Setting the scene on London’s residential retrofit potential

1. Bartholomew Room

2. Setting the scene on London’s residential retrofit potential • Chair: Stuart Macdonald, Editor, Inside Housing • Emma Strain, Environmental Programmes Manager, GLA • Christoph Harwood, Marksman Consulting • David Adams, Director, Wilmott Dixon Re-thinking • Jeremy Kape, Director of Property Investment, Affinity Sutton Harpley Room

3. Green Deal Implementation in London Emma Strain 21 June 2012

4. History of attracting CERT Source: EST Home Energy Efficiency Database (HEED) CERT Summary Report. This update contains data on installations up to the end of quarter 14 (30/09/2011) of the CERT scheme

5. London’s profile to retrofit 2.4m properties by 2020 • Houses retrofitted

6. Why pan-London? Strategic delivery Delivery at scale Build on previous work Working together

7. What Boroughs are looking for from Green Deal Green Deal Outputs - Scored Green Deal Outputs - Other

8. LA as Producer • LA as Promoter • LA as Provider Boroughs appetite to risk and willingness to commit resources to support Green Deal

9. Pan-London approach to Green Deal Basic and enhanced promotion Customers sign up to the Green Deal “Promoter” boroughs Promoter role Provider role Producer role London Producer GLA Management Funding Referral fee Referral fee Delivery Delivery Contract Pan London framework of GDPs Self-financed boroughs in “Provider” role Partner boroughs GDP(s) selected by borough(s) Delivery Partner

10. Implementation of Green Deal in London June 2012 Borough roles

11. Pan London model Basic and enhanced promotion “Promoter” boroughs Customers sign up to the Green Deal London Producer GLA Management Funding Referral fee Referral fee Delivery Delivery Contract Pan London framework of GDPs Self-financed boroughs in “Provider” role Partner boroughs TGDFC GDP(s) selected by borough(s) Delivery Partner Implementation of Green Deal in London

12. Promoter role P P Raise awareness Attract consumer interest Make contact Initial home visit Impartial property assessment Cost quote (credit offer) GD measures installation R Capital finance Payment collection Aftercare and warranty Other products (e.g., painting Project manage-ment and customer service Credit provider (covers upfront costs) Key: P R Indicates a proactive role for the Promoter roles Indicates a reactive role for the Promoter roles Needs assessor accreditation to do this function Must be performed by energy companies through electricity bills Could be undertaken by any party. No Green Deal accreditation needed Green Deal Providers must do all theses functions. Needs provider accreditation Needs installer accreditation to do this function • Source: The Green Deal and Energy Company Obligation – Consultation Document – November 2011 Implementation of Green Deal in London 14

13. Basic and enhanced promoters Implementation of Green Deal in London 15

14. Additional activities to make a borough more attractive Parking • Boroughs can look to assist GDPs with parking permits where possible. • This is less of an issue for outer boroughs due to fewer parking restrictions, but will be more important for inner London boroughs. Planning and conservation areas • Boroughs should build on the experience gained from RE:NEW in dealing with planning issues. • Many have not encountered many planning issues during RE:NEW, however external solid wall insulation is not currently possible in the borough due to conservation policies. Storage and office space • Boroughs could look to provide storage and office space if not already available and there is spare capacity in own estate Implementation of Green Deal in London 16

15. Local authority activity on LA Provider model Multiple areas of dialogue Developing regional support Business case Option review Procurement Provider Newcastle (5) Birmingham (23) West Sussex AGMA London Scottish Government Leeds

16. Margin from providing finance Provisional Market APR to consumer (~7%) set by TGDFC • LA costs • Procurement • Officer time Operating costs • LA broader outcomes • Jobs • Fuel poverty • Special areas LA Margin Cost of capital • LA support to householders • Cost of measures • Incentives GIB junior date to TGDFC is 3.85% over Gilts PWLB is 0.8% over Gilts

17. Provider business model Energy companies Green Deal payments Finance (Prudential borrowing or reserves) Anchor LA + Partner LAs Refinance once track record in place Finance vehicle Delivery Partner Green Deal + FIT payments Contract ECO Marketing Installation companies Install and manage Benefits

18. Boroughs working together to deliver a provider programme Initial Partner Borough Anchor Follow on Partner Borough Housing Association Contract £ £ £ £ £ Delivery Partner • Partner Boroughs • Client Boroughs Domestic Non-domestic 20

19. Provider model and TGDFC BCC NCC TGDFC Bank finance Bond London Provider Boroughs £3-500m ? GIB • Credit rating policy • Householder contract • Loan book management system

20. Implementation of Green Deal in London June 2012 Borough roles

21. Setting the scene on London’s residential retrofit potential David Adams, Director, Wilmott Dixon Re-thinking Harpley Room

22. Setting the scene on London’s residential retrofit potentialA contractors view...... David Adams Director, Willmott Dixon Energy Services April ‘12

23. Willmott Dixon John Willmott • Major construction company • Established 1852 • Privately owned • £1bn turnover (2ndlargest private construction Co in UK)

25. The answer….. Thank you David Adams David.Adams2@willmottdixon.co.uk

26. Setting the scene on London’s residential retrofit potential Jeremy Kape, Director of Property Investment, Affinity Sutton Harpley Room