South Warwickshire Landlords Forum David Jullien (Act on Energy) 12 November 2014

Benefits of Energy Efficiency in Privately Rented Homes For Tenants For Landlords Lower fuel bills Warmer homes Healthier environment Less debt More disposable income Less complaints Less condensation damage Less tenant illness Less rent arrears Improved reputation

Support for Energy Efficiency Measures 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) Source

The Energy Act provisions to regulate private rented sector Private Rented Sector- Energy Saving From April landlord can’t refuse a tenant’s request for EE improvements (if available through Green Deal or ECO) From can’t rent property with EPC band F or G (England 9.2% homes in band F/G) Currently- landlord and tenant have to agree before GD loan is taken out X

New fuel bill wall insulation double glazing HE boiler roof insulation GREEN DEAL- How it Works GD loan repayment * 3 ECO Grant * 1 cost meets golden rule doesn’t meet golden rule total saving £1,400 * 2 Top-up needed Add Improvement measures repayment more than saving Funding options * 1 “Green Deal” from Green Deal provider- commercial loan repaid through electricity bill * 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 * 2 Personal savings, mortgage or other loan £2,800 = £2,200 £1,950 £1,800 £1,400 A E D C B EPC band F fuel bill £1,350 SAP G ave typical older property

Home Heating and Cost Reduction Obligation (HHCRO) Carbon Saving Community Obligation (CSCO) Carbon Emission Reduction Obligation (CERO) 2014 ECO rules changed Reduced by 33% No change Same target but extended to 2017 Excess can be carried over to following years RESULT- targets reached / schemes stopped / more in April 2015 ? Energy Company Obligation (ECO)

Feed in Tariff Solar electric Wind Combined Heat and Power Renewable Heat Incentive Heat Pumps Biomass Solar water heating Combined Heat and Power Renewable Energy

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

Gov.uk website Ofgem website companies-obligation-eco Act on Energy: Freephone Contacts