ENERGY MATTERS SPRING 2018 EDITION
CELEBRATING 25 YEARS OF ELMHURST ENERGY
WE’RE POSITIVE ABOUT QUALITY ASSURANCE
EHC/ECO3/PAS 2030/35 UPDATE
NEW OPPORTUNITIES IN THE ENERGY ASSESSOR MARKETPLACE
Energy Matters / SPRING 2018 EDITION
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FOREWORD M A R T Y N R E E D, M A N A G I N G D I R E C T O R
Hello and welcome to Elmhurst’s latest edition of Energy Matters. The last three years has been mixed for anyone involved in energy efficiency or construction, and I know that many of you are involved in both. Our market data has shown that the house building sector has grown over the last 12 months but, until now, that feels like the only piece of good news.
I am therefore delighted to report that since the middle of January 2018 the market for Existing Dwelling and Commercial EPCs has risen significantly. The biggest single impact has come from the Private Rental Sector / Minimum Energy Efficiency Standards (MEES) Regulations. Comparing April 2018 with April 2017, and accepting that Easter fell differently this year, Elmhurst members have issued 19% more domestic EPCs and over 50% more non-domestic EPCs which is very welcome news. Moreover, the number of RdSAP EPCs undertaken for private rental property has doubled year on year. This edition of Energy Matters celebrates Elmhurst’s 25th anniversary and introduces our 2018 manifesto for change as we attempt to shape the next 25 years to ensure the continued success of Elmhurst, our members and, most importantly, to help alleviate fuel poverty and climate change. Elmhurst Energy has developed a manifesto every year since 2013 in which we compile what we believe should be the highest priority actions for government and industry, in order to reduce fuel poverty, energy consumption and the impact of climate change. By documenting and publishing our views in this way it provides a focus for the year ahead on which we will lobby and exert influence at every opportunity. Whilst we cannot claim all the credit, it is interesting to see that recent developments such as MEES, the Clean Growth Strategy and the Energy Efficient Scotland Route Map, are all key strategy and policy that we had asked
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Energy Matters / SPRING 2018 EDITION
government to introduce, so maybe our efforts were rewarded. It is essential for all businesses to understand how customers think, and Elmhurst is no different. Each month we poll a sample of members who have accessed our support services, and another sample that have been audited. Action is taken where possible and the findings are shared with staff and management. We have recently undertaken a full member survey which has allowed us to gauge feedback from our members and identify new opportunities. Whilst we must never be complacent the responses we received were a pleasure to read:
• 92% of members agree that Elmhurst software is able to cover all of their requirements • 95% of members agree that the training provided by Elmhurst is ‘top quality’ • 96% of members agree that Elmhurst provides the highest quality support. And perhaps most satisfying:
• 94% of members would recommend Elmhurst to a friend or colleague.
There were of course areas for improvement, one of which relates to Quality Assurance (QA). With the introduction of the new Scheme Operating Requirements (SORs) this is an opportunity we have grasped with both hands. In my view the SORs referring to QA was the start of the problem. Going back to basics, an accepted definition of quality is the ability of a product (the EPC) to deliver what the stakeholders (homeowners, agents, governments etc) want. The term ‘Quality Assurance’ is a term used to describe a wide range of planned activities that, in combination, help to deliver quality. Elmhurst deliver QA with activities such as :
• Great software • Stimulating training • Helpful, well written manuals and technical bulletins
• Effective telephone support delivered by practicing assessors
• A wide range of CPD events that
With these principles in mind, Elmhurst are undertaking a root and branch revision of our auditing processes and introducing that to members through an initiative titled “Making QA a positive experience”. We will be reviewing every aspect of auditing, from solution through to feedback to ensure that it is more focussed on the quality of the EPC, rather than the process for its production. We have been delivering workshop sessions right across the country, speaking with hundreds of our members to both present our ideas and receive feedback. The response has been incredible, with many of the sessions being oversubscribed and additional events being arranged. I hope that all members appreciate the benefits of the new approach to auditing when it is launched in June.
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I am very keen to hear your views on our manifesto, our views on Quality Assurance and any other aspects of what we do.
extend the members knowledge And, of course auditing to ensure that the standard of quality is being achieved. Therefore auditing is simply a component of quality assurance.
Thank you for being a member with Elmhurst and I wish you the best of luck in the coming year.
Martyn Reed Managing Director Elmhurst Energy
Energy Matters / SPRING 2018 EDITION
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C O N T E NTS MAGAZINE
02 FOREWORD 05 CELEBRATING 25 YEARS OF ELMHURST ENERGY 08 MINIMUM ENERGY EFFICIENCY STANDARDS (MEES) UPDATE 09 ELMHURST’S LATEST TECHNICAL BULLETINS 10 WE’RE POSITIVE ABOUT QUALITY ASSURANCE 12 ARE YOU READY FOR THE HEAT PUMP SURGE? 13 NEW OPPORTUNITIES IN THE ENERGY ASSESSOR MARKETPLACE 14 PEPA INDUSTRY CONFERENCE 15 ELMHURST LAUNCHES NEW ‘MANIFESTO FOR CHANGE’ 18 MARKET DATA 20 EHC/ECO3/PAS UPDATE
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Energy Matters / SPRING 2018 EDITION
HEADLINE FEATURE
CELEBRATING 25 YEARS OF ELMHURST ENERGY S T E P H E N O ’ H A R A , C H A I R O F E L M H U R S T A N D P E PA
E
lmhurst Energy is celebrating its 25th anniversary. Formed in 1993, the company has gone from strength to strength over the past two and a half decades, growing to over 7,000 members, served by 68 employees from its Lutterworth Headquarters.
This is a proud milestone for Elmhurst Energy, but we never stand still; we continue to add value for our members, respond to Government consultations and promote the interests of energy assessors. Our mission has been, and will continue to be, to create a more energy efficient society through valuable assessment and driving the improvement of all homes and businesses throughout the UK. In a busy six month period, the company has replied to dozens of important Government consultations, and has also represented energy assessors at a key industry conference where discussions were held
with government and industry professionals about the future of Energy Performance Certificates (EPCs) and the role of the Energy Assessor.
Elmhurst would like to extend a big thank you to all individuals who have been part of their journey and are putting plans in place for an Industry Conference and anniversary celebrations later this year.
In our 25th year we will continue to promote our energy assessor membership, develop the highest standard of assessment software and push the EPC as the very best way to measure energy performance in buildings. We have also developed a special 25th year ‘Manifesto for Change’ which highlights the ongoing importance of energy assessors for reducing fuel poverty, energy consumption and the negative impact of climate change. Energy Matters / SPRING 2018 EDITION
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HEADLINE FEATURE
OUR JOURNEY SO FAR... Organic farmer and successful businessman Rod Pattison created a way to measure the energy efficiency of buildings. He was passionate about green technology and wanted to show people how much they could save on energy bills. So he and Bob Love created Elmhurst Energy, which was named after and operated from Rod’s organic farm in Warwickshire.
1993 Mid
90s
Elmhurst set up a home buyer product/survey at the request of Nationwide Building Society, who wanted an energy rating service which provided quick energy assessments for house sales. The surveying arm of Nationwide eventually split from the core business and became Countrywide Surveyors, which was led by Peter Hales - Elmhurst’s first customer and now chair of our Oversight Board. Elmhurst trained countless chartered surveyors to use their Streamline software and methodology, working for big name clients.
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Energy Matters / SPRING 2018 EDITION
BRE’s Standard Assessment Procedure was first cited in Part L of the Building Regulations (England & Wales) as a means of assessing a dwelling’s energy performance, and Elmhurst took this opportunity to provide Building Control Bodies with the relevant training and software. From this would come the first energy assessments for new build homes and the very first version of Design SAP Software.
1995 2002
Elmhurst was thrust to the forefront of the industry when the Energy Performance of Buildings Directive (EPBD) from the EU stated that all member states had to measure the energy efficiency of buildings. In essence, they needed a measuring stick. The Federation of Authorised Energy Rating Organisations (FAERO) which included Elmhurst Energy, NHER and MVM Starpoint (Northgate), worked alongside BRE to develop a universal solution for existing properties. Together they developed Reduced Data Standard Assessment Procedure (RdSAP) which took the best parts of Elmhurst’s and NHER’s software.
The first standardised methodology to calculate the energy efficiency of homes in the UK, known today as RdSAP was introduced to the industry. RdSAP has revolutionised energy efficiency standards for domestic dwellings across Europe and forms the basis of Energy Performance Certificates (EPCs) - 18 million of which have been produced to date! With the introduction of RdSAP and the requirement of EPCs to meet EPBD legislation, Elmhurst began training hundreds of individuals to become Domestic Energy Assessors (DEAs) at their new offices in Leicestershire and nationwide. Qualified assessors were registered to Elmhurst’s DEA accreditation scheme.
2007
Elmhurst has continued to grow within the energy assessment industry and, with the acquisition of BRE, Northgate and NHER, is now the UK’s largest accreditation scheme for Energy Assessors, with over 7,000 members producing over 600,000 EPCs per year. Elmhurst continues to support and campaign for a sustainable industry for energy assessors and aims to ensure that energy efficiency is always at the forefront of the political and business agenda.
2018
2008
By the end of 2008 all homes and non-domestic buildings, when sold, built or rented, required an EPC. Display Energy Certificates (DECs) were also introduced as a requirement for buildings occupied by public authorities. A building which had a total floor area over 1,000m2 and was frequently visited by the public would require a DEC (these requirements were altered in 2015).
Energy Matters / SPRING 2018 EDITION
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FEATURE
MINIMUM ENERGY EFFICIENCY STANDARDS (MEES) UPDATE DAMIEN ROBERTS, EXISTING DWELLINGS TEAM LEADER
E
lmhurst Energy has updated their Fact Sheets, Guides and Technical Bulletins relating to MEES, in the Domestic and Non-Domestic Private Rented Sector (PRS). The trigger points for MEES were a particular subject which had caused confusion within the industry, and Elmhurst has responded to this by clarifying what constitutes a trigger point. The bulletins expand on the scope of the legislation, buildings which are exempt and exemptions which may occur because of circumstances, such as requiring third-party consent.
Strategy (BEIS). The review is assessing the likely efficacy relating to the current version of the legislation and consulting about improvements which would enhance landlord take-up rates.
Advice about accessing the PRS Exemptions Register has also been included within the documents, together with brief details of penalties for non-compliance.
It is the Government’s stated aim to upgrade all fuel poor homes to EPC band C by 2030. Elmhurst has responded in full to the consultation, and they look forward to the forthcoming release of conclusions following the BEIS evaluation, which are expected to be released later this year.
The MEES legislation is currently undergoing a review by the department for Business, Energy and Industrial 8
Energy Matters / SPRING 2018 EDITION
MEES guides and fact sheets are available for energy assessors, landlords and tenants to download from our website: www.elmhurstenergy. co.uk/for-energy-assessors
FEATURE
ELMHURST’S LATEST TECHNICAL BULLETINS ONLY AVAILABLE TO ELMHURST MEMBERS
A
t Elmhurst Energy we are proud of the quality of technical support we provide to members. One of the most beneficial and proactive ways we support them is through a wide range of Technical Bulletins, all produced by our in house experts in a style that is easy to read and understand. These bulletins can offer anything between 15 and 45 minutes of CPD, with new and updated bulletins released fortnightly.
Elmhurst members can access any Technical Bulletin appropriate to their accreditation through Access Elmhurst/ My Documents. NHER members who have not been migrated onto Elmhurst’s systems will also be sent the latest Technical Bulletins through email. If you are not currently an Elmhurst member and wish to access our quality support, including this extensive list of Technical Bulletins, why not switch today at www.elmhurstenergy.co.uk/switch-to-elmhurst-energy
Elmhurst has a library of nearly 100 Technical Bulletins, available to download and read. Here are just some of the latest bulletins we have released: Existing Dwellings TB06 Secondary Heating TB103 Summary of MEES
UPDATED UPDATED
Non-Domestic TB19 Non-Domestic EPC Conventions TB47 LTHW Boiler Efficiencies UPDATED
On Construction TB106 Terrain Types and Wind Turbines TB107 Wall Ties in U-Value Calculations
FEATURE
WE’RE POSITIVE ABOUT QUALITY ASSURANCE PA U L M AY N E , H E A D O F O P E R AT I O N S
A
fter almost two years on the drawing board and with considerable input from Elmhurst, new Scheme Operating Requirements (SORs) were finally released by MHCLG in March and these will be adopted for Elmhurst
Domestic Energy Assessors (England and Wales only) on 1st June.
Overall, little has changed although the SORs have been simplified and collectively Schemes will, for the first time, be able to help shape the SORs moving forward to ensure they always reflect the developing industry we find ourselves in. However, the most fundamental change introduced by the new SORs is a completely new approach to Quality Assurance (QA) which finally sees the introduction of the long awaited ‘Smart Auditing’, a mechanism which allows Schemes to identify and audit those certificates most likely to be at risk of being incorrect by using a pre-determined set of Smart Rules. Another positive change to QA will see less focus on the audit process and a greater emphasis on the quality of the certificate itself. Under the current SORs, with its overly-prescriptive evidence requirements, all too often an auditor is required to fail an otherwise satisfactory audit due to a minor evidence omission such as a photograph of a low energy light 10 Energy Matters / SPRING 2018 EDITION
bulb even though the certificate may be correct. The new SORs address this issue and where an assessor has provided good quality evidence the auditor can now exercise more discretion where, on the balance of probability, they believe the certificate to be correct. Elmhurst will release full details of these changes to its members throughout May and, as part of the roll-out, are currently running a series of regional ‘QA Roadshows’ which are free to attend for Elmhurst members and will also provide two hours of CPD for those who join us at the event. The roadshows are visiting ten venues around the country in locations such as Exeter, Cardiff and Durham and provide delegates with a detailed understanding of the new approach to auditing. Topics covered include a focus on the new SORs, the new audit process, the future of QA, EPC evidence and top tips to creating a ‘perfect’ audit submission. Elmhurst has a number of excellent software applications which can help
ensure audit success and these are also showcased at the roadshows. The release of the new SORs was somewhat timely as it coincides with a major Elmhurst initiative which aims to make QA a more positive experience for our Members. Auditing in its current form has remained virtually unchanged for the last ten years and, having listened to the useful feedback provided by our members, Elmhurst has embarked on a project which looks to improve all aspects of the audit process from initial request to final feedback. For example, communications to Members which, at times can appear stern and out of sync with Elmhurst’s excellent approach to customer service, have been re-written to ensure they are more helpful and customer-friendly. Elmhurst has looked carefully at what QA is trying to achieve and will continue to work hard to ensure members receive better value from what can be an excellent learning opportunity. Along with bespoke rebranding, Elmhurst’s
message to members also captures the spirit of our new ethos - Helping you to deliver quality. QA is, of course, not just about the audit and Elmhurst will aim to further raise awareness during all qualification courses and several new CPD courses are also planned focussing on all aspects of QA. Our popular regional Technet events will provide another great opportunity to keep members updated with future changes to QA, including updates to Smart Rules, and our Support Team will also ensure that quality continues to be at the heart of all advice given to Elmhurst’s members. We plan to raise further awareness of topical QA issues and through a standalone quarterly QA newsletter which will be launched later this year. This will provide an opportunity for members to share their own tips for audit success, along with real audit examples which aim to give a glimpse into the world of an auditor!
The overhaul of the audit process has been long overdue and could not have come at a better time. Elmhurst is looking forward to working closely with its members to ensure that the transition is smooth and the benefits are maximised. Elmhurst is positive about QA and we’re sure our members will be too!
Auditing- Moving Forward CPD Course In light of all the changes, Elmhurst will be running an ‘AuditingMoving Forward’ course designed for Domestic Energy Assessors to gain further knowledge of the new auditing process. You can book your place now via our online training calendar: www.elmhurstenergy.co.uk/ training-calendar
Energy Matters / SPRING 2018 EDITION
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TECHNICAL CORNER
ARE YOU READY FOR THE HEAT PUMP SURGE? MAX HALLIWELL, MITSUBISHI ELECTRIC
M
ax Halliwell looks at the growth in renewable heating and the opportunities that air source heat pumps offer for energy saving and carbon reduction
The Government is predicting heat pump sales of over a million each year by 2030 as the nation moves away from carbon-intensive oil and gas heating. We have also recently seen mainstream TV adverts from E.ON promoting ‘Heat from thin air’ via heat pumps. We ourselves have just announced an association with TV presenter, architect, lecturer and writer, George Clarke, to help promote Ecodan air source heat pumps, which we are confident will help convey the energy saving, low carbon message to even more households. So the ‘home heating’ tide appears to be turning as more individuals become aware of the true costs of high-carbon gas and oil.
MAX HALLIWELL, MITSUBISHI ELECTRIC
12 Energy Matters / SPRING 2018 EDITION
You’ve already got a heat pump Part of our messaging with George Clarke will be highlighting how heat pumps are not ‘new’ technology but have been used successfully in the UK now for years and have been fitted into homes up and down the country from the Isle of Skye to the Isle of Wight.
It uses what is known as the ‘vapour compression cycle’, which utilises the different boiling points of refrigerant gases, to transfer heat when the vapour is compressed. In this way, the fridge extracts heat from the food and transfers it away from the interior. An air source heat pump does exactly that. It harvests ‘free’ heat energy from the outdoor air – which is renewed every day by the sun.
The heat pump can take a few degrees of heat from the air – even when it’s freezing outside, and upgrade it using the same vapour compression cycle. It upgrades this heat energy to deliver all the heating and hot water the home needs, and it will do this, day in, day out, 365 days a year, working quietly and reliably in the background – just like a fridge.
have been using it for decades – it’s called a fridge and it just sits in the corner of the kitchen quietly and reliably working away.
The market is changing As a manufacturer, we’ve been making heat pumps in the UK for over a decade now and we’ve slowly seen interest grow as more and more people accept the fact that gas and oil heating are no longer sustainable ways of heating our homes. They work effectively in apartment blocks, average terraced houses, executive homes and even country mansions, providing reliable, renewable heating even when there is snow on the ground.
The Government also recognises this and has increased the support for air source heat pumps under the Renewable Heat Incentive. So the tide is turning and the recent price rises in oil and gas are also helping convince consumers that the long term answer is no longer a gas or oil boiler.
Anyone who still doesn’t know what a heat pump is, needs to understand that we’ve all got one already and
Add to this the nation’s reliance on imported gas and oil and it’s easy to see where the future lies.
An air source heat pump uses the same basic technology as a fridge, but in reverse. The fridge removes heat from the contents to keep them cool and fresh.
We need to seriously reduce the UK’s carbon emissions to meet legally binding targets which will simply not be possible if we continue using ‘traditional’ heating.
The opinions expressed in this article are of the supplier themselves and not necessarily endorsed by Elmhurst Energy. If you would like to have your product featured here then please email info@elmhurstenergy.co.uk.
When gas was first introduced in the UK, it took many years for it to become the mainstream way of heating our homes but now, there are few who question its use. In the same way, heat pumps are steadily growing in market share especially as homeowners realise that they can also get 7 years of payments from the Renewable Heat Incentive – as well as lower monthly energy bills. Awareness of mankind’s impact on the planet is also fuelling this drive as more people question how we can enjoy modern levels of comfort, without ‘costing the earth’. We’re already seeing this with cars as interest in electric or hybrid vehicles increases. As we also get more of our grid electricity from renewable sources, the case for electric heat pumps becomes even stronger. For further details visit: www.ecodan.co.uk
Energy Matters / SPRING 2018 EDITION
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GUEST FEATURE
PEPA INDUSTRY CONFERENCE S T E P H E N O ’ H A R A , C H A I R O F E L M H U R S T A N D P E PA
T
he Property Energy Professionals Association (PEPA) staged a ‘Call to Action’ industry conference on 22nd March, the theme of which was ‘The Quality of EPCs’. The conference encouraged the energy assessment
industry and its professionals to engage with the Government on the future of Energy Performance Certificates (EPCs).
Approximately 300 people attended the conference, and workshop throughout the day explored past and current issues as well as potential future changes to the EPC landscape, their use and the potential expansion of the role of the Energy Assessor. The Department for Business, Energy and Industrial Strategy (BEIS), which will shortly publish a ‘call for evidence’ on the future of EPCs, supported the conference and played an active role throughout the day. This Conference presented a truly unique opportunity for assessors to have their say on the future of EPCs and their roles going forward. The opportunity for energy assessors
14 Energy Matters / SPRING 2018 EDITION
and industry stakeholders to interact with representatives of BEIS, discuss the issues, and have their views heard was extremely valuable. It is a crucial time for the industry and PEPA is really taking the lead in making sure EPCs remain the most relevant and useful energy performance measurement tool for the built environment. As PEPA members, Elmhurst Energy benefits from engaging with those who influence the future of energy performance measurement. In turn, our membership of some 7,000 energy assessors will be better represented, informed and ready to face any new challenges presented by changing legislation.
FEATURE
ELMHURST LAUNCHES NEW ‘MANIFESTO FOR CHANGE’ M A R T Y N R E E D, M A N A G I N G D I R E C T O R
A
s part of our 25th Anniversary celebrations, Elmhurst has launched its new ‘Manifesto for Change’. The company believes its manifesto and its six simple and practical measures will help to significantly reduce energy
consumption in the UK. Elmhurst Energy’s 25th anniversary manifesto is written in the knowledge that by the end of 2019 the UK will have left the European Union and the requirements of the European Directive that demands EPCs will no longer apply. Elmhurst Energy sees this as an excellent opportunity to develop energy assessments and energy certificates without any perceived restriction and obligations that may have existed. For the last five years Elmhurst Energy has developed a manifesto which we believe underlines the highest priority actions for government and industry to reduce fuel poverty, energy consumption and the impact of climate change. By documenting our views it provides a focus for the year ahead on which we will lobby and exert influence at every opportunity. Whilst we cannot claim all the credit, it is interesting to see that recent developments such as the Minimum Energy Efficiency Standards (MEES) and the Clean Growth Strategy and Energy Efficient Scotland Route Map were all things that we had asked governments to introduce, so maybe our efforts were rewarded!
The six steps in the Manifesto include: 1. Use the opportunities of BREXIT to improve energy certificates 2. Industry should work together to drive up the quality of energy certificates 3. Government should devise and implement policies to deliver on their strategic targets 4. Government need policies that focus on helping families out of fuel poverty 5. Government to demand that energy certificates accurately reflect the current state of the property 6. Industry extend the role of Energy Assessors to include best practice advice on how to reduce fuel bills and make homes warmer To download a full copy of the Manifesto visit: www.elmhurstenergy.co.uk/25th-anniversary-timeline
Energy Matters / SPRING 2018 EDITION
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GUEST FEATURE
NEW OPPORTUNITIES IN THE ENERGY ASSESSOR MARKETPLACE D AV I D C O C K I N G , D E S I G N B U I L D E R
T
he recently introduced MEES Regulations and more stringent overheating requirements in schemes such as the London Plan have created new opportunities for you to grow your business and increase the technical variety of your work.
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We have certainly felt the ripple effect of this as many of DesignBuilder’s customers have embraced these opportunities. We hope this article will provide some food for thought and perhaps go some way to inspiring you to join them if you haven’t already done so! If you’re not yet familiar with DesignBuilder, it is a graphical user interface to a variety of calculation engines including SBEM, EnergyPlus for dynamic simulation, Radiance for daylighting and also CFD for detailed comfort analysis. You create one 3D model which can then be used for certification, overheating analysis, BREEAM credits etc. DesignBuilder is approved by the UK and Republic of Ireland governments for nondomestic building certification. The interface has been designed for ease of use and productivity, giving DesignBuilder its well-deserved reputation as the most cost-effective and widely used software on the market for non-domestic energy assessment. It is no coincidence that accreditation schemes such as Elmhurst Energy like DesignBuilder as
it also makes QA-checking easier and results in fewer QA audit failures. Much of the recent buzz in the industry has been around the opportunities presented by MEES. Many DesignBuilder users are now capitalising on the software’s ability to quickly and easily switch between SBEM and DSM to compare ratings for MEES. DSM generally gives a better EPC rating than SBEM due to more accurate solar and daylight modelling; the difference can sometimes be just enough to help to get you get on the right side of the E/F rating threshold resulting in compliance. However, SBEM’s simplifications can occasionally produce better ratings, so being able to quickly compare between SBEM and DSM ratings can be beneficial for you and your clients. You can find case studies highlighting some recent MEES projects here: https://designbuilder.co.uk/about-us/ case-studies or from the case studies section located at the bottom of DesignBuilder’s website homepage. The other “hot topic” recently has been overheating, particularly in the
mixed-use segment of the market that requires both SAP and SBEM/ DSM to assess both the domestic and non-domestic parts of the building. Many of the non-domestic overheating standards such as Part L and the revised BB101 have adopted the CIBSE TM52 methodology, and the recently released TM59 is rapidly gaining traction in the domestic sector in initiatives such as the London Plan. TM59 requires you to use dynamic simulation for overheating analysis in domestic buildings such as homes, care homes and student accommodation, and DesignBuilder provides all you need to quickly set up these certification and overheating models and generate results. DesignBuilder offers exceptional value for money. If you are still using expensive or free but unproductive software then why not take a look at DesignBuilder? If you are using iSBEM or similar free tools you should consider the value of your time, a point reinforced strongly in some of the testimonials received from assessors after our latest SBEM training session at Elmhurst in March:
“Easy to use and navigate the software which will save me a huge amount of time carrying out assessments compared to iSBEM.” “Very good experience and will help speed up future input time compared to iSBEM.” “I can now see the benefit of using DesignBuilder compared to iSBEM.” If any of this has captured your interest you can find links to relevant software information and booking details for the next DesignBuilder SBEM, DSM, MEES and overheating courses on DesignBuilder’s website. We are offering readers a special 10% discount on software purchased before the end of June, so if you would like to take advantage of that please use discount code: EEM10special. This code only works for purchasing new licences online, so if you are an existing DesignBuilder SBEM customer and want to upgrade to dynamic simulation using the 10% discount please do not hesitate to get in touch.
The opinions expressed in this article are of the supplier themselves and not necessarily endorsed by Elmhurst Energy. If you would like to have your product featured here then please email info@elmhurstenergy.co.uk.
“Having invested time creating your certification model there are increasing opportunities to repurpose that model and increase the revenue you generate from your modelling time. Having these extra strings to your modelling bow also adds technical variety and interest to your work and increases the diversity of your client portfolio, ultimately making your business more robust.”
Get in touch with DesignBuilder today: T: 01453 755500 W: www.designbuilder.co.uk
Energy Matters / SPRING 2018 EDITION
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MARKET DATA
Existing Dwellings
M A R T Y N R E E D, M A N A G I N G D I R E C T O R
Volume of EPC lodgements on a 12 month rolling basis Volume of Residential housesales on a 12 month rolling basis
Here at Elmhurst we collect and analyse data from many sources to help us make better business decisions. Turning this data into a digestible form takes time and requires a detailed understanding of context. In each edition of Energy Matters we will provide you with a snapshot of this data, with a brief commentary, which we hope you find of interest.
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Commentary • Volume of EPCs peaked in the 12 months to May 2014, driven in a large part by ECO and to a lesser extent Green Deal. • EPC volume viewed, on a rolling 12 months basis, has now fallen to below 1.2 million and is lower than the volume of residential house sales, not forgetting that EPCs are required for rental properties too. Accepting that some house sales proceed with old, and potentially misleading EPCs, this suggests there is a high level of non-compliance in the sale and rental markets, or both. • House sales spiked in March 2016 with changes in Stamp Duty for second homes. • After a small period of growth house sales appear to have plateaued again. Outlook • The market for RdSAP EPCs is at an all time low suggesting high levels of non-compliance. • The data has not yet been fully processed but the introduction of Minimum Evidence Efficiency Standards (MEES) in April 2018 appears to have had a significant improvement on that month’s RdSAP EPC lodgements. Elmhurst members have enjoyed an increase of over 19% year on year.
New Build / On Construction
Non Domestic /Commercial buildings
Blue: Volume of residential house starts on a rolling 12 month basis Red: Volume of residential house completion on a rolling 12 month basis
Volume of Commercial property EPCs in the UK on a rolling 12 month basis Non residential (commercial) property sales in the UK on a 12 month rolling basis
Commentary • Commercial property EPCs have dropped suddenly but this is mainly due to a spike in March 2017 where sales peaked at 13,000. The trend is flat. • Volume of EPCs continues to improve which is believed to be a direct response to Minimum Energy Efficiency Standards (MEES). Note: Latest quarter data for Scotland is estimated
Volume of on-construction (new build residential) EPCs in the UK issued on a rolling 12 month basis
Commentary • Home starts have now started to fall having peaked at 200,000, the level specified by the coalition government when they committed to 1 million homes in the parliamentary term. • Completions are on par with building starts as developers completed dwellings are placed on the market • Volume of EPCs issued has plateaued at 259,000.
Outlook • The fall is not thought to be a cause for concern and the impact of MEES, especially when properties are owned by institutional investors, is having a welcome impact which will hopefully continue as the minimum standards change.
Outlook • The volume of new build EPCs is at an all-time high and this should be maintained for at least six to nine months before volumes fall again in line with the recent reduction in new starts. • It is disappointing that house starts have started to fall especially with a government statement suggesting that house building needs to increase to 300,000. Energy Matters / SPRING 2018 EDITION
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FEATURE
EHC/ECO3/PAS UPDATE S T U A R T FA I R L I E , T E C H N I C A L D I R E C T O R
T
he Energy Companies Obligation (ECO) Policy is how the Government impose a requirement on the biggest energy suppliers in the UK
to fund energy efficiency upgrades to homes. This October (2018) the policy detail changes again and it will be called ECO3. Inside the recent consultation the goal from Government was very clear:
“This Government is determined to bring down the costs of energy for all consumers, including by delivering on the aspiration set out in the Clean Growth Strategy for as many homes as possible to reach EPC Band C by 2035 where practical, cost effective and affordable. The Energy Company Obligation is one of several key policies which will help us achieve those aims with a particular focus on bringing down bills for low income and vulnerable households.�
20 Energy Matters / SPRING 2018 EDITION
With so much opportunity it is a shame that government policy appears to confuse the picture by only using benefits to ascertain occupant eligibility for improvement measures. The consultation states it aims to remove people from fuel poverty and yet makes little attempt to focus on our least energy efficient homes and, at the same time, facilitates the replacement of oil boilers with appliances that are more expensive to run and may actually exacerbate fuel poverty.
It will now focus entirely on the fuel poor moving away from carbon savings i.e. it is only interested in saving families money of their fuel bills and removing them from fuel poverty.
Elmhurst suggests to try and salvage any hope within the policy, that they place an inflator into the ‘deemed scores’ (the way individual measures are traded) for all E, F and G rated homes, in an effort to focus measures into the least energy efficient homes first. The total money in the policy has significantly reduced since
inception and, as such it is essential that measures do not go into energy efficient homes e.g. A, B or C rated homes at the expense of the worst performing homes. Standing back we actually believe the model is broken, with utility companies who have little interest or expertise in home improvements being dragged, involuntarily, into a sector they don’t understand. Elmhurst believes that a better solution would be for all utility providers (not just the big ones) to be taxed an amount per customer. This money should be moved away from the utility companies and its regulator (Ofgem) and implemented by an independent mechanism. The current system is far too complex, bureaucratic and actually puts families last.
Elmhurst thoroughly reviewed the consultation, read the impact assessments, listened to observations and attended all the presentations by BEIS and Ofgem in a concerted effort to see the policy from all sides. We have concluded that the policy is now a mixed bag of complex rules and bureaucracy that can’t ascertain the improvements that it makes to people’s homes. The policy is exclusively measured on the number of measures installed, not on the impact it makes to people’s homes, warmth and comfort. We are extremely disappointed as the Government’s Clean Growth Strategy was so conclusive in its ambition to move as many homes in England and Wales as possible to band C on the EPC by 2030 (fuel poor) and everyone else by 2035. ECO was to play a major part in solving this conundrum. Energy Matters / SPRING 2018 EDITION
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FEATURE
On a more positive note, as you may know Each Home Counts (EHC) was an independent review of the retrofit energy efficiency industry. It found that quality of installs was a major issue, and that the right measures were not going into the right homes in the right order. EHC was broken into a multitude of work streams for industry to go away and put forward the solution that would guarantee good quality installs and the right measures in the right homes. Elmhurst has been working in many of the working groups from advice and information hub, data warehouse and measurement and verification. We have been influencing the use of energy assessment as the ‘only’ way to start a journey and measure success. Alongside this the Industry recognised that the current PAS2030 document which governs the standards that apply to installation of measures also needed a revamp. There is now to be a new PAS2035 standard that is for the design of retrofit installations and a tweak to the existing PAS2030 to remove the ‘design’ elements and effectively tidy it up. PAS2035 will cover some advice, assessment and design element. The high level concept being that an ‘Assessor’ gathers information about the existing property including information such as ventilation issues, damp issues, conservation area/listed building restrictions, U-values and the energy assessment of the home. This new role looks like it must be independent and they provide this to the ‘Designer’ who would prepare a medium to long term plan for the occupants, and a design which shows how to install the identified measure(s). The installers can then install their measures against this design.
22 Energy Matters / SPRING 2018 EDITION
Whilst it is early stages and this sounds a complicated customer journey, in essence, it is a process that is supposed to protect members of the public and ensure that they get good solid independent advice before starting on any improvement works. Government and Ofgem have said that when the PAS and EHC model are ready, they will link all ‘energy efficiency’ policies to it. This could become the method where independent energy assessment of properties is fully used to make good decisions about what is good for the occupants, to make their homes warmer and cheaper to run. What does this mean for energy assessors? EPCs and energy assessors remain exactly the same for all MHCLG requirements e.g. for sale and rental purposes, but BEIS want to use EPCs within more policies and align them also to good quality installs. It is
extremely positive to see that EHC is about much more than one policy (ECO), the whole of the UKs retrofit sector is its aim. The big lenders keep saying they have billions to invest in this sector, but want quality attached to their brands. Energy Assessment and Energy Assessors are fully at the heart of making buildings/homes warmer/ cheaper and more energy efficient. This is something that Elmhurst will continue campaigning for.
“Elmhurst believes that a better solution would be for all utility providers (not just the big ones) to be taxed an amount per customer.�
Energy Matters / SPRING 2018 EDITION
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