Making use of ECO for greener, more efficient, warmer, longer lasting buildings

1. Making use of ECO for greener, more efficient, warmer, longer lasting buildings Presentation Paul Jones – Capital Energy Solutions 21 November 2013

2. Outline of Today’s Presentation My talk will last for about 25 minutes and I want to allow 20 minutes or so for Q & As at the end. Firstly - I will provide some information on energy performance in the housing sector. Secondly – I will outline the wide range of measures available that can be funded through the Energy Company Obligation (ECO) to reduce the increasing problem of fuel poverty, improve the value of property, and help meet carbon reduction targets. Thirdly – I will talk about these measures can be done at no cost to landlords or tenants and give some examples of schemes we have successfully carried out.

3. The poor thermal efficiency of the UK housing stock • Building Regulations have raised energy efficiency standards of new homes significantly in recent years. • The April 2006 standards were 40% higher than for properties built in 2002; 70% more than in 1990. • Even with the Government’s proposed increase in housing supply, around two-thirds of homes in 2050 will have been built before 2005. • New build represents less than 1% of the total stock each year. • So most of the existing stock, and a significant proportion of those that will still exist in 2050, were constructed to lower, often much lower, standards than new build today.

5. Older dwellings harder to heat Profile of Energy Performance in Existing Dwelling Stock, Based on English House Condition Survey (EHCS) 2004, DCLG

6. Increasing Fuel prices : “between 2011 and 2016 domestic electricity prices will increase in real terms by 18% and domestic gas prices will increase in real terms by 28%. This comes on top of a real increase of 23% for electricity prices and 28% for gas prices between 2009 and 2011. The price of other fuels (ie coal, heating oil and LPG) is assumed to track fossil fuel prices. The projections are based on DECC assumptions.” Report on Fuel Poverty: Professor John Hills, London School of Economics: March 2012.

7. Chart 2: Domestic final energy consumption by end use, UK, 1970 to 2011 60,000 50,000 Space Heating Water Cooking Lighting and appliances Total 40,000 Thousand tonnes of oil equivalent 30,000 20,000 10,000 0 1970 1975 1980 1985 1990 1995 2000 2005 2011

8. Chart 8: Savings due to better Insulation and heating efficiency, UK, 1970 to 2007 Combined effect of more efficient appliances and homes insulation 100,000 90,000 Heating systems efficiency energy saving Insulation energy saving Actual energy consumption 80,000 70,000 60,000 Thousand of tonnes of oil equivalent 50,000 40,000 30,000 20,000 10,000 0 1970 1975 1980 1985 1990 1995 2000 2007

9. Excess winter deaths

10. Fuel Poverty Impacts • “These costs are largely outside the control of those households – given the capital investment that would be required to reduce them – except through trading off the temperatures at which they live against other necessities, exacerbating the difficulties faced by all on such low incomes.” • “ From a health and well-being perspective: living at low temperatures as a result of fuel poverty is likely to be a significant contributor not just to the excess winter deaths that occur each year (a total of 27,000 each year over the last decade in England and Wales), but to a much larger number of incidents of ill-health and demands on the National Health Service and a wider range of problems of social isolation and poor outcomes for young people.” • Source: Prof John Hills Fuel Poverty Review Final Report March 2012

11. Why insulation is so important…

12. ECO: what is it? • The Energy Companies Obligation (ECO) is an energy efficiency programme that was introduced into Great Britain at the beginning of 2013. It replaces two previous schemes, the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP). • Under ECO we now have another set of acronyms to replace CERT and CESP. ECO has three elements: • CERO – the Carbon Emission Reduction Obligation • CSCO – the Carbon Saving Community Obligation • HHCRO – the Home Heating Cost Reduction Obligation.

13. InsulatingHard to Treat Dwellings The hard to treat stock is generally properties that have been left out on previous funding streams and have any of the following features: Solid walls Narrow cavities External Remedial Issues High-rise blocks or Town Houses – (3 story and above) or, for other technical reasons, cannot be fitted with standard methods ormeasures. ECO: What is available now?

14. A wide range of energy efficiency measures may be installed as part of the ECO programme. These include: internal and external wall insulation systems hard-to-treat cavity wall & loft insulation boiler Replacement and repairs district heating connections (both new and upgrades). ? ECO: what is available?

15. Hard To Treat Properties (HTT) • EWI & IWI (External Wall Insulation and Internal Wall Insulation) - Any solid wall property (bungalow, house or block of flats) can have external or internal solid wall insulation to reduce its carbon footprint. However this tends to be a very expensive way of installing insulation and costs between £75-£100 per square metre to install. • These costs cover everything from the ancillary works that are needed to prepare the walls for the insulation and also the scaffolding that is required to be put up round each elevation, to all materials and labour to install the product. • On completion the resident will be awarded a 25 year guarantee from an independent governing body that will guarantee the materials and labour should anything go wrong and we will not or cannot put it right. • External Wall Insulation is the best insulation on the market and turns a tired old looking house into a brand new energy efficient house and saves up to 45% heat loss form the external walls once installed.

16. Few Simple Conditions • If solid wall properties are heated by gas then we cannot get large amount of funding; we may only be able to offer the resident 30– 60% maximum. • If the heating system in the dwellings is oil fed the funding may raise to between 40 – 65% • If they are heated with either Coal or Electric then the funding is higher and we could get 70 – 100% funded, which means the resident will not have to put a penny towards getting their home insulated and at the same time making it look brand new. • The social landlord must be willing to sign a declaration to say that they have given us permission to insulate their properties and the social landlord won’t try to “double fund” this project

17. Difficult to treat cavity wall dwellings • This is when there needs to be 4 hours of remedial works carried out to the outside of the wall or drainpipes, window sills etc before CWI (Cavity Wall Insulation) can be installed. • This can also include finding and clearing rubble in the cavity or erecting access equipment such as towers and scaffolding to carry out the install or repairs. • This work must be signed off by a Registered Chartered Surveyor to confirm that these works are needed to carry out CWI.

18. 3 Storey and Above Cavity Wall Properties • These are by far the best properties for us to be able to deal with and get paid for because there can be no grey areas of doubt about the fact they were classed as HTT, whereas with the others there is often room for argument or some doubt. • These properties can be blocks of flats or 3 storey town houses etc. • Properties that have a room built in a roof area or cannot be treated will not class as a floor so might be disqualified, so look out for them. • So if you have any properties of this type – namely blocks of flats or areas and estates where they are rows of 3 storey terrace housing - please bring them to our attention and we will be able to treat them at no cost to you or your tenants.

19. The Benefits • It tackles fuel poverty directly by being targeted at the most difficult to heat homes. • It cuts your carbon footprint, which more and more people are becoming aware of. • The energy companies take a percentage of the heating bill you pay and this is what is used to pay for these works, so when people say you don’t get anything for nothing, well they haven’t because they have paid for it whether they like it or not so they should take full advantage of it • Installing insulation in our houses can reduce condensation and damp problems. • It saves £100s off your heating bills and £1,000s over the lifetime of it being there. • It will help warm homes in the winter and cool them in the summer as well, thus making it more comfortable to live in, especially for the elderly who are very temperature sensitive.

20. Additional benefits to you, residents and the local area • Insulation can also greatly reduce the amount of external sound that penetrates a property, you will benefit those residents living close to noisy roads, noisy neighbours or under flight paths. • It will reduce the need for your boiler to work as hard, which means it will last longer and need less maintenance. • It will help reduce the need for your air conditioning to work as hard in the summer again cutting down on electricity bills and replacement and maintenance costs. • It helps with sound proofing your property form external noises, which is great in built up areas, traffic noisy neighbours and flight paths etc. • It is incredibly quick and easy to install from our trained professionals. • You get a free 25 year independentguarantee to insure against incorrectworkmanship or defects.

21. Our Social Commitment • We commit to train and employ a number of local staff for every major contract – working alongside our highly experienced operators and giving them skills they can then utilise to gain long-term employment. • On large contracts we complete them totally in house, without the need to sub any of the work. • We do all the paperwork so you don’t have to. We apply for grants, prepare before and after reports, contact and consult with residents and carry out a thorough clear up at the end.

22. About Us • Capital Energy specialises in undertaking large and complex Social Housing, Management Agentand Housing Association contracts. • All of our surveyors, cavity & loft teams are fully trained and certificated within their field and also comply with all HSE requirements for their particular job. They also carry Photo ID, are CRB checked.

23. About UsContinued… • Our entire fleet has been upgraded to more fuel-efficient and lower emission vehicles; each one fitted with a tracker and fuel efficiency aid, which significantly reduces carbon emissions and also generates a weekly efficiency report. • We provide weekly, fortnightly or monthly updates keeping you and your residents well informed every step of the way. We send them letters explaining what we are doing, the benefits to them and when their appointments will be, with the opportunity to opt out or reschedule.

24. Some of our clients

25. And Remember • This will be a completely free project. • This will benefit both your residents and you housing stock. • This will help reduce cold related deaths or illnesses. • This will help pull your residents out of fuel poverty. • This could create thousands of pounds for a green fund for your organisation.

26. Fuel Poverty set to increase “Far from being eliminated in 2016 it will still affect between 2.6 million and 3.0 million households (containing between 7.8 and 8.9 million individuals) when measured using our preferred indicator. Our central projection is that the key indicator of its scale, the fuel poverty gap, will have risen to £1.7 billion, compared to £1.1 billion in 2009.” Source: Hills Review on Fuel Poverty; March 2012

27. Thank you for attending Please don’t hesitate to contact us Telephone: 01932 570 030 Email: info@capitalenergysolutions.co.uk Website: www.capitalenergysolutions.co.uk Capital Energy Insulation | Capital Energy Electrical | Capital Energy Solar Systems Shepperton Trading Estate, Littleton Lane, Shepperton, Middlesex, TW17 0NF