To be a forum for the discussion of innovation within the sector and to foster innovative approaches across the supply chain. To support new ideas that help to accelerate the transition to net zero.
Innovation Working Group
Innovation Working Group
Purpose
Aim
To represent the views of the NHDG on innovation in the home decarbonisation and retrofit sector. To work with the Government to increase support for innovation to ensure the sector is able to meet the challenge of net zero.
Chairperson: Paul Rogers, CLC Group
The Innovation Working Group is a platform to
transform discussion into action
With support from DESNZ, the NHDG and its members are working collaboratively to realise the Government’s decarbonisation targets and improve the quality of housing across the UK as we move towards net zero. The goal of the working group is to identify the barriers preventing us from achieving our home decarbonisation targets, and to use our knowledge and experience to develop innovative approaches to overcome them.
Pillar 1
Reduce the cost to develop and certify innovative products
Whilst upholding and improving existing quality standards, the NHDG want to identify and support new and innovative products to get to market.
Pillar 2
Increase confidence for investors and consumers
By ensuring product standards are consistent, investors can support their value chain and consumers can build trust in quality brands that provide the best value for money.
Pillar 3
Address the lengthy timescales to get products on the market
By acting as a facilitator for smaller innovators, the NHDG can help to remove existing barriers for innovation including the significant time it takes to get quality products to market.
Pillar 1: Reduce the cost to develop and certify innovative products
National retrofit programmes with routes to get innovative products approved
All existing retrofit programmes should include a route to market for innovative products as is the case for ECO. This will allow for innovation to be supported in the retrofit sector whilst still maintaining quality assurance, as innovators will need to go through established pathways for their product or service to be included within the relevant retrofit programme.
Multidisciplinary approach including the role of digital innovation
Digital innovation is a key part of the transition to net zero, with the potential to significantly improve the efficiency and effectiveness of retrofit delivery. As well as supporting physical installations through retrofit schemes, the Government needs to support digital innovations which have the potential to improve existing processes.
Funding to support R&D and UK manufacturers of low carbon technologies
Whilst there is funding to support households with investment into green technologies, there is no equivalent to support innovation. A dedicated funding stream to support research and development into innovative products and services in the retrofit sector will help to accelerate our progress to housing decarbonisation and net zero.
Pillar 2: Increase confidence for investors and consumers
Consistent consumer protection laws, product standards and installation standards
Consumers are often unaware of their consumer protections. Product and installation standards are also inconsistent across the sector, particularly outside of government funding schemes. This can leave consumers with little recourse when something goes wrong, and cause the industry to suffer from low consumer confidence and reputational damage. Through the implementation of consistent standards and protections, both consumers and the wider retrofit sector can benefit from high quality and reliable work.
Greater enforcement of installation standards
Once a retrofit measure has been fitted, it is the responsibility of TrustMark and their scheme providers to ensure that it is compliant, and to provide appropriate recourse if something goes wrong. However, there is currently a shortage of qualified personnel available to conduct audits, leaving consumers exposed to the risk of poor installations. Greater investment in compliance roles is needed to hold industry to the required standards and ensure that consumers can enjoy a high quality of work.
Increase the availability of green finance with support from commercial banks
The upfront cost of retrofit works is a major barrier to uptake. Through innovative green finance options backed by trusted commercial banks, those who are interested and able can invest in their homes. Consumers also require trusted advice and commercial banks can play a role in providing this.
Finance products must be backed by high quality standards and consumer protections to provide commercial banks with the confidence they need to invest in the retrofit sector.
Pillar 3: Address the lengthy timescales to get products on the market
Capitalise on existing funding for digitalisation and innovation
The NHDG recommend utilising existing funding schemes to support innovation including WH:SHF and ECO. The Strategic Partnership route to WH:SHF funding requires partners to deliver against four strategic objectives, one of which is innovation, while ECO4 has a dedicated route for innovative products. While additional dedicated funding is needed, it is also important to make use of existing pathways.
Data capture to demonstrate the benefits of different measures for future funding schemes
There is currently a lack of data on the benefits of individual retrofit measures such as external wall insulation or low carbon heating measures such as heat pumps. With reliable in-use performance data, funding schemes in the future could be better informed and help consumers to choose the right improvements for their home and needs.
Meet the skills gap, particularly for retrofit assessors and surveyors
There is currently a shortage of assessors and surveyors which are key for providing advice to consumers, housing providers and local authorities on the most suitable retrofit measures for particular homes or buildings. Tackling this skills gap will reduce delays in the sector and facilitate more effective improvements cross the housing stock.
Useful definitions
The NHDG’s definition of innovation is ‘a product or service that represents improvement from the ‘status quo.’. It is important for the NHDG to support a broad definition of innovation which encompasses not only physical products that can be installed in homes but also innovative ways of providing or improving a service, process or methodology used to produce high quality work or to engage customers and clients.
PAS 2035/2030 is the standard that represents best practice for whole house retrofit. It is a requirement for most government funding schemes. For a business to get PAS certification, they must go through a an approval process which can be lengthy and expensive. This can be a challenge for smaller organisations who may not have the financial support of a well-established organisation behind them. While PAS is essential for promoting high quality retrofit, its complex approval process can be a barrier.
Digital innovation refers to the use of advanced technologies to produce new products, services, process or methodologies for housing retrofit. For example, drones can be used for thermal imaging, which can help to identify where heat is leaking from a home. Digital innovation is an essential part of home decarbonisation as it can improve efficiency, reduce cost and the sustainability of retrofit projects.
Consumer protection for energy efficiency measures falls under the Consumer Rights Act 2015 (CRA) along with a number of certification, guarantee and warranty schemes. However, the consumer protection landscape is very complex which can be confusing for consumers. The Microgeneration Certification Scheme (MCS) provides technical standards for renewable technologies and TrustMark provides quality assurance for other retrofit measures like insulation.
How to join
Membership of the NHDG is open to Tier 1 contractors or energy suppliers that contract and directly deliver £20+ million turnover per year of whole-house retrofit at scale, supported by government-funded schemes such as the Warm Homes: Social Housing Fund (WH:SHF) and Home Upgrade Grant (HUG). Eligible turnover must come from work contracted directly with clients and not through third parties such as energy companies or other bodies.
Applicants must provide evidence to support that they meet the criteria. Evidence includes:
- The most recent audited accounts for the past two trading years; and
- Evidence of large-scale retrofit works either delivered or secured (minimum of £20 million)
Please be aware that the eligibility criteria may be changed at any time by the group.
