Revisions to ECO: Key Points ECO still remains at £1.3 billion with a 75/25 split between the Carbon Saving Obligation and Affordable Warmth Obligation respectively. The new addition is the Carbon Saving Communities Obligation (CSCO) element of £190m; designed to target insulation measures in low income communities, defined by their inclusion in the bottom 15% of LSOAs ranked using IMDs (so basically CESP). There is an attempted provision to ensure that rural households are not disadvantaged, as they were under CESP, as a result of low density. Suppliers are required to deliver 15% of their overall CSCO funding to rural, low income households in settlements under 10,000 people. To qualify households must receive a qualifying benefit or tax credit under the ECO Affordable Warmth Obligation criteria. The document states that a wider range of measures will be eligible but then only references LI, CWI and EWI. So basically this is CESP for CERT SPG eligible households only, with fewer measures and anywhere outside of cities (10,000 people isnt really rural, it is a town). There are no details on tenure requirements, likely funding percentages, minimum numbers etc. Hard to treat cavity products now qualify under the Carbon Saving Obligation. There is no definition provided on what classes as a hard to treat cavity. Boiler repairs are included under the Affordable Warmth Obligation providing that aftercare is provided. Although there is no definition of what this comprises. The Affordable Warmth Obligation is still private sector only and will follow the CERT SPG criteria. Ofgem, and not DECC, will be the administrator from 1 st October 2012 until 31 st March 2015.
ECO- 3 strands Affordable Warmth -Excludes social housing -CERT SPG eligibility -Flexible measures, as long as they reduce heating bills -Challenges for identifying the eligible and data sharing remain Carbon Saving -Significant focus on solid wall -Challenges for industry to deliver (target of 500k solid wall measures by April 2015 vs current industry capacity of 20-30k measures pa) Carbon Savings Communities Obligation (CSCO) -Lowest 15% LSOAs by IMD. -Will include rural focus for minimum 15% of overall CSCO funding -
Additional Points: Extended list of eligible Green Deal measures 1. Air source heat pumps 2. Biomass boilers 3. Biomass room heaters (with radiators) 4. Cavity wall insulation 5. Chillers 6. Cylinder thermostats 7. Draught proofing 8. Duct insulation 9. External wall insulation systems 10. Fan-assisted storage heaters 11.Flue gas heat recovery devices 12.Gas-fired condensing boilers 13.Ground source heat pumps 14.Heating controls for wet central heating systems or warm air systems 15.Heating ventilation and air-conditioning controls (including zoning controls) 16.High performance external doors 17.Hot water controls (including timers and temperature controls) 18.Hot water cylinder insulation 19.Hot water showers 20.Hot water systems 21.Hot water taps 22. Internal wall insulation systems (for external walls) 23. Lighting systems, fittings and controls (including roof lights, lamps and luminaires) 24. Loft or rafter insulation (including loft hatch insulation) 25.Mechanical ventilation with heat recovery systems 26.Micro combined heat and power 27. Micro wind generation 28.Oil-fired condensing boilers 29.Photovoltaics 30.Pipework insulation 31.Replacement glazing 32.Radiant heating 33.Room in roof insulation 34.Roof insulation 35.Sealing improvements (including duct sealing) 36.Secondary glazing 37.Solar blinds, shutters and shading devices 38.Solar water heating 39. Transpired solar collectors 40.Under-floor heating 41.Under-floor insulation 42.Variable speed drives for fans and pumps 43.Warm-air units 44.Waste water heat recovery devices attached to showers. 45.Water source heat pumps 4
Contact information Kelly Greer Energy Solutions Manager British Gas Business Services britishgas.co.uk/communityenergy 5