1. Green Deal – Challenges and
Opportunities
Steven Heath
External Affairs Director

2. First some context?
.. Europe’s Energy Bill..
€400 Billion a year

3. €270 bn of this can be saved with existing
cost effective technology…
That’s;
3 million barrels of oil a day
460 million tons of CO2 a year*
*Ecofys VII report for Eurima
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4. … more energy is used in buildings
than in transport or industry
UK’s share = £3bn** - £7bn a year
(household and business waste)
** DECC (2010) Green Deal Summary proposals
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5. My house = £577 of £3bn

6. Roof

7. Windows

8. Floor

9. Chimneys

10. Walls

11. Heating System

12. =

13. The cost of upgrading the UK’s
existing housing stock
Circa £7bn−£11bn per year over the
next 15 years*
My house – c£12,000 - £15,000
ECO spending circa £1.3bn.
* E3G Financing the Green Deal
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14. So what is Green Deal?
Green Deal Energy Company
Obligation
• Commercial loan, tied to • Primarily for low income and
electricity bills to provide energy vulnerable households who
saving measures cannot afford Green Deal
• Also for ‘hard to treat’ households
who cannot afford financing
solely through the Green Deal
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15. The Green Deal offer to customers
Customer Journey
 An impartial Green Deal assessor recommends measures
specific to your house
 You choose what improvements you have (Insulation, boiler etc)
 A Green Deal Provider manages the install of measures
 You pay back instalments through your energy bill
 The amount you pay back each month has an upper limit fixed to
the amount the assessment says you will save - THE GOLDEN
RULE
 Loan stays with the property not you (the occupant is not credit
checked with the ambition being to have a common interest rate
for all)

16. What does success look like?
 Finance?
 Supply chain?
 Customer (Private)?
 Customer (Stock owner)?
 Customer (Commercial)?
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17. How do we get
there?
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18. Supply chain?
single measure delivery whole house solutions
Theoretical performance real performance
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19. Supply chain - Opportunities for installers
 Green Deal Measures - opportunities
 Loft insulation
 Rafter insulation
 Cavity wall insulation
 Solid wall insulation
 Floor insulation
 Massive opportunity in solid wall insulation
 7 million homes in UK housing stock
 Current install rate of circa 30k per year
 Major uplift needed to hit carbon reduction targets
 Installation capacity needed to allow uplift
 ECO funding – carbon target element includes solid wall insulation
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20. Opportunities for installers with KI
 Knauf Insulation training
 ThermoShell Internal Wall Insulation
 ThermoShell External Wall Insulation
 Cavity Wall Insulation
 ThermoShell Training Academy
 Birmingham
 Theoretical and Practical facilities
 On-site support
 Regional Technical Managers
 Details & contacts
 www.thermoshell.co.uk
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21. Customers?
 Stock owners
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22. What can RSLs / LAs do to get best value for their
tenants?
Economies of scale
Installation Product
Costs costs
Finance
Costs
Easier to meet golden rule

23. Why limit the economies of scale to your stock?
UK domestic building stock
26.7m homes in Great Britain
23m have lofts
18.8m have cavity walls
7.8m have solid walls
How many private properties would benefit from new windows, doors,
roof repairs, boilers, re-rendering programmes nearby your stock?
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24. What’s your business model?
 We as a company are being forced to look at our business model
under Green Deal;
 The construction industry to date is siloed with few links between
supply chains – if ‘whole house’ solutions are to succeed this
must change.
 As one of the main customers of Green Deal, RSLs and LAs must
also look at their business models – their worst performing stock
may now prove to be an important asset;

25. RSL approach to retrofit
1. At the very least – Green Deal / ECO offer the
chance to improve the energy performance of
that home
2. At best – the programmes offer RSLs GD
provider or installer business models or even
investment opportunities with sustained
paybacks; possibly even partial freedom from
unpredictable and intermittent Government
grant funding cycles (with no limit like FITs)
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26. Knauf Insulation Contacts
 Cavity Wall Insulation – Chris Nicholls 07553 354 023
Chris.nicholls@knaufinsulation.com
 External Wall Insulation – Kevin O’Keefe 07501 727 504
Kevin.OKeefe@knaufinsulation.com
 Internal Wall Insulation – Craig O’Donnell 07739 446 412
Craig.O’Donnell@knaufinsulation.com
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