Agenda item

Briefing Note of the Director of Regeneration and Economy

The Business, Economy and Enterprise Scrutiny Board (3) received a briefing note of the Director of Regeneration and Economy that provided an update on progress of the Council’s domestic retrofit programmes since the last domestic retrofit update to the Board in April 2024 (minute 25/23 referred). 

Coventry’s Climate Change Strategy (2024-2030) approved by Council last year (their minute 64/23 referred), set out an ambitious vision for how the city intended to ‘tackle the causes and consequences of climate change’, which was a key priority of the One Coventry Plan. The strategy set a goal to reduce carbon emissions across the city to support the Authority’s transition to net zero, whilst benefiting local people and businesses through creating warmer homes, cheaper bills, cleaner air, new jobs and skills.

The strategy identified that 30% of the city’s carbon emissions came from the 143,000 homes across Coventry. Of these homes, it was estimated that over 100,000 homes had an energy performance certificate (EPC) of D or below, therefore a significant proportion of residents were living in less energy efficient housing and likely to be facing higher bills as a result to keep their homes warm. Improving the energy efficiency of homes through retrofit measures ranging from insulation, double glazing to heat pumps and solar panels could considerably reduce carbon emissions but also create real benefits for residents too in terms of bills, health and comfort.

Latest government data (based on 2023 sources) also suggests 18.9% households in Coventry were living in fuel poverty. Whilst a 3.3% reduction from the year 2022, this was still one of the largest rates of fuel poverty of all local authorities in the country, and figures rose to over 40% of households in some the city’s most deprived areas.

Domestic retrofit could also make a huge difference by improving the quality of resident’s lives and their health, through creating warmer more efficient homes and helping to lower bills. Well-insulated properties also kept homes cooler in the summer, which helped to make homes more resilient to increasing temperatures and increased likelihoods of extreme heat. It was essential to take a proactive approach to retrofit, delivering retrofit at scale whilst also considering new technology and innovation that could accelerate ambitions. The Council had been working with partners to achieve this, delivering retrofit at scale as highlighted with the work with Citizen, whilst also trialling innovative solutions and pilots with the Council’s Strategic Energy Partnership (SEP). For example, the SEP has worked with a startup (Kestrix) to use drones to capture thermal imaging of thousands of houses in Hillfields and using artificial intelligence to generate energy efficiency plans. This would allow the Authority to prioritise interventions and maximise impacts for residents from the available funding.

The briefing note set out details of the progress made over the past 18 months; Social Housing Decarbonisation Fund (SHDF) Wave 2; Home Upgrade Grant 2; Energy Company Obligation (ECO) 4 & Great British Insulation Scheme (GBIS); Community Engagement; Equitable Delivery of Programmes; Future Schemes: WMCA Retrofit Pilot; Other SEP Activity; Climate Adaptation; and the next steps.

In considering the briefing note and the presentation by officers, the Board discussed issues, asked questions and received responses on matters including:

·  The able to pay market households who were not eligible for grant funding, grants that could be accessed for those who were eligible, the availability of purchasing schemes and discount offers, and the Household Support Fund.

·  Lloyds Bank, Coventry Building Society and E.ON all supported the retrofitting of homes, and this could include their provision of offers such as green mortgages.

·  The Next Gen Project – the invitation for 20 local households to apply to have a total retrofit of their homes. Insulation of properties was key for the future. 

·  The advice and guidance available to residents who wished to pursue retrofit for their homes and the range of small changes that could be made that would also make a difference without the expenditure. Insulation of properties was key for the future. 

·  Electricity costs – consideration of the fluctuation of electricity usage costs moving forward as a more electricity-based nation

·  Assessments were made to ensure the best possible retrofit options were provided for warmer homes with cheaper bills.

·  Universities nationally were looking in more depth at heat pumps to understand how they worked. The data from the research would support the future of heat pumps design and installation.

·  There were many resources in the City that could provide valuable assistance for energy efficiency, this included the Coventry Canal and the Waste Reduction Unit. E.ON was currently pursuing these, and feasibility studies would be made. Severn Trent and MIRA were also supporting these options.

·  The Authority was working with developers on the inclusion of energy efficiency for new build homes.

·  The importance of guiding and advising residents of appropriate offers and schemes available to them, to encourage take-up. 

·  Programmes and Eco Schemes were being targeted at the most deprived areas of the city - Foleshill, Radford, Hillfields were some of the identified neighbourhoods. The Council was working to achieve greater impact in these areas.

·  Schemes generally focussed on fuel poor, an EPC rating below D, and low-income households. This changed from scheme to scheme so couldn’t be guaranteed. A scheme would dictate what measures could be offered in a retrofit – windows, solar panels, loft insulation, etc.

·  Barrier to retrofit – recognising that there were residents that wanted to take part but didn’t qualify for funding support, there needed to be more flexibility to enable participation.

·  It would be useful to see comparative data on the national distribution of funding to support domestic retrofit.

·  Assurance of value for money in respect of £31,000 average expenditure on retrofit per property completed was provided through a robust governance process.

·  Citizen Housing contributed a significant amount of match funding to retrofitting works on their properties.

·  Recognising the importance of educating residents on energy efficiency, the Authority had been working with Act on Energy and with the Council’s Public Health Service to speak to residents in the poorest areas.

·  Education work on climate change and energy efficiency was being undertaken with Primary Schools.

·  Landlords of private rented properties that were provided with retrofit installations, were required to match fund. There were concerns that costs could be passed onto tenants.

RESOLVED that the Business, Economy and Enterprise Scrutiny Board (3):

1)  Notes the contents of the Briefing note and presentation.

2)  Had no recommendations to make to the Cabinet Member for Jobs, Regeneration and Climate Change.

3)  A further update report be submitted to the Board to include information on able to pay households that are not eligible for retrofit grant funding, and comparative data on the national distribution of funding to support domestic retrofit.