1. Household Energy Management The policy landscape - targets - recent policies - future strategy and challenges Charles Phillips DECC Ecobuild 2 March 2010

2. Household emissions Household emissions relatively static, while total UK emissions falling Household emissions now c. 26% of the total Committed pre- Copenhagen to reducing non-traded household emissions by 29% by 2020

3. All housing types Owner-occupied, rented, social Retrofit and new build All measures and technologies Lighting Insulation Heat generation Small scale renewable electricity Domestic appliance usage Real time displays Behaviour change Existing programmes Warm Front Decent Homes Product standards Building regulations.. Carbon Emission Reduction Target (CERT) New programmes Community Energy Saving Programme (CESP) Low Carbon Community Challenge (LCCC) Smart meters Pay as You Save (PAYS) Feed in Tariffs (FITS) Renewable Heat Incentive (RHI) Household Energy Management - what we mean Communities District heating Small/home-based business 26m households 61m people

4. National targets Emissions reduction target ‘By 2020 we will cut (non-traded) emissions from homes to 29% below 2008 levels’ (LCTP p.82) 6 million homes ‘6 million homes will have been insulated under the Carbon Emissions Reduction Targets, Decent Homes, the Community Energy Saving Programme and Warm Front’ (LCTP p.16) Lofts and cavity walls ‘All lofts and cavity walls in Great Britain insulated where practical” and “400,000 homes will benefit from “whole house” treatments’ ( LCTP p.17) 7 million homes ‘Up to 7 million homes will have had the opportunity to take up more substantial ‘whole house’ changes. These packages will go beyond the simple loft and cavity wall insulation measures to include things like solid wall insulation or small scale renewable energy ‘ (HESS p. 17) Heat ‘Around 12% of heat [in total across all sectors] is generated from renewable sources...’ (LCTP p.17) Smart meters ‘By end of 2020 every home in Great Britain will have a smart meter’ (LCTP p.17) Outcome: Outputs: 2020 end 2011 2015 2020 Deadlines 1. 2. 3. 5. 4. 6. HESS: Heat and Energy Saving Strategy, Feb 2009 LCTP: Low Carbon Transition Plan, July 2009

5. Recent policies - CERT CERT - changes last summer Increase CERT targets/activity by 20% Increase the market transformation ring-fence from 6% to 10% of the total target; Introducing upfront carbon scores for behavioural measures (real time electricity displays and home energy advice); Remove all non retail CFL schemes as eligible from 1 st January 2010. CERT extension – current consultation Higher target of 293 MtCO 2 – suppliers to invest extra c.£2.4 billion Insulation minimum at 65% Compact Fluorescent Lightbulbs no longer allowed New Super Priority Group obligation 

6. Area based installation of energy saving measures targeted at low-income areas c. 100 projects 90,000 households £350m over 3 years Partnership approach eg agreements between British Gas and LAs in: Dundee, Glasgow, Preston, Knowsley, Birmingham, Swansea, Walsall, Blacon, Southwark and Haringey Potential CESP area Recent policies - Community Energy Saving Programme (CESP)

7. Low Carbon Community Challenge (LCCC) Support for 20 “test bed” communities Up to £500k capital per project, £10m in total Low carbon technologies Behaviour change Communities linked by real-time displays >500 expressions of interest Phase 1: 10 winners announced Dec’ 09 Phase 2: successful communities to be announced shortly Phase 1 winners (announced 21 Dec 2009) : Chale Green, Totnes, Reepham, Whitland (Dfyed), Blacon (Chester), The Meadows (Notts.) West Oxford, Berwick upon Tweed, Hillhouse Huddersfiled, Muswell Hill

8. Recent policies - ‘Pay as you Save’ (PAYS) pilots Installation of energy efficiency and microgeneration with no upfront cost Payments from projected savings Five pilots announced, 7 th of Dec 2009: Birmingham Sunderland Sutton Stroud South East To test financing / delivery models, and consumer appetite 500 homes expected to participate Total cost £4m

9. Household Energy Management – Issues Household Energy Management dd dd dd dd dd DDDDDDDDDD Demand & consent Cost and carbon effectiveness Supply chain & skills Fuel poverty Strategy