1. Funding sustainable energy Presented by: Dave Barton The Energy Saving Trust

2. Financing improvements Grant programmes Revolving loans Discount schemes Green mortgages Treasury initiatives Shared investment/savings

3. Energy Efficiency Commitment EEC - statutory obligation. EEC 2005 - 2008 (130 TWh). Predominantly energy efficiency measures, but includes: Solar water heating. Ground / Air source heat pumps MicroCHP. Likely to continue and get bigger

4. Warm Front Originally introduced in 2000. Amended in 2005 to include central heating. Package of measures up to the value of £2,700. Additional Government funding (2005-8) for central heating for vulnerable pensioners. Renewables?

5. Capital grant programme: –Part-funded –Various streams Technologies –Solar photovoltaics. –Wind turbines. –Small hydro. –Solar thermal hot water. –Ground source heat pumps. –Bio-energy –In future: MicroCHP, fuel cells, water and air source heat pumps? The DTI’s Low Carbon Buildings Programme

6. Green Energy Loans ( Coventry, Warwick and Nuneaton and Bedworth) Credit union scheme Aimed at individuals who can’t obtain grants and who probably wouldn’t get loans elsewhere. £1000 over 2 years (12.7% APR) = £1118.45. –Incentive to pay back - £47.38. –Total interest = £71.07. Increased loans available for heating systems. Cheques made payable to contractor.

7. Other sources of funding…. Discount schemes. –EnergySmart (boilers) –Procurement for Housing Central Heating Deal –Big Green Insulation Scheme PCT health funding –Cold/damp-related illnesses National Grid Affordable Warmth –Low cost borrowing for gas central heating with energy efficiency measures

8. Interest-free loans for renewables (Chichester) Interest free loans to homeowners and private landlords Repayable monthly over a period 1-3 years Maximum: £4,000 Technologies: –Solar hot water heating –Small-scale wind turbines –Ground source heat pumps

9. Green Energy Trust ScottishPower Community based projects UK-wide 50 per cent of project costs - maximum £25,000

10. E.ON SOURCE Community groups and NFPs Technologies include: –Solar –Small scale wind –Bio-fuels –Geothermal –Fuel cells –Small-scale hydro 100 per cent funding: £2,500- £30,000.

11. Green mortgages A home loan or further advance which incentivises a lower environmental impact The Energy Efficiency Partnership for Homes requires that one should –Encourage improved energy efficiency –Offer one or more financial incentive towards energy reduction in energy use –Encourage access to advice –Have a defined qualifying criteria

12. Green mortgage incentives: Lower interest rates Cashback No early redemption charge Fee-free Higher loan-value More favourable term (duration) As defined by the Energy Efficiency Partnership for Homes Home purchase and Finance Group

13. Green mortgage qualifying criteria: Energy performance better than Building Regulations Commitment to carry out measures identified in the Home Energy Report, or form a general list of measures

14. Green mortgage Issues Lower value and higher cost to provider Counter-intuitive business model Financial services industry is heavily regulated Lack of consumer demand - chicken & egg?

15. Green mortgage examples Norwich & Peterborough Green Mortgage –Reduced interest rates, maximum reduction for new homes with a SAP>1000 –Reduced rates for existing home improvement, with carbon offset with 40 trees planted for each mortgage –Minimum advance of £20,000

16. Green mortgage examples Ecology Building Society C-change –1% reduction in standard variable rate –Energy efficiency (e.g. insulation, timber-framed glazing), or –Renewable energy (e.g. solar, wind, wood-fuelled heating) Co-operative Bank –Carbon-offsetting through Climate Care –Looking at a new product aiming to reduce energy consumption

17. Equity release Previous EST pilot Aimed at cash-poor, asset-rich Found to be heavy on administration: –Lots of ‘selling’ –Consultation with relatives and benefactors Commercially not viable

18. Treasury incentives Landlord Energy Saving Allowance –Tax deduction of up to £1500 per property –Affects landlords paying corporation or income tax –Measures: CWI, SWI, HWI, DS, FI Stamp duty exemption/reduction (new homes) More to come? Council Tax rebate - EEC

19. Energy services Upfront capital investment Pay back from cost of energy savings –Examples of schools energy services –Private company lends money and installs measures Utilities' special tariffs: –previously, with CFL examples –further examples to come under EEC? ESCos as a means of generating heat, electricity and funds

20. Practical help Enquiries service Website Presentations Newsletter Email bulletin Energy services Jacquie Will Mandi Bindi

21. Further information Contact Practical help: T: 0870 241 2089 www.est.org.uk/housingbuildings practicalhelp@est.org.uk