Transcript Slide 1

South Warwickshire
Landlords Forum
David Jullien
(Act on Energy)
12 November 2014
Benefits of Energy Efficiency
in Privately Rented Homes
For Tenants
•
•
•
•
•
Lower fuel bills
Warmer homes
Healthier environment
Less debt
More disposable income
For Landlords
•
•
•
•
•
Less complaints
Less condensation damage
Less tenant illness
Less rent arrears
Improved reputation
Support for Energy Efficiency
Measures
Source
•
•
•
•
•
•
•
•
•
•
•
Insulation
Double glazing
Heating improvements
Hot water improvements
Renewable heating
Renewable electricity
Green Deal (loan) + HIF?
ECO (grant/subsidy)
RHI (payment)
FIT (payment)
Landlord Energy Saving
Allowance (tax deduction)
Private Rented Sector- Energy Saving
The Energy Act 2011- provisions to regulate private rented sector
• Currently- landlord and tenant have to
agree before GD loan is taken out
• From April 2016- landlord can’t refuse a
tenant’s request for EE improvements (if
available through Green Deal or ECO)
• From 2018- can’t rent property with EPC
band F or G
(England 9.2% homes in band F/G)
X
GREEN DEAL- How it Works
SAP
typical older
property
EPC
band
fuel bill £2,800
1
G
Add
Improvement
measures
*3 ECO
Grant *2 Top-up
needed
wall insulation
*1 cost meets
golden rule
roof insulation
GD loan
repayment
double glazing
=
£2,200
21
£1,950
£1,800
F
HE boiler
39
E
£1,350
D
65
*2 Personal savings, mortgage or other loan
C
New fuel bill
81
B
92
A
100
repayment more
than saving
Funding options
*1 “Green Deal” from Green Deal providercommercial loan repaid through electricity bill
£1,400
ave
55
total saving
£1,400
doesn’t meet
golden rule
*3 “ECO”- grant from energy supplier (£1.3b/yr)
£780m- carbon saving obligation (private sector)
£330m- affordable warmth obligation (benefits)
£160m- carbon saving communities (private sector)
£ 30m- carbon saving rural communities
Energy Company Obligation (ECO)
2014 ECO rules changed
• Home Heating and Cost Reduction Obligation (HHCRO)
Same target
but extended
to 2017
• Carbon Saving Community Obligation (CSCO)
No change
• Carbon Emission Reduction Obligation (CERO)
Reduced by 33%
Excess can be carried over to
following years
RESULT- targets reached / schemes stopped / more in April 2015 ?
Renewable Energy
• Feed in Tariff
• Solar electric
• Wind
• Combined Heat and Power
• Renewable Heat Incentive
• Heat Pumps
• Biomass
• Solar water heating
• Combined Heat and Power
Landlord’s Energy Saving Allowance
Tax reduction of up to £1,500 (Tax Return)
• Loft, Wall and Floor insulation
• Draught proofing
• Hot water system insulation
DIY installation- claim materials
not labour
Contacts
Gov.uk website
https://www.gov.uk/green-deal-energy-saving-measures
Ofgem website
https://www.ofgem.gov.uk/environmental-programmes/energycompanies-obligation-eco
Act on Energy: Freephone 0800 988 2881
www.actonenergy.org.uk