Getting the best deal for your for your residents- your ... · 2/28/2013 · SOCIAL HOUSING – DELIVERING THE COMMUNITY GREEN DEAL THE GREEN DEAL SUMMIT – 31 OCTOBER 2012 Green

Getting the best deal for your for your residents- your local authority Green

Deal retrofit options

Thursday 28th February 2013

10am-1.10pm

Welcome

George Marsh : Sustainability West Midlands Board member and Chair of the West Midlands Retrofit Steering Group

Aims

• To inform local authority finance, housing, economic development decision-makers on the options for delivery of the Green Deal in their area.

• To provide an overview of West Midlands Green Deal pilot projects and emerging Green Deal options appraisal outcomes.

• To signpost to relevant contacts and potential providers.

Agenda 10am-10.10am: Welcome, Introduction and housekeeping

10.10am-10-30am: Context and overview of Green Deal options for Local Authorities

10.30am-11.30am: Presentations from speakers developing different Local Authority responses for different areas-what are the key lessons?

11.30am-11.45am: Refreshments

11.45am-12.30pm: Roundtable discussions

12.30pm-1pm: Other Green Deal Updates

1pm-1.10pm: Close and next steps

1.10pm: Networking lunch

Context and overview of Green Deal options for

Local Authorities

Richard Baines:

Director of Sustainable Development Black Country Housing Group Limited

SOCIAL HOUSING – DELIVERING THE COMMUNITY GREEN DEAL THE GREEN DEAL SUMMIT – 31 OCTOBER 2012

Richard Baines:

Black Country Housing Group

28 February 2013

SOCIAL HOUSING

Delivering the

Community Green Deal

What to considered if you want to participate

in Green Deal and ECO


ACKNOWLEDGEMENTS

Task & Finish Group

Cliff Horrocks Walsall Housing Group

Richard Baines Black Country Housing

Mark Bird Walsall Housing Group

Matthew Rhodes Encraft Ltd

Trevor Passingham West Mercian/Orbit

Simon Wright Energy Saving Trust


Choosing a Green Deal

Role

Your options

• Green Deal Provider

• Green Deal Partner

• Green Deal Services

• Green Deal Producer

• Green Deal Promoter

• Not in the Green Deal

Things to consider

• Funding levels

• Legal implications

• Accreditation

• HECA requirements

• Responsibilities

• Are you sure?


Green Deal Provider

• You have to have the finance in place

• Green Deal finance has to be at <6%

• £350M ‘entry level’ (EIB) [£500M Deutsche Bank]

• Probably only room for 7 - 12 in the UK

• Big 6 Energy & Kingfisher/B&Q/Screwfix

• Other High Street Brands ??????


(Lead) Green Deal Partner

• The best way to achieve scale

• Crucial to Community Green Deal

• Smaller organisations will benefit

• Lead Partners need to be good at SPVs

• Legals will be more complex

• Operation will need dedicated management


Green Deal Services

• Customer Acquisition

• Assessment and Advice

• Specification development

• Installation Services

– Insulation

– Conventional Heating Systems

– Alternative Energy Systems

Green Deal:

• Code of Conduct

• Accreditation


Green Deal Producer

• Much more than just sign-posting

• Brokering Green Deal Activity

• Engaging multiple Green Deal Providers

• Maximising local benefits

• Maybe a useful response to HECA

• Only reputational risk to manage


Green Deal Promoter

• Probably the minimum LA response

• Only reputational risk to manage

• Satisfies HECA requirements

• Relevant if no retained stock


Not in the Green Deal

• This assumes you either:

– Don’t have any buildings

– Don’t have any responsibility to building owners

– Have buildings that are as energy efficient as

they can be

In which case you are probably not a landlord or a

local authority



SHAP Decision

Tree

• Pathway to

follow

• Hyperlinks to

detail

• No panacea

but:

– Simple

– Tested


Supporting Considerations

• The Energy Company Obligation (ECO)

• Consent Issues

• What We Don’t Know

• What Else Can I Do Now

• Where Do I Go Now

• Next Steps


THANK YOU

Richard Baines

[[email protected]]

[email protected]

www.shap.uk.com

mailto:[email protected]



Developing different local authority

responses for different key areas

What are the Key Lessons?

Dave Allport: Birmingham Energy Savers

Birmingham Energy Savers

The first 50 days

• Background • What is the nature of the BES

partnership? • What has been achieved? • What we have learned?

A G E N D A

Background – quantifying required outcomes

By 2015

1. 12,000 fuel poor households benefiting

2. Annual CO2 emissions reduced by 18ktonnes

3. 150 SMEs assisted to participate

4. 300 new Jobs

5. Active client function and reporting arrangements that

match localised governance

6. £75m of loans

7. Landlord and health trusts actively involved

Prep Standstill Preferred

Bidder

Post

Tender

Discussions

Final

Tender

Long

List –

Pre-

qualification

Competitive

Dialogue Contract

Signature

Contract

Notice

‘Pre-dialogue’ ‘Dialogue’ ‘Post-dialogue’ Award

Sept

2011

Nov

2011

July

2012 Oct

2012

Background - Selecting the Delivery Partner

Background – Engaging suppliers

2011

February 2011 Supplier Market Analysis Event

2012

September 2012 Preferred Bidder

Supply Chain Engagement

Event

2013

Green Deal 50 Days Launch

Event

The BES partnership 1

• Partnership based on interdependency and

shared aspirations

• The public sector provides brand, access to

project finances, networks, access to potential

customers, longevity, accountability structures

• The private sector provides expertise in

marketing, mobilisation, delivery, agility, financial

and risk management

The BES partnership 2

Partnership is expressed in

• Co-location

• Co-creation and messaging

• Shared commitment to social values

• Contractual commitments to social, environmental and economic KPIs

• Open book reporting

Social Value Agreement

Energy savers feel;

• Secure – fuel security, home safety checks

• Satisfied – quality work, social benefits and value for money

• Solidarity – networking and reinforcement of messages

• Significant – customer and supplier contributions acknowledged and celebrated

KPIs – 1 Key Performance Indicator

Number of assessments completed for Green Deal and ECO where an

assessment is required for owner occupier properties.

Value of ECO funds secured, applied and defrayed on qualifying Authority’s

Properties and Third Party Properties in the Area (£’000)

Customer satisfaction

Effective management of complaints and defects to minimise their

occurrence.

Numbers of small and medium sized enterprises who form part of our supply

chain receiving two (2) or more days of assistance.

KPIs –2 Key Performance Indicator

Value of works delivered by Supply Chain Members that pay Birmingham

business rates for operational businesses premises.

Number of training weeks per £m invested and spent on the Project in the

Area.

Number of jobs created and safeguarded per £m invested in the local

economy in the Area through the delivery of the Project and employed on

direct delivery of the Services.

Number of people from priority groups assisted to access placements,

training and job opportunities per £m invested.

Providing regular accurate, timely reporting in accordance with the terms of

Theme 5 and the Project Agreement.

Marketing and Engagement

• 0800 number established received 1,472 in-bound calls – 300 calls per day

• 40 Community Organisations signed up as lead generators / ambassadors and making 1,100 e-referrals

• Home visits and local lead generation in targeted areas to identify vulnerable households

• Radio advert aired 80 times, bus posters etc

• Video produced and will be posted on BES web-site next week

Assessments and Installations

• 598 assessments booked of which 220

completed

• Over 900 vulnerable people signed up for

Affordable Warmth ECO through local referrals

and home visits

• Work started on DECC Go Early, Fuel Poverty

Action schemes (7 tower blocks, 2 schools, 5

community centres)

The Research

• 600 people have called so far asking for an assessment

• 250 assessments have been completed

Quantitative Thread

• Sample of 80 householders; analysed for benefit qualification,

tenure, eligibility for AW ECO and location.

Qualitative Thread

• Conducted telephone interviews with 6 householders, asking

why they got involved, why they chose this programme over

previous ones, and how their experience had been.

Birmingham’s First Customers: A Different Picture?

• 51% qualify for benefits. Far more ‘Money Savers’!

• Only 78.6% are owner occupiers or privately renting

tenants.

• 8% qualify for Affordable Warmth ECO (at least)

• Location – customers are dotted around Birmingham.

• Highest proportion (14%) in B11 – includes some of

the most deprived areas in Birmingham

Birmingham’s First Customers: Reasons for Signing Up

• Struggling with bills.

• Want to take advantage of ECO.

• Comprehensive nature of the programme; previous

programmes only offered cavity wall insulation.

• Trust; Birmingham City Council backing.

• Want to bring the house up to date.

Birmingham’s First Customers: Feelings So Far

• Feel good about the programme: ‘If everything goes ahead it

will be wonderful!’

• Pleased that assessors are sensitive to the needs of their

particular home.

• Need ECO subsidies in order to make Green Deal repayments

without falling further into fuel poverty.

• Unsure what the programme will do to the value of their

property.

• Some frustration at having to wait to hear what measures they

are eligible for.

Economic Benefits

• Local Call Centre open

• 138 person days pre-employment support

• 38 people into new jobs - 21 previously unemployed and 9 at risk of redundancy

• 4 work placements

• 100+ SMEs engaged with 2 local companies contracted for assessments and 12 for insulation

First 50 days • 6 Tenders issued

– Heating installations

– Loft/Cavity wall

installations

– Green Deal Assessors

– Green Deal Careers Plan

– Community Engagement

and Lead Generation

– Training Providers

• 4 RFI Loaded onto FiiB

– EWI install and

Manufacture

– Innovative EWI solutions

– Install and manufacture of

Energy efficient measures

– 26 Green deal measure for

all heating associated

activities

Economic Geography of Suppliers

5 Large Firms

3 Micro Firms

4 Small Firms

1 SME

Europe +

UK (7)

Midlands

(10)

Birmingham

(6) SME (up to 250 employees)

Small: up to 50 employees

Micro: up to 10 employees

1

Coop

Effects of Joining GD Supply Chain

Current Activity

Generating test data; product

development; creating production

and installation supply chains.

Training; GD accreditation

preparation.

Referrals, school and

community engagement,

assessor accreditation.

Anticipated Activity:

uncertain.

Change and innovation

New systems (accreditation and

alignment with Carillion).

Recruitment - 1 staff member,

multiple associates, standby

subcontracting staff but also

recent redundancies in two firms.

Expect to work with new

technology and new customers..

Training and accreditation (“up-

skilling”).

Effects of Joining GD Supply Chain

Prospects (staff, £, success)

Creating ltd companies and a

cooperative.

Training and accreditation.

Growth and consolidation (micro

companies) for some, but gloomy

forecast with lower volumes of

work across the industry.

Potential expansion of customer

base.

Estimated timescale for

achieving benefits: 6-12months.

Benefits •Profile, kudos and “bragging

rights”.

•Experience creates

opportunities elsewhere.

•Expand range of

products/services.

•Retain orders/jobs.

•Technology demonstration

•New/improved existing supply

chain relations.

•Support with procurement and

contracting.

Issues and Risks Issues and Risks

•“Leap of faith” – uncertainty about volumes of work and demand.

•Hesitancy in wider industry regarding take up of accreditation

•Lack of consumer awareness.

•Timescales: education and awareness raising

•Liability: making the golden rule work

•Products not acceptable/effective.

Risk Management Strategies

•Green Deal small part of larger firm’s offer.

•Reducing staff/ using flexible structures (associates, sub-contractors)/

delaying recruitment.

•Training and CPD for assessors.

•Appropriate allocation of legal responsibility.

What we’ve learned

• Strong community support for the BES package

• Genuine customer interest, but poorly informed leading to low conversion rates

• Appetite for green jobs

• Fragility of the supply chain and the destructive potential of the eco market

The offer to other authorities • West Mids Contracting Authorities (CAs) can

use our contract and our procured Delivery Partner (CES) at no upfront cost – CAs negotiate their own KPIs

– CAs negotiate their own plans eg Engagement, Workforce, Social Value, Supply Chain and Reporting arrangements

• Other authorities may wish to use the final tender and contract as basis for restricted procedure

Mathew Rhodes: Managing Director of Encraft

Copyright © Encraft Ltd 2011

T: 01926 312 159 | www.encraft.co.uk

Local Authority Green Deal Role Options What really matters?

A presentation for

SHAP/SWM

Matthew Rhodes

28 February 2013



What really matters, and what are the implications of the decisions you take?

• Perspective

• How is this market developing, and how will it develop?

• The fundamental choice for local authorities



The Worcestershire Councils have funded one of the most

thorough evaluations of the Green Deal to date

• 72,000 surveys (DECC 16,150)

• Data for 243,000 domestic and 26,000 non-domestic properties

• Backed up by physical inspections

• Mapped by LSOA



The Green Deal and ECO work well in rural areas, but need diverse delivery models

• Greater carbon savings available

• More attractive to utilities (ECO holders)

• Less scope and value in economies of scale

• More value in local supply chain

• More value in LA contacts and channels

• Analysis ties in with initial experience elsewhere

• Trade off density vs scope of work

Properties off Gas Grid

Properties with solid walls



Total addressable need: £1.37bn. This is 1% of UK potential.

Non-domestic £620m

Domestic £748m



We are also working on live pilots in Solihull, Worcester, and Northampton

• Targeted niche marketing

• Supply chain engagement

• Multi-stakeholder approach

• In touch with all 36+ GDPs



The Green Deal is a small part of a big and very important picture

• Transfer of value from utilities to construction (£10bn+ p.a.)

• The economics of local energy work

• Jobs, wealth and power returning to localities



Five vital things to remember when doing Green Deal options appraisals

1. Access to ECO and market control is the real prize and key for all

2. Finance is largely a red herring

3. The economics of scale in this market need to be challenged and understood

4. There is a lot of shaking down to happen: LAs may support the market most through ‘active pre-commitment’

5. Be very clear on objectives!

27%

59%

14%

% of work stimulated

ECO

ECO and Green Deal

Green Deal alone



The market will develop slowly, and business models are not yet stable

Emerging Green Deal Provider Models

Utility (ECO-driven)

British Gas nPower

SSE

Trad. Construction

Carillion Keepmoat Instagroup

CIC/Third Sector

Yorkshire ES (Energy Coop)

Merchant

Wolseley Grafton

Toriga (TP) Greenworks

Local SME

GDC Anesco

National Brand

Kingfisher Enact (Tesco/M&S)

Installer/New Const.

FITGAS GHE Solar

Neil Pittam

Property/Finance/?

CarbonLow Infinis

Green Deal Express

Ex CERT/CESP

Climate Energy (USEA)



LAs have much greater market influence than many realise

Much politics…, but access to buildings and data has value

Existing channels and trusted brand have value!

Sensitivity of Green Deal Uptake to variation in key parameters (SWI, projects)

£250/t

£80/t

£0

£500

5%

10%

80%

20%

-20%

+20%



If you pre-empt competitive market development you are

likely to distort the market and destroy local jobs

• This is an entirely new market – the most useful role of LAs is to provide a level playing field* for competing new entrants

• As long as big players believe they can do exclusive deals with LAs, they will resist engaging competitively in the market

• How many middle-men does this market really need, and why?

* In reality, not just in an essentially academic procurement exercise



This means active pre-commitment is a strong and prudent approach

• Active promotion

e.g., through many existing and active channels

• Continued ECO (ex CERT/CESP) operations with additional leverage (and referral fees) where possible

• Develop and deepen relationships with Green Deal Providers

• Build contacts with other LAs and share experiences

• Support local SMEs and innovative projects in engaging with GDPs

• Use flexible frameworks (if you see this as a procurement issue at all)

• Set out a sensible timetable for informed decision-making



Underneath all this is a much bigger, and simpler, choice for LAs.

Do you see local energy as an opportunity, or not?

Jobs Fuel Poverty Better buildings Capital investment Local security Social enterprise



More information

Matthew Rhodes

[email protected]

01926 312159


Kenny Aitchison: Service Manager, Housing Strategy and Development, Wolverhampton City Council

THE GREEN DEAL - A BLACK COUNTRY PERSPECTIVE

Kenny Aitchison

Service Manager

Housing Strategy & Development

Wolverhampton City Council

Introduction

Why the Black Country?


Maximising GD and ECO in the BC

Benefits of an Urban Context

The Black Country

The Black Country

SIMILAR SIZE TOWNS/CITY

SIMILAR DEMOGRAPHICS

SIMILAR STOCK PROFILE

ALREADY CLOSE WORKING ARRANGEMENTS – LEP ABCA REGEN LEADS

– BLACK COUNTRY CORE STRATEGY

Regional/Sub-Regional Approach

HCA West Midlands Retrofit

Steering Group

Sustainable Housing Action

Partnership - SHAP


Black Country Green

Housing Group


The Community Green Deal is a framework for;

Delivery of large scale, cross tenure, whole house retrofit projects using a variety of funding mechanisms

Designed to work in any mixed tenure community, working alongside energy companies and local contractors to deliver the ‘Green Deal’

Strengthen local communities by tackling fuel poverty and health and well being issues

Reduce CO2 emissions

Stimulate local economic growth and create sustainable employment in new green economy

Green Deal in the Black Country

Walsall, Sandwell, Dudley and Wolverhampton

Collectively similar number of households to


Similar property types; large numbers of “hard to treat”

Commitment to develop the HCA/SHAP Community Green Deal

Role of Local Authorities to lead on Green Deal

The Black Country Approach

Maximise the potential, triple bottom line

outcomes – Economic; Social; Environmental.

1. JOBS & ECONOMIC GROWTH LOCALLY (Estimated EWI alone worth up to £578m and 750 new jobs over the next 10 years)

2. REDUCE LEVELS OF FUEL POVERTY, EXCESS

WINTER DEATHS AND OTHER COLD RELATED

ILLNESS

3. MEET CO² REDUCTION TARGETS

The Black Country Approach

Successful bid to WM Housing Officers Group matched

by funds from HCA and 4 LA’s.

Energy Savings Trust/Verco appointed after tender

process to undertake an evaluation of the risks and

benefits of the various approaches open to LA’s as

suggested by DECC.

Promoter Partner Provider

EST/Verco Brief

Four key areas of work

1. Develop a comprehensive housing stock evidence base

2. Assess the potential demand for the Green Deal in the Black Country and compare and contrast to BES

3. Assess the relevant economic benefits of the Green Deal with reference to the 3 DECC suggested models

4. Conduct financial options appraisal and develop an action plan and financial business case to maximise the delivery in the Black Country (but transferable to other WM LA’s

Work so far

Three workshops engaging Council officers

from Housing, Finance, Legal and Economic

Development.

1. Assessment of BC Housing stock analysis

2. Review the models and variant/hybrid options

for Promoter/Partner/Provider

3. Analysis of the financial and delivery models

Final report January 2013

SIZE OF THE PRIZE A Black Country led Green Deal and ECO delivery programme can deliver:

• Upgrades to more than 29,000 homes across the

Black Country over an 8 year delivery programme

• A total of 1,130 job years associated with the

installation of measures plus additional jobs in the

service and manufacturing sectors

• Around 1,110 lifetime CO2 reduction from Green

Deal measures

• Around £66.8m (undiscounted) lifetime savings

on energy bills for consumers

• A ‘Net Present Value’ of £1.6m based on an local

authority investment of 15% in Green Deal measures

Distribution of Green Deal potential across Black Country

Shows the distribution of GD potential by LSOA - with the

red shaded areas showing the highest GD investment

potential ranging between £3-5m; followed by the orange

shaded areas with investment potential of between £2-3m.

Wolverhampton and Dudley have a relatively high

concentration of LSOAs with good GD potential.

Housing Stock Analysis – most common archetypes

-

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10,000

15,000

20,000

25,000

30,000

35,000

40,000

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Archetype code

A&B

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E,F&G

Distribution of CSCO (or Carbon Saving Communities Obligation) potential

Map showing Green Deal potential

The distribution CSCO (or Carbon

Saving Communities Obligation)

potential overlaps with GD eligible

properties which suggests that an

area-based programme targeting

both GD eligible and ECO eligible

properties could work well.

Wolverhampton has the highest

concentration of areas with CSCO

potential.

Distribution of HHCRO potential across Black Country

High fuel poverty areas have low HHCRO (or ECO Affordable Warmth) potential, this is likely to be because basic measures

have already installed, and have more social housing that are not eligible for HHCRO.

Conclusions from study

Role of LA for take up is vital, developed a new option PRODUCER. Use LA’s reputation to gather leads.

Rejected both PROVIDER and PROMOTER

Promoter does not provide control and LA’s do not have capital to be Provider

Combination of Promoter/Partner with BES preferred model

Benefits of dense Urban area – Size Matters

The predominant typologies are semi-detached properties with filled cavity walls,

gas heating, double glazing, but varying levels of loft insulation; this covers 15%

of the stock. The next most prevalent archetypes are the solid wall versions of the

most prevalent archetype; this covers a further 7% of the stock.

50% of the housing stock is Green Deal viable (packages valuing over £1,000).

The total Green Deal investment potential for the Black Country is £1.4 billion.

There are large areas with a high concentration of fuel poor areas across the

Black Country. These fuel poor areas overlap with areas eligible for ECO

Communities, which suggests that an area-based programme targeting both GD

eligible and ECO eligible properties could work well.

Wolverhampton has the highest concentration of areas with Carbon Savings

Community Obligation (CSCO) (or Carbon Saving Communities Obligation)

potential.

High fuel poverty areas have low HHCRO (or ECO Affordable Warmth) potential,

this is likely to be because basic measures have already installed, and have more

social housing

THE GREEN DEAL A BLACK COUNTRY PERSPECTIVE

www.shap.uk.com

Dudley – [email protected]

Sandwell – [email protected]

Walsall – [email protected]

Wolverhampton -

[email protected]

http://www.shap.uk.com/





Richard Davies:

Director of Marches Energy Agency

83

The Green Deal & Energy Company Obligation: A view from the Wild West…..

Richard Davies MBE

What

have future generations

ever done for us?

“It’s endlessly fascinating. From up here one can see the strained worried faces of mere mortals as they struggle to pay their gas bills.”

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Car

bo

n D

ioxi

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es

Marches Domestic 1990 - 2050 Carbon Descent

Herefordshire

Shropshire

Telford & Wrekin

This graph shows the total estimated carbon dioxide emissions from Herefordshire, Shropshire and Telford & Wrekin per year to date, and the required ‘carbon descent’ through to 2050 to meet the government’s ‘zero-carbon homes’ ambition by

3 things to share…..

The proposal is built around 3 strategic ambitions: • First mover advantage: The Green Deal and

Energy Company Obligation are transformational in terms of fuel poverty, carbon emissions and local economic opportunities across the Marches. We want to take action now.

• Diversity & innovation: We are ambitious and wish to build on our Green Deal & ECO Task & Finish Group with innovative and practical action

• Learn by doing: DECC’s investment in the Marches will allow us to ‘learn by doing’.

What we’re doing……I • Private Landlords: Almost 10% (24,934) of the Marches

255,000 dwellings are privately rented (ONS 2011). Each partner local authority has high quality landlord fora. We will offer 500 (2% of total private sector homes) free Green Deal Assessments to landlords.

• ‘Large Employer’ Staff: The public sector collectively employs some 21,918 staff across the Marches (ONS Quarterly Public Sector Employment Survey September 2012) and many are encouraging more home working with additional demands on heating homes in the daytime. We will offer 500 free Green Deal Assessments to public sector staff.

What we’re doing……II • Faith Leaders: In partnership with Lichfield District

Council’s Proposal and the Diocese of Lichfield we will ‘host’ Green Deal Assessments in faith leader’s homes wherever they fall in the bits of Lichfield Diocese in the Marches.

• Non-Domestic Assessments: We will pilot non-domestic Green Deal Assessments in a representative range of buildings. Public sector: School, library, care home, leisure facility and office. Private sector: Office, retail, manufacturing, distribution, agricultural. Civil Society: Faith building, community centre, village hall. 60 Assessments in total.

What we’re doing……III • Transition Streets: We will stimulate demand for the Green Deal among

Marches residents, with a focus on fuel poverty and hard to treat properties in off-gas-grid areas of the sub-region. It will work with an existing network of collaborative partners and communities, adapting a proven, award-winning peer-to-peer energy reduction model developed by Transition Town Totnes. 250 Assessments.

• Show Homes/Buildings: We will deliver a network of 6 new show homes/buildings linked to each of the above projects. 1 private rented; 1 staff member; 1 faith leader; 1 business; 1 community building; 1 transition streets. This will be delivered via mini-competitions. We will promote ‘Green Deal Open Homes/Buildings’ events with the new and existing eco-homes/buildings. We will also offer 60 free domestic Green Deal Assessments as an incentive to attend our Green Doors events in March 2013. This will build on Shrewsbury Green Doors, h:energy & other Marches open homes/buildings events.

What we’re doing……IV • Green Deal Fantastic: We will create a show home on

wheels ‘Green Deal Fantastic’ to reach out into our rural communities. This will build on Marches Energy Agency’s ‘Fantastic Home’ product, which has reached 11,821 people through 149 largely rural community events over the past 25 months.

• ECO ‘Size of the Prize’: Will work to secure Home Heating Cost Reduction Target and Carbon Saving Community Obligation funding from ECO. This will drive the supply of ‘Green Deal’ measures (including solid wall insulation, hard to treat cavities and new heating systems) using ECO funding.

“I believe collective switching has great potential. Households could save on their energy bills, and energy companies have the chance to talk with potential customers on a grand scale.”

Ed Davey MP Secretary of State

for Energy and

Climate Change

Marches Task & Finish Group Outcomes……….I

The Marches Task and Finish group desire an approach and or partner that:

• Seeks a Marches wide delivery partnership.

• Is led by Local Authorities, stock transfer housing associations and other organisations that can add value.

• Acts quickly (ideally up and running before April 2013).

• Offers a medium level of control to lead partners.

• Involves local partners in delivery, where they are best placed to add value.

Marches Task & Finish Group Outcomes……….II • Draws on investment from partners as needed to

establish and run. With any such investment being justified on the basis of a return, best value or added value.

• Is preferably a social enterprising or co-operative solution.

• Preferably maximises local economic opportunities.

Marches Task & Finish Group Outcomes……….III • Is selected either by the formation of a new Green Deal

Partnership or through existing organisational structures such as the Local Authorities (collectively or individually) or the Local Enterprise Partnership.

• Has the capability to deliver the Green Deal commercially although Domestic Green Deal is the priority.

• Shows the Marches to be early adopters or within the early majority.

• Does not necessarily bind the Green Deal with ECO (ECO deemed a priority at this stage).

Marches Task & Finish Group Outcomes……….IV • Does not include complimentary financial products to

compliment.

• Does not rely on Local Authority investment into the Green Deal Finance Company (TGDFC).

4 Preferred Green Deal Delivery Options: Through the Green Deal & ECO Task & Finish Group it was decided to explore 4 options as the ‘preferred’ shortlist with a view to quickly deciding on which was the single preferred option to pursue. The 4 agreed options were:

• PRODUCER

• CARILLION AS DELIVERY PARTNER

• INVEST IN THE GREEN DEAL TOGETHER CIC

• GO WITH WALSALL HOUSING GROUP’S PREFERRED DELIVERY PARTNER

A Community Interest Company MODEL FOR

Local Authorities

Background

Finding the right role for Local Authorities within Green Deal Building on successful schemes and partnerships Balance of risk and reward Doing things in an open and accessible way Providing a way for smaller, independent installers to enter Green Deal.

Our Vision

• To be the local green deal provider that benefits the whole of the community.

Objectives

• To establish local installer networks with easy access to Green Deal finance

• To provide cost effective Green Deal Plans to consumers that will save them money

• To enable Local Authorities to have a voice and invest in Green Deal

• To distribute profits to local schemes that help tackle climate change and fuel poverty

Company Structure

Shareholder A - upfront investment in the company

• Investment of £35k

• An owning share of the company

• Opportunity to be appointed to the Board of Directors

• Would allow a share of dividend payments.

• Residents and businesses would receive all the Big Green Deal CIC services.

Founders

• Cherwell DC

• Cotswold DC

• West Oxon DC

• Watford BC

• LB Ealing

• Chiltern DC

• Aylesbury Vale DC

• Wycombe DC

• Three Rivers DC

• USEA

• NEF

Things to think about………… • Is the first product in the shop the right one to buy?

• Charismatic presentations AND substance

• Who profits?

• Power to influence supply chain – diversity of providers probably provides little influence

• First mover advantage OR those who wait win

• Delivery track record? (No record vs. warts and all)

• Impossible to know what will be along next week?

• Front end should be similar irrespective of delivery choice

“What we think, or what we know, or what we believe is, in the end, of little consequence. The only consequence is what we do.”

John Ruskin

For more information

Contact: Richard Davies

[email protected]

01743 277100

07941 155538


Refreshments

Roundtable discussion sessions with speakers

on options

Other Green Deal Updates

Rosemary Coyne:

SHAP Co-ordinator

Rosemary Coyne:

Co-ordinator for SHAP

DECC PROJECTS

GREEN DEAL PIONEER; FUEL POVERTY and CHEAPER ENERGY

TOGETHER – an overview of emerging

findings

Rosemary Coyne – SHAP Coordinator February 26th 2013

The offer given by SHAP:

Scope of SHAP project review

1. Evaluation of Marches + North Staffs/Cheshire projects

2. Review of evaluation of 11 projects

3. Overview of other local authority activity where they were :

1. unsuccessful in their bids

2. did not bid

3. are engaging in collective energy switch

WM DECC LA PROJECT UPDATE The following projects were awarded funding through the three DECC funding streams open to Local

Authorities and the collective energy switch stream that was also open to community groups.

Local Authority/

Community Group

Fuel Poverty Green Deal Pioneer

Places

Collective Energy

Switch

Total

Birmingham City Council 1,973,625 N/A 312,000 2,285,625

Coventry

Dudley MBC 100,000 Applied – not

granted

100,000

Herefordshire Council with Telford

and Wrekin and Shropshire Council

450,639 450,639

Lichfield District Council 59,300 87,300 146,600

Newcastle under Lyme Borough

Council

74,500 Applied – not granted Applied – not

granted

74,500

Solihull MBC 295,800 With BCC 295,800

Stoke on Trent City Council 290,000 32,000

Walsall MBC 349,880 349,880

Warwickshire County Council with

Rugby Borough Council

387,000 Applied – not granted 387,000

Worcestershire County Council with

Worcester City Council

Applied – not

granted

297,822 297,822

Cheshire East Council 181,400 197,500 71,000 449,900

Cheshire West and Chester BC and

partner in collective energy switch led

by Oldham

278,500 27,500

Working with

Oldham

306,000

People’s Power – areas including:

Tamworth,

178,400

NSWZ

Cheshire East Cheshire

West with

Chester

Stoke on

Trent

Newcastle BC

North Staffs/Cheshire - cluster of councils – four projects

Community interest company CERT and CESP delivery body

All three funds Using Fire Service Setting up CIC to build on go-lo LEAF project Transition towns Show homes

DoH Warm Homes Healthy People Fund Transition from CERT /CESP to Green Deal CERT waiting list identifying areas that best meet ECO objectives

Green Deal and Fuel Poverty

Green Deal and Fuel Poverty

DoH Warm Homes Healthy People Fund Working with Centre of Refurbishment of Excellence Centre (CORE) and Stoke College – skills training Framework agreement for local and national installers Solid wall insulation - ECO

Common to all: NSWZ; Collaborative approach, partnerships within council’s existing network

including NHS

Fuel Poverty

Transition from CERT /CESP to Green Deal Consultation and ‘buy in’ has been sought from Aspire Housing and from the Revival Home Improvement Agency.

Close to meeting targets

Warwickshire CC

Rugby BC

Act on Energy

Renewable Energy

Technologies Association

RETA

Warwickshire CC with Rugby BC

Two rural villages

Framework suppliers

SME’s

Third sector charity

Local Enterprise

Partnership

Fuel poverty Process development for Green Deal Two rural villages One ‘front door’ web portal with feedback loop Build on LEAF work Existing not for profit energy advice centre with long-standing partnership Work with LEP, Local installers, RETA existing framework procurement and energy provider Existing local data on benefits , housing standards and energy efficiency matched with national data

Target for number of targets assessed by third sector Act on Energy has been met and slightly exceeded (112 against target of 100). SAP ratings for all complete and now moving to full technical assessments.

Worcestershire County Council with Worcester City Council

Worcester University

Students and HMOs Using tenants to conduct their own pre-assessments link to landlords for consent to engage with the Green Deal market Using a Pre Assessment tool to streamline the GDA process Skilling students to improve employability and awareness; improving their standards of accommodation Replicable to university towns Post-graduate dissertation topic for a University of Worcester student

Green Deal Pioneer

27 students recruited and trained to complete pre-assessments 65 students registered their property for a pre assessment survey 94 Landlords have signed up to have their properties surveyed

HMO Landlords

Students

Act on Energy -

Energy efficiency

advice charity

Encraft

Project managers

Worcester CC

Worcester City

Training

Data

Informationdata, post- graduate

Specifically developed online tool

‘Go Green Week’ at the university (11-16th Feb)

‘Worcester Energy Pioneers’

Lichfield District Council

Lichfield District Council

engaging and empowering local supply chain as a channel to market for national Green Deal Providers Pipeline of GD assessments Park Homes pilot Two show homes Warm Homes Healthy People funding Training Parish Green Deal Advocates Solid wall insulation pilot ECO preparation private sector landlords and faith networks investing in local ‘not for profit’ organisations, such as Southern Staffordshire Community Energy

Using ‘proven and trusted partners’

Fuel poverty, Green Deal Pioneer

Private sector

landlords

Faith

Leaders Southern

Staffordshire Community

Energy

Parish Councils

Park Homes

Marches Energy Agency

Beat the Cold Local

Charities

British Gas

funding

Local trades

project managers

Marches – Herefordshire, Shropshire, Telford and Wrekin Councils

ECO – ‘size of

the prize’

Green Deal Pioneer

Private Sector Landlord Green Deal

Public Sector Staff

Marches Energy Agency

Private sector landlords Non-domestic Assessments Transition Streets Public sector staff Show homes in each district Road show for rural areas Eco analysis and prospectus Matched funding

Green Deal Fantastic

‘show home on wheels’ road show

Faith Leaders

Project managers

Data gathering

Transition streets

Herefordshire Shropshire

Telford and Wrekin

Community training

GDA applications 40 Private sector landlords 96 public staff 61 Non-domestic GDA Minispecs assessment Software under development Road show trailer ordered

Update:

Solihull Metropolitan Borough Council

Supply chain engagement and motivation Household marketing and community events Referral and legacy demand management systems - on-line referral system for installers Green Deal Provider liaison local supply chain 35 high rise blocks will be clad in solid wall insulation using ECO funding EH Smith, New World Solar, British Gas are all providing their input to the project free of charge, including all capital works

Encraft

The Energy Savings

Trust

EH Smith

New World Energy

British Gas sponsoring £10 million

ECO cladding works

High rise flats

Solihull MBC

Project managers

Private company –Seeking to be

Green Deal installer –

Green Deal Demonstration

Centre

Builders’ merchant opening

Training centre

marketing activity, community engagement and analysis.

Green Deal Pioneer

61 attendees, 30 different businesses and 6 Green Deal Providers (GDPs) attended installer event 9 GDPs engaged in SEP project, 2 business events confirmed, 1 completed 3 GDPs signed up to do assessments 9 community events confirmed, 3 completed 40+ households interested in free GDAs Web referral portal under construction

Collective switching

Dudley Metropolitan Borough Council Fuel Poverty

CAB Age UK

etc

Energy Extra

Use Warm Homes Healthy People infrastructure to identify vulnerable households, manage referrals and install measures – heating and insulation Home energy advice visits NEA trainer working with staff teams Small scale energy efficiency measures – foil panels, radiator boosters, hot water jackets, draught proofing – installed as Phase 1 Loft and cavity wall insulation and boilers/heating systems – Phase 2

Dudley MBC

Health sector organisations

Households

Collective switching

Birmingham City Council and Solihull Metropolitan Borough Council Cheaper Energy Together

Credit unions

Carillion Contact Centre


10 Local shops

offering PayPoint

Learning from Cornwall Together collective switching project Carillion will provide contact centre support as part of their work with Birmingham Energy Savers. Using existing partnerships and marketing routes developed on energy efficiency, home improvements, Energy Savers and CESP Use Stay Warm Stay Well and Winter Warmth to engage vulnerable consumers Removal of barriers to households where there is no internet access, a lack of awareness of energy switching, using prepaid meters, off grid and lack of engagement with energy issues. Trialling new ways of reaching vulnerable households including bespoke marketing, financial inclusion support Working with Credit Unions and Digital Birmingham Involving local shops offering PayPoint

Birmingham City Council

Solihull MBC

Community Organisations

Households

• EMERGING FINDINGS – 1

• Short time frames

• Some contractors had laid of staff, or were in the process, as CERT/CESP

work was ending - getting them back into post - or recruiting new people had to be done.

• There needs to be clarity for future Green Deal and ECO funding.

• EMERGING FINDINGS - 2

• Previous work and partnerships and collaborative approaches all help. Using existing partners to deliver projects – and preparatory work - allowed councils to move quickly and deliver through proven and trusted partners

• An infrastructure connected to CERT/CESP or Department of Health work

and funding is valuable. Some of the areas can access both DECC funding and Department of Health Warm Homes, Healthy People funding which is useful although it adds to the complexity in deciding which is the most suitable for a household. Different councils can also have varying eligibility criteria (range of benefits)

• Being able to group homes irrespective of eligibility could make projects

more efficient especially where flats and terraces are involved. There are diminishing returns on cavity and loft insulations in some areas and it would be useful if money could be used for heater/ boiler work.

• EMERGING FINDINGS – 3 • For some small companies involved in multiple dwellings cash flow is a

concern

• HMO / Landlords - issues around legal matters

• Working with partners who change their minds

• Tied cottages / housing as work benefit - legal issues

• Involvement of Trading Standards

Forward dates

• Final project reports due by 31 May

• SHAP emerging findings report/workshop by 31 March

• Workshop on project learnings by 30 June

Thank you

• [email protected]

• www.shap.uk.com




Marcia Poletti:

Deputy Head of the Green Deal Demand team at the Department of Energy and Climate Change

Pioneer Places and Core Cities – Plans and Progress 28th February 2013

General support across the UK

• £10M Pioneer Places funding awards for activity between now and March covering 150 English LAs

• Over £13M Core Cities funding for go-early market and process testing activity

covering 8 core cities (Birmingham, Bristol, Leeds, Liverpool, Newcastle, Nottingham, Manchester, Sheffield)

• £3M consumer advertising and awareness campaign January to April

• £1.3BN Energy Company Obligation

• £125M Cashback Scheme • The Government together with the Sector Skills Council has provided £3.5 million

to train up to 2000 Green Deal assessors and installers

Overview of planned Green Deal activity across Local Authorities

1. Driving demand

• Increasing awareness

• Focusing on sector/location specific solutions

• Reducing Green Deal customer acquisition costs

2. Addressing barriers

• Planning

• Informational/evidence

• Costs

• Trust

• Delivery

3. Supporting supply chain

1. Driving Demand – increasing awareness (1/2)

• Making the invisible visible:

• Show homes network, and open home/city wide events, village energy days

• Exhibitions in libraries and community centres, mobile energy bus

• Promotional thermal imaging

• Case-study driven communications programme

• Virtual web-based tours of local retro-fit houses

• Creating volunteer Energy Ambassadors

• Interactive mobile show homes

1. Driving Demand – increasing awareness (2/2)

• Creating the buzz:

• Competitions for free retrofit, free assessments or free Green Deal measures

• Large scale social marketing and targeting exercise

• Free Green Deal assessments to certain groups, or the first 200 etc

• Community rewards for take-up

• Using the cashback

1. Driving Demand – sectoral focus

• Private Rental Sector work - planned range of PRS trials across England

• Subsidised Green Deal assessments for landlords and support

• Training for key local authority officers

• Focused Green Deal training for Landlords

• Public events

• Non domestic work

• Demonstration properties (community and commercial properties)

• Non-domestic business sector event

• Rural buildings/heritage buildings/rural locations

• And of course owner occupiers and social housing providers

1. Driving demand - reducing Green Deal customer acquisition costs

• Linking together information sources to provide qualified leads (e.g. using Mosaic data, EPC datasets, ECO eligibility criteria, off-gas grid)

• Using organisations who have existing relationships with potential customers:

• Local health networks, respiratory health professionals in the NHS, GP referral system

• Estate Agents (and training for Estate Agents)

• Voluntary and community groups (including use of referral fees)

• Faith Groups

• Web-based customer initiated pre-qualification software

• Developing a Green Deal ready reckoner tool, linked to booking tool for assessments

2. Addressing Barriers (1/2)

• Planning:

• Testing local planning approaches by drafting Planning Advice Notes for conservation areas using the show-homes as case studies

• Taking a selection of properties through the planning process to develop solutions and best practice on planning and consent issues

• Green Deal for planners event and guidance

• Evidence:

• Energy monitoring of completed retrofits to provide a “Golden Rule evidence base” to support further uptake

• Providing accurate data from actual retrofit costs and energy savings, enabling residents to be better informed of the benefits of undertaking Green Deal measures, available on website

2. Addressing Barriers (2/2)

• Costs:

• Area based approach to exploit economies of scale with an estimated 20% reduction in costs

• Trust:

• Developing accredited training status for LA and local colleges (enabling voluntary groups to train volunteers )

• Delivery:

• Establishing a Programme Delivery Unit

• Developing a trusted local delivery infrastructure

3. Supporting the supply chain

• Supporting SMEs:

• Developing directory and network of local retrofit SMEs

• Providing supply chain guidance to prepare SMEs

• Developing a conduit model for SMEs to enable effective participation

• Engagement with local trades to identify opportunities

Next steps for DECC

• Understand what works best, what doesn’t work

• Work with Local Authorities to develop solutions for any emerging problems or gaps

• Ensure learning can be used effectively by Local Authorities, DECC and other Green Deal Participants

• What can we do that would be helpful?

[email protected]

Planning Clarification on External Solid Wall Insulation

• The installation of external solid wall insulation constitutes an ’improvement' to

a house rather than an ‘enlargement’ or ‘extension’.

• This means that in many cases the installation can be carried out under

permitted development, and a planning application may not be required.

• Exceptions for listed buildings and conservation areas

• Clarification to the guidance can be found in the Permitted Development

for Householders: Technical Guidance on the Planning Portal

Next Steps

Thank you for coming

• Evaluation forms

• Feedback will help inform the forward work plans of the Retrofit Steering Group, SHAP, SWM and partners

• Presentations will be on the SWM website and circulated via email

• Lunch

Contact SWM: Tel: 0121 237 5890 Email: [email protected] Address: Lockside, 5 Scotland Street, Birmingham B1 2RR Web: www.sustainabilitywestmidlands.org.uk

Networking Lunch

Documents

Getting the best deal for your for your residents- your ... · 2/28/2013 · SOCIAL HOUSING – DELIVERING THE COMMUNITY GREEN DEAL THE GREEN DEAL SUMMIT – 31 OCTOBER 2012 Green