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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
