Energy efficiency, zero emissions and low carbon heating systems, microgeneration and heat networks - skills requirements: consultation analysis

6. Potential Impact of Skills Requirements

Context

6.1 The consultation also sought views to further develop the Partial Business and Regulatory Impact Assessment, in particular the impact that the proposals will have on the energy efficiency, microgeneration and heat networks sector, particularly for remote rural and island areas.

6.2 More specifically, the consultation sought views on the use of digital technologies for training provision and more generally views on what support (if any) is required to support ambitions for a highly skilled workforce (see also Section 8).

Question 6a

What impact do you think our skills requirements will have on the energy efficiency, microgeneration and heat networks sector in remote rural and island communities?

6.3 A vast majority of respondents answered Question 6a on the impact of skills requirements on the energy efficiency, microgeneration and heat networks sector in remote rural and island communities (79%). The remainder left the question unanswered (21%).

Remote, rural and island communities face particular issues and challenges

6.4 Two-thirds of respondents who provided a response identified a range of factors or challenges which could have a negative impact on remote rural and Island communities if not addressed going forward. These challenges have been grouped as follows:

• Training.
• Supply chain and skills shortages.
• Financial.

6.5 While a relatively large proportion of respondents highlighted how the proposals could have a potentially negative impact on remote rural and island communities, there was some optimism that the issues could be overcome if mitigating action was taken. For example: applying a consistent standard across Scotland, provision of tailored support, ongoing consultation and engagement with remote, rural and Island communities, and monitoring of supply chains).

6.6 On the whole, these respondents reported that addressing these challenges would help to ensure that the Scottish Government proposals regarding skills requirements could have a net positive impact on energy efficiency, microgeneration and heat networks sector in remote rural and island communities.

"With the correct support in place, remote rural and island communities should be able to participate fully." Third Sector Organisation

6.7 On the other hand, almost one-third of respondents specified how the proposals could positively impact on remote rural and island communities.

Strong view that standards should be applied consistently across Scotland

6.8 There was a strong view expressed that standards must be applied consistently across Scotland, and that "it cannot be the case that a lower standard applies" to remote rural and island communities. The public sector body, United Kingdom Accreditation Service, used the example of an unqualified doctor not being acceptable to reinforce this view:

"Inevitably, a 'new' and arguably 'higher' set of requirements will make it more difficult to find suitably certified installers in remote communities. This is unfortunate but it does not justify having some kind of two-tier system where the requirements are lower in remote locations. For instance, we would not allow an unqualified person to call themselves a doctor on a remote island, simply because there was not a qualified doctor living in the community. There are more suitable financial measures (e.g. grants or subsidies) to overcome these logistical issues." United Kingdom Accreditation Service

6.9 Consultation responses identified various ways that adapting the standard for remote, rural and island communities could have a negative impact on these areas. These included "comprising installation quality and consumer protection aspirations and, ultimately, devaluing the whole ethos of the proposals". With regards to consumer protection, Energy Saving Trust highlighted that there is a particular preference in remote, rural and island communities to use local and trusted contractors which can lead to lower consumer protection:

"As a result, some householders end up "using local, non-certified businesses to complete their installations". This has meant that where systems have not been signed off as MCS compliant then it has not been possible to claim the RHI or a Scottish Government loan and in such cases systems will have been installed without government support and without the same level of quality oversight and consumer protection." Energy Saving Trust

6.10 It was considered essential to apply the standard consistently across Scotland to ensure installation quality and consumer protection.

6.11 For many respondents, such as NIBE Energy Systems UK, offering support, or "island-proofing the approach", would be essential to ensure remote, rural and island communities can fully meet the demands of, and benefit from, the proposed skills requirements.

6.12 The most common type of support identified was financial support (e.g. grants and subsidies for training and accommodation costs and/or to cover lost or delayed earnings from not being able to work while attending training).

6.13 The Southern Upland Partnership "reviewed data from the MCS on the 78,000 registered micro-renewable installations since 2012, which demonstrated the carbon reduction of systems in rural areas was significantly more than the average (3.6 x for our project area), which emphasised the significant contribution renewables in rural areas can make to climate change targets."

Delivery of training

6.14 Another common theme was that the geography and remoteness of rural and island communities' poses challenges in terms of accessing training, and that this acts as a barrier to upskilling within the sector. For example, some respondents noted how training providers either require to travel to these areas or participants require to travel to more central locations which often necessitates overnight stays.

6.15 This places additional costs and financial burden on SMEs which dominate the sector in these communities - both in terms of the cost of training and lost or delayed earnings from not working while undertaking training.

"One of the key challenges for remote rural and island communities will be that some local colleges simply won't be able to deliver the necessary training courses which means that installers and those wishing to train for the other roles discussed in the consultation would need to go to the mainland/to a more populated area for training – with associated travel and accommodation costs. This would put an additional burden onto installers (and those wishing to train for other roles) living and working in these areas which could act to deter them from undertaking training and/or force them to increase the price of their work to recover these costs. And we already know that the cost of undertaking work and availability of suitably qualified/certified tradespeople are key issues for remote rural and island areas – so these skills requirements, if not accompanied by appropriate financial support packages could act to exacerbate both of these issues." Energy Saving Trust

6.16 While online, remote and/or simulation training was considered a useful tool, and had an important role to play in improving accessibility of sector training in remote rural and island areas, the importance and value of maintaining access to practical and hands-on training was considered critical. To this end, it was felt that practical training should not be bypassed in remote rural and island areas for convenience in order to rollout the skills requirements.

6.17 As noted by Kingspan Insulation Ltd, "it is important that being classed as 'rural' does not inhibit access to training and learning." This fed into wider feedback that there should not be lower or adapted standards for skills requirements in remote rural and island communities compared to the rest of Scotland.

6.18 The general consensus was that "rural and island communities may need geographically specific support in order to develop the required resource pool for those areas, and to deal with their unique challenges, as it can be costly to reply on mainland support."

6.19 Common solutions suggested by respondents to help overcome geographic barriers to accessing training can be themed as follows:

• Financial support (e.g. grants, subsidies) to compensate for the additional costs of attending training and lost or delayed work. This could include training and accommodation costs. As OFTEC stated, "perhaps funding of courses may help take up and lessen the burden of being off the road (and not earning) while training is undertaken."
• Consultation with employers, training providers and local authorities to "understand local contexts and the best ways to deliver training". This point was largely raised by membership or professional bodies such as The Association for Decentralised Energy and SELECT.
• Blended delivery models – having the option of virtual, online, remote, simulation training to increase accessibility for remote rural and island communities, while recognising the importance and value of improving and maintaining access to practical and hands-on training.

"Previous attempts to ease the burden of enhanced standards and requirements on those who live in remote locations include co-ordinating groups of installers who require training or on-site technical assessments to improve efficiencies. Any financial support could be front-loaded to support those in rural communities as they are likely to be ones who benefits a lot from energy efficiency, microgeneration and heat networks. It definitely cannot be the case that a lower standard applies in these areas. Some aspects of training could be undertaken virtually to assist with training in remote areas, although a lot of the training required will need to be hands on." NAPIT Registration

6.20 The Association for Decentralised Energy expanded on its view regarding the importance of ongoing consultation and collaboration with key stakeholders in remote rural and island communities, as illustrated in its quote below.

"Access to training and development may be more challenging in these areas of the country, which may in turn make installations more challenging. LHEES should identify the most suitable decarbonisation and technology pathways in these areas of the country. The Scottish Government should then work with Local Authorities and communities in this area to identify existing opportunities and barriers to training and skills, as well as to understand local contexts and the best ways of delivering training. The Scottish Government should also consider the best ways to retain skills/expertise in these areas, rather than the workforce migrating to areas of Scotland perceived as offering greater opportunities. Sharing learning and case studies should be facilitated wherever possible, and long term funding made available to resource skills initiatives." The Association for Decentralised Energy

Supply chain and skills shortages

6.21 Similar concerns around capacity within the supply chain and skills shortages (see Question 2) were reiterated. On the whole, feedback was that this could be more pronounced in remote, rural and island communities. For example, it was noted that the sector in these communities is largely dominated by micro businesses and SMEs, and there might also be a lack of workers to upskill and/or retrain.

6.22 According to the Scottish Island Federation, there is currently a "skills shortage on many islands which often involves mainland contractors visiting to undertake particular activities involving a significant surcharge on costs for any given project, reflecting additional transport, travel and DB&B expenses."

6.23 Further, members of the Scottish Island Federation identified a "need for certification of skills for particular activities which can preclude island-based trades folk from taking up contracts which they could be better placed to deliver more cost effectively, but for their access to formal qualifications and registered supplier requirements."

6.24 NIBE Energy Systems UK identified lessons learned from elsewhere in UK - "the introduction of the Green Homes Grant in England and the TrustMark scheme highlighted a lack of registered installers, particularly in rural areas. It is important that rural communities are adequately serviced by low carbon heating and energy efficiency professionals as well as advisory services."

6.25 As such, some respondents including Energy Saving Trust suggested that ongoing consultation as well as allowing sufficient time to better understand, address and develop these skills and training gaps would be necessary to ensure there is not a detrimental effect on the sector in the short term.

"It will also be important to ensure that the supply chain is given sufficient time to meet the proposed skills requirements – not doing so could have a negative impact on programme delivery." Energy Saving Trust

6.26 The general consensus was that the proposed skills requirements present a valuable opportunity to support skills development and green job creation in remote, rural and island communities. This could be aided by greater clarity and ongoing communication on the skills pathway.

6.27 Although there was some feedback that skilled workers from outwith remote, rural and island communities could be encouraged to move to the area (i.e. talent attraction), the main view was that this should be limited/avoided to maximise the benefits for remote rural and island communities. For example, some respondents highlighted the demographic context of remote rural and island communities which are prone to population loss, particularly among young people (e.g. move out of the area to access further and higher education and employment opportunities). It was felt that adopting an approach which prioritises local skills development and job creation could contribute to both skills retention and mitigating population loss in these communities (i.e. ensuring that remote rural and island communities are not disadvantaged and are not left behind).

6.28 Further, Historic Environment Scotland noted that skills and enterprise agencies have an increasing role to play in the delivery and rollout of skills requirements.

"Accessing specialist training in remote areas is already an issue and these requirements will create a barrier unless consideration is given to the skills ecosystem and infrastructure that supports these requirements particularly in rural areas. The rural skills investment plans and enterprise agencies have a role to play here and provision needs to be mainstreamed into existing provision." Historic Environment Scotland

6.29 Skills shortages and a lack of capacity within supply chains in remote, rural and island communities was disputed by a few respondents. For example, SELECT reported that "in our experience, remote rural and island communities are very well served for skills locally. SELECT has a number of members located across the rural and island communities that could undertake this type of work now."

6.30 MCS Charitable Foundation and MCS Service Company Ltd noted how Orkney was highlighted as "one of the leading areas in the UK for renewable installations" in its recent report – Renewing Britain.

6.31 Further, Warmworks Scotland reported that, under Warmer Homes Scotland, they have worked with "installers in remote rural and island communities who are already obtaining the necessary qualifications to ensure they can deliver high quality installations". This has also resulted in extra local apprenticeships:

"For example,….. a sub-contractor under Warmer Homes Scotland that covers the Western Isles. This is a challenging area geographically and often includes complex installations given the make-up of the housing stock. Despite facing these challenges, the (subcontractor) has been able to increase their skillset with regards to installing renewable energy systems, such as air source heat pumps.

Furthermore, as part of their commitment to the wider community, they have also taken on six apprentices since the scheme began and last year, provided three work placements for young people, which means that the future generation is also gaining the required skills and experience in this area too." Warmworks Scotland

Financial burden particularly for smaller contractors in remote, rural and island communities

6.32 A common theme was that the proposals could place a disproportionate financial burden on remote rural and island communities. As noted earlier, this centred on the higher costs associated with both attending training and with installation.

6.33 Tighean Innse Gall highlighted "if the skills requirements are mandatory before training and recognised prior learning routes are in place in the islands, then most if not all energy efficiency installations will cease in remote rural and island communities".

6.34 In terms of increased costs for consumers and installers, the response from Energy Saving Trust detailed the current challenging financial context for heat pump installers. Additional consumer costs were also firmly placed in the context of fuel poverty being a distinct challenge for remote and rural island communities:

"We also have feedback from Home Energy Scotland staff working in remote rural and island areas. So, for example, if work was to be carried out on the Isle of Arran a team of installers would need to stay overnight and this would be reflected on the customer's quote along with the cost of transportation. The Home Energy Scotland specialist advisors have suggested that a typical air source heat pump installation on the island would typically cost at least £1,000 more than the same installation on the mainland. If there were local qualified installers who were supported to grow with the local heat pump markets these costs could be avoided and rural economies could be strengthened." Energy Saving Trust

"If you impose costs on a small but very able practice which they cannot offset by an increase in income then you are beggaring an already impoverished part of the profession. The simple cost calculation is something like £200 per copy of PAS, plus the cost of its undoubtedly many revisions. Add the cost of the academy training per person at around £1500 plus expenses. Then add the cost of the WUFI software and the WUFI training and the new hardware as WUFI is only available on a single platform. Then take the larger and less apparent cost of the time extracted from the turnover of the practice; imagine how this will impact on the survival of a rural micro practice which might already have been applying good project-specific practice and possibly advancing the cause of net zero while rewarded with a minimum wage and a twelve-hour working day." Individual

6.35 Another point raised was that there have been recent challenges with local installers being unable to access Scottish Government schemes that are linked to ECO. It was noted that this had restricted access to another source of funding for installers in remote, rural and islands communities.

6.36 As highlighted, the general consensus among respondents was that financial support, in the form of grants and subsidies, would be required to address and mitigate these barriers. This support could incentivise greater uptake of training and upskilling of local supply chains while ensuring the financial burden is eased for employers. Financial support would be crucial to maintaining a consistent high standard across Scotland and ensuring that the remote, rural and island communities were "not left behind".

Addressing fuel poverty in remote rural and island communities

6.37 Several respondents, including Kingspan Insulation Ltd and the joint response from The Energy Poverty Research Initiative, Common Weal, The Built Environment Asset Management Centre, Glasgow Caledonian University, made reference to the pronounced challenge of fuel poverty in remote rural and island communities. There was recognition that Scottish Government proposals had the potential to make a significant contribution to address fuel poverty, as reflected in the quotes below:

"Almost half of households in remote rural areas are classed as 'fuel poor', while nearly a third of households in accessible rural areas are in fuel poverty. Improving the energy efficiency of UK homes is an effective way to bring down energy bills and offers a long-term solution to fuel poverty. Addressing the building fabric and reducing demand is the best way to lower energy bills and make homes warmer and more comfortable. Accelerating the pace of an energy efficient Scotland will reduce emissions from buildings faster helping to combat climate change and lift people out of fuel poverty across the whole of Scotland. The Skills Matrix Implementation will speed up the rate of energy efficient installations as it will provide certainty and confidence in the industry and ensure long term investment in energy efficient measures… As we switch from fossil fuels to lower carbon solutions, it is particularly important to consider the potential for fuel poverty and the impact of higher running costs that might occur if heat demands are not adequately addressed alongside that transition." Kingspan Insulation Ltd

"Overall, if the situation in islands is recognised within the proposals, we believe there is a good opportunity within the sector to grow good, skilled jobs and career paths, contributing to island sustainability and population growth, and creating a more circular island economy. Investing in local skills and capacity within islands, will also increase access to energy efficiency measures and national support initiatives for island households, which currently suffer the highest levels fuel poverty in Scotland but have difficulty accessing support due to a number of barriers including a lack of registered contractors." Scottish Islands Federation

"The high rates of fuel poverty and poor energy efficiency means that it is of paramount importance that where energy efficiency improvements are installed, they are installed to a high standard. It is hoped that the proposed skills requirements will have a positive impact on installation quality. However, there is a risk that placing additional requirements on energy efficiency installers, without sufficient support could have the unintended consequence of a decline in installer numbers due to cost or administrative burden, which could have a detrimental effect on fuel poverty." National Insulation Association

6.38 Some respondents noted that the building stock in remote and rural island areas would require a greater focus on retrofit work rather than new build, and that this might bring further costs for these communities.

"The geographical spread of specialist skills for pre-1919 buildings is uneven, and it may be more difficult and/or more costly for those living in rural and island communities to access advisory services and engage specialist companies. Requiring specific qualifications for those working and advising on energy efficiency measures for pre-1919 buildings may further compound these issues, which could lead increased costs for work." The National Trust for Scotland

6.39 The emphasis in the proposals on retrofit skills was welcomed by a couple of respondents particularly given the context of older traditional building stock in remote rural and island areas. It was noted that the building stock would require a greater proportion of retrofit work by installers than other areas of Scotland. There was wider recognition that local supply chains would therefore need further developed and upskilled to meet the demand for retrofit work in remote rural and island communities.

Question 6b

What impact do you think our skills requirements will have on the energy efficiency, microgeneration and heat networks sector in Scotland more generally?

6.40 A vast majority of respondents answered Question 6b on the impact of skills requirements on the energy efficiency, microgeneration and heat networks sector in Scotland more generally (79%). The remainder left the question unanswered (21%).

6.41 Around two-thirds of those that provided a response were of the view that the skills requirements could have a positive impact on the sector in Scotland. As highlighted elsewhere, there was a call for appropriate and sufficient support to maximise impact and positive outcomes.

6.42 Where there was explicit reference, far fewer respondents felt that the skills requirements could have a more negative, mixed or no impact on the sector in Scotland (around 14%).

Driving an improvement in standards

6.43 A common theme expressed was that the proposed skills requirements could improve and enhance professionalism and standards within the sector in Scotland. Compared to the other organisation types, a higher proportion of public sector organisations reported this type of positive impact.

6.44 These respondents, including Construction Industry Training Board and Snipef Ltd, also noted that the skills requirements could help ensure that only the "correctly skilled people" carried out installations.

"It will ensure that the people involved in this important area of work are trained, skilled and initially competent through the achievement of specific, assessed qualifications. The routes taken to achieve those qualifications may well differ (new entrant, apprentice, skilled worker (RPL) etc, but the achievement of a competence qualification is the overall aim. This will also go some way in ensuring that works are only carried out by competent persons." Construction Industry Training Board

6.45 There was wider feedback that a skilled and competent workforce could "enhance the quality of product offered" and "ensure consistency of service" such that "no matter where customers live, they can be assured of a high standard of workmanship".

6.46 It was noted that making the skills requirements mandatory provides a clear purpose and incentive for the sector to upskill and improve standards.

"From a non-technical perspective, any regulations which organisations know they will need to meet, enables skills providers and organisations to plan for the future. Enabling them to put steps in place to attract, train, and deliver the skills required. Without these requirements providers and individuals cannot take steps along appropriate career pathways. A lack of requirement is a blockage in the skills pipeline." Built Environment Forum Scotland

6.47 Historic Environment Scotland also stated that "requiring more in terms of skills should increase the lifespan of measures and make them more effective, bringing about an increase in carbon reductions per measure installed." This leads to other benefits such as increased confidence for both consumers/homeowners, who know "properly qualified people are working in their properties", and confidence within the sector to encourage investment – "this new skills matrix could provide confidence in the sector to drive investment in upskilling".

6.48 As noted at Question 6a, the unique and specific challenges and issues faced by remote, rural and island communities, was reiterated here. The need for tailored support was again emphasised as vitally important to ensure consistency of approach, and that the sector as a whole benefitted positively from the skills requirements.

6.49 Several respondents, including United Kingdom Accreditation Service and The Association for Decentralised Energy, highlighted that the skills requirements presented an opportunity for the sector to develop and grow a skilled workforce.

"A consistent approach backed by government will help to provide confidence for the heating sector to invest in upskilling, training and further recruitment. We welcome this approach which will support the growth of a qualified and competent workforce. NIBE Energy Systems UK

"A consistent approach, that will be enabled by the introduction of the skills matrix, backed by government will help to provide confidence for manufacturers and installers to invest in upskilling, training and further recruitment in low carbon and energy efficiency. Kingspan welcome this approach, which will increase confidence, growth and support the growth of a qualified and competent workforce skilled in energy efficiency and low carbon installations." Kingspan Insulation Ltd

6.50 Further, it was noted that the skills requirements could lead to increased demand, resulting from an improved quality of product and increased confidence, and therefore support the reduction of emissions and the transition to net-zero.

"It will have a positive impact. It is essential we have correctly skilled people to carry out technical work such as the installation of renewable technology. The skills matrix identifies the use of correctly qualified job roles that can provide a high quality work. Skill levels are closely associated to quality, and quality will create long-term consumer confidence, which then creates a demand. The long-term demand will then encourage businesses to commit to providing renewable energy services then going on to meet the net zero targets." Snipef Management Ltd

Supporting the development of a clear skills pathway

6.51 A related theme was that the skills requirements could help support the development and promotion of a clear skills pathway for the existing and future workforce to achieve the required skills and qualifications.

6.52 Here, there was feedback that the skills requirements "should drive training, upskilling and job creation across the low carbon energy sector in Scotland", and that a coherent skills pathway could support talent attraction and retention.

"The development of a clear skills pathway that young people can engage with and understand may in fact encourage new entrants to the sector, which could have a positive impact. It also makes the learning routes clearer and the consistent approach across the sector may make it easier for new entrants to progress and move between roles / organisations. With the correct mechanisms put in place to raise awareness surrounding the proposed skill requirements and support installers in the transition, the skill requirements will have a net positive impact." BCA Insulation Limited

6.53 There was wider acknowledgement that Scottish Government proposals would need to be "supported by effective skills ecosystem and infrastructure". For example, "correct mechanisms (would need) put in place to raise awareness surrounding the proposed skill requirements and support installers in the transition". Others, such as Historic Environment Scotland and BCA Insulation Ltd, noted that the skills system was "fragmented".

"The skills framework, if supported by effective skills ecosystem and infrastructure, should have the impact it is hoping for by bringing focus and clarity to a fragmented skills system, improving the quality of work and the effectiveness of the measures themselves". Historic Environment Scotland

An opportunity for the heat networks sector

6.54 Another common theme was that the skills requirements present a real and significant opportunity for growth of the heat networks sector, as reflected in the quotes below.

"Research from Energy Savings Trust shows that there are currently many gaps in heat networks in Scotland and therefore a need for specialist heat network training centres. This new skills matrix could provide confidence in the sector to drive investment in upskilling. The skills matrix will make the pathway to becoming a heat pump installer clearer and will help to understand the commitment that is needed for the role. If supportive wider policy is put in place with a firm commitment to end fossil-fuel heating, the number of installers will increase which will help to drive down prices, introduce greater competition and increase uptake of heat pump solutions". NIBE Energy Systems UK

6.55 Further, it was reported that the skills requirements could grow the heat networks sector in a number of ways, including:

• Increased demand for products from heat networks sectors.
• Job creation and recruitment supported by a clearer skills pathway with easier understanding of the available job roles and responsibilities.
• Growth of the sector aligns with wider ambitions to achieve net-zero. With supportive policy, such as the skills requirements, this will likely result in increased demand for products and services from the sector. Growing the sector will also allow greater affordability to consumers.

"The HPA believed that the skills matrix will make the pathway to becoming a heat pump installer clearer if integrated with the HPA's new qualification route by helping to understand the commitment that is needed for the role. This in turn will help to increase the number of installers if wider supportive policy is put in place with a firm commitment to end fossil fuel heating greater installer numbers will help to drive down prices and increase uptake of heat pumps, currently installed costs represent around 50% of total heat pump cost to install and so this could potentially make a great difference to the price which consumers have to pay." Heat Pump Association

"In the heat networks sector, skills requirements should have a positive impact on the sector, and should present opportunities to provide much needed jobs for new entrants to the sector, as well as those transitioning from higher carbon industries. However, careful consideration and collaboration across Government, private and public sectors will be required to ensure that training needs are met, and jobs are creating in the most relevant geographical areas." The Association for Decentralised Energy

"Assuming that heat networks have an important role to play in achieving 'net zero', then the setting of these requirements is a major step forward towards creating the ability and capacity to install heat networks." United Kingdom Accreditation Service

Reasons for reporting negative impact of skills requirements on the sector

6.56 Similar to points raised at Question 2 and Question 6a, the main reasons for a minority of respondents expressing a view that the skills requirements could have a negative (or mixed) impact on the sector were largely due to concerns about increased costs, followed by capacity concerns.

Financial concerns

6.57 As noted throughout the report, financial concerns such as the impact of the skills requirements on increased supplier and installation costs and training costs were most commonly reported. Points raised are reflected in the organisation quotes below.

"There is the potential to improve the quality of the supply chain and skills capacity in the sector making it more able to respond to demand and changes in technology as the sector grows. However, there are risks for suppliers; higher quality throughout the supply chain may lead to higher costs at least in the short term. If quality is assured through a robust framework such as TrustMark this may mitigate the increased costs for householders. As more players enter the sector there may be a reduction on costs for installations. Continued work with the supply chain regarding risks – minimising, mitigating and sharing risk will help the sector develop. However, the quality standards, accreditation and assessment processes may put new players off because of higher costs." Glasgow City Council

"The scale of work required indicates a massive upscaling of current construction activity. Using a figure of £26k per house to achieve net-zero by 2045 that represents a 50% increase of all current housing construction, repair and upgrade works in the industry. We think the quoted figure of £10 billion over the lifetime significantly understates the costs involved." Southern Upland Partnership

Supply chain capacity concerns

6.58 Supporting sufficient growth of the sector's supply chain in order to meet need increased demand was another area of concern, including within a rural context. Points raised are reflected in the quotes below.

"The supply and demand relationship must be balanced. Adequately 'deep' retrofit requires specialist assessment and installation skills which are lacking in many in the construction industry, however funding must be made available for businesses to up-skill their employees, and for sole traders to be able to compete in this ever growing market. I am concerned as an Architect that simply requiring one to be an ARB registered architect does not necessarily equip an individual to take on their role in this process. without additional training many mistakes could be made." Individual

"Recently Energy Action Scotland sent a paper to government, which suggested: Scotland in general and in the rural areas particularly, the retrofit industry has insufficient skills capacity to meet the requirement of the of the new PAS 2030/2035 standards for retrofit, currently required to deliver measures through ECO3. With Scottish Government Schemes linked to the Energy Company Obligation (ECO) this is immediately threatening the viability of installers, whom if lost, reduces Scotland's ability to improve homes to the standards required. We believe that the additional roles, processes and associated costs of compliance with the new standards will add significantly to the costs of measures resulting in a reduction in the quantity of homes improved which will either require additional investment or Scotland will miss strategic targets.

In addition, while some companies may have achieved the new PAS standards their capacity to deliver completions at the same rate as previously will be impacted due to the process, the small number of certified operatives and limited pool of professional resource to fulfil the PAS requirements. Thus having the PAS accreditation is no guarantee that the PAS process will be able to be implemented at a rate which meets the demand." Tighean Innse Gall