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Green Communities Expert Support Report: Kings Heath Transition Initiative Creating a Long Term Carbon Reduction Action Plan Final Draft: March 2011 Prepared by: Richard Davies, If image required insert here

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Green Communities Expert Support Report: Kings Heath Transition InitiativeCreating a Long Term Carbon Reduction Action Plan

Final Draft: March 2011

Prepared by:Richard Davies, Marches Energy AgencyContact details: E: [email protected] M: 07941 155538

T: 01743 246007 W: www.mea.org.uk

If image required insert here

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Contents

Executive Summary Page 1

1. Introduction & Project Background Page 3

2. Community Carbon Reduction Plan Page 5

3. Community Opportunity Assessment Page 8

4. Community Building Site Details Page 14

5. Sustainable Energy & Carbon Reduction Dashboard Page 19

6. Sources of Information & Support Page 21

7. Disclaimer Page 22

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EXECUTIVE SUMMARYThis report follows a community audit undertaken as part of the Green Communities Expert Support service commissioned by the Energy Saving Trust and delivered by Marches Energy Agency.

The Expert Support service focused on the development of a long-term action plan for Kings Heath located on the south side of Birmingham City Centre.

The Kings Heath area is estimated to have a population of around 25,000. Accurate figures have not been found but for the purposes of this report a figure of 25,000 will be used. Kings Heath dissects two Birmingham wards: Moseley and Kings Heath; and Billesley with a combined population around 50,000.

The action plan outlined here seeks to identify a number of significant sustainable energy/carbon reduction actions that can be led and/or delivered by Transition Kings Heath.

The carbon footprint carried out as part of this study for Kings Heath gives an estimated 1990 baseline for the community of 176,969 tonnes CO2/annum. This equals around 7.1 tonnes CO2/annum per person.

The current emissions are estimated to be 145,271 tonnes CO2/annum. This equals around 5.8 tonnes CO2/annum per person.

The suggested target for 2020 (a 34% reduction from 1990 baseline) is 116,799 tonnes CO2/annum. This equals around 4.7 tonnes CO2/annum per person. (Note: The Birmingham Sustainable Energy Partnership and BE Birmingham have adopted a more stretching target for Birmingham as a whole of a 60% reduction from a 1990 baseline by the year 2026. For Kings Heath this implies a 2020 target of c. 88,500 tonnes/annum and a per capita target of around 3.5 tonnes CO2/annum).

The suggested target for 2050 (an 80% reduction from 1990 baseline) is 35,394 tonnes CO2/annum. This equals around 1.4 tonnes CO2/annum per person.

All of these estimates assumes that the population of Kings Heath remains at 25,000 people.

Given there are 9 years to go until 2020 the target breaks down into 3 x 3 year carbon budgets. This gives rise to 3 x 3 year carbon budgets for Kings Heath of:

1st April 2011 – 31st March 2014

10,418 tonnes CO2

1st April 2014 – 31st March 9,689 tonnes CO2

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20171st April 2017 – 31st March 2020

9,010 tonnes CO2

This is equal to a year on year percentage reduction of 2.4%.

There are three foundation missions at the heart of the Carbon Reduction plan for Kings Heath. (1) The first focuses on working with the Kings Heath Business Association; (2) the second seeks to deliver microgeneration and sustainable energy actions across a portfolio of community buildings in Kings Heath; (3) the third focuses on beginning to address the challenge of solid wall insulation in the many homes within Kings Heath.

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1 INTRODUCTION & PROJECT BACKGROUND1.1 Marches Energy Agency (MEA) was commissioned by the Energy Saving Trust

to provide Expert Support under the Green Communities Programme to the Kings Heath Transition Initiative.

1.2 Kings Heath Transition Initiative is developing projects locally to build a more sustainable community in and around Kings Heath. The aims of the group is to promote local resilience in facing up to the twin challenges of peak oil and climate change.

1.3 Kings Heath formed as a community and village in the 18th century with improvements to the road running south from the City. This acted as a catalyst for new houses and farms.

1.4 Kings Heath has been affected by a number weather related impacts. On 28 July 2005, Kings Heath was hit by a major (by English standards) tornado, which damaged several shops on the High Street and All Saints' church. The High Street has also suffered from flash floods, sometimes up to a foot of water in depth, although recently investments in underground reservoirs at the junction of Station Road and the High Street should mitigate this problem.

1.5 The streets running off the high street are dominated by pre-1919 solid walled terraced housing. The High Street is made up of a diverse range of retailers with many independent retailers. In 2008 the businesses agreed to a Business Improvement District, which top-slices a proportion of their local business taxes to go directly into improvements and promotion of the area.

1.6 At the centre of the community at the Vicarage Road junction the area is being developed to form a public square, surrounded by community facilities, and will become a venue for the monthly Farmers Market.

1.7 Kings Heath lies about 3 miles to the South of Birmingham City Centre. For the purposes of this review the population has been estimated to be 25,000.

1.8 Kings Heath Transition Initiative is seeking to help the community tackle the twin threats of peak oil and climate change. There are real opportunities in Kings Heath for vastly improved energy efficiency in homes, businesses and organisations. There are lots of opportunities for small-scale renewable energy projects.

1.9 The expert support project developed an action plan to begin to help Kings Heath Transition Initiative understand what’s possible, what can be funded, and in what order to tackle the many opportunities.

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1.10 The Carbon Reduction Action Plan will create a long-term vision for how Kings Heath reduces carbon emissions and embraces the significant opportunities of sustainable energy (energy efficiency & low carbon energy). There are very significant opportunities for households, community buildings and organisations (including businesses) to save (and generate) money through energy efficiency and renewable energy.

1.11 With a strong action plan Kings Heath has the potential to attract significant investment in ‘sustainable energy’ from a variety of sources including utilities, trusts and existing households and organisations. Such investment will result in a long-term income stream for the households and organisations who embrace sustainable energy. New funding mechanisms such as the Feed in Tariff, Renewable Heat Incentive, Green Deal and Energy Company Obligation makes such projects possible.

1.12 Taking action at a local level on energy and climate change creates valuable opportunities for members of the community to get involved in volunteering. Through this a number of local people may have the opportunity to gain skills and knowledge that could help them find new or different work. This can help maintain the strong community cohesion already apparent within Kings Heath.

1.13 The creation of the Action Plan will identify suitable funding streams for a wide range of activities.

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2 COMMUNITY CARBON REDUCTION PLAN

2.1 An outline plan was created using a methodology and process developed by MEA. You can use this report alongside the Energy Saving Trust online Action Planning Tool at www.greencommunitiescc.org.uk as described below.

2.2 A carbon footprint for Kings Heath was completed. This used ‘National Indicator 186’ (NI186) carbon emissions data published by the Department for Energy & Climate Change for Birmingham City adjusted for the population of Kings Heath. A ‘backcast’ of the data to 1990 was then carried out assuming that Kings Heath’s carbon emissions have tracked the UK’s carbon emissions.

2.3 Having established an estimated 1990 baseline, projections forward to 2020 and 2050 were then carried out using the UK’s Climate Change Act targets of 34% and 80% reductions from a 1990 baseline. (Note: The more stretching target developed by BE Birmingham of a 60% reduction by 2026 has not been used).

2.4 The calculations focused on carbon dioxide alone and ignored the other greenhouse gases. This assumption was made in the interest of simplicity, and because carbon dioxide is THE energy greenhouse gas and the gas most likely to be mitigated by sustainable energy activities and projects. The data is not presented ‘per capita’ as NI186 is, again this is for simplicities sake and that it is the absolute quantity of carbon dioxide which is most important.

Year Estimated total annual Carbon Dioxide Emissions from Kings

Heath/tonnes CO21990 176,9692011 145,2712020 116,7992050 35,394

2.5 The year on year % reduction in carbon dioxide to meet the 2020 34% reduction from 2011 equates to 2.4% a year.

2.6 The year on year % reduction in carbon dioxide to meet the 2050 80% reduction on 1990 baseline from 2020 is 3.9% per year.

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2.7 To help with the action planning through to 2020, 3 lots of 3 year carbon budgets were prepared for Kings Heath outlining the total quantity of CO2 reduction required over the period:

3 Year Carbon Budget Period

Total carbon dioxide reduction required over the 3 year period/tonnes CO2

1st April 2011 – 31st March 2014

10,418

1st April 2014 – 31st March 2017

9,689

1st April 2017 – 31st March 2020

9,010

2.8 The following chart sets out the carbon descent required to meet the 2020 and 2050 targets.

2.9 In addition to the carbon budget an analysis of the deployment of microgeneration technology was carried out. This used AEAT’s Microgeneration

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Index (www.aeat.com/microgenerationindex/) and sought to compare Birmingham (and by extension) Kings Heath, to the UK as a whole.

2.9.1 To the end of December 2010 Birmingham had installed some 157kWe of Feed in Tariff eligible renewables, giving rise to a per capita power of 0.16W/person (this comparison ignores the load factor of different renewables and focuses on the ‘nameplate’ capacity).

2.9.2 The UK as a whole has installed some 72,370 kWe giving rise to a per capita power of 1.17W/person.

2.9.3 Thus Birmingham has a 1W/person microgeneration gap.

2.9.4 Assuming that the deployment of renewables in the Kings Heath area mirrors Birmingham as a whole then there is a 25kW (25,000 people x 1W) deployment gap. This 25kW should be seen as an immediate minimum target for installations of photovoltaics in Kings Heath.

2.9.5 The following table highlights the carbon dioxide savings from some of the more common household sustainable energy actions. Using each of the 3-year carbon budgets a suite of measures can be chosen to deliver a proportion of the carbon targets.

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2.9.6 The Energy Saving Trust Community Action Planning Tool can be used to help develop your long term action plan, suggesting additional measures and likely carbon savings resulting. It can also help you to track progress against the measures outlined in this report if you load them into the tool.

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3 COMMUNITY OPPORTUNITY ASSESSMENT

3.1.1 A detailed community opportunity assessment was carried out as part of the visit. The map below highlights the extent of the community opportunity assessment.

3.1.2 Three significant opportunities were identified during the community assessment:OPPORTUNITY 1: Kings Heath Business AssociationOPPORTUNITY 2: Distributed Community Building Photovoltaics + Basic Sustainable Energy MeasuresOPPORTUNITY 3: Solid Walled Housing Insulation.

These will each be explored in turn.

3.2 OPPORTUNITY 1: Kings Heath Business Association (KHBA). Kings Heath Business Association was founded in Autumn 2000, as a non-profit making member based organisation. The mission of KHBA is to represent its members; to address business challenges; and seek opportunities for the mutual benefit of businesses and their customers and clients in Kings Heath. KHBA has gained Business Improvement District status which provides a

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mechanism for local businesses to define, lead and finance local business improvements.

3.2.1 Lighting: High-energy lighting is endemic in Kings Heath. During the community opportunity assessment the opening for low energy lighting stood out as a significant prospect. Kings Heath should aim to be the first Business District on the planet to complete the race to eradicate expensive, high-energy lighting. An Olympic race to address unsustainable lighting by 27th July 2012 (the date for the Opening Ceremony of London 2012). This is an ideal project for Transition Kings Heath to catalyse. It engages businesses; there is a need for an honest broker; there is a knowledge gap; and the project needs the power of volunteers to make rapid progress. The project has the potential to save very significant amounts of money and carbon. Most businesses with local decision making powers can get involved even if located in a leased or rented building. The component parts of a project are already present in Kings Heath (1) a financing mechanism (www.9carrots.com) and (2) a local electrical retailer, Denmans (www.denmans.co.uk) with access to proven leading edge lighting technology, including:

Savings are tricky to quantify, but a Government publication ‘Energy Its Impact on Environment & Society’ (http://bit.ly/fzp7qq) has some useful information. Page 76 of this document highlights the potential savings for a variety of energy efficiency lighting improvements. Assuming that Kings Heath has a per capita pro rata share of these savings, then if all lighting related measures outlined on page 76 of the above document were implemented in the commercial and public sector then the total savings would amount to 3,236 tonnes of carbon dioxide and £370k per annum for Kings Heath businesses. These numbers should be treated with caution, but they are likely to be in the right ballpark (the financial savings could be higher given the rise in electricity prices over recent years). The carbon savings identified amount to a whole years worth of Kings Heath carbon descent which is a big prize for something with such fantastic financial benefits – this could be the focus of a whole year of activity. If successful the initiative should be extended to householders and community buildings.

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3.2.2 Awareness & Leadership – business ‘Smart Energy’ champions: The last year has seen a step change in the awareness of the business community to energy cost and energy security issues. Climate change impacts and the urgent need to mitigate greenhouse gases has also begun to make their mark in business thinking. However the scale of the energy trilemma (affordable|secure|low carbon) and the urgent need to transform the way we generate and use energy calls for a much more significant response. The Government summarises the scale of the challenge at http://bit.ly/gJ56Jk.

The Department for Business Innovation & Skills (BIS) states: ‘The transition to a low carbon world will transform our whole economy. It will change our industrial landscape, the supply chains of our businesses and the way we all live and work. The vast majority of, if not all, economic activity in Britain will have to reduce its carbon impact significantly.’

The second area for Transition Kings Heath and the Kings Heath Business Association is to begin to plan for a transformed economy. One of the first steps on the route to energy secure, low carbon and affordable energy businesses in Kings Heath is by creating/discovering ‘Smart Energy’ champions within the membership of the Business Association. KHBA should nominate a number of Smart Energy champions and with Transition Kings Heath help as many businesses as possible within the Association to plan for a prosperous time during the transformation and thereafter. BIS-commissioned market intelligence puts the market value of the UK’s low carbon and environmental goods and services sector in 2008/9 at around £112 billion with almost 910,000 jobs. What products and services can existing businesses diversify into? What opportunities will the Green Investment Bank bring? When will the Renewable Heat Incentive create economic opportunities for Kings Heath? How can Kings Heath benefit from Birmingham’s Green New Deal?

The Smart Energy champions can act as a source of information and inspiration. They can keep the debate on the ‘low carbon economy’ going. They can highlight opportunities and pass on the latest sustainable energy news from beyond Kings Heath.

3.3 OPPORTUNITY 2: Distributed Community Building Photovoltaics. The community of Kings Heath benefits from its layout with regard to orientation for solar energy with the High Street/A435 oriented north/south and many of the buildings assessed for sustainable energy opportunities have suitable roofs within a South South East through to South South West orientation. In an urban environment solar photovoltaics provides a fantastic opportunity for generating clean and green electricity, and with the Government’s Clean Energy Cashback Feed in Tariff scheme a generous and low risk investment opportunity. During

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the Community Opportunity Assessment a number of excellent sites for photovoltaic panels were identified. The challenge is how to structure the investment. The following section identifies the principal funding options:

3.3.1 Local Share Offer via an Industrial & Provident Society (IPS): The Asset Transfer Unit of the Development Trusts Association has some good background on the upsides of a local share offer through an IPS. See http://bit.ly/ey4hOQ . A local Share Offer via an Industrial & Provident Society is a simple, low cost method of raising capital for investment in photovoltaics in Kings Heath. The local share offer could enable part of the profit from the photovoltaic installation/s to support other activities such as enabling/supporting energy champions within the community, or similar. This would be particularly appropriate if a large portfolio of investment ready photovoltaics could be found across a number of community buildings in Kings Heath (this is likely given the excellent resource identified during the community opportunity assessment).

3.3.2 ‘Crowd Funding’: In this example crowd funding means securing donations or gifts from many across the Kings Heath area. This would work within a ‘community of interest’. For example the New Life Baptist Church (see below) has excellent potential for a PV system of around 23.5kWp. This could consist of 100 x 235W photovoltaic panels. The total installed cost of this system is estimated to be £58,750 to £82,250. This installation would give rise to an annual ‘income’ to the New Life Baptist Church of some £7,850 per annum from the Feed in Tariff payment, free electricity and a small payment for electricity exported. Over a 25 year guaranteed ‘Feed in Tariff’ period in today’s prices an income of £196,250 would be secured. Could 100 panels be ‘sold’ at a cost of £587.50 to £825.50 each to 100 members of the congregation to give rise to an annual ‘gift’ to the Church of £78.50 or £1,962.50 over the life of the Feed in Tariff? This approach could work well with other faith buildings within the area and schools and community halls - essentially any community building with committed users/supporters and a long term need for income.

3.3.3 Grant funding: Seeking money from the public sector, corporate giving or charitable trusts has become more challenging given the public sector resource difficulties, economic problems and oversubscribed Trust funds. However a high quality application and good communication with the target organisation can significantly increase the chances of success. This approach can have real merit if the resources generated from the photovoltaic installation are applied directly to address a real local need e.g. affordable warmth services to the vulnerable/disadvantaged.

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3.3.4 Rent a Roof: The new concept of a third party investor owning PV panels on a roof not in their ownership is now widely available as a development option in the marketplace. The principle of ‘assigning the rights’ to the Feed in Tariff has been part of the legislation since the start of the scheme in April 2010. The consumer organisation ‘Which?’ have a largely negative opinion of Rent a Roof schemes. See which report http://bit.ly/d1dUt1. The Energy Saving Trust has some excellent advice for building owners to consider before agreeing to the ‘rent a roof’ route http://bit.ly/dhaT5r. The building owner/permission giver benefits with some free electricity and may also receive a rental income for allowing the third party investor to site PV panels. However the significant benefit from the Feed in Tariff income goes to the investor. If at all possible another development route should be sought – the only exception is where a Local Investor/s provides the money and the Feed in Tariffs then have some benefit within the local economy.

3.4 OPPORTUNITY 3: Solid Walled Housing Insulation Given the significant number of solid walled dwellings in Kings Heath, there is a real need for local knowledge and capability to address this big energy efficiency challenge. Insulating a solid walled house remains a relatively complex undertaking. This opportunity for Transition Kings Heath focuses on establishing local knowledge and capacity to position Kings Heath as an ‘early adopter’ community for widespread solid wall insulation when new policy and programmes finally ‘hit the streets’ over the next 18+ months. This should include some early pilot activity; the opening of a number of ‘example’ show homes; and awareness and promotion of Green Deal and the Energy Company Obligation (ECO) along with Birmingham’s local Green New Deal.

3.4.1 Birmingham Green New Deal: This initiative in the vanguard of ‘early to market’ green deal offerings has attracted much interest from across the UK. Combining the power of bulk procurement of sustainable energy measures with a low cost financing option repaid through savings made on energy bills has great potential to set free widespread action. When combined with a local supply chain the economic benefits of Green New Deal are potentially very significant. Kings Heath should be a willing consumer of the Green New Deal and with a motivated and well-informed Transition Initiative acting in the role of honest broker real progress can be made. The key next step is for Transition Kings Heath to find out what will be on offer and when, focusing on solid wall insulation solution, so a local campaign can be designed and implemented at an appropriate time.

3.4.2 National Green Deal: Alongside Birmingham’s Green New Deal is the UK’s Green Deal. The detail of the Green Deal are still being formulated, more will be known in mid 2011 in advance of an expected national launch in late 2012. A key aspect of the national Green Deal will be its focus on

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homes, community buildings and businesses. The Green Deal will enable investment in sustainable energy measures paid for through savings from the energy bill. Kings Heath Transition should maintain a watching brief on the national Green Deal programme and especially the provisions for solid wall insulation given its relative cost to other sustainable energy measures.

3.4.3 Existing Utility CERT (Carbon Emission Reduction Target) Pilot: Existing funding from the energy utilities is available to subsidise the installation of solid wall homes. Transition Kings Heath should make contact with the private sector housing team at Birmingham City Council to find out if there are any deals or offers available to those who wish to install solid wall insulation in advance of the green deal offerings.

3.4.4 Open House - Seeing is believing: Transition Kings Heath should seek to establish a ‘Sustainable Energy Open House’ programme to inspire members of the Kings Heath community with examples of real homes which have embraced sustainable energy. A particular focus on solid wall insulation would be very valuable – whereby different solutions, materials and technologies are demonstrated within Kings Heath. Old Home Superhome provides a ready-made mechanism to deliver this. See www.sustainable-energyacademy.org.uk

3.4.5 Honest Broker Knowledge: Establishing Transition Kings Heath as a trusted and knowledgeable honest broker for solid wall insulation would be a great ambition. The Energy Saving Trust provide some excellent guidance on insulation generally (See http://bit.ly/fa2FBj) and solid wall insulation in particular (http://bit.ly/bEjl89). Similarly the National Insulation Association provide some good quality advice (See http://bit.ly/fDLKzs)

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4 COMMUNITY BUILDING SITE DETAILS

4.1 New Life Baptist Church, B14 7JZ

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4.2 All Saints Church, B14 7RA

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In addition to the excellent potential for photovoltaics in a prominent position All Saints had an immediate sustainable energy challenge in the form of 25 x 500W tungsten halogen lamps lighting the church.

4.3 St Dunstan Church, B14 7JN

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12.5kW of power costing around £1.60 per hour to run, and producing almost 7kg of carbon dioxide per hour. An immediate priority should be the replacement with a low carbon, low cost, low energy alternative.

A budget solution would be to trial the 118mm compact fluorescent converter shown below. These will produce less light than the 500W lights (equivalent to about 150W) but will reduce overall energy, carbon and money by around 95%. It is likely that for the lights focussed on the ceiling that these may be adequate. Contact should be made with the New Life Baptist Church as they have recently installed Megaman clusterlight technology (although they reported some problems) which would provide a

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4.4 Cambridge Road Methodist Church B13 9UE

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4.5 Other Buildings: There are many more suitable buildings for photovoltaics across Kings Heath including schools and ‘public sector’ buildings such as the library, police station and a number of health related buildings. The key decision to be made is whether the individual building ‘owners’ should develop the potential resource or whether a community share offer through an industrial and provident society could fund a ‘distributed PV investment’ across the area. The later route is clearly ambitious and exciting and is recommended as the route for Transition Kings Heath to pursue.

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5 SUSTAINABLE ENERGY & CARBON REDUCTION DASHBOARD

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6 SOURCES OF INFORMATION & SUPPORT

6.1 Funding: To fund the recommendations it is suggested that Kings Heath Transition Initiative investigate the following:

6.1.1 The Energy Saving Trust provide a wealth of high quality supporting information and resources. This is available at http://bit.ly/2JnwAr and resources specific to the Green Communities programme is available at http://bit.ly/B0v4M

6.1.2 The Energy Saving Trust database of potential funding sources for community organisations, available at: http://bit.ly/iawpBY

6.1.3 The Green Grants Machine available at: http://bit.ly/15Uhni 6.1.4 Various Energy Companies have grants available for community

sustainable energy projects and it is recommended that the web-sites of the energy suppliers are reviewed to identify suitable funding sources.

6.1.5 The BIG Lottery’s REACHING COMMUNITIES fund may support some of the recommendations made in this report: http://bit.ly/bke8ka

6.1.6 Other Charitable Trusts.

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7 DISCLAIMER

7.1 This report has been prepared in accordance with the guidelines provided by the Energy Saving Trust’s Green Community Team.

7.2 This report is intended to provide outline guidance only and does not constitute definitive judgements as to whether such developments would be permitted or financially viable.

7.3 The information contained within this report is accurate at the time of writing and has been checked by MEA for consistency and validity.

7.4 Where assumptions have been made these have been stated.

7.5 The results contained in this report do not constitute guarantees of performance or cost, and MEA will not be liable for any losses arising from acting on the recommendations of this report.

Richard DaviesMarches Energy AgencyMarch 2011

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