Domestic Energy Efficiency

by Martin Black in York, United Kingdom

Domestic Energy Efficiency
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Improve the energy efficiency of domestic properties by reducing thermal heat losses and replacing inefficient gas boilers.

by Martin Black in York, United Kingdom

Energy Company Obligation 4 Scheme.

In the UK we have a scheme called the Energy Company Obligation. The objective of the scheme is to improve the energy efficiency of the housing stock and reduce carbon emissions. The scheme is funded by a levy on all energy bills to be distributed by funders i.e. Anesco, Effective Energy, Agility Eco and many more. The funding is accessed by PAS 2030 accredited business like ourselves’ who install energy saving measures to domestic properties. 

Qualification for ECO4 funding.

For homeowners to qualify for funding they must be on benefits or earn less than £31k P.A.

All rental properties in the UK must have an EPC of “D” or higher. This scheme provides funding for the landlords providing the resident fulfils the qualifying criteria.

The measures my business will be accredited for are:

  • Replacement of inefficient non-condensing boilers.
  • Room in roof insulation.
  • Loft insulation.
  • Heating controls.
  • First time central heating

We will add further measures later in the year and look to providing solar panel systems next year. We will not be installing air source heat pumps ourselves although we can carry out these works via a collaborative relationship with another business.

Routes to market.

Social media geographically targeted marketing.

Estate agents.

Lead generators. (expensive, reliable & we have one who is amazing)

 

DWP Data Match.

This process verifies the benefit recipient’s eligibility for scheme funding.

Retrofit assessment.

Each property is assessed by suitable qualified contractor for heat loss calculation and existing heat sources as well as current insulation installed.

 

Retrofit coordinator.

The retrofit coordinator calculates the performance and viability of additional retrofit energy saving measures that we suggest are installed at the property. The retrofit coordinator also checks and collates all information necessary for lodgement of the job submission to the funder.

 

PAS Hub Assessment and submission system: 

PAS Hub manages the entire process from start to finish, DWP Data Match, Retrofit Assessment, Retrofit coordination and submission to funder for payment.  The system has an app that is used by the installers to verify the quality of workmanship and verify to the retrofit coordinator of the measures installed. This is vital verification for payment.

 

Easy PAS Quality management system.

This system manages the business accreditations, insurances and workforce qualifications providing notification of renewals and expiration of qualifications.

The system manages health and safety, method statements and risk assessments for each installation.

 

Payment from funder.

When an installation is complete the submission is done via the PAS Hub system. This sends the data from each of the process in digital format for verification and review. Due to the amount of fraud in previous schemes ECO 1,2 & 3 the reviewing and verification of works and quality is extremely stringent. In order to make this process as efficient as possible the Retrofit coordinator verifies the works and information gathered pre submission to reduce the number of potential issues raised by the funder. This is carried out by the coordinator as the images of the installation are uploaded while the job is in progress.

Upon acceptance of each submission (within 48 hours of completion) the payment will be received in 7 to 10 days later.

I am planning to start slowly with a small number of jobs to familiarise ourselves with potential issues and train ourselves the most efficient way of handling the processes.

Workforce.

I have a long standing and very strong relationship with an experienced team of Polish workmen who have worked for me in another business for many years. They are dependable, loyal, trustworthy and are looking forward to building this business with me. We have explored bringing workers in from Poland where this kind of insulation is commonplace in the housing market there. We will of course use UK trades people as well.

 

Business Accreditations

Gas Safe                                                UK Gas Safety Scheme

PAS 2030                                               ECO Accreditation

Trustmark                                              Consumer Protection

ICO                                                        Data Protection

Environment Agency                           Waste Transfer

Quality Mark                                        Workmanship Guarantee

 

Workforce qualifications.

NVQ Level 2 in insulation

Part P Electrical regulations

Gas Safe Domestic appliances

 

Scaling plans (2024-25)

I am planning to grow the business at a sensible and steady rate over the next 18 months. This will ensure we acquire suitably skilled site operatives as well train administration staff in the necessary processes and administrative tasks demanded by the complexities of the business.

  • Birmingham 3 teams (December 2024)
  • Wakefield 6 teams (July 2025)
  • York 6 teams (December 2025)

Each team will have a fully equipped LWB vehicle with a stock of consumables, power tools and safety equipment. In each region will be a supervising manager to deal with customers and survey each job prior to commencing work. This will be to give customer an expectation of what we will be doing to their property and the ordering materials to ensure as smooth process of works as possible.

Reference links:

Core Logic PAS Hub.

Easy PAS QMS.

Ofgem ECO4 Scheme

Finances.

Within a few months the business becomes cash generative. The plan is based on an estimated average installation price of £11000 and 1 x job per team / week. Leads generated are checked and qualified before bringing in retrofit assessors and co-ordinators. The estimated gross profit per job is around 43%. Admin will initially be all done in house by the principals and as the business grows, there will need to be investment in personnel and suitable premises .

Typical payments for installations are shown below:-

Property with an EPC of “E” and a floor area of -72 m2

Internal wall insulation                                £2,638

Room in roof insulation                               £5,410

Boiler Upgrade                                             £5,113

 

Property with an EPC of “D” and a floor area of -72 m2

Internal wall insulation                                £2,466

Room in roof insulation                              £4,924

Boiler Upgrade                                            £3,791

 

Property with an EPC of “G” and a floor area of -72 m2 (hard to find)

Internal wall insulation                                 £3,821

Room in roof insulation                               £8,224

First time central heating                          £24,946

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