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East Midlands Councils Regional Retrofit – a model

East Midlands Councils Regional Retrofit – a model. Emily Braham, LHA-ASRA Ellie Horwitch-Smith, NCH. Fifteen Members. 130K homes in EEM, another 40,000 across other partners. Context. Pressures. Opportunities. PAYS models emerging New income streams (FIT, RHI)

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East Midlands Councils Regional Retrofit – a model

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  1. East Midlands CouncilsRegional Retrofit – a model Emily Braham, LHA-ASRA Ellie Horwitch-Smith, NCH

  2. Fifteen Members 130K homes in EEM, another 40,000 across other partners

  3. Context Pressures Opportunities PAYS models emerging New income streams (FIT, RHI) Opportunity to influence direction Local control Green economy job creation • CO2 targets • Fuel poverty – energy price rises • Worklessness and skills gaps • Limited public funding • Rising affordable rents • 102K vs. 500K p.a. NB: For more background on Feed in Tariffs, Renewable Heat Incentive and Green Deal, please see last 2 slides

  4. What we’ve done to date

  5. What we’ve done to date

  6. Our ambition moving forward… (Please also read notes attached to slides)

  7. The challenges we face • Different type of ‘membership’ organisations • Time pressures e.g. FIT step down • Legal, financial and other risks • Scale of ‘eligible’ properties for PAYS approach • Property level solution, area based model • Guaranteed savings for tenants – ‘golden rule’ • Equitable investment in properties • Co-ordinated approach to refurbishment / retrofit, and regeneration • Need organisation to manage fund

  8. What roles exist in this model?What role do we see each of us having?

  9. What we already have • Supply & Install Solar PV Framework • Materials framework • Effective procurement to assist local supply chain • Working Neighbourhoods Fund with Leicester City Council • Structure and governance advice • Supportive fund managers • Open dialogue with DECC • Momentum and wide ranging interest

  10. What we need to do • Marketing and communication materials • ‘How to’ guides – solar PV installation, stock assessment, tenant engagement? • Pilot projects to assess opportunity and reality of PAYS • Suite of legal documents to draw from (solar PV initially) • Set up suitable governance structure • Work closely with funding partners to create model • Risk analysis • Roll out training programmes

  11. What benefits will our proposals bring? • Associate membership of EEM – all Councils • Immediate access to Solar PV Framework • Review of your standard tenancy agreement – for solar PV installations • Access to all developed resources • Opportunity to set up and share local training programmes • Long term aspiration to provide access to finance for retrofit investment • Direct engagement/ influence over Green Deal development

  12. Thank you • We will be holding an open discussion meeting on Tuesday 17th May 2011 • Please email in advance any questions or comments to Emily Braham so we can ensure we answer these on the 17th May. emily.braham@lha-asra.org.uk 07912 085490

  13. Additional information on Feed In Tariffs, Renewable Heat Incentive and Green Deal

  14. What is the FIT and RHI? Feed in Tariff • Per kWh payment - up to 5MW • Rate for 20-25 years, target ROI ~ 8% • 27,000 registered installations (solar PV 19,800+) • Recent developments: • >50kW+ PV tariffs reduced from 1 April (32.9p – 19.0p) • Anaerobic Digestion tariffs >250kW increased • Comprehensive review closes 6 May (10% saving by 2014-2015) • Any new tariffs/ procedures to apply from 1 August 2011 Renewable Heat Incentive • Reduce 44 MtC by 2020 (20 new gas power stations) • Per kWth payment – all sizes • Installations since 15 07 2009 • Industrial, commercial, public sector, community • 20 year tariff • Solar thermal <200kWth = 8.5p; Biomass <200kWth 7.6+1.9p • Households • RHI Premium Payment: 25,000 (£300-£1,250) – eligibility criteria • Tariff to start with Green Deal in 2012

  15. What is Green Deal? • Process involves: • Energy Assessment of home • Recommendations for retrofit plus finance offer • Work carried out • Repayments made via energy company • £7bn private loan finance • Golden Rule: energy savings > loan repayments • Likely to be delivered via community-based partnerships • Call for Evidence just ended on costs & energy savings • Securing finance partners • Work underway on: accreditation, assessment process, workforce capacity

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