinpublicsectorexpenditure

• Public sector buildings PV solutions cost money

• Investment of £30k

• Fuel saving of £900 pa

• Repayment in 12 years plus 13 years of revenue

Energypoverty

• 20% of Birmingham households are fuel poor

• 90% of these need day-time electricity

• PV can make a significant contribution – up to £200 pa

TheFeedinTariff

WhataretheBESkeyobjec7ves?• TocontributetowardsthetargetofreducingCO2emissionsbyreducingthecostandlevelofenergyusageforhomesandbusinessesacrossBirmingham;

• Thatthisisselffinancing;• Thatwemaximisejobcrea@onandinvestmentthroughcapturingopportuni@esinthesupplychain.

Whathasbeendonetodate

• Phase1costs£0.5m– 38BCChomes– 7RegisteredSocialLandlords(RSL)proper@es– 3privatehomesofvulnerablepeople– 4commercialdemonstrators– 10industrialunits

• Willgenerate94,140kWhperyear,saveupto£11kperyearfromhouseholdandbusinessbills,save39tonnesofCO2peryearandearn£40kperyearinFiTs(guaranteed)

• Hasalreadydelivered7jobsandjobplacements

Tenantgenerators

6panels=1.4kW

1,150kWhperyear

Upto£130peryearsaving

£492peryeartariffearnedbyBCC

471kgCO2

saved

“I’m trying to make the most of the panels by doing my washing during the day, to try and get the best savings. It’s really important for me to save money and I’d never be able to do anything like this otherwise. It’s great that we can get our energy from a natural source – I never used to do anything for the environment before. Everyone looks up at my panels when they pass by, they are really envious of me.”

Marsha

Emma

What really attracted me was that we are actually generating electricity and reducing our carbon footprint. We weren’t all that green before we joined but now we’ve fitted energy saving light bulbs and I’m going to start filling up my recycling box. We are much more knowledgeable about when things should be switched off and we’ve stopped using the washing machine at night.

“I’m a pensioner and every penny counts. Now I’m saving money, and I’m definitely more conscious of behaviour towards energy which I never used to bother with before. I always switch of things off at the plugs when not in use and I’m recycling.”

Dorothy

Whatweplantodonext

• Phase2reporttoCabinet29thNovemberandwasapprovedsubjecttocallin

• Phase2costs£13.5m– 1,185BCChomes– 402RSLproper@esandprivatehomesofvulnerablepeople– 435industrial/commercialunits

• Willgenerate4mkWhperyear,saveupto£212kperyearfromhouseholdandbusinessbills,save1,638tonnesofCO2peryearandearnaverageof£1.3mperyearinFiTs(guaranteed)

• Willcreate61jobsand145peopletrained• LinkstoCESPandERDF“AimHigh”

BESPhase2SupplyChainRequirements Birmingham

EnergySavers–Phase2

CustomerEngagement

PVSystemComponents

Measurement&Monitoring

CustomerEngagement

&LiaisonofficersSolarModules

FeedinTariff(FiT)Administra@on

InvertersLocal&Remote

Metering

Frames,Moun@ngKits&

Fixings

Cabling&clips

Maintenance

SupportServices

LegalServices

Construc@onConsultancySupport

‘HomeEnergyAdvisors’

Genera@onMeter

Storage&Distribu@on

PVInstalla@on

Survey

Scaffold

Labour

AsbestosChecking

Evalua@on

OtherMeasures

ERDFInnova@veMeasures

CESPMeasures

Isolators

BESPhase2ProcurementArrangements

BirminghamEnergySaversPhase2

SustainableProcurementConsor7um

MentoredInstallers

1.ManagingContractor

CustomerLiaisonOfficers/

GreenDoctors

Surveys:Eligibility,Installer

&Structural

2.PVSystemComponents

LocalInstallerNetwork

Installer1 Installerx

Scaffold

…

Installer1 Installerx…

GlobalManufacturers

LocalManufacturers

Storage&Distribu7onAsbestosChecks

Monitoring

Installa7onServices

Evalua7on

OtherMeasures

ERDFInnova7onmeasures

CESPmeasures

Planning/BuildingReg’nsLiaison

Itises'matedthat£9mwillbespentonthemanagingcontractorand£4montheSolarPVComponentssupply

Phase3aspira7ons

• Createapartnershipwithu@li@esandbanks

• 10,000homesrefurbishedatacostof£100m

• £25mfromu@li@es,£25mfromBCCand£50mfrombanks

• Refinanceaoer5yearsandrefurbishthenext10,000homes

Financingoffertohouseholder

SPV

£10,000

• Generation and export FIT to SPV• Panels owned by SPV but could return

to house owner at the end of the period

• Needs to be reviewed for RHI

Free electricity (£100-200) pa

25 year PAYS service charge • Charge on energy bills• Subsidy for hard to treat• Subsidy for fuel poor

£8000

Lower cost energy bills

Renewables - RentalEnergy efficiency - PAYS

The offer to the house holder will include PAYS for energy efficiency measures and renewable energy rental schemes

BES3PPPDeliveryModel

SPV

Opco

Green Deal Payments

PAYS + FIT payments

Installation companies

Install and manage

ContractContract

Meter/deemed

Benefits

?RHI payment

Payment

Energy Companies

Banks

BCC

Non-recourse finance

Buffer capital

PWLB

Investment

Payments

Other

An PPP company, as Opco, plays a central role in the delivery of the programme

Hard to treat subsidy

Contract

BES3Eco‐refurbishmentSPV

£25m

£100m

Supplier Obligation

30%

70%

BCC from PWLB

Banks

7%

5.25%

Illustrative

£75m

Cost per house - £10kNumber of houses = 10,000

6.5%

£25m

£50m

Energy Companies

Long term indexed linked fixed cost (6-6.5%) plus RPI

Subsidy for hard to treat

Low cost buffer

Non-recourse private sector

The SPV will be financed through banks, BCC from the PWLB and energy companies under the supplier obligation

• Under the new supplier obligation from 2013 onwards energy companies are expected to be obliged to target hard to treat measures such as solid wall. These funds can be used to enable financing at 8.5% (6.2% plus 2.5% inflation for all measures)

–Required £3 000 per ISW would treat 8,500 houses–Required £8,500 per ESW would treat 2900 houses

• Finance made available so suppliers don’t have to provide 100% funding

Hard to treat and fuel poor

ThankYou

energysavers@birmingham.gov.uk