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4th October 2011




Green Deal
 Guillaume FERY
   twitter.com/gfery
AGENDA
1/ Green Deal = Why ?                  2/ Green Deal = What ?




                 G. FERY - 4th October 2011                     2
Green Deal … why ?
“Britain has some of the oldest
 building stock in Europe. Our
  draughty homes are poorly
  insulated, leaking heat and
using up energy. As consumers,
    we pay a high price for
      inefficient housing.”




                                                            Chris Huhne
                             Secretary of State of Energy and Climate Change




                  G. FERY - 4th October 2011                                   4
Good
          From April 2018
Banned    the UK Government
In 2018   will make it unlawful
          to rent out a house or business
          premise which has less than an
          "E" energy efficiency rating. .          Source, consumer focus

                    G. FERY - 4th October 2011                     5
Draughty homes ?




                   G. FERY - 4thSource
                                 October 2011   6
Average Electricity Bill in 2011 : £ 1,100 / year

                G. FERY - 4th October 2011          7
TARGETS
                             Cut emissions by
                             • 50% by 2025
                             • 60% cuts by 2030.
                             • 80% by 2050,
                             Based on 1990 levels
G. FERY - 4th October 2011                          8
G. FERY - 4th October 2011   9
Home improvement needed
+ Rising energy prices
+ CO2 Emissions targets
+ Green jobs
______________________
= Green Deal


      G. FERY - 4th October 2011   10
Others government-initiated schemes
           to improve energy efficiency in businesses and households.

                  Scheme                                                       Comments
The Carbon Emission Reduction Target             Introduced in April 2008, it is an obligation on energy suppliers to
(CERT)..                                         reduce carbon emissions in the household sector through providing
                                                 energy efficiency improvements
The CRC Energy Efficiency Scheme.                Mandatory carbon dioxide emission trading scheme to improve energy
                                                 efficiency in large public and private sector organisations in the UK.

The Community Energy Saving Programme            Introduced in September 2009, it is an obligation on energy suppliers
(CESP).                                          and generators to deliver energy efficiency measures in certain low
                                                 income areas.
The Warm Front Scheme in England,                A range of programmes designed to offer grants to enable certain
the Nest energy efficiency scheme in Wales7      households in fuel poverty to install energy efficiency improvements
and the Energy Assistance Package in Scotland.   such as home and loft insulation and heating measures.


The Decent Homes Programme.                      A policy designed to improve conditions, including energy efficiency, in
                                                 social housing.




                                         G. FERY - 4th October 2011                                                  11
Green Deal … what ?
What is it ?
“Green Deal plan” is a framework

to enable private firms to offer consumers

energy efficiency improvements to their homes

at no upfront cost

and recoup payments through a charge in instalments
on the electricity bill.

Green Deal Principle (“Golden Rule”): payback cost
must be less than average saving on bill.

The charge is attached to the house.


                      G. FERY - 4th October 2011      13
How does it work?
                                                 Customer
                                                 chooses a Green
                                                 Deal provider                                                                                   Green Deal Providers
                                                                                                                                                 Arrange and finance the work to be
                                                                                                                                                 undertaken on homes.
Reimburse through the electricity bill




                                                                                                           Send the payments to the Green Deal
                                                                    Green Deal Adviser
                                                                    Government accredited
                                                                    advisers will visit undertake a                                                           All installers will have to be accredited,
                                                                    detailed and technical survey                                                             The measures installed will be paid for by
                                                                                                                                                              finance arranged by the Green Deal
                                                                                                                                                              Provider.
                                                                                                           provider




                                         Electricity Companies
                                         Put the repayment of the whole project on the electricity bill.
                                         Attached to the premises.


                                                                                     G. FERY - 4th October 2011                                                                                 14
What measures ?




                                                              GDF: Green Deal finance
                                                              ECO: Energy Companies
Source: Energy bill Impact assessment                         Obligations
                                                              CW: cavity wall insulation
                                                              SW: solid wall insulation


                                 G. FERY - 4th October 2011                                15
Government Forecast of National Accumulated Green Deal Measures

                                                          14


                                                          12




                             Accumulated Products (m's)
                                                          10


                                                          8


                                                          6


                                                          4


                                                          2


                                                          0
                                                          2013          2014            2015       2016          2017     2018       2019             2020

                                                               Loft            Cavit y Wall             Glazing & Doors      Solid & Part y Wall


                                                                                 Cost & Benefits of Green Deal to the Customer
                                                                                                              Annual      Payback         % of
                                                                       Measure                  Cost
                                                                                                              Savings      (Years)       Total Bill

                                                                      Cavity Wall              £400            £110          4              10%

                                                                      Loft Virgin              £300            £145          2              10%

                                                                      Loft Top Up              £300             £40          8              5%               Golden Rule

                                                                  Solid Wall Internal          £5,000          £365         18              25%

                                                                  Solid Wall External          £7,600          £385         30              25%

                                                                                    G. FERY - 4th October 2011                                                         16
Figures derived from Government Green Deal Impact Assessment, which does not distinguish between measures delivered by Green Deal versus CERT/
CESP / ECO
A new market ? This is big money !

                                                               Measures to   Installation
                                                                  2020          Value
                                              Owner-occupied      7.4m          £2.2bn
    Loft insulation (<200mm)*
    Installation =£300                        Private-rented      1.7m          £0.5bn
                                              Owner-occupied      3.6m          £1.4bn
    Cavity wall insulation
    £400                                      Private-rented      0.6m          £0.2bn
    Double-glazing (entire house)             Owner-occupied      1.4m           £4bn
    £2,700                                    Private-rented      0.9m           £2bn
    Solid wall insulation (internal)          Owner-occupied      1.2m           £6bn
    £5,000                                    Private-rented      0.3m           £2bn
    Solid wall insulation (external)          Owner-occupied      1.2m           £9bn
    £7,000                                    Private-rented      0.3m           £2bn

    B2B Energy Management and Building Technology                               £1.8bn
    All Energy Efficiency Measures                                             £30bn
      Air source Heat Pump                    £6,700              0.5m          £3bn
      Ground source heat pump                 £11,000             0.6m          £7bn
      Solar water heater                      £4,500              1.5m          £7bn
      Solar PV                                £11,000             0.9m          £10bn



                                  G. FERY - 4th October 2011                                17
Stakeholders … and lobbies

        All the “ecosystem” is on the move
to be ready to launch new specific offers, test trials
                 or to be compliant




                                                     => Many articles !




         Consumers              Builders
                                Standardization bodies



                G. FERY - 4th October 2011                          18
Guillaume FERY

                   http://orignal.blogspirit.com

                     http://twitter.com/gfery




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Green Deal

  • 1. 4th October 2011 Green Deal Guillaume FERY twitter.com/gfery
  • 2. AGENDA 1/ Green Deal = Why ? 2/ Green Deal = What ? G. FERY - 4th October 2011 2
  • 4. “Britain has some of the oldest building stock in Europe. Our draughty homes are poorly insulated, leaking heat and using up energy. As consumers, we pay a high price for inefficient housing.” Chris Huhne Secretary of State of Energy and Climate Change G. FERY - 4th October 2011 4
  • 5. Good From April 2018 Banned the UK Government In 2018 will make it unlawful to rent out a house or business premise which has less than an "E" energy efficiency rating. . Source, consumer focus G. FERY - 4th October 2011 5
  • 6. Draughty homes ? G. FERY - 4thSource October 2011 6
  • 7. Average Electricity Bill in 2011 : £ 1,100 / year G. FERY - 4th October 2011 7
  • 8. TARGETS Cut emissions by • 50% by 2025 • 60% cuts by 2030. • 80% by 2050, Based on 1990 levels G. FERY - 4th October 2011 8
  • 9. G. FERY - 4th October 2011 9
  • 10. Home improvement needed + Rising energy prices + CO2 Emissions targets + Green jobs ______________________ = Green Deal G. FERY - 4th October 2011 10
  • 11. Others government-initiated schemes to improve energy efficiency in businesses and households. Scheme Comments The Carbon Emission Reduction Target Introduced in April 2008, it is an obligation on energy suppliers to (CERT).. reduce carbon emissions in the household sector through providing energy efficiency improvements The CRC Energy Efficiency Scheme. Mandatory carbon dioxide emission trading scheme to improve energy efficiency in large public and private sector organisations in the UK. The Community Energy Saving Programme Introduced in September 2009, it is an obligation on energy suppliers (CESP). and generators to deliver energy efficiency measures in certain low income areas. The Warm Front Scheme in England, A range of programmes designed to offer grants to enable certain the Nest energy efficiency scheme in Wales7 households in fuel poverty to install energy efficiency improvements and the Energy Assistance Package in Scotland. such as home and loft insulation and heating measures. The Decent Homes Programme. A policy designed to improve conditions, including energy efficiency, in social housing. G. FERY - 4th October 2011 11
  • 12. Green Deal … what ?
  • 13. What is it ? “Green Deal plan” is a framework to enable private firms to offer consumers energy efficiency improvements to their homes at no upfront cost and recoup payments through a charge in instalments on the electricity bill. Green Deal Principle (“Golden Rule”): payback cost must be less than average saving on bill. The charge is attached to the house. G. FERY - 4th October 2011 13
  • 14. How does it work? Customer chooses a Green Deal provider Green Deal Providers Arrange and finance the work to be undertaken on homes. Reimburse through the electricity bill Send the payments to the Green Deal Green Deal Adviser Government accredited advisers will visit undertake a All installers will have to be accredited, detailed and technical survey The measures installed will be paid for by finance arranged by the Green Deal Provider. provider Electricity Companies Put the repayment of the whole project on the electricity bill. Attached to the premises. G. FERY - 4th October 2011 14
  • 15. What measures ? GDF: Green Deal finance ECO: Energy Companies Source: Energy bill Impact assessment Obligations CW: cavity wall insulation SW: solid wall insulation G. FERY - 4th October 2011 15
  • 16. Government Forecast of National Accumulated Green Deal Measures 14 12 Accumulated Products (m's) 10 8 6 4 2 0 2013 2014 2015 2016 2017 2018 2019 2020 Loft Cavit y Wall Glazing & Doors Solid & Part y Wall Cost & Benefits of Green Deal to the Customer Annual Payback % of Measure Cost Savings (Years) Total Bill Cavity Wall £400 £110 4 10% Loft Virgin £300 £145 2 10% Loft Top Up £300 £40 8 5% Golden Rule Solid Wall Internal £5,000 £365 18 25% Solid Wall External £7,600 £385 30 25% G. FERY - 4th October 2011 16 Figures derived from Government Green Deal Impact Assessment, which does not distinguish between measures delivered by Green Deal versus CERT/ CESP / ECO
  • 17. A new market ? This is big money ! Measures to Installation 2020 Value Owner-occupied 7.4m £2.2bn Loft insulation (<200mm)* Installation =£300 Private-rented 1.7m £0.5bn Owner-occupied 3.6m £1.4bn Cavity wall insulation £400 Private-rented 0.6m £0.2bn Double-glazing (entire house) Owner-occupied 1.4m £4bn £2,700 Private-rented 0.9m £2bn Solid wall insulation (internal) Owner-occupied 1.2m £6bn £5,000 Private-rented 0.3m £2bn Solid wall insulation (external) Owner-occupied 1.2m £9bn £7,000 Private-rented 0.3m £2bn B2B Energy Management and Building Technology £1.8bn All Energy Efficiency Measures £30bn Air source Heat Pump £6,700 0.5m £3bn Ground source heat pump £11,000 0.6m £7bn Solar water heater £4,500 1.5m £7bn Solar PV £11,000 0.9m £10bn G. FERY - 4th October 2011 17
  • 18. Stakeholders … and lobbies All the “ecosystem” is on the move to be ready to launch new specific offers, test trials or to be compliant => Many articles ! Consumers Builders Standardization bodies G. FERY - 4th October 2011 18
  • 19. Guillaume FERY http://orignal.blogspirit.com http://twitter.com/gfery Ready for 2012 ?