HHIC Journal - Issue 18 by Energy and Utilities Alliance (EUA)

HHIC C

CAROLINE FLINT MP PROFESSOR PAUL EKINS DR TINA HOLT

HEATING HOTWATER

INDUSTRY COUNCIL AUGUST 2012 ISSUE 18

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ELIZABETH LEIGHTON - WWF PROFESSOR DOUG KING DR ELAINE LANCASTER

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CONTENTS

WELCOME

FROM YOUR EDITOR Many moons ago, I produced a programme for BBC Radio 4 on the history of the public library. What struck me most in researching this documentary was how people’s desire for free knowledge was incredibly important. The success of the Green Deal depends on how consumers will perceive this scheme and how the trusted, information bearers deliver its beneﬁts. This is why in this issue, I have a gathered a diverse pool of experts from academia, government and industry specialists to debate many concerns relating to the Green Deal. With the government and

industry putting a serious commitment into the scheme, they really can’t afford it to fail. Jodie Wiltshire, EDITOR, editor@hhic.org.uk, Twitter: JodieCommsHHIC

40 HHIC Camden House, Warwick Road, Kenilworth Warwickshire CV8 1TH Tel: 01926 513777 Fax: 01926 511923 e-mail:info@hhic.org.uk Website: www.centralheating.co.uk

Technical Manager Glyn Thomas Tel. 01926 513746 e-mail: glyn@hhic.org.uk Membership Services Manager Isaac Occhipinti Tel. 01926 513742 e-mail: isaac@hhic.org.uk

SECRETARIAT Director Roger Webb Tel. 01926 513740 e-mail: roger@hhic.org.uk

Communications Manager Jodie Wiltshire Tel. 01926 513743 e-mail: editor@hhic.org.uk

Deputy Director Chris Yates Tel. 01926 513744 e-mail: chris.yates@hhic.org.uk

Administrator Natalie Flay Tel. 01926 513741 e-mail: natalie@hhic.org.uk

PUBLISHING Publishers & Printers Warners Group Publications plc, The Maltings, West Street, Bourne, PE10 9PH. Tel: 01778 393313 Fax: 01778 394748 DEVELOPMENT PUBLISHER Juliet Loiselle DESIGN Amanda Clare

ADVERTISING Advertising Sales Katrina Browning Tel. 01778 395022 e-mail: katrinab@warnersgroup.co.uk Production Co-ordinator Sue Woodgates Tel. 01778 392062 e-mail: productionc@warnersgroup.co.uk

HHIC is a division of Energy and Utilities Alliance (EUA)

If you are interested in submitting editorial for HHIC Journal, please contact the Editor, Jodie Wiltshire on 01926 513743 or e-mail editor@hhic.org.uk The Editor reserves the right to withhold or edit any material submitted for publication. The Editor’s decision is ﬁnal. Views expressed in HHIC Journal are not necessarily the ofﬁcial view of the Heating & Hotwater Industry Council. The inclusion of advertising, circulation of any advertising literature or enclosures with HHIC Journal does not signify HHIC endorsement of any of the products or items concerned.

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CONTENTS AUGUST 2012 ISSUE 18 FEATURES

CONSUMER BEHAVIOUR IS VITAL FOR GREEN DEAL TO WORK Professor of Energy, Paul Ekins and Dr Catalina Spataru discuss how consumer behaviour is vital for the Green Deal to work

HOME COMFORTS IN AN AGE OF UNCERTAINTY

THE GREEN DEAL MUST BE A GOOD DEAL TOO

FORGET ‘ECOBLING’ THE UK NEEDS TO CONSUME LESS ENERGY Professor Doug King debates how the UK must build

Professor Chris Tweed discusses how retroﬁtting houses must result in a better quality of life

Caroline Flint MP, talks about how important the Green Deal is to the Labour government

refurbishments that actually address energy consumption

PUTTING ENERGY SAVINGS WITHIN REACH

NEW NAME, SAME CREDIBILITY, FRESH ENERGY

Elizabeth Leighton, Senior Policy Ofﬁcer, WWF Scotland compares an equivalent Green Deal scheme in the USA

Mike Foster, Chief Executive of Energy and Utilities Alliance (EUA) explains why this trade association is ﬁnally moving forward

HOMES BEHAVING BADLY

Dr Tina Holt tells us more about the

HOBBS project funded by the UK government’s recent communityfocused scheme, the Local Energy Assessment Fund (LEAF)

DOING THE DEAL Dr Elaine Lancaster, Research & Development

BOILERS CAN BE THE TRIGGER TO KICK-START THE GREEN DEAL Neil Schoﬁeld from the Worcester Bosch Group discusses the

Director at Ideal Heating discusses how high efﬁciency systems are crucial if the carbon targets are to be met

importance the Green Deal has on the boiler manufacturing industry

REGULARS

MEMBER NEWS

MARKET UPDATE

MATTER IN QUESTION Roger Webb, HHIC’s Director reﬂects on how the backbone of the Green Deal is heating

CONTRIBUTORS Caroline Flint Caroline Flint MP is the Shadow Secretary of State for Energy and Climate Change. Caroline is a British Labour Party politician who has been the Member of Parliament (MP) for Don Valley since 1997. She served as the Minister of State for Housing and Planning in 2008, and later as the Minister for Europe until 2009. In October 2010, she was elected to the Shadow Cabinet, and Ed Miliband appointed her Shadow Secretary of State for Communities and Local Government. In October 2011 Miliband appointed her Shadow Secretary of State for Energy and Climate Change.

Elizabeth Leighton Elizabeth is a Senior Policy Ofﬁcer - Footprint Project Manager for WWF and her role is to paint a picture of a One Planet Scotland and engage with government and others to make it a reality. Scotland is currently living a three planet lifestyle. One Planet Scotland is a project to cut the Ecological Footprint as the UK is on a footprint trajectory that could lead to a 20 per cent increase by 2020.

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Professor Doug King Doug King is an independent specialist in innovative and sustainable buildings. He has been behind the design of some of the most inﬂuential sustainable buildings in the world and has received numerous awards recognising his work and his contribution to the construction industry. Doug is a Royal Academy of Engineering Visiting Professor in Building Physics and was author of their reports “Engineering a Low Carbon Built Environment” and “The Case for Centres of Excellence in Integrated Sustainable Building Design.”

Professor Christopher Tweed Professor Christopher Tweed is the BRE Chair in Sustainable Design of the Built Environment, Welsh School of Architecture at Cardiff University. He has a general interest in environmental design in the built environment, which embraces research into reducing the demand for energy in existing buildings as well as research on the role of built cultural heritage in urban sustainability.

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CONSUMER BEHAVIOUR

“The Green Deal will be the biggest home improvement programme since the Second World War shifting our outdated draughty homes from the past into the future.” Greg Barker, Climate Change Minister (June 2011)

The UK has one of the oldest stocks of residential buildings in Europe. In England 21% of dwellings were built before 1919 and 16% built between 1919 and 1945 which represent nearly one third of the total non-domestic building stock.1 The energy efﬁciency of these dwellings will need to be much improved to meet the UK Government’s energy policy objectives of reduced carbon emissions, increased energy security and affordable fuel bills. To pursue these objectives, the government has developed and implemented a range of policies, including regulation, information and market incentives to inﬂuence people’s energy behaviour.

CONSUMER BEHAVIOUR IS VITAL FOR

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TO WORK

BY PROFESSOR PAUL EKINS AND DR CATALINA SPATARU, UCL ENERGY INSTITUTE

n 2010 the coalition government announced the introduction of the Green Deal which will come into effect from autumn 2012. The Green Deal is a regulatory framework that is intended to make energy efﬁciency affordable

for consumers with no up-front cost and provides the conditions for a competitive market where customers can choose.2 The Green Deal will apply to owner-occupiers, the social and private

rented sectors and the commercial sector. Chris Huhne, the then Secretary of State for Energy and Climate Change, announced on 21st September 2010 that: “The Green Deal is a massive new business opportunity which has the potential to support up to a quarter of a million jobs as part of our third industrial revolution”3. The Chartered Institution of Building Services and Engineers (CIBSE) mentioned that an average of one building every minute will need to be refurbished over the next 40 years4 to meet the national targets for carbon emissions reduction. In fact, refurbishing one home a minute would only upgrade around 20 million dwellings5, so to do the whole building stock by

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“One of the most important but least understood factors related to the Green Deal is the diversity of consumer behaviour”

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CONSUMER BEHAVIOUR

then would require more than one per

bill over a maximum of 25 years. The

and budgets. The Deal is taken out

manufacturers. The Energy Saving

minute (including upgrading relatively

Department of Energy and Climate

for a particular property at a particular

Trust (EST) studies in heat pumps7 and

new buildings).

Change (DECC) has published a list

time and the package may suit the

solar thermal systems8 show that in

of measures including insulation,

current consumer. However, if a

the case of heat pumps some installed

a programme have attracted a good

boiler, glazing and heating controls

new owner or tenant occupies the

systems failed to meet the levels

deal of scepticism. In January 2012

improvements. These are expected

property, the Green Deal may not be

studied in European ﬁeld trials. In the

the UK Energy Research Centre

to be suitable for Green Deal ﬁnance

appropriate for them with implications

case of solar thermal systems, the

(UKERC)6 highlighted a series of

with eligibility being dependent on the

for the energy and cost savings. The

trial found examples where systems

irregularities in Green Deal design

calculated savings from the energy

Green Deal tailors an energy efﬁciency

were not properly conﬁgured or used.

by drawing attention to what it calls

measures being less than the bill

package for a particular consumer, not

Therefore, the performance of these

‘key omissions and inconsistencies’

repayments – the so-called ‘Golden

a standard product which may suit a

systems could be affected by user

in the document. Also the UKERC is

Rule.’ However the government will not

wide range of people. Also, this may

behaviour and attitudes (how they

seeking clariﬁcation on how the Green

guarantee the actual cash savings and

cause a problem in the ﬂuidity of the

are controlled and used) and by the

Deal will ﬁt with and complement

should the occupier move, the charge

housing market.

quality of installation.

other reforms and initiatives being

on the electricity bill will stay with the

proposed, particularly the Renewable

property and the next bill payer.

The logistical implications of such

Heat Incentive, and Feed-in-Tariffs.

In addition most studies to date have focused on characterising the

(heat pumps, solar photovoltaics (PV)

technologies and less on the context

least understood factors related to

and others), which have shown that

of people and buildings. These latter

will be able to borrow up to £10,000

the Green Deal is the diversity of

poor installation and site selection,

is particularly important in terms of

to pay for different measures and pay

consumer behaviour. Different owners

as well as some tool deﬁciencies,

understanding behaviour diversity

back the capital (plus interest) through

or tenants have different lifestyles,

were major factors leading to poorer

and how technologies may perform

an extra charge on their electricity

preferences, comfort requirements

performance than predicted by

in occupied buildings. All ﬁeld trials

Under the Green Deal, homeowners

One of the most important but

There have been a number of ﬁeld trials of micro-distributed technologies

“The Deal is taken out for a particular property at a particular time and the package may suit the current consumer.”

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have their limitations but even so the main findings that have emerged can still be useful. For example, there is no evidence that demand temperatures have risen over time and controls do not necessarily result in lower temperatures as assumed in the Standard Assessment Procedure (SAP). In dwellings with small heat loss the parasitic power9 during start up and cooling down can mean that condensing boilers can outperform micro-chp10 units. Another point is that behavioural changes can be more important in reducing electricity consumption than any energy efficiency intervention relating to household equipment. If heat pumps increasingly replace boilers for space heating and hot water, the peak electricity demand could increase significantly if not carefully managed. This could well drive an increase in the unit cost of electricity. Micro-distributed technologies where several devices provide heat in a connected system are more sensitive to occupant behaviour. Unfortunately there

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“All ﬁeld trials have their limitations but even so the main ﬁndings that have emerged to date can still be useful.”

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CONSUMER BEHAVIOUR

are few ﬁndings available from ﬁeld studies

to take into account different occupants’

detailing the interactions between occupants

behaviour, heating patterns, different climate

and energy efﬁciency and systems, and the

locations, etc.

diversity of these. Additional research on the diversity of people, controls, smart home

If the Golden Rule is going to work so that Green Deal customers who keep their energy

energy management, as well as education of

haviour unchanged do not face higher energy

households and installers, can help in providing

bills, then far more thought is required in how

more understanding of real dwellings behaviour

to characterise occupant behaviour. Also, how

and the interaction with their occupants.

to include this in the assessments that will

In addition a variety of criticisms of SAP

work out which measures meet the Golden

have been made in recent years. Many studies

Rule and should therefore be supported

have shown that SAP can overestimate or

through Green Deal ﬁnance will need to be

underestimate the savings made in dwellings,

considered. Unless this is done before the ﬁrst

yet the government intends to use SAP for

Green Deal loans are issued, there is a real risk

the Green Deal. SAP was designed to assess

that some customers who change their energy

buildings, not to provide an accurate estimate

behaviour following the energy efﬁciency

of the performance of a speciﬁc building-

measures, perhaps without being aware of it,

technology-occupant-location system. A

will be disappointed to see their energy bills

Green Deal assessment based on SAP may

rise rather than fall. And that will risk bringing

give misleading results unless it is adjusted

the whole of the Green Deal into disrepute.

1 English Housing Survey, Housing Stock Report, 2008 Communities and Local Government, http://www.communities.gov.uk/documents/statistics/pdf/1750754.pdf 2 DECC 2010, The Green Deal A summary of the Government’s proposals, http://www.decc.gov. uk/assets/decc/legislation/energybill/1010-green-deal-summary-proposals.pdf 3 http://www.decc.gov.uk/en/content/cms/news/pn10_104/pn10_104.aspx 4 http://www.cibsemail.org/preview.php?c=904&m=0&previewtype=html 538years X 365.25 days X 24 hrs X 60 min= 19,986,480 6 http://www.ukerc.ac.uk/support/tiki-read_article.php?articleId=1679&fullscreen=y Full version of UKERC’s response to the Green Deal Consultation http://tinyurl.com/853zfdm 7 The Energy Saving Trust, 2010, Getting warmer: a ﬁeld trial of heat pumps 8 The Energy Saving Trust, 2011, Here comes the sun: a ﬁeld trial of solar water heating systems 9 Parasitic power is power used to make the machine work, but that doesn’t produce a useful output 10 Chp stands for combined heat and power. These units produce both electricity and useful heat.

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MEMBER NEWS

BY ISAAC OCCHIPINTI, MEMBERSHIP MANAGER Everyone involved in the Green Deal wants to see SMEs engaged with the scheme. However, given the structure of the Green Deal, is this realistic?

HIC has been working

provider to guarantee the works and to

hard with industry and the

provide any capital for the project.

One is as a subcontractor to a Green

It would also boost the take up Green

Deal provider. The Green Deal provider

Deal assessments hopefully leading to

would conduct the assessments and

full Green Deals by consumers wanting

ﬁnd a solution to this dilemma. We all

probably have to receive work from the

arrange ﬁnance. The installer would

to claim their £500.

accept that the Green Deal will be more

Green Deal providers once a deal has

do the work and would be paid by the

successful if SMEs are engaged, but no

already been agreed. The dilemma

provider to do so.

one has yet come up with a deﬁnitive

here is that if a heating engineer

way that ensures they will be.

is called into a home to quote on

trade body or merchant chain that

replacing a boiler, recommending the

may have a provider scheme that

around 60,000 installation and servicing

Green Deal will not guarantee they get

allows installers access to Green Deal

to simplify the Green Deal process to

businesses. Most of these are small and

the job. Instead, if they quote privately

ﬁnance to help them offer the Green

allow installers to also be Green Deal

micro companies, often employing one

they have a better chance of keeping

Deal to their customers. However a

assessors. This is currently possible but

or two people.

all the income for themselves.

Green Deal assessment would still

the costs for doing so are prohibitive

have to take place.

and the process complicated.

government in trying to

Within the heating industry there are

Around 80% of gas boiler

This means small companies would

If the heating engineer has a prior

Another route is working with a

Local authorities may also set up

This however is a short-term solution to help remove some of the initial barriers that may be present when the Green Deal is launched. Another more long- term solution is

If government were to make the

installations are done by these small

relationship with the consumer it is even

businesses meaning that every day

less likely that they would recommend

Green Deal schemes that installers

process easier and much cheaper,

around 5,000 homes are visited by

a scheme that may jeopardise a well-

could bid to work on. However

installers could be trained quite easily,

these companies.

standing relationship.

local authority tendering processes

potentially as part of their current regular

are notoriously difﬁcult for smaller

gas competency training to undertake

companies to win.

property assessments. This would allow

Given that boiler installations will

Therefore the current structure

almost certainly be a key driver for

may well alienate smaller installation

Green Deal take up these 5,000 visits

companies and create resentment

could be a very effective way to market

amongst them for the Green Deal.

the Green Deal and ensure its success. So why are there doubts that this will happen? The current structure of the Green

HHIC believe there are some other solutions to this dilemma.

them to take control of the Green Deal process and allow smaller installers to be a one-stop shop for consumers to

Instead, we need to look at ways

One solution could be to use

to help engage installers and ﬁnd a

some of the stated £200 million

model that ﬁts their current way of

the government has put aside for

doing business.

encouraging Green Deal take up

of the process and understand how it

get a Green Deal. Smaller installers must feel in control

to discount ﬁtting boilers. HHIC’s

beneﬁts them, and then they are more

requires an accredited assessor to

to come up with solutions for this.

idea would be for the boilers to be

likely to recommend it and to push it to

conduct a Green Deal assessment of

Currently it believes there are three

installed outside the Green Deal

be a success.

the potential customer’s property and

broad routes that could involve

mechanism, but with the promise of a

energy use. It also requires a Green Deal

smaller companies.

voucher for a sum, £500 for example,

government over the coming months to

if the consumer undertakes a Green

ensure this message is communicated

Deal assessment within six months of

because we want the Green Deal to

the installation.

be a success. However, we recognise

Deal requires two key elements. It

The government is working hard

This will allow smaller installers to

HHIC will be lobbying the

that if installers are not part of the

continue to sell boilers to their existing

solution then we risk alienating the best,

customers and to bid for work in the

cheapest and most logical route to

same way.

market the Green Deal has.

IF YOU HAVE ANY COMMENT ON THIS ARTICLE

PLEASE CONTACT ME ON 01926 513742

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HOME COMFORTS IN AN AGE OF UNCERTAINTY

HOME COMFORTS in an age of uncertainty BY PROFESSOR CHRISTOPHER TWEED, BRE CHAIR IN SUSTAINABLE DESIGN OF THE BUILT ENVIRONMENT

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HEATING & HOTWATER INDUSTRY COUNCIL

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ur homes are so familiar

to recent DECC statistics more than

to us that we take for

7.6 million homes with solid walls

buildings and reminds us not to

granted much of what

(98%) have yet to be insulated.

rely on generalisations about what

they offer. But relations between

This will have a major impact on

people do outside a given situation.

ourselves and the structures we

people’s homes and yet much of

His major contribution is a pair of

inhabit have fascinated philosophers,

the debate surrounding retroﬁt

related concepts: affordance and

psychologists, architects and

is about the merits of particular

effectivity. An affordance is what an

anthropologists for centuries. Their

technical solutions for upgrading

environment offers people (for good

various writings illustrate the diverse

the building fabric and renewable

or for ill) and depends not just on

interactions we have with the fabric

energy systems. Focusing solely

the properties of the environment

and contents of our dwellings, and

on the technical aspects of retroﬁt

but also on the capabilities of

yet their detailed insights barely

ignores the need for users to operate

those immersed in it. In short,

their upgraded homes effectively

buildings support various activities

Such issues gain little traction

to achieve the intended carbon

and amenities, but only for those

with practitioners, policymakers

and energy savings. This is crucial

with the appropriate effectivities.

and others working at the ‘sharp

to achieving the carbon emissions

This interrelationship between

end’ of the construction industry,

reduction targets required by 2050

affordance and effectivity alerts

where concerns about the ﬁner

and is not amenable to purely

us to the unavailability of building

details of design and delivery are

technical treatment. It requires

functions to users, for example, with

often dismissed. This short article

an understanding of how people

reduced mobility.

argues that ideas, methods and

behave in their homes that is so far

observations developed through

absent from current proposals.

careful ﬁeld studies of people in

One approach to studying how

need to understand people in

Affordances and effectivities, then, are a better way to describe what buildings offer occupants

buildings and the resulting theories

people engage and interact with

than the generic notion of building

about human-environment interaction

the environment stands out. The

function, which is independent

can help us improve quality of life

ecological psychologist, J.J. Gibson,

of who will use the building and

and user satisfaction with the built

emphasised the need to consider

their abilities. It would be limiting,

environment. These concerns are

organisms and environments

however, to think of affordances

at the real sharp end of designing

simultaneously, since the way they

as unavailable to those who lack

and building—the end of the retroﬁt

interact depends on the properties

an ability or have a “disability.” An

delivery pipe—as that is where

of both. Just as the energy and

interesting corollary of the study

solutions are implemented and either

environmental performance of

of affordances is the realisation

fail or succeed.

unoccupied buildings is relatively

that users must possess certain

meaningless, so treating people in

skills to be able to engage with a

large scale retroﬁtting of its housing

the abstract, devoid of any particular

building effectively and to access its

stock to reduce CO2 emissions

context can be equally misleading.

intended functions. This is becoming

through the Green Deal. According

Gibson’s approach highlights the

increasingly evident as buildings and

The UK Government is promoting

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“The experience of getting warm in front of a glowing ﬁre almost encapsulates the very idea of home in our climate.”

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HOME COMFORTS IN AN AGE OF UNCERTAINTY

People’s behaviour and actions,

their systems become more complex.

There is a further assumption to be

comfort criteria and the models

In other words, people have to have

challenged, which is also supported

of thermal comfort embedded in

for example, appear to be driven

certain skills if they are get the most

by detailed studies of how people

energy calculation software are

as much by wants as by needs.

out an environment.

engage with buildings.

usually quite crude. Observations

As Henry Petroski noted, “luxury,

of how people create and maintain

rather than necessity, is the

The theory of affordances

Most current efforts to reduce

sketched above questions

energy consumption in buildings

thermal conditions in their

mother of invention.” Once basic

the conventional approach of

reduce the end user experience in

homes suggest the outcomes of

needs are met, people are mainly

separating people and buildings

a refurbished building to a single

refurbishment may be diverse and

interested in the experiences they

in much contemporary design and

‘comfort’ temperature. There is no

differ from the assumed model of

can have in a given environment.

construction, including retroﬁtting.

detailed consideration of thermal

user behaviour markedly.

In certain conditions this may be straightforward, such as the

“Just as the energy and environmental performance of unoccupied buildings is relatively meaningless, so treating people in the abstract, devoid of any particular context can be equally misleading.”

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physiological need to maintain a core body temperature. But to assume such a need is the main driver for thermally related behaviour in the home, underestimates the role that emotion and feelings play in our everyday lives. As an example, consider the change in methods of heat delivery that is taking place in low energy buildings.

HEATING & HOTWATER INDUSTRY COUNCIL

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“People’s behaviour and actions, for example, appear to be driven as much by wants as by needs. As Henry Petroski noted, “luxury, rather than necessity, is the mother of invention.” Once basic needs are met, people are mainly interested in the experiences they can have in a given environment.” removing high temperature sources

If their actions include buying and

issues in designing and planning

forces for people living in northern

from the dwelling. The absence of

using an energy intensive halogen

retroﬁt programmes. The ultimate

and cool temperate climates. Fire in

high temperature (or high exergy)

type heater from the local DIY store,

success of a nationwide programme

its raw and tamed forms have been

sources stymies comfort habits and

we are in trouble, since this may

will depend on those who are

central features within the home for

practices that have been deeply

subvert the entire low carbon project.

expected to accept and operate

centuries. The experience of getting

embedded over many years in our

Debates about the choice of heating

their modiﬁed homes in line with

warm in front of a glowing ﬁre almost

cultural and social norms. Gathering

system and its method of delivering

the intentions of the designers.

encapsulates the very idea of home

around a heat source is not simply

heat to spaces need to consider

Many building projects get things

in our climate, but conventional

a physiological but a culturally

the quality of the heat delivery and

the wrong way round. Concerns

theories about thermal comfort are

sanctioned response to coming in

the experience this provides for

about the end-user experience

largely blind to our preferences for

from the cold. Field observations

the occupants—and not just the

and improvements to the quality

the way in which heat is delivered to

suggest that if people are deprived

immediate thermal experience.

of life are drowned out by loud

us in space and time. Low carbon

of thermal stimulation by the design

solutions, whether new build or

and operation of their heating

mainly focus on technical concerns

methods. Retroﬁt has to result in

retroﬁt, tend to introduce new forms

systems, they are likely to devise

and solutions. I have argued for

better quality of life for occupants

of heat delivery that operate at

other ways to regain the variety in

the importance of considering

or else it is unlikely to work in any

much lower temperatures thereby

thermal conditions they are used to.

psychological, social and cultural

wholesale way.

Heat and warmth are primal

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Existing approaches to retroﬁtting

talk over technical solutions and

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CAROLINE FLINT MP

TheGREEN DEAL

must be a good

deal too

BY CAROLINE FLINT MP, SHADOW SECRETARY OF STATE FOR ENERGY AND CLIMATE CHANGE

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Labour wants the Green Deal to succeed. We had a pay-as-you-save scheme in our manifesto, and it was the last Labour government who initiated pilot programmes to test the scheme. If done properly, a pay-as-you-save energy efďŹ ciency scheme could create jobs, lower bills for families and cut carbon emissions. But for the Green Deal to work, it must be a good deal too. With just a few months until the scheme is due to start, the government still has much to do to improve the Green Deal to ensure it delivers savings for hardpressed bill payers and offers real incentives so millions of people want to take it up.

HEATING & HOTWATER INDUSTRY COUNCIL

25/7/12 15:11:10

t’s not just Labour saying this.

for repaying loans early, which

could be reversed. Labour believes

In recent months the CBI,

will cost consumers thousands of

the funding from the ECO should

Which?, the Federation of

pounds and destroy the public’s

focus on delivering for low income

trust in the scheme.

hard to treat homes, over able-to-pay

Masters Builders, the Construction Products Association, Green Alliance

One solution is the Green

households. This would drive carbon

and even the government’s own

Investment Bank. The government

reduction while ensuring that we put

advisors, the Committee on Climate

announced last year that one of the

those who need help most, ﬁrst.

Change, have warned the Green

priorities for the Bank is to provide

Deal will fail without signiﬁcant

support for the Green Deal, but they

Green Deal launches, the government

improvements. But the government

haven’t speciﬁed what form that

needs to end the uncertainty,

just dismisses anyone who suggests

will take. It’s vital that any capital

stop the inﬁghting and focus on

improvements, or raises concerns,

made available is used to secure

developing a credible way to deliver

as scaremongerers – when in reality,

affordable, attractive interest rates

new jobs and lower energy bills.

of course, exactly the opposite is

for consumers, in order to lower the

true. The real champions of the

cost of Green Deal packages.

Green Deal are those of us who are

Small businesses should be

trying to improve it and make it a

allowed to complete with bigger

good deal.

companies on a level playing ﬁeld.

Most importantly consumers

Labour’s vision for the Green Deal

need to be offered affordable rates

is one where small businesses,

of interest on Green Deal loans.

co-operatives, local authorities,

This is absolutely crucial to making

charities and social enterprises are

the scheme a success. Polling

able to compete alongside the big

conducted by the Great British

six and other large companies that

Refurb Campaign found that only

want to take part in the scheme.

7% of homeowners would be

But the government’s proposals

interested in taking up the Green

will restrict full access to the Energy

Deal if the interest rate is 6% or

Company Obligation (ECO), which will

above. Worryingly, however, a report

provide subsidy for energy efﬁciency

by environmental think tank E3G

measures, to the Big Six energy

says that relying on commercial

companies. These proposals not only

loans - as the government plans

limit smaller providers from competing

- will mean interest rates as high as

on a level playing ﬁeld across the

8%. Modelling by London-based

whole Green Deal market, but

home improvement ﬁrm, Crystal

entrench the dominance of the big six

also shows that even with a 5%

in our energy market. Labour wants to

interest rate, measures taken out

see the Green Deal open to all types

under the Green Deal would cost

and sizes of providers by allowing fair

twice as much over the lifetime of

access to the ECO.

a plan, compared with paying for

Lastly, we have to ensure help

them upfront. Finance at these kinds

reaches those who need it most.

of rates won’t be attractive to most

Under the last Labour government

people, limiting demand and leaving

the number of houses in fuel

the Green Deal struggling to get off

poverty fell by 1.75 million. But with

the ground. To make matters worse,

energy bills on the rise, and cut to

the government are still intent on

programmes like Warm Front, there

including harsh penalty payments

are already warnings that progress

WWW.CENTRALHEATING.CO.UK

14-15 caroline flint.indd 15

With time running out until the

AUGUST 2012

15 25/7/12 11:46:18

ECOBLING DOUG KING

FORGET ‘ECOBLING’

THE UK NEEDS TO

CONSUME

LESS ENERGY

BY PROFESSOR DOUG KING

16 16-19 ecoblin.indd 16

AUGUST 2012

HEATING & HOTWATER INDUSTRY COUNCIL

25/7/12 11:50:10

The last two governments have managed to agree on one thing at least: the importance of tackling climate change and addressing future UK energy security. Because of this accord, the UK has actually adopted some extremely worthwhile, but challenging, targets on greenhouse gas abatement and on renewable and low carbon forms of power generation.

an electric heat pump in the winter

y now, everyone should

studies of both low carbon housing

be aware that the UK is

and low carbon non-domestic

and then provide the building with

committed to reducing

buildings have shown that there is

sufﬁcient renewable generation to

carbon dioxide emissions 80% below

still a wide performance gap between

offset the electricity consumed by

1990 levels by 2050. Most people

the expectations of the construction

the heat pump over the course of

reading this journal will also be aware

industry and its clients and the

the whole year. What we are seeing

that carbon dioxide emissions arising

ability to deliver real carbon savings.

at the putative cutting edge of

from energy consumption in the

It is therefore vital that we embark

new housing design will no doubt

buildings accounts for around 45%

on this journey of decarbonising

become the default approach for

of the total.

the built environment with a clear

refurbishment too unless we do

understanding of what it will involve

something about it.

Thus, one of the headline policies is that all new buildings should be

and which approaches deliver the

In some instances, I am even

constructed to zero carbon standards

best abatement at the lowest cost.

hearing now of low carbon projects

by 2020. However, by the time 2050

Otherwise, we risk wasting time

that are abandoning super insulation

comes around new, zero carbon

and money on initiatives that fail to

and other passive energy conservation

buildings will only account for around

achieve the end goal of reducing the

measures in order to pay for the

20% of the building stock, the

overall amount of carbon dioxide

revenue earning technologies. Under

remaining 80% are already in use

emitted to the atmosphere.

the right circumstances an owner can now be paid to generate heat

today. The low carbon refurbishment

Recently, the conjunction of local

of some 20 million existing buildings

planning policies demanding on-site

that is wasted in a less well insulated

presents an even greater challenge

renewable energy generation and

building and paid again to generate

for the construction industry than that

the generous ﬁnancial incentives

renewable electricity to offset the

of zero carbon new buildings. Further,

available for these technologies

wasted consumption and still qualify

in order to meet the commitment we

have created a perverse new market

as zero carbon.

will need to deliver over 2,000 low

for small scale generation in urban

carbon building refurbishments every

locations. The most common

to zero carbon, whether applied to

working day starting today.

approach now being taken to low

new build or refurbishment, may not

and zero carbon housing is to use

actually lead to zero emissions, as

Unfortunately, a number of recent

Subsidies aside, this approach

“By now, everyone should be aware that the UK is committed to reducing carbon dioxide emissions 80% below 1990 levels by 205O.”

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AUGUST 2012

17 23/7/12 12:32:56

ECOBLING DOUG KING

the assessment of carbon abatement

requirement for backup generation

does not take into account the different

to cover the intermittency of the

times at which the generation and the

renewable generators.

demands occur. The carbon intensity

Then we need to consider the

of grid supplied electricity varies

actual performance of heat pumps in

depending on the mix of generation

practice. Ground source heat pumps

required to meet demand. Generally,

provide consistent performance

in the winter the carbon intensity is

throughout the year, but are expensive

higher as more fossil fuel generation

and require large areas of land for

is brought into the mix to match the

heat extraction. The performance

demand, whereas during the summer,

of the more popular air source heat

when building attached renewables will

pumps depends on the external air

be generating at their peak, the carbon

temperature. The performance ﬁgures

intensity is low anyway.

that are typically used to assess

Taken to the extreme, if we try to

the carbon abatement potential are

address low carbon refurbishment to

seasonal averages corresponding to

meet our national targets using a mix of

outside air temperatures of 5°C to

heat pumps and small scale renewable

7°C. With well designed, well insulated

generators then we will simply

new and refurbished buildings there

exacerbate the problems. As more and

should be little demand for any space

more renewable generation is added

heating at these temperatures. In the

to buildings, the carbon offset available

future, heat pumps will be required to

for each individual generator will get

work mostly at outdoor temperatures

lower and lower. On the ﬂip side, a

below 0°C, when their performance

wholesale move to electric heating in

drops rapidly. Thus, the instantaneous

the winter, even with the purported

electricity demand from heat pumps

efﬁciency of heat pumps, will require

during the winter could be much higher

a vast increase in generation capacity.

than anticipated at a time when the

Even if a substantial proportion of

grid has higher carbon intensity.

this demand can be met from large scale renewables there will still be a

18 16-19 ecoblin.indd 18

AUGUST 2012

“One of the headline policies is that all new buildings should be constructed to zero carbon standards by 2020. However, by the time 2050 comes around new, zero carbon buildings will only account for around 20% of the building stock, the remaining 80% are already in use today.”

A further problem with adopting small scale renewable heat

HEATING & HOTWATER INDUSTRY COUNCIL

23/7/12 12:33:15

technologies to refurbish British

peak output to a boiler would be

buildings is that we have a history

prohibitively expensive and lead to

of building homes that leak. The

signiﬁcant problems in its operation.

UK’s relatively benign climate means

Dealing with the poor state of

that, historically, we never really

the fabric of our buildings must

had to bother with insulation before

be the priority in refurbishment,

energy conservation became such

before we ever start to think of

an issue, whereas our damp weather

bolt-on technologies. Insulation

quickly leads to mould problems in

and airtightness do not have the

buildings without good ventilation.

“EcoBling” attraction of small scale

Our standards of construction

renewable energy, but will require just

therefore reﬂect these very real drivers.

as much thought and ingenuity if we

However, this means that our buildings

are to get it right.

are generally too expensive to heat

When we try to retroﬁt high levels

that the approaches we take in order

and that we may have to change

continuously, as the heat just escapes.

of insulation and air-tightness to

to meet policy goals in the short term

direction several times before we can

Consequently we have adopted

traditionally constructed British

may not in fact be the most sustainable

reach our ultimate goal.

a pattern of intermittent heating

buildings we can quickly run into

approach in the long term.

following occupancy in homes and

problems with indoor air quality,

non-domestic buildings alike.

condensation and even rot within

with the building fabric issues in

refurbishments that address the

structural timbers, not to mention

our stock of existing buildings will

fundamental issue of consuming less

high intensity heat source such as

bronchial health problems relating to

require considerable effort, expense

energy to create comfortable and

a gas boiler, and a heating system

mould. Improvements to insulation

and innovation. Failing to deal with

productive internal environments,

that responds quickly, such as the

and airtightness therefore need to

the building fabric issues will result

rather than continuing to delude

traditional radiator. Low carbon and

go hand in hand with provision for

not just in higher than expected

ourselves that we can simply bolt

renewable heating systems work best

protection against condensation

emissions, it could exacerbate health

expensive technology on top of already

when they are conﬁgured to deliver

and controlled ventilation with heat

problems and other social issues such

failing buildings. That way, the cost to

low intensity heat continuously to a

recovery. Thus, an apparently simple

as fuel poverty. We need to be aware

decarbonise our energy supply, the

well insulated, airtight building. To

measure actually introduces a whole

that the directions we are taking now

only real way to achieve a low carbon

size a heat pump to deliver similar

family of additional requirements in

through expedience may not lead us

economy, will be reduced in line with

order to maintain a safe and healthy

directly to our hoped for destination

the energy we save.

Intermittent heating requires a

The problems facing us in dealing

We would be much better off focusing our efforts on building

internal environment. Is a serious mistake therefore to try and skimp on consideration of issues relating to the building fabric in order to pay for the low carbon technologies. Therefore, when it comes to retroﬁt, we must not allow ourselves to become distracted by the apparent ﬁnancial attractiveness of bolt-on renewable energy technologies. It is conceivable that the conjunction of zero carbon buildings, the Feed in Tariff and Renewable Heat Incentive could actually lead to higher emissions overall, whilst not addressing the root of the problem. This is of course an extreme example, but it does highlight

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16-19 ecoblin.indd 19

“Therefore, when it comes to retroﬁt, we must not allow ourselves to become distracted by the apparent ﬁnancial attractiveness of bolt-on renewable energy technologies.”

AUGUST 2012

19 23/7/12 12:33:31

WWF ELIZABETH LEIGHTON

Putting Energy Savings w

WHY SOME HOME EN

20 20-25 wwf.indd 20

AUGUST 2012

HEATING & HOTWATER INDUSTRY COUNCIL

12/7/12 14:25:06

s within Reach:

E ENERGY EFFICIENCY PROGRAMMES WORK BY ELIZABETH LEIGHTON, SENIOR POLICY OFFICER, WWF SCOTLAND

With just months to go before the launch of the Green Deal, questions are being asked about its likely success. Will Green Deal packages be attractive to consumers? Will the Golden Rule hold true? Will enough demand be generated to build a professional energy performance industry? What about the fuel poor? All these questions and more are troubling the minds of campaigners and civil servants alike, who are counting on the Green Deal to help deliver climate change targets.

WWW.CENTRALHEATING.CO.UK

20-25 wwf.indd 21

AUGUST 2012

21 12/7/12 14:25:24

WWF ELIZABETH LEIGHTON

o what are the factors for success and how can we make sure the Green Deal and associated policies and programmes really do put energy savings within

reach of ordinary homeowners? Through a Churchill Memorial Trust Travelling Fellowship, I analysed what the US experience could offer in terms of lessons. I visited ﬁve exemplar programmes in Vermont, Maine, California, and Oregon. The main conclusion was that there is no single ingredient to success – rather you need the full complement, the entire recipe, to bake the cake. Financing, incentives, customer service, social marketing, professional workforce, performance standards and long-term funding are all essential, put together in one coherent package over a period of several years. All aspects are important – a loan programme could not succeed without good marketing, standards could not succeed without incentives, and nothing succeeds without trusted contractors. In short, all rely on a positive customer journey. What does this tell us for the Green Deal? Here is a checklist for the Energy Minister to consider as he puts the ﬁnal touches on the Green Deal arrangements:

Guarantee Quality A trusted system of quality assurance helps build a professional contractor network, gives customers confidence, and produces a measure of actual savings achieved. The Green Deal does include some measures of quality assurance, but many are concerned they won’t be robust enough. For example, in the US, all upgrades are ‘tested out’ for air-tightness and quality work. In addition to independent certification of auditors and contractors, there is a need for pump priming and supporting the profession, through funding cooperative marketing, training in customer service and help for small, local companies that need to scale up quickly, but find it difficult to get the capital in place.

Provide a positive customer journey Customer focus is what it is all about. The customer journey has to be rapid, professional, and meet expectations. The best programmes have a strong contractor network which is local, qualiﬁed, trained in marketing and customer service, and can be counted on to deliver on time, on budget and with the savings promised. After all, the energy adviser and contractor will be the ones to clinch the deal. Multi-year funding and programmes are important to allow the market to build in tandem with the rising demand - market transformation in action. Online assessments of track record (eg number of jobs completed) and customer service in the style of ‘Trip Adviser’ can help to weed out the ‘cowboys’

22 20-25 wwf.indd 22

AUGUST 2012

HEATING & HOTWATER INDUSTRY COUNCIL

24/7/12 11:17:34

“I visited ﬁve exemplar programmes in Vermont, Maine, California, and Oregon. The main conclusion was that there is no single ingredient to success - rather you need the full complement, the entire recipe, to bake the cake.” and reward the top contractors. This

to promote the programme through

also lose faith in stop-go incentive

can also maintain the customer

a range of on-the-ground activities

programmes, assuming they have run

relationship over several years through

– dinner parties to show off upgrades,

out of money and so won’t bother to

tailored correspondence and phone

door-to-door visits, school events and

apply. Yet even with the best ﬁnancing, it

contact to increase conversions to

competitions. In today’s world of virtual

is not enough to attract much uptake on

upgrades now and in the future.

communities, it is just as important to

its own. The overall energy programme

use social media. Social applications

of advice, technical support, marketing

Work with social norms

need to be developed for the UK market

and quality assurance must be part of

which encourage people to share and

the package.

It is vital to engage with social norms

compare their energy use and ideas for

– the rules and customs that guide

how to reduce it.

social behaviour in a community or

to what their neighbours, friends, or

Provide attractive ﬁnancing as part of an energy upgrade programme

community does. It is important to take

Consistent and long-term ﬁnancing

in the housing and rental market.

the time to understand the community

programmes are essential to build

The evidence shows that standards

or segment the audience and design

demand and trust. Short-term incentive

work when aligned with strong

a programme that engages with their

programmes may initiate a burst of

programmes of technical support,

values and needs. A one size ﬁts

activity, but contractors will ﬁnd it hard

ﬁnancial assistance, and marketing.

all approach will not work. Another

to respond, undermining conﬁdence

Householders and landlords will

solution is to use trusted local people

in the profession. Householders will

respond if they believe the standard

group. People don’t tend to make rational decisions based on information or ﬁnance, but they will often conform

WWW.CENTRALHEATING.CO.UK

20-25 wwf.indd 23

Regulate for minimum standards of energy performance Regulation and performance standards are necessary to drive demand and create a value for energy performance

AUGUST 2012

23 23/7/12 15:12:42

WWF ELIZABETH LEIGHTON

24 20-25 wwf.indd 24

AUGUST 2012

HEATING & HOTWATER INDUSTRY COUNCIL

12/7/12 14:26:02

will give some monetary value to

While US energy and housing policies

strong leadership from government

the energy upgrade, so systems to

are different in several respects from

which makes it absolutely clear that

disclose and market the value of the

that in Scotland and the UK, their

by 2020, the UK expects all homes

rating must be implemented and

experience in delivering home energy

to be low carbon homes – warm,

supported. Most important, standards

efﬁciency programmes has much to

comfortable, and cheap to run. Given

should be developed through a

offer. US programmes show a market

this approach, the Green Deal could

stakeholder process which takes

approach can work, but only if the right

have the potential to achieve genuine

account of all concerns and results in

ingredients are mixed together and

transformation of social norms and the

better compliance.

given careful support. There is no ‘silver

market. The scheme could actually

bullet’ that will motivate homeowners

lead to the pace and scale of change

Help the fuel poor

on its own. A coherent package

needed for a low-carbon Britain.

The Green Deal is not the answer for

must be offered as one attractive

most fuel poor households, so support

and streamlined customer journey.

To read the full report on the

from the Energy Company Obligation

Community engagement, targeted

US home energy efﬁciency

and government programmes is

marketing and products, a professional

programmes, Putting Energy

essential. In Scotland, the Existing

workforce, independent advice,

Homes Alliance is arguing for a

affordable ﬁnance, minimum standards,

National Retroﬁt Programme aimed

consistent assessment – these are the

at meeting climate change and fuel

main ingredients.

poverty targets. Key elements of the

If any are missing, the programme

Savings within Reach:

why some home energy efﬁciency programmes

work, go to:www.wcmt.org.

uk/reports/906_1.pdf

programme should include area-

will falter and discredit similar efforts for

Existing Homes Alliance

based programmes targeted at fuel

the future.

Scotland

poor areas that provide free or heavily

There is considerable concern that

www.existinghomesalliance

the UK Government is relying too much

scotland.co.uk/

on the Green Deal to deliver energy

Churchill Memorial Trust

Conclusion

upgrades that will make Britain’s

www.wcmt.org.uk/

In conclusion, energy efﬁciency is a

homes ﬁt for the 21st century. The

WWF Scotland Contact:

tough sell. You can’t see it or touch

evidence is quite clear – ﬁnancing on

Elizabeth Leighton

it, and the big ﬁnancial savings come

its own will not motivate people to take

01350 728 200

over time. Successful programmes

action. Financing must be packaged

07810 507 232

sell the immediate beneﬁts of comfort,

as part of an overall energy upgrade

www.wwfscotland.org.uk

health, warmth, and savings on bills.

programme. This programme needs

discounted measures.

“In today’s world of virtual communities, it is just as important to use social media. Social applications need to be developed for the UK market which encourage people to share and compare their energy use and ideas for how to reduce it.”

AUGUST 2012

20-25 wwf.indd 25

25 23/7/12 15:12:55

EUA NAME CHANGE

BY MIKE FOSTER, FOSTER, CHIEF EXECUTIVE OF ENERGY AND UTILITIES ALLIANCE, (EUA) 1905 was Albert Einstein’s “miracle year” he published his theory of relatively and established mass – energy equivalence (or E=MC2) to you and me. The gas industry was almost a hundred years old by then, with carbonised coal producing town’s gas that provided lighting and heating across the British Isles. It was also the year a Mr Charles Clare of Fletcher Russell (a gas appliance manufacturer) took the ﬁrst step in creating what was the “Society of British Gas Industries” representing 36 members paying subscriptions of two guineas each. Nearly one hundred years later, in 2003, what was then the Central Heating Information Council was merged into SBGI and became known as the Heating and Hotwater Industry Council. HHIC is one of the three divisions of the former SBGI which has now changed to Energy and Utilities Alliance (EUA).

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HEATING & HOTWATER INDUSTRY COUNCIL

23/7/12 11:27:11

“Energy and Utilities Alliance better reﬂects the broad base of our membership now standing at over 220.”

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AUGUST 2012

27 23/7/12 11:27:39

EUA NAME CHANGE

oday’s environment, with

example of one of those challenges.

its challenges, demands a

No one disputes the good intention

change from the industry and

of the scheme. Promoting energy

for me that triggers a name change

efﬁciency measures is good for

too. SBGI is widely respected by

households, meaning lower bills; it

those who know the organisation.

reduces consumption and therefore

But frankly, its name no longer does

greenhouse gas emissions, helping

justice to the wide range of members

to save the planet; it provides a base

we have across the three divisions.

for UK employment opportunities,

So in May 2012, we announced

so individuals as well as society

a new name as we take on those

beneﬁt too. But, there is always a but,

challenges. As a name, ‘Energy and

industry insiders are sceptical the

Utilities Alliance’ better reﬂects the

scheme will work. At its best, Green

broad base of our membership, now

Deal could change our outlook to

standing at over 220. The variety of

energy efﬁciency for the better and for

member ﬁelds includes gas storage,

the long-term but only if government

smart meters, pipes, high efﬁciency

listens to the wider industry and our

boilers, industrial boilers and

concerns. At worst, the scheme

renewables. (As an aside, in my ﬁrst

will degenerate into the next

week as CEO our accountant came

industrial scale mis-selling scandal

to see me and the ﬁrst question he

and will bring energy efﬁciency

asked me was, “what are you going

and environmental concerns into

to do with the name SBGI?”. When

disregard. We owe it to future

your accountant is giving marketing

generations to get this right.

advice, you know it’s time to act).

EUA is also heavily involved in the

Today, EUA provides a leading

debate around the future of gas, our

industry voice that helps shape the

heritage demands we are. So does

future policy direction within the

the future energy security needs of

sector. Using our wealth of expertise,

the UK. Gas generated electricity is

and over 100 years of experience,

more environmentally friendly than

we act to further the interests of our

coal powered electricity generation.

members and the wider community

Hence, in the short-term it makes

in working towards a sustainable, energy secure and efﬁcient future. There are enormous challenges ahead in the energy and related industrial sector. Rising energy costs, issues over security of supply, greenhouse gas emissions and UK jobs and skills are at the forefront of concerns. Working in partnership with others, EUA intends to be a powerful voice for the industry, speaking out when it matters, as the UK faces these challenges in the years ahead. Let’s take Green Deal, featured in this edition of the HHIC Journal, as an

28 25-29 EUA.indd 28

AUGUST 2012

“The gas industry was almost a hundred years old by then, with carbonised coal producing town’s gas that provided lighting and heating across the British Isles.”

HEATING & HOTWATER INDUSTRY COUNCIL

23/7/12 11:28:06

sense to make that switch. But

careers in our sector appealing. It is

to gas also means exploring shale

about showing young people how

users is also important as part of the

and biogas, as well as potentially

exciting it is to be “making things”.

future energy mix we will be using

hydrogen and coal-bed methane in

Encouraging the brightest and best

to be green but also keep warm.

our future energy mix. EUA have been

talent to consider long-term careers

Thankfully only a few people in the

developing our policy position towards

in the industry as well as being the

sector are still advocating the end of

shale, energy security and the future

home of well-qualiﬁed technicians who

domestic gas supply. The majority,

of gas as part of our strategy to be

can deliver at the coalface the energy

what I call the “sensible realists”,

relevant to the challenges of the future.

secure, energy efﬁcient and energy

recognise that even with large scale

I’ve mentioned the job creation

affordable future we all want.

renewable use in the home, there

opportunities that the Green Deal

is always the need for that peak

potentially offers. Jobs and skills in

is here to contribute to meeting the

demand for heating to be met. And

the UK are central to the public policy

challenge of the future, forged in our

gas is the most efﬁcient means to

debate we will face in the years ahead.

history, championing the interests of

meet it.

Part of that debate is about making

our members.

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25-29 EUA.indd 29

That longer-term commitment

keeping the gas grid for domestic

So Energy and Utilities Alliance

AUGUST 2012

29 23/7/12 11:29:36

MARKET UPDATE

Highlights • Boiler sales fail to recover • Solar Thermal sales continue to slide

Each quarter we will bring you an update on the heating market, with a focus on boiler sales. This update replaces the quarterly Boiler Sales Update which HHIC used to distribute as a separate publication. Gas Boiler Sales

Solar Thermal Heating Sales

Inﬂation

The start to 2012 has not provided

The headlines for the December 2011

to the change in CPI annual

the boiler industry with the

Solar Thermal sales have fallen back

consumer prices index (CPI) are:

inﬂation between March and

optimistic return to normality.

to pre 2008 levels before the prospect

• CPI annual inﬂation stands at

April came from the operation of

Sales have continued to slide and

of the Renewable Heat Incentive (RHI)

3.0 per cent in April 2012, down

maintain the negative trend that

boosted sales later that year. The

from 3.5 per cent in March. The

started later in 2011. With no

Solar PV industry has now taken hold

timing of Easter had a signiﬁcant

good news expected in the near

of the solar market with households

impact on the April data. The

at 3.5 per cent in April, down

future, and all economic indicators

preferring to opt for PV and a generous

annual rate was notably lower

from 3.6 per cent in March. The

pointing to a ﬂat year, projections

Feed-in-Tariff. There are rumours of a

in December 2009 when it

largest downward pressures

are not positive. The Jubilee

tariff based RHI for 2013 so hopefully

was 2.9 per cent although the

to the change in RPI annual

holidays will affect quarter 2

this will boost sales later in the year.

3.0 per cent was equalled in

inﬂation between March and

February 2010

April came from alcoholic drinks,

sales and are unlikely to pick up

• The largest upward pressures

personal transport equipment, restaurants & hotels and rents • RPI annual inﬂation stands

in the short term. So the spotlight

Ecomomic Overview

• Air transport, off-sales of alcohol,

clothing, fares & other travel and

will be very much on the Green

The heating market is inﬂuenced by a

clothing and sea transport were

the purchase of motor vehicles.

Deal to see if it can stimulate

range of factors many of which involve

the most signiﬁcant drivers

Partially offsetting these were

the market next year.

decisions based on economic factors.

behind the decrease in annual

upward pressures from housing

Some of these are outlined below:

inﬂation between March and April

and petrol & oil. Source: Ofﬁce for National Statistics

Gas Boiler Sales Q4 2011 v Q4 2010 Q1 2012 Jan

Feb

Q1 2011 Mar

Jan

Feb

Annual Comparison Q1 12 –

Q1 11 –

Q2 11

Q2 10

change

1462.7

1595.4

-8.3

Mar

Total boiler 106.3

129.4

131.4

120.2

118.1

139.6

Interest Rates The Bank of England’s Monetary Policy Committee voted to maintain the ofﬁcial Bank Rate paid on commercial bank reserves at 0.5%. Source: Bank of England

sales (000’s)

Air transport, off-sales of alcohol, clothing and sea transport were the most signiﬁcant drivers behind the decrease in annual inﬂation between March and April

30 30-31 Market.indd 30

AUGUST 2012

HEATING & HOTWATER INDUSTRY COUNCIL

25/7/12 12:03:55

Solar Thermal Heating Sales by m2 Q1 2012 v Q1 2011 Q1 2012

Q1 2011

Q1 2012 –

Q1 2011– Q2

Q2 2011

2010

change

Domestic Fuel Prices The most recent ﬁgures available

% change

from the Department for Energy & Climate Change (DECC) are for Q2

Flat Plate

11253.7

16884.4

-33.3

55162.9

71332.9

-22.6

Vacuum tube

2572.6

3683.9

-30.1

15007.2

17728.4

-15.3

Q2 2010.

Total

13826.3

20568.3

-32.7

70170.2

89061.4

-21.2

House Prices

2011 and these are compared with

Average house prices in the UK

Recent changes in RPI and CPI annual rates were as follows:

were essentially unchanged in the ﬁrst quarter, after allowing for usual

Inﬂation

seasonal effects. The annual rate Feb 12

Mar 12

Apr 12

CPI change (%)

3.4

3.5

3.0

RPI change (%)

3.7

3.6

3.5

of change moderated from 1.1% to 0.2%. The North saw the strongest quarterly growth rate, with prices up 0.6% quarter-on-quarter. This pushed the annual rate of price

Domestic Fuel Prices Indices:

change up from -1.0% to 0.8%. Apart from the North and the Gas

Electricity

Heating oils

Q1 2012

223.2

176.1

211.6

regions saw their annual rate of

Q1 2011

189.6

159.4

199.4

house price growth slow during the

% comparison

+17.7

+10.5

+6.1

ﬁrst quarter.

Outer South East, all of the English

Source: Nationwide

House Prices 2011

2012

Jan

£161,211

£162,228

Feb

£161,183

£162,712

Mar

£164,751

£163,327

Average

£162,379

£162,722

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30-31 Market.indd 31

Housing and Property Transactions The total number of property transactions was up to to 81,000 in February 2011, a rise of 14.1%. Source: Construction Products Association

AUGUST 2012

31 24/7/12 11:29:51

DR TINA HOLT - HOMES BEHAVING BADLY

AUGUST 2012

32-27 home behaving badly.indd 32

HEATING & HOTWATER INDUSTRY COUNCIL

12/7/12 14:38:14

AN OPPORTUNITY TO LEAF THROUGH THE

‘Homes Behaving Badly’ BY DR TINA HOLT

“One of the big surprises was the extent to which all the homeowners who put their houses forward as case studies were already reducing bills just with effective energy saving habits.”

omes Behaving Badly

Houses under Construction’ series.

saving habits. SAP and NHER energy

(HOBBS for short) is a

Our aim was to champion the cheap

modelling (carried out by Gil Schalom)

Transition West Bridgford

but effective options as well as to

together with thermal imaging and

(TWB) project funded by the UK

provide the low-down on more costly,

air-tightness testing results were

government’s recent community-

but potentially dramatic, improvements

combined with information from the

focused scheme, the Local Energy

that some householders wish to

homeowners themselves to create

Assessment Fund (LEAF). LEAF

understand in more detail.

each case study.

gave groups across the UK funding

The HOBBS project examined eight

for projects to help save or generate

typical housing archetypes in the West

about providing detailed exemplars

energy in their localities.

Bridgford area to demonstrate what the

with which householders could

journey from ‘inefﬁcient’ to ‘efﬁcient’

identify. The power of this approach

green architect Gil Schalom and eco-

or ‘highly efﬁcient’ might look like. Eco

was evident at the workshops, where

champion Penney Poyzer) launched

House Group members were invited

feedback showed that over 90% found

the project on 21st January 2012 at

to come forward if they had energy-

‘seeing what others did’ to be useful

the low energy homes exhibition which

use data and were willing to share

– whether their plans were zero cost or

formed the ﬁnal event in TWB’s ‘Eco

details about their homes and energy

high cost.

The HOBBS team (Dr Holt, with

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32-27 home behaving badly.indd 33

The HOBBS case studies were all

AUGUST 2012

33 25/7/12 11:28:36

DR TINA HOLT - HOMES BEHAVING BADLY

Those at the workshop for

AUGUST 2012

32-27 home behaving badly.indd 34

The workshops on solid wall homes

varying degrees of solid wall insulation

householders in cavity wall homes

attracted larger audiences – hardly

on energy use and comfort, and the

were most entertained by ‘Julie,

surprising in a place like West Bridgford

impact of different renewable options.

Queen of Mean’ describing her

which has so many older houses.

proudly maintained Yorkshire habits

For modest budgets, we focused on

convey to householders through the

and mainly low cost measures in her

low cost ideas like draught-prooﬁng

report and the workshops is that every

1960’s bungalow. Feedback from one

and insulation of pipework. We even

house and householder is different,

householder at that workshop was

looked to the Victorians for inspiration

and that one solution does not always

revealing: ‘I thought I had a pretty good

to combine curtains with blinds or

ﬁt all. We encouraged householders

energy efﬁcient home. Now I know

shutters. For those with bigger budgets

to become their own energy experts,

there’s a lot more I can do.’ Many

or just curious to know more, we

for example, by showing them how

people living in cavity wall homes could

examined some options for whole-

to work out roughly what proportion

further improve energy efﬁciency even

house low energy refurbishment. The

of their annual energy use is devoted

if they think they have already covered

HOBBS case studies illustrated a range

to space heating and how much to

the basics.

of approaches, including the effects of

other uses.

The big message that we wanted to

HEATING & HOTWATER INDUSTRY COUNCIL

23/7/12 14:37:03

“Another fact highlighted by energy modelling was the difference that ‘standard’ measures, such as an efﬁcient boiler, could make to some energy bills. Often the least glamorous options reaped the biggest beneﬁts.”

One of the big surprises was the extent to which all the homeowners who put their houses forward as case

32-27 home behaving badly.indd 35

already been done. For those looking to make their

studies were already reducing bills just

solid wall homes more efﬁcient, energy

with effective energy saving habits.

modelling and householder experience

Actual energy use in each case was

seem to suggest that doing one

between 29% and 56% lower than the

thing well tends to work better than a

‘average’ as predicted by SAP/ NHER

scattergun approach. It also means that

modelling of the same house in its

over time, each element of the house

current state. This proved to be highly

can be improved to a high standard,

motivating, as many people attending

with the eventual result of a very low

the workshops previously believed

energy home.

that energy saving habits would make little impact on energy bills. Another fact highlighted by energy

While some of the homes which formed the HOBBS case studies had renewable technologies installed,

modelling was the difference that

the ‘Homes Behaving Badly’ project

‘standard’ measures, such as an

focused chieﬂy on the less glamorous

efﬁcient boiler, could make to some

area of efﬁciency savings. This was

energy bills. Often the least glamorous

by no means a rejection of renewable

options reaped the biggest beneﬁts.

technologies – more a way to ensure

Alongside the big improvements, the

that energy wastage in the badly

case studies indicated that a host of

behaving house is ﬁrst cut right back so

smaller but cheaper changes could

that smaller boilers can be speciﬁed, or

help e.g. insulating hot water pipes or

the most appropriate choice of energy

sealing up unused ﬁreplaces (where

generation technology can be made.

appropriate) – even though some

If our small selection of just eight

were ‘below the radar’ in terms of

local homes and their energy aware

SAP/NHER.

occupants were typical of the UK

For solid wall homes, personal

WWW.CENTRALHEATING.CO.UK

am aware of instances where this has

population, we would be well on the

experiences and energy modelling

way to energy security and dramatic

highlighted the fact that ‘standard’

carbon reduction targets in the

efﬁciency improvements could only

domestic housing sector. If the SAP and

improve bills and comfort up to a

NHER energy models do indeed reﬂect

point. Beyond that, solid wall insulation

the ‘average’ householder’s energy use,

was required, improving comfort

then mass adoption of energy saving

dramatically as well as reducing bills.

habits could probably cut UK energy

Our case studies seemed to indicate

demand by at least 20% overnight.

that adding just enough solid wall

Mass uptake of the ‘standard’

insulation to achieve 2012 building

measures such as draught-prooﬁng, loft

regulation standards represented a

and cavity wall insulation, or installing

missed opportunity, whereas a ‘do it

‘A’-rated boilers would bring about

once and do it well’ insulation strategy

another step change. On top of that, a

would save re-work in the future.

well-executed programme of solid wall

Indeed, the ‘Home Truths’ report by

insulation to beyond current building

Brenda Boardman suggests that by

regulations could help to convert ‘hard-

2030 we will be adding solid wall

to-treat’ homes into a new generation

insulation to cavity wall homes, and I

of low energy homes. We are still only

AUGUST 2012

35 23/7/12 14:37:17

DR TINA HOLT - HOMES BEHAVING BADLY

in the foothills of the UK’s energy-

from the Green Deal, and the HOBBS

studies which were relevant to one of

householders, whatever their budget,

efﬁciency mountain range.

workshops provide them with the

their projects in Derbyshire.

have the potential to make a major

So, from just 12 weeks of work in early 2012, what will be LEAF’s legacy?

tools to do that. Then there is the HOBBS report. On

Overall, the HOBBS team feel that the project has provided

contribution to reducing UK energy requirements and carbon emissions.

the whole it is written for householders

positive evidence that their aim of

Badly’, we have a workshop format

- to dip into, compare their homes with

enabling householders to understand

The HOBBS report is available

that is ready to go. Householders who

a couple of case studies, and become

their own energy use is a realistic

for free and can be downloaded

attended the ﬁrst HOBBS workshops

their own energy experts. In the words

one. It was encouraging to see

from: Dr Tina Holt:

in March 2012 created their own ‘to

of our proof-reader ‘This is clear,

that workshop participants were

www.ecohousenet.co.uk

do’ lists – as diverse as the homes and

informative and what we’ve all been

highly motivated by seeing what

enquiries@ecohousenet.co.uk

the people in them, and going beyond

waiting for.’ We hope it will be used by

other householders had done, and

TWB Eco House Group:

the simple efﬁciency messages that

organisations too. Our colleagues at

impressed by the savings that others

www.wbecohouses.co.uk

no longer seem to motivate. We want

Nottingham Energy Partnership have

had made from simple energy saving

wbecohouses@gmail.com

householders to get the best deal

already used selected HOBBS case

habits. The decisions of ordinary

In the case of ‘Homes Behaving

Dr Holt is a specialist in household energy efﬁciency, from humble energy saving habits to whole-house low energy refurbishment. She has worked for Global Action Plan on the ‘EcoTeams’ behavioural change programme, and is currently refurbishing her own home - a 1950s house of solid wall construction - to the new Passive House standard for retroﬁt. In 2010, she set up the Eco House Group – a Transition West Bridgford (TWB) initiative providing events for householders looking to reduce their energy bills and increase comfort levels. Events to date include open house visits, seminars, the Eco Houses under Construction project and Homes Behaving Badly and the group has attracted over 260 members. Like other Transition groups around the UK and globally, TWB in Nottinghamshire was set up to improve community resilience and encourage the transition towards a life less dependent on oil.

AUGUST 2012

32-27 home behaving badly.indd 36

HEATING & HOTWATER INDUSTRY COUNCIL

24/7/12 10:11:58

AUGUST 2012

32-27 home behaving badly.indd 37

37 25/7/12 12:08:09

MATTER IN QUESTION

Heating is the backbone of the

GREEN DEAL

The much heralded Green Deal scheme is nearly here. Increasingly it is starting to look as though the legal framework will be in place in time to meet the government’s planned timetable to introduce the scheme in the autumn of 2012. However it seems likely that the start of Green Deal will be a ‘soft’ one, meaning that there will be few schemes in place in the ﬁrst few months after it is introduced and there will probably be only be a gradual build up of business during 2013.

AUGUST 2012

38-39 matter in question.indd 38

HEATING & HOTWATER INDUSTRY COUNCIL

23/7/12 11:49:22

Green Deal is certainly a new and

response, DECC has established a

imaginative approach to resolving this

joint government and industry panel

problem. The key question now is not

to establish a Green Deal business

will it work − but how can we make it

model which can speciﬁcally involve

work? Clearly it is the responsibility

SMEs. This panel will be working over

of the government to put a workable

the summer

framework in place and we will see in

and will report its recommendations

due course whether this is the case.

to Ministers.

We have been certainly been very

the Green Deal – it is indeed its

to try to ensure an effective

backbone and will actually be a

framework. But it will then be down to

trigger for consumers to take up

industry to work with the scheme to

other measures. But the most

try to make it a success.

important question is how can we

To do this we need to stimulate

BY ROGER WEBB, HHIC DIRECTOR

Heating is so important to

active, working with the government

persuade consumers to arrange

demand for the scheme from

and ﬁnance energy efﬁciency

consumers and if we are to achieve

improvements differently from how

this then we need to encourage

they do now? This will be no easy

the supply industry to adopt it and

task and changing people’s set

to encourage installers of energy

behaviour patterns will be extremely

efﬁciency products to embrace Green

difﬁcult. As I discussed earlier in

Deal and see it as an effective way

this article, installer education is

of doing business. It is important

paramount and by getting engineers

to recognise that the installer has a

on side, could be the key to

huge inﬂuence over the consumer’s

unlocking consumers’ predetermined

purchasing decisions. So in the end,

thought patterns. How? Quite simply,

his soft start approach

technologies, the one thing we must

the installer will have a crucial role

the installer will become the trusted

makes good sense. This is

do above all else is to reduce demand

in determining the level of uptake of

information bearer. Most consumers

an entirely new scheme with

for energy and that means making

Green Deals and hence the extent

are clueless when it comes to their

new (and in some cases complex)

our building stock much more energy

and speed by which the energy

heating systems. The installer that

processes that need to be properly

efﬁcient. Once we have achieved

efﬁciency of the UK’s housing stock

comes into a house is the expert of

tested. If the Green Deal is to be

this it takes much of the pressure off

will be improved.

which the consumer has no option

successful then it needs acceptance

the argument about which energy

by both those who will deliver it and

sources and heating technologies we

of replacement heating systems

even more so by consumers since

should be using in 2050. It will also

are undertaken by 60,000 micro

it represents a fundamental change

make our homes ready for heating

businesses. One of the big concerns

the Green Deal will make it unlikely

to the way householders arrange

with low carbon and renewable

is that Green Deal, as a large a fairly

that the small installer will be part of

and ﬁnance energy efﬁciency

alternatives to fossil fuels.

complex scheme, is better suited to

this government’s scheme. This has

delivery by large companies and so

to change. There must be appropriate

improvements to their homes

Unfortunately the UK householder

For heating the vast majority

but to trust in making the correct decision for them. Currently, the present structure of

has so far proven resistant to the

small ones might miss out and lose

incentives for the Green Deal to be

important? Well, we can have long

calls and even support to improve

business as a result. We have been

attractive to local installer companies.

debates about what the future energy

the energy efﬁciency of their homes.

emphasising to the Department of

supply mix will look like and how

Also with the UK having some of

Environment and Climate Change

our trust in installers as the success

we will be heating our homes and

the least energy efﬁcient building

(DECC) the crucial role of small

of the Green Deal could depend

businesses in the future. But whether

stock in Europe makes reducing

companies within the market and the

on how they perceive and present

this future is heating by fossil fuels,

our energy demand for heating a

need for them to be fully engaged

the scheme to an increasingly

electricity, renewables or other

particularly difﬁcult challenge.

if Green Deal is to succeed. In

sceptical public.

So why is Green Deal so

WWW.CENTRALHEATING.CO.UK

38-39 matter in question.indd 39

I believe that we must raise

AUGUST 2012

39 23/7/12 11:50:54

DR ELAINE LANCASTER

AUGUST 2012

40-44 doing the deal.indd 40

HEATING & HOTWATER INDUSTRY COUNCIL

12/7/12 14:42:26

“So, with Green Deal forming part of the strategy for reducing the carbon impact of our existing housing stock the potential for the heating installer is enormous. Good, sound traditional heating design and installation skills will be at a premium from now on because any improvements paid for through the Green Deal must deliver what they promise.”

Doing the Deal BY DR ELAINE LANCASTER, RESEARCH & DEVELOPMENT DIRECTOR AT IDEAL HEATING

The UK recession has recently been double hit and our economic future is increasingly unsure. However, what it far more certain in this uncertain age is the fact that energy bills will continue to rise. Households across the UK urgently need to address ongoing running costs in the home, but our homes and buildings are inefﬁcient. This is where the Green Deal kicks in.

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40-44 doing the deal.indd 41

AUGUST 2012

41 12/7/12 14:42:38

DR ELAINE LANCASTER

AUGUST 2012

40-44 doing the deal.indd 42

HEATING & HOTWATER INDUSTRY COUNCIL

12/7/12 14:42:51

rom autumn, homeowners

46% of homeowners and tenants

and businesses will be able

in the UK are looking to make

to borrow money for energy

their home more energy efﬁcient

saving improvements and pay it

in order to reduce their energy

back through their energy bill from

bills. This forms a core element of

the intended energy savings. With

the government’s Heat Strategy

the addition of the Energy Company

and indicates that there is a huge

Obligation (ECO) subsidy from the

potential in the retroﬁt market when

energy supplier intended to integrate

it comes to the installation of the

with the Green Deal, this will also

provisions outlined by the Green

focus on vulnerable and low-income

Deal. Along with this, in order to

householders and hard to treat

reach set targets by 2050, the

properties where additional measures

government has also introduced

are required to improve energy

a series of other schemes to

efﬁciency and help reduce fuel poverty.

encourage renewable technology

The government is putting a serious

take up, this includes the Feed in

commitment behind the scheme, kick

Tariff (FiT) and Renewable Heat

starting it with an initial cash-back

Incentive (RHI).

incentive of £200 million pounds.

This should all help to boost the

The measures to improve energy

low carbon economy and create

efﬁciency are critical for existing homes

a massive demand for new and

if carbon reduction targets are to be

retroﬁt installations carried out

met – as they make up the majority

by heating and plumbing ﬁrms. It

of the housing stock in the UK and

will be the biggest opportunity for

will continue to do so in the future.

energy efﬁciency improvement in

To maximise the uptake of these

heating and hot water provision

provisions, the whole process needs

– which accounts for around 70% of

to be made as hassle-free as possible,

household energy.

from the quoting and installation to the outlay costs and aftersales. A recent survey carried out by the

As well as undertaking installation work, the industry will require the appropriate skills to be called upon

Department for Environment and

to carry out the calculations of the

Climate Change (DECC) found that

possible savings and advise on

“The measures to improve energy efﬁciency are critical for existing homes if carbon reduction targets are to be met – as they make up the majority of the housing stock in the UK and will continue to do so in the future.”

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40-44 doing the deal.indd 43

JAUGUST 2012

43 23/7/12 12:02:49

DR ELAINE LANCASTER

technical solutions for Green Deal projects.

Facilities management ﬁrms are also

To improve the building fabric and cut energy

interested in this market – valued at a

demand from existing homes, improving

potential £200bn. However, there are simply

insulation, double glazing and draught

not enough skilled people around to deliver

prooﬁng are expected to be the focus of the

this volume of energy efﬁciency work. We

work – requiring heat loss calculations to

will need to step up training and attract

determine energy saving impacts. Heating

new people and skills into the industry, as

system sizing and heating system upgrades

well as looking at how to create ‘template’

including new condensing boilers and heating

solutions that can be replicated and applied to

controls can play a signiﬁcant part in achieving

thousands of projects.

the energy savings for the customer and

Looking back to the DECC survey, of the

meeting the government energy efﬁciency and

consumers questioned, 59% highlighted a

carbon saving targets.

beneﬁt which is linked to the Green Deal, as

So, with Green Deal forming part of the

the main reason they make improvements to

strategy for reducing the carbon impact of our

their home. When asked what motivates them

existing housing stock the potential for the

to make their home more efﬁcient, although

heating installer is enormous. Good, sound

cost was the main driver, almost 20% of

traditional heating design and installation skills

people highlighted the need for convincing

will be at a premium from now on because any

information from a trusted installer – providing

improvements paid for through the Green Deal

a real opportunity for experienced installers

must deliver what they promise. The savings

with the appropriate skills as they will be

will be estimated when the ﬁnance is made

called upon to carry out the calculations of

available. Designers and installers’ calculations

the possible savings and advise on technical

will need to be carried out carefully to ensure

solutions for Green Deal projects.

accuracy, so the reality matches the design.

Consumers have highlighted that they are

The Golden Rule is that the savings on

willing and want to improve the efﬁciency of

the energy bill must outweigh the cost of the

their homes, with particular requirements for

installation, meaning the measures which

a warmer, energy efﬁcient home with reduced

make the most signiﬁcant impact to energy

energy bills. High efﬁciency heating systems

saving will be the ﬁrst in line. Good news

are proven to give energy and utility bill savings

for high efﬁciency boiler installations as the

when installed in place of older systems

installation cost is low in comparison to the

– showing heating installers they have a key

overall lifetime savings on the energy bill.

role to play on the energy efﬁciency agenda.

“Facilities management ﬁrms are also interested in this market – valued at a potential £200bn. However, there are simply not enough skilled people around to deliver this volume of energy efﬁciency work.”

AUGUST 2012

40-44 doing the deal.indd 44

HEATING & HOTWATER INDUSTRY COUNCIL

23/7/12 12:04:13

NEIL SCHOFIELD

BOILERS CAN BE THE TRIGGER TO KICK-START

THE GREEN DEAL The Green Deal enormous opportunity which will reinvigorate the UK’s housing stock and give the heating industry a much needed boost or an enormous white elephant on a road to nowhere? Discuss.

o be honest, I already have, at length, with many people around the heating

industry and the only conclusion I can draw is that the jury is still out, because nobody really knows if this is going to work. What is clear is that the Green Deal has its critics, not least those who prefer the idea

BY NEIL SCHOFIELD, HEAD OF EXTERNAL AND GOVERNMENTAL AFFAIRS AT WORCESTER BOSCH GROUP

of a Big Bang start rather than the government’s preferred soft launch. The critics interpret the soft launch idea as a lack of commitment from the government.

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AUGUST 2012

45 23/7/12 12:28:38

NEIL SCHOFIELD

Personally, I don’t have any problem with it. With something this big and this complex, requiring a significant change in mind-set on the part of the consumer, baby steps are a good idea rather than just jumping in with both feet. What is becoming clear though is that the government has listened. When the Green Deal was first mooted it was an insulation-only solution, but to be fair to the Department of Environment and Change (DECC), it has started to see the sense in using the boiler as the “sprat to catch the mackerel”. In other words, fit a boiler and link it to other energy saving measures including insulation, lighting and glazing. With this model, the boiler becomes the lead generator, or trigger, for the Green Deal. With 5,000 boiler installations every day in the UK, which equates to 1.5 million every year, there is ample opportunity to get in front of homeowners and sell them the benefit of a whole house energy efficiency solution. This is why the original DECC model, which tried to reinvent the supply chain, was so flawed. We don’t get heating advice from our utilities supplier or down at Tesco’s (“four slices of that Yorkshire ham please and when you’re done can you tell me which aisle the condensing boilers are on?”). No, in the UK, the installer is king. We get our advice from Pete the plumber who is invited into the home. There is no cold calling here. Crucially, there are 130,000 Gas Safe Registered installers in the UK. 90,000 of them are active boiler installers and potential Green Deal salesmen if we can only get them on-board. However trusted an advisor he or she may be, it is essential to remember that the average installer is a sole trader and it is important that the Green Deal is not beyond their reach. There is a danger that the Green Deal becomes, in the minds of the UK’s installer base, a scheme run by the big players such as the major energy companies. There is also the added concern that

46 45-47 neil.indd 46

AUGUST 2012

Photo: Chris Yates

HEATING & HOTWATER INDUSTRY COUNCIL

25/7/12 12:10:23

many still don’t see the opportunity before them. Nobody is asking, or even suggesting, that the UK’s installer base go out and retrain to become skilled in home insulation, lighting and double glazing. What we have to do is join up the different tradesmen so that together they can provide a comprehensive package for the homeowner. This is where the Green Deal suppliers come in, acting as a catalyst for all the different trades to come together. The installer does not have to do anything more than offer the homeowner a deal along the lines of, “I can get you £500 off this boiler, but only if you get loft and cavity wall insulation within the next six months.” However, we must also build in safeguards to ensure that no installer takes a Green Deal lead to a Green Deal supplier, only to ultimately lose the job. If that happens, then installers will just start rubbishing the Green Deal and we’ll all lose out. The installer must be encouraged to act as an ambassador for the Green Deal which is why the £200 million kick-start fund announced by Greg Barker MP, Minister of State for Energy and Climate Change to pump prime the launch is a fantastic opportunity to use the boiler as the trigger for wider home energy efficiency improvements. To answer the question I posed at the start of this article, I do believe the Green Deal can make an enormous contribution to reinvigorating the UK’s housing stock and give the heating industry a much-needed boost. It’s not flawless, but the government should be commended for making such a forceful commitment to improving the energy efficiency of UK homes and I would urge the UK’s installer base to get involved.

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HEATING HOTWATER

INDUSTRY COUNCIL

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