ASSA Local Energy Network Working Together to Reduce Energy Costs and Carbon Emissions

ASSA The Albert Square and St Stephens Association (ASSA) is a residents association representing the interests of the residents of the conservation area made up of a garden square and four streets of Victorian terrace housing in South Lambeth, south west London Faced with the challenge of climate change and rising energy costs, ASSA is implementing a community-based approach to reduce emissions in our homes by 60%, at zero cost to residents with the help of a group of commercial and not-for- profit partners. The Albert Square and St Stephens Association (ASSA) is a residents association representing the interests of the residents of the conservation area made up of a garden square and four streets of Victorian terrace housing in South Lambeth, south west London Faced with the challenge of climate change and rising energy costs, ASSA is implementing a community-based approach to reduce emissions in our homes by 60%, at zero cost to residents with the help of a group of commercial and not-for- profit partners.

The Bigger Picture We need to reduce CO 2 emissions by 60-85% by 2050 to avoid the significant and irreversible effects of climate change 1 40% of UK CO 2 emissions come from residential and commercial buildings 85% of the current UK housing stock will still be in use in million of the UK’s 24 million homes are in Conservation Areas or listed as architecturally important We need to reduce CO 2 emissions by 60-85% by 2050 to avoid the significant and irreversible effects of climate change 1 40% of UK CO 2 emissions come from residential and commercial buildings 85% of the current UK housing stock will still be in use in million of the UK’s 24 million homes are in Conservation Areas or listed as architecturally important 1. UK Government, International Panel on Climate Change, 2 UK Sustainable Development Commission

Barriers to Home Improvement Why aren’t people improving the efficiency of their old homes?  Energy efficiency savings (loft insulation, new boiler, lamps etc. ) pay for themselves over time  Micro generation (solar pv, heat pumps, solar thermal) can be made to pay for itself too once grants are included We have identified three key barriers: 1.Lack of money 2.Lack of time 3.Lack of knowledge Why aren’t people improving the efficiency of their old homes?  Energy efficiency savings (loft insulation, new boiler, lamps etc. ) pay for themselves over time  Micro generation (solar pv, heat pumps, solar thermal) can be made to pay for itself too once grants are included We have identified three key barriers: 1.Lack of money 2.Lack of time 3.Lack of knowledge

Addressing the Barriers 1.Monetary: Arrange financing for energy efficiency and microgeneration (inc. arranging grants) with partner bank and power & gas provider such that new energy bill including loan repayment is less than old bill. 2.Time: Work with Green Homes Concierge (GHC) – LDA funded home energy auditors – to provide a ‘menu of improvements’ specific to each house, due diligence contractors and source equipment 3.Knowledge: Back up the above two with suite of training, communications and support from GHC, power company, dedicated charities and community networks 1.Monetary: Arrange financing for energy efficiency and microgeneration (inc. arranging grants) with partner bank and power & gas provider such that new energy bill including loan repayment is less than old bill. 2.Time: Work with Green Homes Concierge (GHC) – LDA funded home energy auditors – to provide a ‘menu of improvements’ specific to each house, due diligence contractors and source equipment 3.Knowledge: Back up the above two with suite of training, communications and support from GHC, power company, dedicated charities and community networks

Goals 60% reduction in GHG emissions through  20-30% increase in energy efficiency  20-30% low-carbon energy generation  10-15% behavioural change At zero cost or capital outlay to residents and reduce bills Try and engage as many houses and flats as possible  Scale necessary to collectively bargain and reduce administrative costs  All owners and tenants benefit from increased home value and/or reduced bills  Buy-in will require good marketing and hard graft! 60% reduction in GHG emissions through  20-30% increase in energy efficiency  20-30% low-carbon energy generation  10-15% behavioural change At zero cost or capital outlay to residents and reduce bills Try and engage as many houses and flats as possible  Scale necessary to collectively bargain and reduce administrative costs  All owners and tenants benefit from increased home value and/or reduced bills  Buy-in will require good marketing and hard graft!

Delivery Governance: Charity with Management Committee and part-time coordinator Operations: Management Committee select and coordinate commercial, NGO and community group partners. Coordinator manages project. Commercial partners are required to commit additional resources to deliver this innovative demonstration project Financing: Improvements funded by personal loans from a high street bank in coordination with the power and gas company. Administrative finances for the charity from grant funding Similar to a traditional Energy Service Company (ESCo) model but charity only coordinates partners, it does not finance or deliver energy Governance: Charity with Management Committee and part-time coordinator Operations: Management Committee select and coordinate commercial, NGO and community group partners. Coordinator manages project. Commercial partners are required to commit additional resources to deliver this innovative demonstration project Financing: Improvements funded by personal loans from a high street bank in coordination with the power and gas company. Administrative finances for the charity from grant funding Similar to a traditional Energy Service Company (ESCo) model but charity only coordinates partners, it does not finance or deliver energy

Delivery £ Pay for equipment Energy efficiency and microgeneration contractors Power Company Also provides energy advice line and other support. Power Company Also provides energy advice line and other support. ASSA Local Energy Network Charity with Ltd Company Subsidiary Grant funding organisations Power & Gas Bank For admin and credit purposes, bank has recourse to individuals. Bank For admin and credit purposes, bank has recourse to individuals. Install equipment £ Community Grants £ Capital & Interest £ Direct Loan £ Single Monthly bill Payment vehicle £ Pay for equipment £ Energy payments

Community Engagement Getting everyone involved not just the committed environmentalists is key to the scheme The key innovation of this scheme is that it is delivered from the ground up – rather than most schemes delivered by companies or government - this increases trust and acceptance of a new concept We will leverage the following existing networks to deliver the message: Residents association and local events St Stephen’s Church and related community groups Local Schools (Reay, Durand and St Stephen’s) Key landlords (London and Quadrant, NHS Trust) Existing informal networks – there exists a strong local community Getting everyone involved not just the committed environmentalists is key to the scheme The key innovation of this scheme is that it is delivered from the ground up – rather than most schemes delivered by companies or government - this increases trust and acceptance of a new concept We will leverage the following existing networks to deliver the message: Residents association and local events St Stephen’s Church and related community groups Local Schools (Reay, Durand and St Stephen’s) Key landlords (London and Quadrant, NHS Trust) Existing informal networks – there exists a strong local community

The Bigger Picture II This is a small project covering 140 houses and 300 residents It is designed to demonstrate that it is possible to achieve significant improvements in the carbon and energy footprint of the existing housing stock by leveraging existing community networks If the model works here, we will endeavour to create a legal template and mentor programme that allows communities across London and the UK to ‘copy and paste’ our model This is a small project covering 140 houses and 300 residents It is designed to demonstrate that it is possible to achieve significant improvements in the carbon and energy footprint of the existing housing stock by leveraging existing community networks If the model works here, we will endeavour to create a legal template and mentor programme that allows communities across London and the UK to ‘copy and paste’ our model

Appendix 1.Energy Efficiency 2.Microgeneration 3.Delivery Partners 4.Regulatory Background 5.Financial Example 1.Energy Efficiency 2.Microgeneration 3.Delivery Partners 4.Regulatory Background 5.Financial Example

Energy Efficiency 20-30% reductions from energy efficiency Engage electricity and/or gas provider to participate  Both have regulatory obligations to reduce the CO 2 emissions of their customers 1  Get all residents to switch to this provider(s) Energy efficiency measures carried out by dedicated company  Company carries out energy audit then implements energy efficiency measures such as loft insulation, draught-proofing, newer boiler, CFL lighting, heating controls etc.  Economies of scale given homogenous houses on each street  Ideally, energy savings are guaranteed. These guaranteed savings are like an income stream and mean up-front funding can be provided and paid out off over time form the savings 20-30% reductions from energy efficiency Engage electricity and/or gas provider to participate  Both have regulatory obligations to reduce the CO 2 emissions of their customers 1  Get all residents to switch to this provider(s) Energy efficiency measures carried out by dedicated company  Company carries out energy audit then implements energy efficiency measures such as loft insulation, draught-proofing, newer boiler, CFL lighting, heating controls etc.  Economies of scale given homogenous houses on each street  Ideally, energy savings are guaranteed. These guaranteed savings are like an income stream and mean up-front funding can be provided and paid out off over time form the savings 1. UK Carbon Emissions Reduction Target

Micro Renewables 20-30% reductions from low carbon energy generation Low carbon energy generation comes in many forms…  Totally renewable energy like solar hot water heating (tubes on south-facing roofs), solar photo voltaic (these come as tiles that look like slate), ground source heat pumps (vertical or horizontal trenches)  Highly efficient solutions such as combined heating and power - boilers that provide heating and produce electricity Low carbon energy can be expensive and have long payback times but it uses little or no energy once installed. It would be financed through  Energy savings  Grants - there are many, many grants for individual and community programs 20-30% reductions from low carbon energy generation Low carbon energy generation comes in many forms…  Totally renewable energy like solar hot water heating (tubes on south-facing roofs), solar photo voltaic (these come as tiles that look like slate), ground source heat pumps (vertical or horizontal trenches)  Highly efficient solutions such as combined heating and power - boilers that provide heating and produce electricity Low carbon energy can be expensive and have long payback times but it uses little or no energy once installed. It would be financed through  Energy savings  Grants - there are many, many grants for individual and community programs

Regulatory Background Carbon Emissions Reduction Target Low Carbon Buildings Programme Phase 1 (Households) & Phase II (Communities) Community Energy Savings Programme Community Sustainable Energy Programme (National Lottery/BRE) Green Neighbourhoods Initiative (2009) Low Carbon Homes Strategy (2009) Carbon Emissions Reduction Target Low Carbon Buildings Programme Phase 1 (Households) & Phase II (Communities) Community Energy Savings Programme Community Sustainable Energy Programme (National Lottery/BRE) Green Neighbourhoods Initiative (2009) Low Carbon Homes Strategy (2009)

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