Memorandum submitted by Parity Projects
SUMMARY
— There are a range of interlinking
elements which must be tackled alongside one another to successfully
convert the existing building stock in the UK—Building Regulation
and Control, designer awareness, builder competence, a maturing
supply chain and informed Clients. But without good Building Regulation
none of the others will change.
— The Energy Performance Certificates
(EPCs) are inadequate in their current form to provide sufficient
motivation to the property owners to become more energy efficient.
Our experience shows that they need more specific advice on what
can be done to raise the home's rating. Property owners are then
seeking assistance to support the changes.
— At Parity Projects we have developed
our own software to provide property owners with recommendations
that show the potential annual financial and CO2 savings
per house for given costs of implementation. The recommendations
are based on the physics of the building and the lifestyle of
the inhabitants. Our service therefore allows property owners
to see how habit and renovation play a part in overall change.
— We have seen that the most significant
savings are from draught-proofing, insulation, and behavioural
change. Our demonstration project shows how a wide range of insulation
and draughtproofing measures can be installed and allows us to
assess instalment difficulty and in-situ performance for all.
We can say with some confidence that with a little training, competent
builders can accomplish a great deal at surprisingly low cost.
Behavioural change can also be tackled, driven by "home-users
manuals" and smart-metering.
— The Government has a major role in
market stimulation, which includes training of all professions
involved with building renovation. This must take place alongside
the supply of more appropriate materials and technologies onto
the market.
— Time is of the essence if we are
to meet the >60% reduction by 2050 target. It is already said
in some circles that we need to aim for 90% reductions because
we have to recognise that some buildings will remain unchanged
up until 2050 but that our target must sill be met.
— The current Building Regulations
are not as stringent for existing building as they are for new-build,
and this must change as more knowledge of cost and performance
emerges from early projects and demonstrations.
— We believe that the older housing
stock will cope much better with global warming due to the presence
of thermal mass. In order to continue to improve the energy performance
of "lighter" buildings, research is needed into retrofitting
materials that act in the same way as thermal mass.
TABLE OF
CONTENTS
1.1 What Parity Projects Can Contribute
2. Existing Housing Versus New Build
3. Stakeholders Roles In Promoting And Delivering
Greater Energy Efficiency
3.1 Owner Occupied Households
3.2 Landlords And Tenants
3.4 Energy Supply Industry
3.6 Building Products And Systems Suppliers
4. Energy Performance Certificates And The
Provision Of Information For Households And Prospective House
Buyers
4.1 Is The Information Appropriate?
4.2 Is The Analysis Bespoke To The House?
4.3 Is The Resultant Data Reliable And Useful?
4.4 Are Recommendations Provided That Are
Clear And Practical To Implement?
5. Existing Government Efforts To Reduce
Carbon Emissions From Existing Housing Stock Whether In Private
Or Public Ownership And Other Related Programmes Including Decent
Homes
5.1 Programmes And Partner Organisations
5.2 Legislation And Regulation
6. Technologies Available To Reduce Emissions
And Government's Role In Facilitating Relevant Further Technological
Development
6.4 Importing Technology?
7. Costs For Reducing Carbon Emissions In
Existing Housing, Who Should Meet Them And Particularly, In Respect
Of Low-Income Households, Interaction Between Carbon Emission
Reductions And The Government's Ambitions To Reduce Poverty
7.2 Stamp Duty-Related Measures
7.4 Value Added Tax (Vat)
7.5 Personal Carbon Allowances
8. The Specific Challenges For Housing Of
Special Architectural Or Historical Interest
9. General Recommendations
1. INTRODUCTION
This submission of evidence for Communities
and Local Government Committee has been produced by Parity Projects
as the questions it raises are at the heart of why our Social
Enterprise was formed. There is a desperate need to for significant
and rapid change in the energy performance of the UK's existing
buildings to stem Climaste Change and the market to facilitate
this change does not yet fully exist. Furthermore, the most significant
sector of property owners in the UK, private owner-occupiers,
are largely unaware of the possibilities available to them.
Through our own research combined with our experiences
to date we are able to provide useful evidence for this latest
inquiry.
1.1 What Parity Projects can Contribute
Parity Projects is a Social Enterprise which
facilitates the sustainable renovation of existing properties
to minimise energy and water consumption. We work for property
owners and managers who require clarity of their options and delivery
support, and for building trades/professionals who want to augment
their capabilities with environmentally considerate materials,
techniques and technologies.
We fully understand the capabilities of the
latest energy technologies and how they fit with conventional
building techniques, including insulation and draughtproofing,
so that a substantial reduction in energy bills and environmental
impact can be achieved with minimum disruption. Every property
is unique in its location, size, number of occupants, internal
functions, building fabric and exposure to weather, we therefore
consider the whole property as a system and the most appropriate
measures for upgrade are identified accordingly.
We learnt a lot of out lessons by producing
a demonstration property by converting an existing "hard-to-treat"
Victorian home and reducing its carbon footprint by over 75%.
We have installed a wide range of measures in this one property
so that they can be compared on cost, aggravation and in-situ
performance. This property has also acted as an educational tool
for the over 700 visitors we have now welcomed. Their comments
and feedback have informed the content of this report.
We have had exposure to a range of property
owners and understand their motivations and desires, and most
importantly, their budgets for property upgrade. We appreciate
that every new day and every new Client provides a learning opportunity
which adds to our appreciation of the challenging task ahead to
reduce the energy consumption of the existing building stock.
We hope to convey some of our experiences to date and how we intend
to continue learning into the future.
2. EXISTING HOUSING
VERSUS NEW
BUILD
This is a difficult area in which many factors
must be taken into account. Little in-depth research has been
carried out into the relative influence of embodied carbon for
example. Nevertheless it is clear that it is easier to achieve
a zero carbon home (defined as having no net carbon emissions
over a year) as a new build than as a refurbishment of an existing
building.
The distinction between these two building categories
assumes that they are mutually exclusive. They are not. Further
research along the lines of the "40% House" report from
Environmental Change Institute at Oxford University is important
to establish the correct strategic balance between new build,
demolition and refurbishment. This research showed us how strategically
important the existing stock is. It is well known that the current
rate of change of housing renewal in the UK will mean that in
2050, when the UK's 60% CO2 reduction target is to
be met to comply with the Kyoto Agreement, 80% of the buildings
that will be standing then are part of the stock we have today.
In recent times all Government efforts to reduced
the CO2 emissions from domestic properties has focused
on new-build, with a confident assurance that technologies emerging
from this newly created competitive market place can be easily
transferred to the refurbishment market. Parity Projects believes
that much of the disparity in performance between new build and
existing stock is best addressed through refurbishment of existing
buildings to the highest possible standard with simple, practical
measures, with very low-tech materials and systems, and we shall
expand on this later.
3. STAKEHOLDERS
ROLES IN
PROMOTING AND
DELIVERING GREATER
ENERGY EFFICIENCY
We have contact with a wide range of stakeholders
in the establishment of energy efficiency measures in existing
buildings. Our comments are linked to our experiences in implementing
energy efficiency measures "on the ground" in conjunction
with key stakeholders. Each group of stakeholders poses its own
significance for promoting and delivering changes in energy consumption.
3.1 Owner Occupied Households
Owner occupied homes represent 68% of the domestic
property stock, and as such, motivating this stakeholder group
is essential to the successful improvement of the overall stock.
We have found that the most important piece
of information for the homeowner is the "pay-back" period
of any measures that may need to be installed. Of course idealists
would love to get to the stage where measures should be installed
up to the limit of affordability, simply because it will help
the fight against climate change, but this is not reality for
the masses.
On average in the UK, domestic properties are
changing owners every 7.5 years. These owners would usually want
to see any installed measures to recoup their expended capital
costs in energy savings before they sell the property. For many
measures and for many property types this is extremely difficult,
especially if the measures are not tackled from day one of the
notional 7.5 year period.
But a key factor irrespective of any of the
above is "ability to pay". Section 5 addresses the schemes
that are available to support homeowners from various walks of
life, but common denominators for all owners when considering
implementation are:
— Levels of disruption during installation.
— Economic pay-back of the measure
(and therefore the availability of Grants)
and increasingly they are concerned about:
— Environmentally friendly materials.
High up on the list of concerns of owners is
whether they are required to seek permission for some of the measures,
and once they do, who do they turn to for installation? For some
measures such as Solar Panels, Planning Regulations can hinder
installation, but this is already well documented.
For the simpler items that will deliver the
biggest impact, the building trade are simply not currently competent
to deliver, but we have more on this later.
These two issues represent the exact reasons
as to why we instigated our Demonstration Project and now offer
support services for residents through all stages of upgrade works
to help them decide the optimum route, then help them to build
it.
3.2 Landlords and Tenants
This group is in a tricky situation. Tenants'
energy bills cost them money, but they are unable to change the
fabric of their building without consent from a landlord. At present
Tenants feel tied to the building that they have, and lots are
seeking solutions that they can implement in future properties,
but perhaps that are removable for transfer to their other properties
to at a later date. Unfortunately this is very hard.
The key for access to these properties is timing
of the work and incentivising the landlords. There is always a
natural cycle of renovation and tapping into it at the right time
is key. At Parity Projects we encourage landlords to adopt measures
in order to benefit from a consequential rise of property value
and a potential rise in rental value due to the lower energy bills,
although these prices will be unproven. We are also not yet aware
of the impact of Energy Performance Certificates (EPC) on rental
prices.
The situation described above is identical for
Social Landlords as well as Private Landlords and therefore accounts
for 32% of the existing housing stock. In general terms, tenants
are getting a larger market to choose from and therefore landlords
may need to "go green" to attract higher rental rates—especially
when energy prices continue to rise.
If the window of opportunity for renovation
has been missed, behaviour change provides significant benefit—means
that Smart Metering is the key here.
3.3 Local Government
There are a number of roles played by Local
Authorities:
3.3.1 Planning Authority
We have no direct experience of barriers put
up by the planner we have worked with to date.
3.3.2 Building Control
Perhaps more worrying than the Building trade's
lack of awareness is that Building Control officers can also be
unaware of the possible measures and how they can be successfully
restored. A more widespread capability amongst tradesmen must
go hand-in-hand with recognition and certification from Building
Control departments. Both sides tend to learn from experience
as there are no requirements for updates in competence and knowledge
for vast swathes of the industry, a situation which must change
to instil new ideas quickly.
3.3.3 Target Setting and Education
From our contact with a range of Local Authorities
to date, there is very little education or support for initiatives
aligned with energy efficiency in the home. While some of this
is the responsibility of local Energy Advice Centres, there is
often no correspondence between the authority Sustainability teams,
Planning teams and those responsible for Housing so that a consistent
message is sent out. This in itself confuses householders and
slows progress.
3.4 Energy Supply Industry
Supply companies are forced into action by the
Energy Efficiency Commitment (EEC) scheme, soon to become the
Supplier Obligation in 2008. This is necessary to ensure they
do not seek to increase output by encouraging the greater use
of energy!
The scheme itself is outlined elsewhere in this
report. Whilst the scheme does have its critics, it must be recognised
that these suppliers are linked to nearly every home in the country
and have tremendous capacity for influencing change. Their role
in the implementation of Smart Meters for instance is crucial.
3.5 Building Trades
At Parity Projects we are promoting the use
of simple measures, some of which can be implemented on a DIY
basis, and some that are more complicated. In our experience of
engaging with Building Contractors, there is tremendous misapprehension
of not only the potential benefits on offer, but of how to install
the simplest of measures.
At the very least, these key trades require
very basic awareness-raising, shifting to hands-on experience
of insulation and draughtproofing installation such that the measures
can be readily added to any other element of building work if
necessary whether it is an extension or a simple redecoration.
The tricky part of this is that the bulk of
this kind of work will be carried out by extremely small building
companies, many of which will be working from "hand-to-mouth"
and are unlikely to be able to spare time or effort in training.
But they must be reached, and Parity Projects is working with
as many as possible through its work to build up the knowledge
base.
3.6 Building Products and Systems Suppliers
Suppliers have a key role in the successful
implementation of sustainable buildings because without appropriate
technologies, designers cannot specify them and builders cannot
install them. While we believe that suppliers have a responsibility
for innovation and for bringing new ideas to the market place,
they will only do so if they know there are competent builders
to install them and Clients willing to accept them. It is at this
point that any hindering Building Regulations can be tackled if
the route to market is clear.
Where there is an opportunity to make money,
the supply chain will fill the gap, but the construction industry
needs to make more progress towards understanding and appreciating
the materials on offer. This is starting to happen with events
such as Ecobuild at Earl's Court, and the Grand Designs shows
around the country for instance bringing the latest eco-products
to the masses. But in our experience it is rare for builders who
operate at the "single dwelling" level to attend.
We believe this problem is a key to the success
of eco-renovation and the responsibility must lie with the Government
to tackle it.
3.7 Central Government
The role of Central Government has to be pivotal
and many actions have already been and will continue to be suggested.
The view of the Government from the perspective of the construction
industry and from the perspective of the growing band of "green"
householders who are looking for direction and support, is that
it is failing.
For those people wishing to tackle the practical
and simple measures as adopted in our Demonstration Project, there
are very few places for them to get advice. The Energy Savings
Trust's website is a tremendous help for householders and builders
alike, but no specific help can be given on actual installers.
Local Energy Advice Centres are very accessible, but most are
simply not geared up for giving advice on anything other than
renewables or the more simple energy efficiency measures such
as draughtproofing around doors or changing light bulbs. Behavioural
aspects of energy saving are very well tackled however.
More effort on this front is required by Government,
but this is part of the reason the Parity Projects now exists.
The grant schemes which have proved essential
for supporting the fledgling market for eco-renovation such as
the Low Carbon Buildings Programme (LCBP) are at this time wholly
inadequate. Many companies set-up to provide the services and
systems to support owners of the existing building stock are now
struggling to survive as the LCBP remains inconsistently applied.
Often customers are put off because they are waiting for a grant,
or a simply confused as to whether grants may or may not be available
the future. Inconsistency is worse than non-availability—if
clients know there will never be a grant, they can at least move
to the next stage of their decision making.
4. ENERGY PERFORMANCE
CERTIFICATES AND
THE PROVISION
OF INFORMATION
FOR HOUSEHOLDS
AND PROSPECTIVE
HOUSE BUYERS
There are two main reasons for the existence
of EPCs, aside from the European directive that makes then a legal
requirement:
1. To give information to prospective buyers
about the thermal performance of the house and how it could be
improved.
2. To facilitate the collection of data on
the condition of the existing stock and allow focusing of carbon
reduction strategies.
The important notion here is that at ground
level and at a strategic level, if it cannot be measured, it cannot
be managed.
4.1 Is The Information Appropriate?
For (1), the timing of provision of EPCs is
entirely appropriate although the information provided is not
adequate (see 4.3). The time of purchasing a property is the best
time to be presented with a plan of how to reduce bills and emissions.
The EPC should act as market information and stimulate a premium
on well-performing homes. Secondly, when it comes to implementation
of recommended measures, the fact that redecoration and the associated
disruption is likely in any case means that thermal refurbishment
can be less intrusive.
While energy prices remain low, the property
value attributed between EPC ratings is relatively small. The
information on what improvements can be made to a home could be
the more important driver.
For (2), again the information is appropriate.
However, the level of detail is insufficient (see 4.3). It is
recommended that the opportunity is taken to carry out more in-depth
assessments as well as the EPC for a proportion of homes each
year as a means of gathering detailed data on the existing stock.
4.2 Is The Analysis Bespoke To The House?
The software is too generic and loses much detail
in favour of speed of assessment. It is of course important that
a physical survey of the property is required to assess the physical
performance. However, as well as needing to be bespoke to the
property, an understanding of the lifestyle of the inhabitant/s
that will use the property is crucial.
The EPC software makes no allowances for the
intended occupancy of the house. Emissions are calculated per
unit area which favours larger houses, even if they are to have
a single occupant. A home occupied by a single occupant uses 55%
more electricity and 61% more gas per capita than one with a four
person nuclear family[111].
A more balanced assessment might give a range of scores depending
on the intended occupancy. Rather than annual kg C/m2, the score
could be given in annual kg C/occupants.
4.3 Is The Resultant Data Reliable And Useful?
(1) As the time of moving in is probably
the best time to get work done, this is an ideal time for purchasers
to be shown the benefits of energy efficiency measures. More detail
should be included in sellers' packs on what could be done to
improve the home's performance and what it would cost. The methodology
at Parity Projects is to list all possibilities and rank them.
This then allows the owner to choose the measures which suit them
best according to their budget, and gives them a plan for the
duration of their tenure.
As a side-effect of this, the additional detail
would provide better information to the buyer in allowing them
to decide whether to buy an A rated or a G rated home, thus improving
the market-led transformation towards more sustainable homes.
(2) The EPC software has a major drawback
in that it does not allow direct entry of U-values. This assumes
that no buildings are constructed to above-regulation performance.
Therefore as a tool for collection of data on the existing stock
they are inadequate. Little detailed strategic data will ever
be collected.
Another barrier to the collection of useful
data is that some assessments are limited by the visibility of
measures by the assessor. This necessitates better recording of
installed measures by builders. One possibility is a home manual
that is constantly updated, analogous to a car's logbook.
4.4 Are Recommendations Provided That Are
Clear And Practical To Implement?
We see the question of what recommendations
to give to householders as key to the difference that EPCs can
make. At this time, the recommendations given are not be suitable
for the layman to use without further consultation.
Solutions:
— List measures such that builders
automatically know what is required. Builders who have been trained
in how to carry out thermal refurbishment works should then be
able to quickly and easily quote for the work identified.
— Prioritise the recommendations to
show which are the big wins and the "low-hanging fruit".
This is important, as although home-owners often know what measures
would save them money, they rarely know how much each of the measures
will save them and therefore they may not make optimal decisions
when choosing which to implement.
— If design is required or if Planning
Permission is required, this should be clearly identified.
— The opportunity to recommend behavioural
measures which are particularly relevant to the property should
not be missed. EPCs should be packaged with home users' guides
to the behavioural measures which would improve the performance
and reduce running costs of the property.
5. EXISTING GOVERNMENT
EFFORTS TO
REDUCE CARBON
EMISSIONS FROM
EXISTING HOUSING
STOCK WHETHER
IN PRIVATE
OR PUBLIC
OWNERSHIP AND
OTHER RELATED
PROGRAMMES INCLUDING
DECENT HOMES
Efforts are not moving fast enough. Lip service
has been paid to end-user efficiency as a key goal in reducing
carbon emissions; however progress has been slow.
If the preferred mechanism for delivering a >60%
cut in domestic carbon emissions is primarily through efficiency
measures (as it should be), it must be done quickly otherwise
the target will be missed[112].
5.1 Programmes and Partner Organisations
5.1.1 Decent Homes
Although Decent Homes is laudable in its aim
to improve conditions in the existing stock of social housing,
it is far from effective as a means of reducing carbon emissions.
This is a real missed opportunity as Decent Homes improvements
are an ideal time to be upgrading the efficiency of social housing.
The requirement to have controllable heating
is sensible and the software accommodates this measure and improves
the score if present. However the requirement of a choice of 50mm
of loft insulation OR cavity wall insulation for properties heated
by gas or oil is hopelessly inadequate, and may even miss the
fabric targets set by Building Regulations. Why not 270mm of loft
insulation as recommended by EST?
To be an effective tool against carbon emissions,
Decent Homes needs to be more specifically energy-related targets
and not simply aiming to increase "comfort". The problem
with Decent Homes is that it is not specifically targeted at carbon
emissions. It has a more short-term social aim of providing thermal
comfort and avoidance of fuel poverty. If a longer view is taken
and carbon reductions are included as a key outcome then something
closer to optimal levels of insulation could be installed.
5.1.2 Warm Front
The scheme is aimed at those households that
will not be able to afford to implement energy efficiency measures
and is likely therefore to target the "Fuel Poor" ie
those households where more than 10% of disposable income is spent
on fuel.
This scheme has taken the opportunity to tackle
some key areas of energy efficiency. There is however a serious
funding gap at this time between the EEC and Warm Front schemes.
Large numbers of homes can be found in the gap between those on
benefits or otherwise eligible for Warm Front funding and those
who are able to afford the upfront costs of measures like cavity
wall insulation. The size of population in this area is subject
of research by Parity Projects at this time. Financial measures
are urgently needed in order to address this gap.
5.1.3 Energy Efficiency Commitment (EEC)
EEC is a successful programme for the implementation
of efficiency measures into homes, facilitated by Private Energy
Companies. Its continuation into EEC3 in 2008 is likely to build
on the savings expected from EEC2. However there is concern that
the easy measures such as loft and cavity wall insulation are
likely to reach saturation in the short-medium term.
Going forward, EEC needs to continue to focus
on the big hits, which are all efficiency measures including behavioural
change, but also to look at microgeneration. Where microgeneration
is included, integrated solutions should be encouraged. This should
include draughtproofing, insulation and technologies like solar
hot water. Disruption is minimised when such works are programmed
together.
As part of a package of more cost-effective
measures, microgeneration could be included as a form of market
building. It has also been suggested that microgeneration, by
giving householders "ownership" of their domestic energy,
could encourage more efficient behaviour.
One method by which EEC measures could be applied
to properties in an integrated way is to have a whole-house energy
audit followed by implementation of the package of measures identified.
These would include attempts to bring about behavioural change.
5.2 Legislation and Regulation
5.2.1 The "Merton" Rule
Action by Local Authorities to push the envelope
of what can be demanded by planners has led to this very useful
rule demanding 10% of a new development's energy must come from
renewable sources. However it does not currently have any impact
on the existing stock. Although there is some doubt over whether
the Rule will continue at all in its current form for new build,
Parity Projects see merit in amalgamating it with last year's
Balance Trading proposal by EAGA Group. In this way, improvements
to thermal performance of existing buildings in the local area
could contribute to a new development's measured carbon reductions.
The idea is that by progressively increasing from a 10% requirement
as with the Merton Rule, new developments could eventually become
carbon neutral or even carbon negative through making reductions
in emissions from the existing stock.
As this would undoubtedly be cheaper than providing
renewables on site, there should be a stipulation that it counts
for half (or some appropriate figure) the credit of renewable
technologies, ie if the developer wanted to provide 10% of their
reductions from local efficiency measures then they would need
to save the equivalent of 20% of the site's energy per year.
Doubt over the continuation of the Merton Rule
comes from research following the supposed difficulty that developers
are having meeting the targets. The key element of the Merton
Rule that seems to be missed by most developers is that the more
energy efficiency measures that are built into the fabric of a
building, the smaller the actual energy generation requirement
becomes. As the need for energy is reduced, so the "10%"
gets smaller.
5.2.2 Building Regulations
Regulations and efficiency standards are the
most effective way of dealing with misaligned incentives[113].
It maintains a level playing field as all constructors in the
market must adhere to the same standards.
There is massive scope for Building regulations
to improve—Parity Projects has shown that simply by implementing
insulation and draughtproofing techniques, the overall carbon
emissions of the property reduced by 40-50%. This will be supported
by monitoring data installed in the house. These are all measures
that are well within the gift of any householder or builder if
they are required to do so.
The regulations which are in place, for example,
section 55 of AD Part L1B 2006 state that, when more than 25%
(by surface area) of a thermal element is renovated, U-values
should be improved to comply with those given in a table. However,
regulations such as these are next to useless if not enforced.
The minimum standards are often not met by builders. The interpretation
in AD Part L1B section 2 should be given teeth and BCOs/AIs encouraged
in enforcing it. The Building Inspectorate need more resources
for monitoring compliance.
The regulations also need rationalising as,
when enforced as they stand, they can lead to small jobs costing
a lot. Perhaps a pot of funding could be put aside as a source
for 15 year loans to be paid back on the energy costs saved (or
on sale of the property).
Consequential changes[114]
in Part L apply to extensions of a building which will have over
1000m2 of useable floor area including the extension. This minimum
size means it applies to few domestic properties.
The limit should be lowered to perhaps 100m2
or less, bringing the average three-bed semi-detached home under
the reach of regulations.
We recognise that Building Regulations and Engineering
Standards are founded on decades of research, trials and investigations
when things have "gone wrong". This does not explain
however that when we tried to find data pertaining to the performance
of existing buildings, that we could we find very little. It seems
that nearly all efforts to improve the parameters within which
building and infrastructure designers are being asked to specify
refurbishment works, they rely solely on calculation. For instance,
how can insulation materials be confidently specified if their
true in-situ performance is unknown?
This is an area that Parity Projects has addressed
through the installation of monitoring equipment in its Demonstration
Project. We have installed thermocouples either side of ten different
types of insulation so that we can ascertain an in-situ (dynamic)
U-value for each over a period of time. We are also installing
monitoring equipment into homes of our Clients for free as they
upgrade their homes so that we can build good body of performance
evidence.
6. TECHNOLOGIES
AVAILABLE TO
REDUCE EMISSIONS
AND GOVERNMENT'S
ROLE IN
FACILITATING RELEVANT
FURTHER TECHNOLOGICAL
DEVELOPMENT
We confine our comments to technologies in which
we have the most experience of, and the key areas in we Parity
Projects seeks to improve the energy consumption for its Clients.
We will address each of the key areas in turn starting with the
most important.
6.1 Changing Lifestyles
The biggest effect on energy use in the home
will come from changing the lifestyles of inhabitants. There is
little point in installing an expensive solar panel if lights
are left on in unoccupied rooms, or installing high levels of
insulation if windows are left open in winter. Technologies to
encourage and cajole improved habits can have a massive influence.
6.1.1 Smart Meters
The evidence coming from Water Companies is
that the introduction of water meters in the UK will lead to an
8% reduction in water use based on the evidence to date. Smart
Metering is an extension of the pay-for-use principal, whereby
digital meters pass usage data back to the supply company and
also to an in-house display so that users can see how their consumption
is changing, real-time.
We see the current programme of technology developments
as crucial to the changing on habits. However, we would underline
that Smart Meters should not simply monitor the "final"
consumption. If there is to be a programme of wholesale change
throughout the UK (inevitably) over a number of years, it would
be shame not to incorporate the capacity for gathering further
data. Centrally gathering water, gas and electricity consumption
to one point helps convey the whole picture to residents, but
also collecting data from building components can be easily collected
when the single visit is required for installation of a new meter.
We would be able to provide more information
on how we have achieved this at Carshalton Grove if required.
Some research has shown that smart metering
could go to the next step and show what the current cost of energy
is on the spot market, eg boiling a kettle would cost you £X
when the Grid is at full stretch.
6.1.2 Tools for Education
Householders need to understand exactly what
is possible for their home. Any tools that make it easier for
them to understand what measures could be appropriately and cost-effectively
installed for their own home would facilitate confident DIY installation.
There are a number of free online tools available but at this
time none of them provide specific enough guidance.
6.2 Energy Efficiency
6.2.1 Gas Condensing Boilers
We understand that there is some high level
work underway on measuring the exact performance of these appliances,
but we have shown to virtually every one of our Clients during
our appraisal process, that the immediate replacement of their
existing boiler will provide large and instant benefits and pay
back within four to five years, based on supplier performance
data.
If the same emphasis for efficiency is placed
on non-fossil fuelled appliances the market for biomass and waste
oil could be exploited more fully through a drive for innovation.
For gas condensing boilers, we do not yet know
what the drop-off in efficiency will look like over time. Some
research into ensuring longevity of the appliances would provide
a good perspective on longer term energy efficiencies.
6.2.2 Insulation
This measure is very easy for most residents
to comprehend but they have two key concerns:
1. Lost floor space. Insulation applied to
the internal face of an external wall inevitably adds to the depth
of a wall and takes up floor space. This is mostly relevant to
owners of the Solid Walled houses in the UK which comprise approximately
one third of the total stock. When Building Regulations improve,
even the performance of cavity walls if insulated in the normal
way may remain inadequate and that internal or external wall insulation
may also be required. Support for investment in such technologies
is crucial. At Carshalton Grove we are using Vacuum Insulated
Panels (VIPs) and Multi-Foil insulation in order to see how the
thinnest materials perform.
2. Materials. Those used in common insulating
products are increasingly being questioned by residents both from
the viewpoint of the energy required for manufacture and for health
and wellbeing reasons, as well as for their biodegradability.
Greater support for the use of naturally occurring and waste products
not only satisfies this very real desire, but can help to support
rural industries in the UK and Europe.
The key here is that people need guidance and
independent data on in-situ insulation performance.
6.2.3 Draughtproofing and Ventilation
These two measures go hand-in-hand, and good
draughtproofing is mainly achieved thorough good build quality.
As a house becomes more airtight, the need for controlled ventilation
rises.
On the ventilation side, availability of high
performance technology for retrofit is limited, with highest efficiencies
available from whole-house systems. These require a host of ducts
and pipe work to be successfully installed and this is not suited
to the majority of homes.
A whole house approach lends itself to using
ventilation requirements as another means of cooling or heating
a home on all occasions when tied with high levels of airtightness.
We would support any research into any retrofitted systems that
could provide passive ventilation while providing warmth or cooling
when necessary for minimum energy input, thereby removing the
need for dedicated heating system.
6.2.4 Windows
The consensus from most of our Clients and visitors
to the Demonstration Home is that PVC is detested and that the
highest performing windows are desired. It is well known that
at this time, the business case for installing high performance
windows in replacement of single glazing purely for energy efficiency
purposes does not stack up.
When new windows are required, high performance
windows are now easier to obtain than ever. At Carshalton Grove
for instance we managed to install hardwood timber double glazed
windows for the same price as PVC. But the supplier was hard to
find, and took an eternity to deliver the materials to site.
Secondary Glazing is always mathematically the
best option for upgrading windows. However, due to their lack
of mainstream exposure, they are not an attractive solution, can
be difficult to open and their thermal performance depends entirely
on the quality of installation. We would recommend that more investment
is made to make the installation of secondary glazing more attractive
to householders as it is effective and disruption is kept to a
minimum.
6.2.5 Doors
Suppliers of high performance doors with proven
whole-panel U-values are virtually non-existent in the UK, and
those that do exist are not able to deliver a product for installation
within a sensible time period. Given the science and effort behind
the production of windows over doors (presumably due to the higher
volume of units required) surely more technology and know-how
can transfer?
6.2.6 Lighting
This is not an area of expertise for us, but
we acknowledge the use of LEDs and CFTs in all appraisals that
we carry out as their pay-back is very short. There is a lot of
reticence to them from our Clients however due to "warm-up"
time and the colour of the light.
Support for innovative manufacturers alongside
pressure on manufacturers of incandescent bulbs (as is planned
by 2011) will deliver huge benefits.
6.2.7 Overheating
It is likely that as our climate changes, that
the "cooling season" in the summer will lengthen and
increase in intensity. To avoid a clamour for air-conditioning
to provide comfort, the ideal solution is to alter the building
envelope to prevent the heat from entering the building.
There is intense debate in eco-building circles
as to the relative merits of insulation and thermal mass in providing
a stable internal temperature. The performance of insulation is
well-known, as are the relative benefits of thermal mass. However,
thermal mass is not easily retrofitted into existing buildings.
Much of the older existing stock has a masonry
structure and this inherent thermal mass and will resist sudden
changes in temperature. In simplistic terms, in UK summers, evening
temperatures are (usually) lower than daytime, and the building
will maintain a constant average and comfortable temperature by
absorbing heat during the day and releasing it at night. For newer,
lighter buildings, insulation can be integral within the framework
off the building, and winters can be accommodated by slowing the
heat transfer from within. However, external heating will have
to be dealt with in the same way and a constant flow of heat will
eventually pass through to the inside of the building and not
be absorbed by the walls. With global warming, night hours may
not be as cool as they currently are, and heat may continue to
infiltrate back into the building. Therefore, heat may always
seep in and air conditioning may be the only sensible options
to achieve required levels of comfort.
We believe that some prompt research is required
to explore materials that can be retrofitted to lightweight building
to prevent future overheating. This also applies to some of the
new-build stock which may be ignoring this phenomenon.
6.3 Energy Generation
There are currently no technologies available
for retro-fitting that we would recommend to any of our Clients
for the economic generation of electricity on site. This is an
area that is ripe for technological support by Government, as
direct substitution of mains electricity with economically viable
renewables can be a significant win.
Our word of warning is that electricity use
can be considerably reduced by changes to lifestyles and habits.
Consumer electronic sales are on the rise for instance. We believe
this is the area for the Government to focus its attention, whether
it is the implementation of a national programme of Smart Metering,
or to impose strict guidelines on appliance performance and light
bulb specification.
6.3.1 Biomass
Individual Biomass stoves are available for
heating individual homes and can be supplied with a back boiler
to drive heating and hot water systems. Fuel can either be cured
logs or pellets made from waste wood. An installation was attempted
for our demonstration project. However, the Clean Air Act prevented
us from doing so as there were no suitable demonstration products
on the Defra-controlled approved list for use in "Smoke Free
Zones".
Our recommendation is for Defra to improve its
handling of the approvals system for biomass fuelled appliances
in "Smoke Free Zones". Let's be realistic, nearly all
of the machines available from the Continent are perfectly acceptable
but due to the approvals systems they are not paying the required
fees for testing as they are already supplying to a healthy market.
This lack of flexibility by DEFRA is slowing the speed of change
in major conurbations, which itself can also provide a fantastic
outlet for waste wood.
6.3.2 Retrofitting community-scale CHP
Renewables are much more efficient when the
opportunity for larger-scale generation is presented. Community-scale
energy generation, championed by Adrian Hewitt at Merton Council
and by the recent Greenpeace campaign, make good engineering sense.
Retrofitting the required delivery systems into exiting streets
and buildings is extremely tricky but with further research it
could hold the key to economic non-dependency on fossil fuels.
6.4 Importing Technology?
What seems to be lost in this debate is that
a whole new industry in building material development could be
stimulated if the right conditions are in place. Wise suppliers
are buying up selling rights for products currently made in Germany
etc. Why aren't they made here? With the right investment, the
UK could rejuvenate its manufacturing industry and lead the market
and the agenda on reducing energy consumption from property.
7. COSTS FOR
REDUCING CARBON
EMISSIONS IN
EXISTING HOUSING,
WHO SHOULD
MEET THEM
AND PARTICULARLY,
IN RESPECT
OF LOW-INCOME
HOUSEHOLDS, INTERACTION
BETWEEN CARBON
EMISSION REDUCTIONS
AND THE
GOVERNMENT'S
AMBITIONS TO
REDUCE POVERTY
It is our firm belief that we need to develop
the market for renovation such that it is a realistic comparator
with new-build and that the Whole-Life-Cost (WLC) business case
for eco-renovation is sound.
On the whole, people want to utilise resources
that they can trust and have them at their fingertips, but effort
in finding competent support and appropriate materials and system
is hampering this effectiveness, hence driving up cost. At this
point most players in the market are waiting for others to move,
and we call this the "Cycles of Impedance", depicted
in the diagram below.
Figure 1
"CYCLES OF IMPEDANCE" IN THE MARKET
FOR SUSTAINABLE BUILDING SOLUTIONS
It is our firm belief that there will be a period
of "pain" in which the costs will be higher than acceptable
by the majority of the market. With time, the market will mature,
innovation will drive down prices and the cycles shown in Figure
1 are slowly broken. We are currently in this phase, and signs
are that while progress is being made in the new-build sector
at least in terms of the PR if not the engineering, the solutions
for retrofit and renovation are still quite expensive, with little
sign of market innovation.
The vision for the Parity Projects Demonstration
Project was to prove that significant and measurable carbon reductions
can be obtained by the simplest and most cost effective measures
available. We were able to achieve a nearly 50% reduction in carbon
emissions from draughtproofing and insulation alone. This is greatly
encouraging, but the next step is inevitably to use some kind
of renewable energy technology and not many have an economically
viable pay-back period that is acceptable to our typical client
base. This is further evidence that the Government must support
the renewables sector.
However, if we are to speed the progress of
the market for existing buildings, support needs to be provided
for the providers of solutions. The aspects we identify are as
follows:
— Identification of appropriate measures.
— Designing the identified measures
for application to the individual property.
— Supply of materials and systems.
— Installation said measures.
— Confidence to the user that the measures
have actually worked.
Different tenure types will provide different
motives, as explored in Section 3.
7.1 Able to Pay
Wherever possible the costs of reducing emissions
should be borne by householders, particularly for the many measures
which are cost-effective. Building Regulations could be used to
drive this. The Liberal Democrat initiative for eco-mortgages
is one suggestion for providing the initial capital for improvements.
Here, the mortgage made available is greater due the household's
lower expected spend on energy.
7.2 Stamp Duty-Related Measures
The Conservative Party's Quality of Life report
recently proposed that a refund on stamp duty could be used to
repay a loan for thermal refurbishment works. Parity Projects
supports any such measure which will bring more people into the
"able-to-pay" category.
7.3 Cross-subsidy
For those home-owners who are unable to afford
the upfront costs of efficiency measures, cross-subsidy from the
able to pay sector (such as via the EEC) should be used to provide
either grants or soft loans.
As attempts to internalise the costs of climate
change avoidance, the EEC and future supplier obligation are well-aligned
with sound economic policy. Difficulties exist due to the fact
that the liberalised energy market in the UK allows customers
to change supplier after just 28 days. This makes it difficult
for a supplier to recoup the upfront costs by, for example, a
surcharge on bills. Project Rachael, an idea from Climate Change
Capital suggests a way that this could be avoided through making
the method of charging for the efficiency measures location-specific
rather than occupant-specific.
7.4 Value Added Tax (VAT)
Through the development of our demonstration
project we paid the princely sum of £13,500 to the Treasury
in VAT, making it the second biggest single cost. With VAT set
at 5% or zero for new-build projects, the already challenging
business case for renovation is strained.
The arguments for a change to allow any eco-renovation
material to be zero-rated are strong. However, we appreciate that
this is a tricky dilemma, as we have shown in our demonstration
that many conventional building materials, if used in the right
way, can provide significant drops in carbon emissions and classification
argument may ensue. But it must be addressed.
Zero-rated products will be targeted by buyers,
manufacturers will innovate to enter the new market, and the snowballing
effect will see installers clamouring to provide new services
and client seeking to save money on their fuel bills and improve
their EPC score. (If the software allows them to).
7.5 Personal Carbon Allowances
The Government's aim to eliminate fuel poverty
is not misaligned with carbon emission reductions. The Energy
White Paper hints at individual carbon allowances. This will create
a demand for energy-efficient refurbishment as well as increasing
the incentive for more efficient behaviour. As said before, influencing
behaviour is essential.
If carbon "rations" are part of the
attempt to incentivise emissions reductions, the idea of a personal
carbon allowance along the lines of David Fleming's TEQs would
provide citizens with a free equitable quota of permits to emit
carbon. The auction to industry of the remaining 60% of permits
would provide a revenue stream which could be targeted at providing
efficiency in low-income households.
8. THE SPECIFIC
CHALLENGES FOR
HOUSING OF
SPECIAL ARCHITECTURAL
OR HISTORICAL
INTEREST
Other organisations will have a stronger background
than Parity Projects for commenting in this area.
We would recommend that you contact Mr Chit
Chong of Camden Council who is spearheading the eco-renovation
of a Listed Building in his district.
9. GENERAL RECOMMENDATIONS
In summary, we present a number of key items
which form the basis of the most influential actions that central
Government can take to improve the energy performance of existing
buildings:
— There have always been measures available
for purchase in the UK supply chain that enable significant energy
efficiency savings to be made in any home. The key to ensuring
that they are achieving their potential efficiencies is in:
— Client understanding of their potential.
— Competence of the industry in specifying
and installing correctly.
— Building Control departments policing
the installations under increasingly stringent Building Regulations.
— "Technological" improvements
in insulation and draughtproofing seem to be unsupported by Government
at this time. This biggest issues of concern to domestic residents
are:
— Reducing the thickness of insulation
that can be added to internal face of external walls of individual
rooms to retain floorspace.
— The materials used in common insulating
materials are increasingly being questioned by residents both
from the viewpoint of the embodied carbon and for health and wellbeing
reasons.
— The final touches to reaching the
magic +60% reduction in carbon dioxide emissions involve ventilation
and generation technology, all with scope for continual improvement
at the early development of this markets. We would urge microgeneration
to be a target for development mainly the retrofit market as Community
Heating and Power systems makes much more sense when building
new estates.
— The growing wave of householders
that are becoming aware and then motivated to change their property
must be supported either with grants or financial support even
cheap loans to cover the upfront cost of the long term investments
required.
— Energy Performance Certificates are
inadequate for providing a clear picture for the owner of how
to tackle the upgrade of their building. Also, due to the software's
inability to provide a representative picture of individual properties,
the certificate may not affect the property values much as they
ought thereby removing a major motivator for eco-renovation.
111 Williams, J., (2006) "Innovative solutions
for averting a potential resource crisis-the case of one-person
households in England and Wales" Environment, Development
and Sustainability. Back
112
Natarajan, S, Levermore, G., 2007, Domestic futures-Which way
to a low-carbon housing stock?, Energy Policy, In Press, Corrected
Proof, Available online 9 August 2007, http://www.sciencedirect.com/science/article/B6V2W-4PCR1VD-2/2/924d9702888d519ac623169118788d7f
). Back
113
Vattenfall. Back
114
Whereby a further 10% of the primary works budget must be spent
upgrading the thermal performance of the rest of the building. Back
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