Retrofitting private homes is next on the government's Green Deal agenda. But this task is worlds apart from the large scale energy efficiency programmes of the social housing sector. It's going to be a piecemeal process, with individual support for owner-occupiers and a host of new financial and technical problems.
Differences aside, social landlords are actually well placed to deliver retrofit in the complex private home sector. They have the neighbourhood management skills, public trust and the impartiality required. As not for profit bodies, any income generated would be used to benefit local communities.
Affinity Sutton's FutureFit project confirmed what many have long suspected: the Green Deal can work, but a major funding shortfall is likely. Some properties involved in the retrofit trial were left with a funding gap of £3,000 – the difference between the cost of improvements and the fuel savings generated.
Yet the recent green deal consultation has indicated that social landlords might not have full access to the energy company obligation subsidy used to close this funding hole. The sector is now calling on the government to think again and treat social tenants and owner-occupiers equally when it comes to affordable warmth funding.
Registered providers have more experience than most when it comes to delivering large scale improvements, thanks to the Decent Homes programme. Most of them already have or are developing retrofit strategies.
But the potential of a carbon black hole still looms large for owner-occupiers. How will they react to this pay-as-you-save scheme? The tendency in the private sector mayThe tendency in the private sector may be for work to be done at other trigger points to minimise disruption, fitting internal wall insulation when kitchens or bathrooms are renewed, for example. This may happen with long gaps in between events.
Retrofitting in stages makes it harder to work out energy savings, let alone maximise them. Regular re-adjustments might have to be made to the Green Deal calculations for household, with major administration costs. Fragmented home improvements also make it harder to link rapidly changing green technologies. It may also mean that no immediate benefit is seen from the extra expense, devaluing insulation work in the public's minds.
For consumers, the Green Deal is a complex concept, with the added complication that advisers responsible for estimating a property's likely fuel bill savings may well be funded by the very firms hoping to profit from the works. Rigorous controls are promised, but consumers are bound to be sceptical in the light of payment protection insurance and other mis-selling.
This is where the social housing sector comes in. Registered landlords are experienced when it comes to working with residents. Driven by social purpose rather than profit, they could provide the trusted advice needed to reassure consumers and help them make informed decisions about energy improvement works.
If a social landlord is already undertaking a programme for its own stock, then it makes sense for works to be offered to private owners in the same neighbourhood, at the same time. Homeowners would benefit from the procurement muscle of registered providers.
If social landlords serve the private market, then owners too can benefit from the skills, standards and purchasing power within the social housing sector. This would enable landlords to deliver neighbourhood by neighbourhood, helping them drive down costs further.
Much is still to be settled, but if housing providers count themselves as social businesses they should consider delivering the Green Deal across all tenures. They have the skills and trust needed to cut carbon emissions and tackle fuel poverty for social renters, home owners and private tenants alike. The question is, will they will rise to the challenge?
Bill Taylor is a consultant for Fusion 21
You can find out more about social housing's role in the Green Deal here: www.retrofitforhousing.co.uk
This article was amended on 13 December
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