Transcript Green Deal Customer Journey: Installation

The Green Deal
Paul McCloghrie
DECC
14 June 2011
Household emissions – the
challenge
Carbon budgets are
equivalent to a 34% cut
in greenhouse gas
emissions by 2020.
Household emissions have
been relatively static
recently (c.25% of the UK
total).
The household sector will
need to reduce direct
emissions by 29% on 2008
by 2020.*
* Based on analysis the most practical and
cost-effective route to achieving economy
wide reductions
What change is needed by 2020?
MtCO2e
24 Mt
cut
(29%)
How do we fill the gap?
1. Reduce the energy required to heat our
homes
i. Insulation
ii. More efficient heating systems
iii. Better heating controls
2. Produce low carbon heat
i. Solar thermal
ii. Heat pumps
3. Change behaviour
i. Attitudes
ii. Enabling technologies
How do we fill the gap?
Reduce demand
Renewables
Solar Thermal
(replacing gas)
£/tCO2e
850
Solar Thermal
(non-net bound)
300
250
200
Local Authority
Solid Wall
Insulation
150
100
Ground Source Heat
Pumps (non-net bound)
Loft Insulation
Biomass boilers (nonnet bound)
External Solid
Wall Insulation
Internal Solid
Wall Insulation
50
0
-50 0
1
2
3
4
5
6
7
8
9
10
-100
-250
-300
12
13
14
15
16
17
Air Source Heat Pumps
(non-net bound) Air Source Heat Pumps
(replacing gas)
-150
-200
11
Cavity Wall Loft Insulation
Insulation
Smart
Meters
Solid Wall Insulation
Note: The technical potential indentified in the MACC reflects judgements
made on feasibility which are subject to uncertainty.
18
19
MtCO2e
The origin of the Green Deal
Through our ‘Green Deal’, we will
encourage home energy efficiency
improvements paid for by savings
from energy bills. We will also take
measures to improve energy
efficiency in businesses and public
sector buildings.
The Coalition: our programme for government
(May 2010)
The Green Deal Process
Assessment
Finance
Installation
Repayments
and Follow
Up
• All Green Deals start with an assessment of
the property
• Accredited assessor produces – fabric and
behavioural assessment
7
The Principle: Golden Rule
Green Deal repayment – illustrative only
•Repayments will be made through energy
bills
•The cost of installation will stay with the
property rather than the original bill-payer
• Are the savings guaranteed?
• No – but they will be based on typical
savings. We cannot account for
changing energy prices or behaviour
change.
• A Code of Practice will ensure the
benefits of measures cannot be
overstated.
• The assessment will cover how the
energy bill payer can benefit most from
the measures installed.
Green Deal Measures
Step One - Is the measure
eligible?
Step Two – Is measure
suitable for the property?
Step Three – Does the
measure meet the Golden
Rule in the property?
•Green Deal Measures must meets high-level eligibility
criteria in secondary legislation.
•
A physical assessment of the particular property
including what measures have been installed.
•
Recommendation on which measures should be
installed.
•
Indication of which measures are potentially “suitable”
for finance.
•
The Green Deal Provider weighs up the estimated
energy savings for the measures and their likely costs
for the installation work FOR THAT PROPERTY.
•
The products installed must meet health and safety and
performance standards to be set out in a Code of
Practice.
Call for Evidence
• The Call for Evidence received over 300 submissions
• It is due to report at the beginning in June
• The report will cover the cost and benefits – financial and
energy savings – of the measures most likely to meet the
Golden Rule at the launch of the Green Deal
• Strength of testing is key
Call for Evidence – Measures covered
Category
Measures
Heating, ventilation Condensing boilers, heating controls, underand air conditioning floor heating, heat recovery systems,
mechanical ventilation (non-domestic), flue
gas recovery devices
Building Fabric
Cavity wall insulation, flat roof insulation,
internal solid wall, external solid wall, draught
proofing, heating system insulation, energy
efficiency glazing
Lighting:
Lighting fittings, lighting controls
Water heating
Innovative hot water systems, water efficient
taps and showers
Microgeneration
Ground and air source heat pumps, solar
thermal, solar PV, biomass boilers, micro-CHP
Customer Protection and the Golden Rule
There are a number of ways the consumer is protected:
• The Golden Rule: Providers cannot attach more finance to the energy
bill than the measures are predicted to save
• For domestic customers, the Consumer Credit Act applies
• Accreditation of Green Deal participants – installers, assessors,
‘providers’
• Robust redress systems
Oversight and Accreditation Model
SoS (Primary Powers)
Code of
Practice
PAS standard
managed by BSI
Accreditation
Body
(UKAS)
Accredit and
monitor Cert bodies
to PAS
Installer oversight contractor
Reports to DECC SoS
Umbrella / Certification bodies
Specialist trades & General trades
Installer companies / GD Providers
Boilers and Green Deal
• More efficient boilers are a important part of
reducing energy use in buildings.
• In cases where the energy savings could not pay
for the measure over its lifetime, customers could
part finance measures upfront.
• Robust product and installation standards already
exist for the boiler industry, putting it in a good
place to take advantage of the opportunities.
Energy Company Obligation: Delivering
Affordable Warmth
• One of ECO objectives to help low income
vulnerable people heat their homes more
affordably
• Taking powers in the Energy Bill to set
suppliers an ‘affordable warmth’ target
• Could offer new/repaired central heating
systems to help meet this target
• Looking into case for allowing heat pumps
to be delivered to off-grid homes
Energy Company Obligation: Supporting
Hard to Treat homes
• One of ECO objectives is to
support the improvement of harder
to treat properties
• Expect energy suppliers to deliver
through partners and combine
subsidy with Green Deal finance
• Looking at ways to ensure the
market is open and competitive
• Consultation in the autumn
Questions?
Paul McCloghrie
[email protected]