To be a forum of the NHDG for the discussion of key developments in innovation and to help to formulate the NHDG’s response to emerging policy changes and generate strong ideas to overcome challenges and improve the sector.
Innovation Working Group
Innovation Working Group
Purpose
Aim
To represent the views of the NHDG on innovation in the home decarbonisation and retrofit sector and work with the Government to increase support for innovative ideas to ensure the sector is able to meet the challenge of net zero.
Chairperson: Paul Rogers, CLC Group
The policy 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 WG is to identify the barriers delaying us progressing decarbonisation targets in housing and using our experience and knowledge to generate innovative approaches to overcome them.
Pillar 1
Reduce the cost to develop, certify and produce
Whilst upholding and improving upon existing standards for quality, 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 high cost to get quality products to market.
Pillar 1: Attracting new people and retaining the existing work force
National retrofit programmes with routes to get innovative products approved
Existing retrofit programmes should be expanded to include a route to market for innovative products as is the case for SHDF Wave 3 and ECO. This will allow for innovation to be supported in the retrofit sector whilst maintaining quality assurance as innovators will need to go through established pathways including PAS approval to get their product or service on the market through the relevant retrofit programme.
Multidisciplinary approach including the role of digital innovation
Digital innovation is a key part of the transition to net zero as without it we would not be developing the tools and skills needed to meet this challenge. As well as supporting physical products through retrofit schemes, the government needs to open doors for digital innovations which could include a software or programme to improve an existing or new process.
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 can be unaware and not effectively informed by installers of their protections. There is also inconsistent product and installation standards in the industry. Without consistent standards and protections consumers are left with little recourse when something goes wrong, and the industry suffers 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 to ensure it is PAS or TrustMark compliant and if anything goes wrong ensure that this is resolved. However, there is currently a shortage of qualified personnel available to conduct these assessment leaving consumers with little support. With greater investment in these roles industry would be held to the required standard and consumers would enjoy high quality work.
Increase available of diverse green finance options with support from commercial banks
Often the upfront cost of retrofit works is cited as the most significant barrier to investment. Through innovative green finance options backed by trusted commercial banks which are familiar to consumers, those who are interested and able to invested in their homes can be supported to do so. Consumers require trusted advice and commercial banks along with mortgage advisors are able to take a central role in providing this.
Pillar 3: Address the lengthy timescales to get products on the market
Capitalise on existing funding for digitalisation and innovation funding
The NHDG recommend utilising existing funding schemes to support innovation including through SHDF and ECO. The Strategic Partnership route to SHDF funding requires partners to deliver against 1 of 4 core objectives, one of which is innovation. ECO4 has a dedicated route for innovative products which if successful can be offered as an eligible measure. Whilst we advocate for dedicated funding, there are existing pathways for support.
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 this data funding schemes in the future could be better informed and help consumers to choose the right improvements for their home and needs.
Meet 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 what retrofit work is needed in particular homes or buildings. By meeting the skills gap delays in the sector can be reduced and effective improvements can be made across the housing stock.
Useful definitions
The NHDG’s definition of innovation is ‘a product or service that represents improvement from the ‘status quo.’. Our members discussed the role of innovation in disrupting the industry and in propelling it forward through new ideas and ways of working. 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. The NHDG want to capture through our engagement with industry new ideas that can push us closer to housing decarbonisation and we share the view that innovation is central to meeting net zero.
PAS 2035 is the standard that represents best practise for energy efficiency and whole house retrofit. It is voluntary for private retrofit projects though it is recommended. For engagement with government funded retrofit programmes it is usually a mandatory requirement. 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. The NHDG hold the view that PAS is essential to providing high quality retrofit for reaching net zero however, 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 housing decarbonisation as it can improve project efficiencies, reduce cost and/or the sustainability of housing decarbonisation efforts.
Consumer protection for energy efficiency measures is encompassed under the Consumer Rights Act 2015 (CRA) along with a number of certification, guarantee and warranty schemes. However, consumers will often come across multiple schemes for a single install indicating the complexity of the consumer protection landscape. In the retrofit sector, the Microgeneration Certification Scheme (MCS) provides technical standards for renewable technologies and TrustMark provides assurances on the quality of installs of retrofit measures.
How to join
Membership of the NHDG is considered if the prospective member is a Tier 1 contractor or energy supplier that contracts and directly delivers £20+ million turnover per year of whole-house decarbonisation retrofit at scale, supported by government-funded schemes such as Social Housing Decarbonisation Fund (SHDF) 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.
