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David Fotheringham Housing Markets and Supply

Retrofits: The role of area-based programmes in the Scottish Government’s approach to tackling climate change. David Fotheringham Housing Markets and Supply. Consultation : Conserve and Save – key messages. Climate Change (Scotland) Act 2009 - reduce emissions by 42% by 2020 and 80% by 2050.

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David Fotheringham Housing Markets and Supply

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  1. Retrofits: The role of area-based programmes in the Scottish Government’s approach to tackling climate change David Fotheringham Housing Markets and Supply

  2. Consultation : Conserve and Save – key messages • Climate Change (Scotland) Act 2009 - reduce emissions by 42% by 2020 and 80% by 2050. • Housing is central - 30% of emissions. • Housing is more energy efficient than in the past, but a step-change is needed to meet emission targets. • Start with the basics - insulating all lofts and cavities. • However, virtually all dwellings will be affected, million of measures required, including low carbon equipment. • Capital costs will be high, though long term savings. • SG will focus support on those in fuel poverty. • Positive outcomes : fuel poverty, emission reduction, economic benefits: - green jobs, lower bills.

  3. Advice, support, incentives and standards • Energy Saving Scotland Advice Centres. • Community and Renewable Energy Scheme. • Energy Assistance Package. • New : Pathfinder domestic loan scheme. • New : Energy Efficiency Design Awards. • New : Council tax discount schemes. • New : Best practice learning network. • New : Enabling powers for regulation.

  4. Climate Challenge Fund • Zero Carbon Dunbar. • Isle of Eigg Heritage Trust. • Perth & Kinross Community Carbon Reduction Project. • East Neuk Community Group. • Lamancha & District Community Association – Wood & Wool.

  5. Supplier obligations - CERT • Carbon Emission Reduction Target : Key policy for Scotland – activity worth c. £100m per year. • 20-30% under-activity in Scotland ? • Problems in accessing CERT in some areas. • Key concern for Ministers – CERT Strategy Steering Group. • Securing Our Share:CERT Strategy for Scotland • EAP and Home Insulation Scheme designed to enhance delivery in Scotland. • Other local schemes : LESS, Lanarkshire Community Energy Programme.

  6. Home Insulation Scheme • Street-by-street, area-based insulation scheme. • Offer help with making homes energy efficient. • Seek to sign people up for loft/cavity wall insulation (free or discounted) where properties can take it. • 100,000 houses in 10 first phase HIS areas. • £15m of Government funding, plus match funding sought from other sources. • Conservative estimate of average household fuel bill savings of at least £70 per annum. • Close links with Energy Assistance Package. • Managing agent : Energy Saving Trust.

  7. Home Insulation Scheme – overcoming barriers to uptake • Intensive door-to-door approach. • Advisers to liaise with landlords, owners, etc to overcome barriers. • Minimise hassle factor. • Enhanced discounts to able to pays. • Enabling fund for items such as scaffolding, loft hatches, etc • Funding to reduce costs in island areas.

  8. Home Insulation Scheme - what is on offer All houses offered : • energy efficiency advice. • energy audits. • benefit advice, social tariff check (via Energy Assistance Package). Owner-occupied and privately rented houses suitable for measures offered : • Loft/cavity wall insulation where properties can take it. • Loft top-ups. • Interest free loans for more expensive measures. Backed up by : • Economies of scale offering competitive price for able to pay households. • Fund to reduce costs in island areas. • Fund for enabling measures – loft hatches, scaffolding, etc.

  9. Community Energy Saving Programme (CESP) • UK Government scheme – obligation on energy suppliers and electricity generators. • GB : 90,000 houses – 3 years - £350m. • Multiple measures, whole house approach, small schemes, deprived neighbourhoods. • Example measures : solid wall insulation, heat pumps, district heating, microgeneration. • Bridge to the future. • UK Govt : 7m homes to receive a “whole house” package by 2020.

  10. Balance between encouragement and regulation • Broad enabling powers for regulation of energy efficiency standards in existing homes introduced by Climate Change (Scotland) Act. • Powers to make regulations providing for assessment of energy performance and emissions. • Powers to make regulations requiring owners to take steps to improve energy performance based on these assessments. • Ministers required to report on intentions to use powers within 12 months of commencement.

  11. Consultation : Conserve and Save – key questions • Given scale of the challenge and existing programmes what other policies should be taken forward to meet our climate change objectives for housing ? • If the Scottish Government were to prioritise the expansion of any individual existing programme, which should that be, and why ? • Views on options for regulation.

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