Developing an Energy Efficiency Standard for Social Housing: consultation

This consultation seeks views on the proposed Energy Efficiency Standard for Social Housing (EESSH) to further improve the energy efficiency of social housing in Scotland.



Name of programme Delivered by Type of funding/assistance Timing Eligibility Amount of funding
Climate Challenge Fund Keep Scotland Beautiful on behalf of the Scottish Government Support to communities to reduce carbon emissions.
A maximum funding limit of £150,000 per year is in place.
From 2012, a Junior Climate Challenge Fund has been introduced. The aim of the JCCF is that 10% of the overall fund will be allocated to projects run by and for young people.
CCF can support eligible projects which promote increased take up of energy efficiency measures across all housing types, leading to carbon savings. Funding for infrastructural improvement can only be considered for community owned buildings, where projects meet the overall eligibility criteria.
2008- 2015 Since 2008 365 different communities across Scotland have received 504 individual awards totalling £44.6 million to undertake carbon reduction projects.
The main criteria for the fund are:
  • The community must be at the heart of the project
  • Projects should deliver measurable carbon reduction and help create a low carbon future
  • Projects should leave a legacy for the future
£10.3m annually
SPRUCE AMBER - as the fund manager (with the European Investment Bank acting as Holding Fund Manager) Financed through JESSICA and the SG, the programme is split between property & infrastructure investments and energy efficiency investments.
On the 2 nd of these, social housing providers are invited to develop renewable energy projects and energy efficiency schemes as part of the retrofit of their existing housing stock.
13 local authority areas as determined by the Scottish Index of Multiple Deprivation are eligible.
Funding to be utilised from now until 2015.
Loan funding will however be recycled by the SG into new projects beyond that deadline.
13 LAs are eligible JESSICA, Scotland investment fund is £50m.
£15m to be used for energy efficiency

Supplier Investments

Name of programme Delivered by Type of funding/assistance Timing Eligibility Amount of funding
The Carbon Emission Reduction Target ( CERT) Main energy suppliers CERT is the obligation on the six main energy suppliers to facilitate reductions in domestic carbon dioxide emissions. Launched April 2008, ends December 2012. Social housing providers use this to support a number of measures including:
  • insulation (cavity wall, solid wall, loft, underfloor and external wall.
  • switching heating systems from solid fuel and electric to gas or oil
  • replacement of gas boilers rated as below 70% efficient with A rated
  • connection to district heating schemes
  • provision of energy saving devices, such as power down plugs to tenants
  • ground source heat pump installations
Estimated supplier investment across UK around £5.5bn (April 2008 to Dec 2012)
Generally calculated on the basis of a price for lifetime Carbon Dioxide emissions savings.
The Community Energy Saving Programme ( CESP) Main energy suppliers and the main electricity generators The CESP is an obligation placed on the six main energy suppliers and the main electricity generators to fund area-based carbon reduction schemes targeting low income areas September 2009 - Dec 2012 Tends towards supporting expensive measures that are difficult to fully fund under CERT, such as:
  • external wall insulation
  • district heating installation
  • replacement of solid fuel and electric heating with gas heating
  • air and ground source heat pumps
  • solar panels.
The level of funding is dependent on a number of factors including the concentration of measures delivered in the target area (the energy providers get additional credits the higher the concentration of measures). Expected to deliver up to £350m of efficiency measures.
Energy Company Obligation ( ECO) Main energy suppliers Amended powers underpinning CERT and CESP so as to provide a new obligation which will underpin the Green Deal Late 2012 (tbc) It will focus particularly on those householders (e.g. the poorest and most vulnerable) and those types of property (e.g. the hard to treat) which cannot achieve financial savings without an additional or different measure of support.
Will also contain a Carbon Saving Communities obligation This will provide support to households in low income areas, including for loft and cavity wall insulation and is expected to be of significant benefit to social landlords.
Estimated to be worth up to £120m per annum in Scotland.
Assisted gas connections Scotland Gas Networks Subsidise gas connections for households meeting certain criteria relating to fuel poverty risk. Commenced April 2009 and likely to continue beyond the current arrangement which expires in 2013 Available to owners or tenants in existing housing who require a gas connection and meet qualifying criteria. It can also apply to community schemes that are off the gas grid. Additional energy efficiency measures must be installed - e.g. gas central heating systems. These subsidies have been taken up by a number of social housing providers Up to £2,000 subsidy per qualifying household is available.

Householder Investments

Name of programme Delivered by Type of funding/assistance Timing Eligibility Amount of funding
Feed- in- tariffs Energy providers Savings on energy bills as households will be generating their own electricity. Whoever owns the panels will be paid for any electricity generated and surplus electricity exported to the national grid. Commenced April 2010. Tariff currently under review. Solar PV new tariffs to be effect from 1 April and other technologies later in 2012. Individuals, local authorities, community groups and other organisations. Subject to ongoing consultation, home must meet an EPC rating of D to be eligible for FIT. Each installation of low carbon electricity generating technology up to 5MW will qualify for a payment for each kW produced and a further payment for each kW exported to the grid.
Renewable Heat Incentive ( RHI)
Renewable Heat Premium Payment ( RHPP)
RHI - Ofgem
RHPP - Energy Saving Trust
The Renewable Heat Incentive is very similar to the feed in tariffs however there are some important differences due to the fact there is no 'National Grid for Heat' and so importing and exporting heat is not relevant. Renewable heat systems installed, renewable energy generation is estimated and fixed payment is made based on the estimate From end November 2011
August 2011- March 2013
The RHI is being implemented in phases. Phase 1, from end November 2011, will focus on the industrial, commercial and public sectors. The domestic sector is expected to be introduced in 2013.
Support is available for the domestic sector through the RHPP which will focus on those homes not supplied with gas. The RHPP will provide support for Solar Thermal, Air Source Heat Pumps, Biomass Boilers and Ground Source Heat Pumps technologies and householders will need to ensure they have basic energy efficiency measures in place.
Amount payable will be based on the estimate of renewable energy generated.
£3 million of the RHPP fund was ring-fenced for Social Housing in year one and a further £10 million in year two.
Green Deal Certified and accredited Green Deal Finance Providers/and certified installers Will include a financial framework 'pay as you save' to enable energy saving measures to be paid for in instalments via electricity bills. Late 2012 (tbc) Finance to fund energy efficiency improvements of domestic and non-domestic properties. Market driven initiative therefore no estimation of take up.


Name of programme Delivered by Type of funding/assistance Timing Eligibility Amount of funding
Community and Renewable Energy Scheme Community Energy Scotland Ltd Loan finance of up to £150k available to cover pre-planning costs for any renewable project. Projects must demonstrate a wider community benefit. 2011 - 15 Not-for-profit community based organisations £6.8m for 2011/12, with a further £23.5m allocated to continue the scheme.
District Heating Loan Fund EST Will provide loans up to £400,000 on a commercial basis to support district heating networks for both low carbon and renewable technologies in order to overcome a range of infrastructural issues and costs of developing these projects. Technical support will also be available 2011 - 15 Open to Registered Social Landlords, local authorities, SMES and ESCOs. Individuals and householders are not eligible. £1.9m allocated to projects in 2011/12, with a further £5m allocated to continue the scheme.
Gas Infill Fund Scottish Government Provides loans to individual households and 'aggregator' organisations to facilitate gas infill and gas extension projects 2012-2014 Will assist communities within/near to the existing gas grid to assemble the funding for infill/extension infrastructure projects Estimated at £5m:
£1m in 2012/13
£4m in 2013/14

Future programme

Name of programme Delivered by Type of funding/assistance Timing Eligibility Amount of funding
Warm Homes Fund Scottish Government Primarily loan funding, with some grants for feasibility studies and options appraisals. Focus on the potential of renewable energy to provide a long-term, sustainable means to address fuel poverty 2012 - 15 Will assist communities affected by fuel poverty by providing grants and loans to support renewable energy projects. Eligible organisations include RSLs and locally based development trusts £50m 2012-16


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