For those who dont know the Green Deal, in it householders who take out an eco-loan will be offered an energy retrofit package which will be repaid by savings on the household energy bill. This loan will be attached to the house, not the householder. The offer will come from a range of financial instructions and high street names. There is still a huge amount of work going into the detail of the scheme but the understanding is that DECC and Defra are both keen for water to be included in some way.
There is a government commitment, repeated in a recent Defra response to the select committee, to finance measures that provide hot water through this scheme, provided they meet the golden rule that the payback justifies the investement. In addition the advice which will be given to consumers prior to their taking on a Green Deal plan will include wider information about the steps they can take to improve the sustainability of their homes, including on water efficiency.
This means that the things like water-efficient boilers and showers can be included in the financial offering. Unfortuntely, as there is no potential saving on the energy bill, water butts and toilets are not included. There are also questions over water-efficient showerheads, as these could potentially be removed when people move house- which means they may not meet the payback requirements.
However, Waterwise has shown that the payback on showerheads is very short, so there is a strong argument that they should be included regardless. As well, there is still a debate around devices such as water-saving tap inserts which are very cheap, can save hot water, and would be difficlut to remove.
Waterwise is pushing for as many water-efficient devices as possible to be included in the financial package. However, all water-saving devices even those that don’t directly save energy – the embedded energy in the water is not considered – are being considered in the wider (non-financial) Green Deal Package; there is an opportunity for a water retrofit to be an added extra offering for the householder. This could be funded by the installer, finance company, or by a third party such as a water company, and accommodated through alink to the regulatory system for water companies.
Water efficiency is key
Including water makes financial sense. The Green Deal will include measure such as installation, which can cost many thousands of pounds per household. Including water efficiency measures, such as showers and taps, would only cost on average £50 per household and would save 300kWh per household per year.
A retrofit of taps and showers under the Green Deal would pay back on energy bills in only the third year. For homes which are metered for water (currently one-third of homes in England, a quarter in Wales, and a negligible number in Scotland) the payback would be within the first year. This places water efficiency measures firmly in he remit of the golden rule, which states that the repayment cost of measures installed must not exceed the estimated annual energy savings on fuel bills over the financing period, and will determine which measures attract Green Deal finance. A link to water metering in homes could be used to increase the financial savings from water efficiency by reducing water bills as well as energy bills – and as such could be used to make the Green Deal package more attractive to the individual householder.
A modular approach would ensure that the Green Deal suppliers can easily slot the water efficiency element into their household offer. Training for installers on installation (and the advice given alongside this) could be provided and accredited – depending on the existing skill level. This need only take from half a day to a week.
Information, literature and training on water efficiency advice for both the surveyor and supporting phone line operatives could also be standalone. The same is true of the products themselves, which cost between £10 (tap inserts only) and around £35 (showers, taps and toilets), and could be funded as a module by a provider of the water element of a Green Deal package, such as water company.
This means there are a number of opportunities for joint water and anergy work, from advice to measures. The next step is to include them in the Green Deal, before the opportunity is lost.
