John L GorseTehnical MarketingNovember 17, 2012

Green Deal and Lighting – Edited from Original Presentation at Lux Live Nov 2012

Confidential Tehnical Marketing, John L Gorse, November 17, 2012 2

John GorseUK Technical Marketing Manager, Philips Lighting

John's career in lighting has spanned nearly 25 years including Product Management, Marketing and Sales Management roles including his current role at Philips as Technical Marketing Manager.

Additionally, John chairs the LIA Lamps Technical Committee, is a member of the LIA Technical Board and ICEL Council as well as sitting on a number of other LIA committees. He is a member of the Lighting Journal Editorial Board and Co – Chair of the

Voltimum Lighting Experts Panel and is a Member of The Society of Light and Lighting (MSLL CIBSE)

Confidential Tehnical Marketing, John L Gorse, November 17, 2012 3

History of the Green Deal

• Green Deal is the latest in Governments CRC programme

• Effectively the origins lie in Kyoto Protocol 1997

• The Climate Change Act 2008 legislated for a reduction in our carbon emissions & Green Deal is first announced

• Energy Act 2011 included provision for Green Deal

• 2012 October Green Deal ‘Soft’ Launched for Domestic with Non Domestic to follow in 2013

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Green Deal – What is it?

• Green Deal a new opportunity

• Energy Act ’11 - 'Green Deal', to reduce carbon emissions cost effectively by revolutionising the efficiency of British properties.

• No up front costs – Pay as you save ; The Golden Rule

• Finance stays with the meter not the occupant

• Enables the economy from Product to Install

• Domestic, Non – Domestic & Public Buildings

• Fundamental of Energy Company Obligation (ECO) where supplier subsidy and Green Deal Finance work together

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Deal or No Deal? – The current situation should mean…

Everyone

Manufacturers

Designers

Wholesalers &

Distributors

Contractors

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Deal or No Deal? – The current situation…

What does this mean for Lighting?

Is it complex?

Is it misunderstood?

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Why GD is so important for Carbon Reduction Commitment and economy?

• 80% reduction in CO2 by 2050 but 66% of 2050 building stock already exists

• 26 million buildings exist today

• 18 million will need refurbishment…that is 500,000 a year……or 50 buildings every hour!!

• Every driver for change is needed to achieve CRC and stimulate the Economy

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Where are we now? - Green Deal – Operational Model

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Where are we going?

• Green Deal is now launched

• Providers and Advisors (Assessors) & Installers (meeting PAS 2030) being appointed now (Logo )

• Assessments can begin although no consumer sign up until 28 Jan 2013

• Estimated to boost the low carbon economy by 35,000 jobs in the insulation sector alone by 2015. – DECC

• The Green Deal could see British homes and businesses save enough energy to power 1 million homes in 2020.- DECC

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Green Deal The issue with Domestic & Lighting

Non-domestic properties- lighting and controls included

BUT - Domestic properties- lighting and controls excluded – reason- portability, difficulty in modelling SAP,CERT hangover?

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LIA activity to promote inclusion of lighting and controls in domestic properties

• Set up ad-hoc working group covering lamps, luminaires, controls

• Target to develop argument in support of inclusion

• Supply evidence to support argument

• Letter to Minister- Greg Barker

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Key arguments for inclusion in Domestic

• Lighting accounts for 15-20% of domestic electricity use• Potential to reduce this by 30-60%

• SAP/RdSAP models do not adequately reflect energy savings from lighting

• Increase in light points per home- downlights/spots=halogen.

• Reversal of consumption reduction for domestic lighting• Portability

• ErP not enough to drive early adoption of new technologies• No other Gov policy to drive down lighting energy consumption

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Response

• Door is open

• LIA invited to supply further evidence

• Offer to work with BRE on SAP/RdSAP review

• Dialogue open with DECC to review inclusion of lighting and controls in domestic properties

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Supporting lighting’s inclusion in Domestic – ‘Portability’• Cert replaced by ECO (Energy Company's Obligation) and Green Deal

could target specific luminaire types

• ECO designed to support poor homes and fight fuel poverty and dedicated luminaires would make choice easy

• Dedicated CFL HID and LED luminaires could be made to a Green Deal

specification

• Dedicated LED Modules

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Supporting lighting’s inclusion in Domestic – LED lamps

• Retrofit BC or GU10 lamps are portable (in theory)

• Reality – perceptions and attitudes have to change

• LED lamps higher capital cost – no longer short life consumable

• All items under Green Deal must surely be audited at property sale and be written into sale contract – changing perception of value

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Supporting lighting’s inclusion in Domestic - Summary

• Green Deal Potentially offers a ‘new view of lighting’ - via a holistic approach to home renovation

• ERP DIM 1 and 2 not enough to push full adoption in homes.

• Green Deal / ECO Financing is the key - Impossible to optimise GD in homes without lighting

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Green Deal – Non Domestic sector

• Two Fundamental Issues1. Financing - complexity of most building’s ownership, leases and tenants

 and the division of incentives seems to delay Green Deal Non Dom finalisation.

2. Development of the Green Deal Tool for Domestic Buildings is not yet complete although selected assessors can download and trial the tool

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Green Deal – Non Domestic sectorGreen Deal Tool For Non Domestic Buildings

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Green Deal – Non Domestic sector• Greg Barker’s comments give assurance

• Green Deal Non Dom will cover lamps luminaries and controls – a system approach

• Green Deal may be considered as part of a wider range of incentives and financing e.g. ECA’s, or Salix

• Green Deal may struggle to be heard when Building Regs, ERP, WEEE and RoHS legislation is already driving lighting targets harder than ever before

• CRC commitments in various forms e.g. EPC, or Carbon Credits, will drive a need to support Energy Upgrades beyond possibly what landlords & owners can afford today

• Remember to achieve CRC by 2050 we need to renovate 50 buildings per hour

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Green Deal Non Domestic SectorFrom April 2016, occupiers of buildings rated an F or G on an EPC can request the

landlord to make improvements to the energy performance of the building

From April 2018, buildings with an EPC less than an E cannot be rented out

If a landlord has a direct relationship with the energy supplier, they will be responsible for the Carbon Reduction Commitment, irrelevant of sub-metering

Companies want a building / workplace that reflects their brand, attracts and retains staff.

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Leveraging Sustainability in Lighting A Holistic Approach

Confidential Tehnical Marketing, John L Gorse, November 17, 2012

Green Deal Non Domestic Sector What might it mean for me?

• I am a contractor – new work commissions • I am an OEM/product manufacturer – adoption of higher value product

stimulating manufacturing and distribution sectors• I am a landlord – makes property more attractive and meets obligations

on energy and holistic approach to sustainability. Enables refurbishment through low capital investment costs

• I am an owner/occupier – reduced energy and achievement of holistic sustainability aims. Low capital cost of refurbishment.

• I am an end user – improved health and well being of the lit environment

• I am the Nation – Supporting the Economy and the Environment

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Green Deal – Non Domestic Summary

• At this time pro active and helpful advice is limited

• Aims and potential are clear and very compelling

• As with Domestic we now have to Wait and See what final clarifications are made

• Door is now ajar if not fully open to Non Domestic Green Deal

• Deal – or No Deal?!? You decide !

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Further information

• Green Deal site:http://www.greendealorb.co.uk/

• Green Deal tool:http://www.gdtool.bre.co.uk/index.jsp?id=1

• GEMSERVE http://www.gemserv.com/industry-initiatives/green-deal

• DECC Green Deal site:http://www.decc.gov.uk/en/content/cms/tackling/green_deal/green_deal.aspx

• Lighting section, Voltimum’s Technical Resource area www.voltimum.co.uk/lighting

• Ask a technical question on Lighting : www.voltimum.co.uk/ask• CPD module on Lighting and Green Deal www.voltimum.co.uk/luxcpd