Home Energy Management Strategy Published Today

Home Energy Management Strategy Published today states that by 2020 the following will have happened:

● every home where it is practical will have loft and cavity wall insulation – an ambition
we intend to deliver on by 2015;
● every home in Britain will have a smart meter and display to help them better manage
their use of energy;
● up to 7 million households will have had an eco-upgrade which would include advanced
measures such as solid wall insulation or heat pumps alongside smart meters and more
basic measures;
● people living in rented accommodation will enjoy higher levels of energy efficiency as
landlords – private and social – take action to improve the fabric of properties;
● there will be wider take up of district heating in urban areas, such as in blocks of flats,
in new build and social housing, and in commercial and public sector buildings; and
● there will be a core of up to 65,000 people employed in the new industry of energy
efficiency, and potentially several times more down supply chains. Jobs will include
installing and manufacturing energy saving measures or providing home energy advice.

This is a seismic shift in the energy policy in the UK and represents the culmination of many years of policy discussion, consultation, workshops and late nights. It is hugely ambitious, and breaks new ground in law and policy. A number of the key enablers that will happen are:

● New community partnerships and an enhanced role for local authorities, including a
requirement on energy companies to consult with local authorities to deliver local  area-based
programmes; and support for district heating;
● Universal standards for the rented sector, including a new Warm Homes standard and
proposals for regulation of the rented sector;
● Invest to save, including replacing the existing CERT mechanism with a new energy
company obligation, and legislation to enable pay as you save financing that would provide
people with eco-upgrades without upfront costs; and
● Support for consumers, including plans for a universal advice service and new standards
for installation.

The key elements for me are:

– the Invest to Save, or Pay as You Save (PAYS) model where a householder can borrow finance to carry out upgrades and the energy savings pay the finance back over a long period. Furthermore the legislation will allow this to be attached to the property and not to the individual carrying out the works. Work will be done with the RICS to develop a mechanism to value property partially on the basis of its energy efficiency, thus ensuring that there is an increase in value of more energy efficient properties.

-the Warm Home standard which will set out a basic energy efficiency target for rented properties the will ensure that the socially rented sector is prioritised between now and 2015.

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