1. British Gas Community Energy CERT funding for external solid wall insulation Social housing and private sector properties Energy Solutions Manager, Lindsey Kennedy

2. Introduction According to the Energy Saving Trust, around 45% of the heat lost in an un-insulated solid wall home is through the walls. Installing external wall insulation (EWI) can reduce heat loss and can save occupiers around £375 a year on their fuel bills, helping to reduce carbon emissions by around 1.9 tonnes per year for a home heated by gas (and much more for those heated by electricity and solid fuel) and alleviating fuel poverty in ‘hard to treat’ homes. Traditionally, EWI is much more expensive to install than loft and cavity wall insulation and it has previously been seen as cost-prohibitive but British Gas can now provide a new solution to help increase the uptake in some of the most vulnerable households in your area. 2

3. British Gas can now provide a funding solution to support the implementation of EWI Under the priority group flex option within CERT, British Gas is now able to provide significant funding to homes installing external wall insulation. This is because the carbon savings we can claim for EWI in certain circumstances have been increased, meaning that we can offer greater amounts of funding. Funding is available for works carried out in social housing and also for privately owned and rented properties, providing that the client receives certain benefits or allowances. This funding is available for installations occurring after February 23 rd 2011 and it is expected that this scheme will run in both 2011 and 2012. All installations must be complete by the end of CERT (31 st December 2012). 3

4. Which properties are suitable for external wall insulation? Twice as much heat can be lost through an uninsulated solid wall as through an un-insulated cavity wall meaning that they are often classed as ‘hard to treat’. If a home is of solid brick construction, the bricks will tend to be placed head-on and lengthways in an alternating pattern. 4 Homes built before or around 1920 usually have external walls made from a single skin of ‘solid brick’, rather than cavity walls. In addition, many post-war system built properties are made from concrete or other pre-fabricated materials (e.g. Cornish, Wimpey, BISFs) and do not have cavity walls.

5. Why install external wall insulation? It reduces energy bills, saving money and reducing CO 2 emissions It provides the occupier with a more comfortable living environment, helping them to keep warm and healthy It can be applied without disruption to the household and does not reduce the floor area of the property home It renews and improves the appearance of outer walls (planning permission may be required so check before undertaking any work) It fills cracks and gaps in the brickwork, which will reduce draughts and improve air tightness and sound resistance It increases the lifetime of a property wall by protecting the brickwork It adds value to the property 5

6. What is British Gas able to offer? British Gas will CERT fund every external solid wall measure installed in the following two categories: 6 Social housing Private sector housing where the occupier falls into Priority Group Flex (PGF) categories - new enhanced funding available PGF is a private household where at least one occupant is on a set list of benefits (see slide 9)

7. Funding for social housing For installations of EWI in social housing the process is similar to the one in place currently, however levels of funding have increased. Prior to any works being completed, an application for funding should be submitted to your Energy Solutions Manager. An offer of funding is then made by British Gas and an agreement produced once this offer is accepted. As part of this agreement, an Ofgem required declaration must also be submitted. Once works have been completed a claim form and compliance documentation (e.g. technical monitoring forms, solid wall declarations) are submitted and the funding is paid to the social housing provider. These forms will be provided by your Energy Solutions Manager. Claims should be made at least every 3 months. 7

8. 8 Funding levels – social housing Typical funding levels – Based on an average 3 bed semi detached house Full property funding amounts are contained in Appendix 1

9. Funding for private sector households in PG Flex One of the main issues with EEC, EEC 2 and CERT was that the funding available for EWI was relatively small compared to the cost of installation and was usually only available for social housing. Our new offer for private sector properties provides a significant amount of funding to households in receipt of the following benefits or allowances: Council Tax Benefit - Housing Benefit - Income Support - Income-based Job Seekers Allowance - Income-related Employment and Support Allowance - Attendance Allowance - Disability Living Allowance - War Disablement Pension (that includes either a mobility supplement or constant attendance allowance) - Disablement Pension (that includes constant attendance allowance) - State pension credit - Child Tax Credit (where the relevant income is £16,190 or less) - Working Tax Credit (where the relevant income is £16,190 or less) 9 Please note, over 70s are not eligible under PG Flex (unless on a benefit above)

10. Funding for private sector households in PG Flex An application for funding should be submitted to your Energy Solutions Manager. An offer of funding is then made by British Gas and an agreement produced once this offer is accepted. As part of this agreement, an Ofgem required solid wall declaration must also be submitted. The super priority group percentage must be stated on the declaration. This will be explained to you by your Energy Solutions Manager. Once works have been completed a claim form and compliance documentation (i.e. technical monitoring forms and customer satisfaction forms) are submitted and the funding is paid. These forms will be provided by your Energy Solutions Manager. 10

11. How are funding levels calculated? The amount of funding available depends on a number of factors relating to the household, including: The property type and size (e.g. 3 bedroom semi-detached) The current heating fuel (mains gas, LPG, oil, electric or coal) In many cases the household will be able to receive a grant covering 100% of the cost of the works and this is most likely for homes heated by electricity or coal. 11

12. 12 Funding levels – private sector (PG Flex only) Huge uplifts in funding Typical funding levels – Based on an average 3 bed semi detached house Full property funding amounts are contained in Appendix 2

13. How will the private sector PG Flex scheme work? Individual households will not be able to apply directly to British Gas. We will rely on local authority partners, managing agents and installers to help co-ordinate the scheme. The process has been designed to be straightforward and with minimal administration. Claims can be submitted for as little as one or two properties, so there is no requirement for minimum numbers or project size. The process will mirror that for social housing but separate application and claim forms etc will be needed. Technical Monitoring forms for 5% of all installations and customer satisfaction forms for 1% of all installations will need to be completed. 13

14. Ways you can promote this scheme to residents/clients Ensure customer contact staff and staff in Housing, Environmental Health and Environment Teams are aware Brief Care and Repair/Home Improvement Agency colleagues Advertise the scheme in council publications Advertise the scheme on the council website Carry out a mailing to residents receiving Council Tax or Housing Benefit with support and branding from British Gas Disseminate the information to relevant local groups and organisations (FoE, Greenpeace, Age UK, Transition Towns groups) Provide details to local lettings agents 14

15. Other ways to utilise the scheme Provide landlord accreditation schemes and landlord forums with details to help raise awareness for landlords Used as a tool to assist with general complaints regarding cold living conditions and damp Utilise for HHSRS notices and schedules for improvement works Advise owners of empty properties (please bear in mind a nominated tenant in the priority group will be required) Advise all landlords with solid wall properties currently in your Private Sector Leasing (PSL) scheme Revisit any right-to-buy properties that missed out on previous EWI schemes or use to help those involved in current/future schemes 15

16. Next steps 1.Discuss the options with your ESM 2.Promote the scheme to tenants / residents and provide information to colleagues 3.Collate responses / complete and submit application form to your ESM 4.Funding offer is made and contract generated 5.Works are carried out 6.Claim is submitted to your ESM along with relevant paperwork and grant is paid 16

17. Contact information Lindsey Kennedy Energy Solutions Manager, Central Region British Gas Community Energy 07789 575135 Lindsey.kennedy@centrica.com britishgas.co.uk/communityenergy 17