Why residential eco-retrofits are failing in the UK

Retrofit projects to make homes more energy efficient are failing, especially when their design is dictated only by financial values, according to the Sustainable Traditional Buildings Alliance (STBA).

It is backing a “Responsible Retrofit” program incorporating health and heritage values and not just financial ones, in order to encourage a new attitude to giving old homes makeovers.

About 25 million British homes were built before 1990 and are in need of retrofits to bring them at least up to modern standards for energy efficiency. And it is generally considered more economic to retrofit the whole house at one go, as I argue in my book the Earthscan Expert Guide to Sustainable Home Refurbishment.

Yet there are many unintended consequences of existing retrofit programs, especially piecemeal ones. They may lead to unhealthy indoor environments, condensation and mould, fabric decay and other problems that affect occupants.

Often programs fail to meet their targets for reducing greenhouse gas emissions and energy use, and in some cases even result in an increase in both of these.

Part of the problem is that there is often not a whole house/building approach when retrofit measures are applied. But even when there is a whole building approach similar consequences can ensue. This is because there are different ideas of what is involved in a whole building retrofit. So what are these different ideas?

Responsible retrofits

An earlier report from the STBA called Responsible Retrofit of Traditional Buildings found that most of the problems that occur with retrofits are at the interfaces between elements, technologies for building processes, or through the interactions between the measures taken, people, and the buildings they occupy, many of which are not fully understood.

This is not just a technical issue. Buildings, and people, behave differently and interact differently depending upon the social, economic and environmental context in which they find themselves.

All of these aspects need to be taken account of. The aim of retrofits should be to look for multiple wins: such as how to improve occupant health, the long-term condition of the building fabric, and make it easy to live in.

To achieve this they need to examine the way thermal energy is conducted through the building and where moisture travels and how it is managed, throughout the year-round weather conditions and patterns of occupancy. This is especially true where different materials meet each other.

When retrofits do fail, it’s not “just because we do not sufficiently understand traditional buildings, or have the wrong approach or the wrong standards or skills”, the STBA says.

“It is because we have an economic and political system which is driving misallocation of finance, land and housing, depletion of natural resources and pollution.”

This is really the reason why The Green Deal programme failed so abysmally, as I have shown before – and why the German equivalent has succeeded.

What values should be incorporated then? The STBA says we need to account for heritage, well-being, community, biodiversity and health – values which, for most people, give meaning to their world more than money does.

But the organisation is pessimistic this can happen without an ethical approach being taken to the allocation of finances for retrofitting. It believes that this demands that the economy and society should “have sustainability and culture at their heart”.

That is why it is issuing a call to rethink the whole approach. It argues:

“The process of retrofit, if carried out correctly, has great potential not only to repair the environment but also to improve people’s lives. Unless we start with the Whole House Advanced/Responsible Retrofit position our efforts will lead to unintended consequences and may be counterproductive even in the most narrowly measured terms.”

To this end the STBA has launched a Responsible Retrofit website, which is full of resources, one of the most useful of which is the Guidance Wheel.

This interactive tool represents over 50 measures that can be used in the refurbishing of the buildings and allows you to explore their interrelationships including the user’s interest, motivation and knowledge about the building:

Since its launch, it has been taken up by several other organisations, including the Society for the Protection of Ancient Buildings and Construction Excellence Wales.

But until it is mainstreamed into the general drive to upgrade the performance of all older buildings, rather than just heritage ones, then piecemeal retrofitting, driven by economics, will prevail in the marketplace, and with it the risk of failure to deliver the desired outcomes.

David Thorpe is the author of:

• Earthscan Expert Guide to Sustainable Home Refurbishment 
• Earthscan Expert Guide to Energy Management in Buildings
• Earthscan Expert Guide to Energy Management in Industry 
• Earthscan Expert Guide to Solar Technology
• The One Planet Life
• Best Practices and Case Studies for Industrial Energy Efficiency Improvement (with Oung, K. and Fawkes, S., UNEP)
• A London Conversation: Business Briefing on using Green Bonds for energy efficiency in buildings

Wanted: a serious business model for eco-retrofitting homes

[NOTE: A version of this article appeared on The Fifth Estate on 29 November.]

A new approach is needed to retrofit the UK’s housing stock to allow it to contribute to a cost-effective decarbonisation strategy, according to a report published by the Energy Technologies Institute.

But the report does not make it really clear what this approach might be.

Although deep retrofits of houses for energy efficiency are technically feasible, as detailed in my book the Earthscan Expert Guide to Sustainable Home Refurbishment, at present doing it to the proper standard might cost around the same as rebuilding the entire UK housing stock.

New homes built to modern UK Building Regulations standards will cost approximately half as much to heat as a Victorian home, according to the British NHBC Foundation. These new or refurbished homes mean reduced bills for heating, hot water and electricity bills, due to better standards of insulation, draught-proofing and improved airtightness, double glazing and efficient controls (programmer, room thermostats and thermostatic radiator valves).

The difference in heating costs between a new and Victorian home. Source: NHBC

Housing Retrofits – A New Start, written by the ETI’s chief engineer Andrew Haslett, looks at the role of housing retrofitting when seeking to tackle the 20 per cent of emissions that comes from heating the UK’s 28 million homes.

Its conclusions come from a two-stage process. The ETI first identified two particular retrofitting approaches that were the most cost-effective in terms of getting the most from time and materials by industrialising the planning and execution of projects. They followed this up by testing them out on five typical UK dwellings (terrace, semi-detached, detached) built from pre-1919 to post-1980, to work out what might be deliverable in the real world. Here are the results:

Retrofits were successfully completed on four of the houses, with gas usage reduced by 30-50 per cent. But the costs ranged from £32,000 to £77,000. The experience led the team to conclude that proper investment in supply chain and training might reduce this by about half to £17,000 to £31,000.

The incentive gap

That’s still a lot. So how do we persuade someone to spend the money? The report highlights that most consumers are not motivated to spend money on efficiency measures because efficiency savings are a very weak driver. That is the “incentive gap”.

Instead, the report recommends that improved comfort, health and amenity should be the main incentive to fill this gap, with saving money on bills as a secondary benefit.

Meanwhile, at the back end, finding savings in the supply chain by scaling up manufacture and supply, and rewards to investors or installers, and/or legally binding targets for carbon savings (carrots and sticks), would seriously help, both in the social and private sectors.

The ETI has made a video about the project:



But the route to market is still fuzzy.

The need for investment

UK Government spending on grants for home energy efficiency is currently languishing at a 20-year low.

This year has seen a massive fall in the number of households helped by government to become more efficient, with the annual number of major energy efficiency measures installed in homes declining by 80 per cent from 1.74 million to 340,000 between the height of delivery in 2012 and 2015, according to the Association for the Conservation of Energy.

The government seems to lack any sense of the value of energy efficiency compared to investing in large scale energy projects. The ETI reckons that with carbon prices at such a modest level one way to improve housing efficiency lies in more effort to tackle the approximately four million hard to treat cavity walls across the UK. But governments have been trying for years to incentivise this and not even all the “easy wins” have been fixed.

Wanted: a serious model

Although the ETI wants to make eco-retrofits “an integral part of improving the amenity and value of the dwellings”, rather than seeing them as a series of independent measures, it does not present a financial model for doing this.

The only hope it offers is a vague one for “a new kind of service provider (integrator)” to replace existing energy providers, on a franchised basis (local teams), “that aims for a much higher level of service provision, starting with existing energy supplies”.

Such companies would have “a plan for the decarbonisation of supply of each dwelling” but “only if a market environment can be created over the next five years”.

Given the current preoccupations of the UK Government – Brexit – and the lack of any mention of climate change or social care in the government’s budgetary spending plans announced last week, that’s a big ask.

It’s not as if the ETI is asking for a lot of cash compared to the scale of the task. It says: “£10 billion of private and public funds over the next 10 years would provide a platform that would enable investment of roughly £100bn out to 2050″.

Financial Disclosure

The incentive gap is to be addressed by yet another report, soon to be released, this time from the UK Financial Stability Board’s Task Force on Climate-related Financial Disclosures.

It will contain their first set of recommendations about how to help close the gap between the climate/sustainability world and traditional finance thinking.

It will say that all infrastructure projects – not just housing retrofits – have a climate-related element to them, be that energy efficiency (mitigation), resilience against adverse weather events (adaptation) or others.

Therefore policy to encourage the reporting of more information on these topics will help to bring more visibility to the benefits.

And standardising how this information is reported would ensure that it can be used for investor analysis, enabling investors to set targets, and the creation of more products that are attractive to investors.

Well that’s what the Investor Confidence Project is doing. I wonder if the FSB knows about it.

The ETI is conducting important research. What they have done is expose the difficulty of the task but they have only begun to chart a path to accomplishing it.

David Thorpe is the author of:

• Best Practices and Case Studies for Industrial Energy Efficiency Improvement (with Oung, K. and Fawkes, S. UNEP, 2016)
• A London Conversation: Business Briefing on Green Bonds (The Fifth Estate, 2015)
• The One Planet Life (Introduction: Jane Davidson. Routledge, 2015)
• Earthscan Expert Guide to Energy Management in Buildings (Earthscan, 2013)
• Earthscan Expert Guide to Energy Management in Industry (Earthscan, 2013)
• Earthscan Expert Guide to Solar Technology (Earthscan, 2011)
• Earthscan Expert Guide to Sustainable Home Refurbishment (Earthscan, 2010)

More money needed for the new Green Deal

The ″greenest government ever″ must put serious money behind this scheme to let householders eco-renovate and repay their loans from their savings on fuel bills.

The UK's domestic properties need to be renovated to a high energy efficiency standard at a rate of 700,000 a year in order to have renovated them all by the year 2050. We need to do this because there are 28 million homes in the UK which are responsible for 27% of our greenhouse gas emissions, most of them will still be standing by then, and they need to be treated to make a contribution to meeting our national targets of reducing these emissions by 80% by 2050. ['The 40% House', Boardman et. al., 2005, and The Low-Carbon Strategy, 2008 (Oxford Environmental Change Institute)]

It would be alright if we knew exactly what it is that we have to do. The problem is that there are many areas of uncertainty, not least of which is the embodied energy of the materials used in construction. Unless we know this cannot estimate the carbon balance of the measures we are proposing to take and know that we are really saving carbon.

There also needs to be agreement on what measures these are to be - and they will be different for each type of property. There is an appalling lack of experience in this country of monitoring and measuring the efficacy of sustainable refurbishments that have already taken place to see how effective they have been.

One thing we do know is that they often don't live up to expectations, whether it is because of poor workmanship leaving, for example, gaps in insulation or whether it is that the occupants of the treated houses do not behave in a manner predicted by the architects and continue to turn their heating up.

Retrofit for the Future is a government-sponsored project that is hoping to find the answers to some of these questions for the social housing sector. I shared a panel with Neil Morgan, the project director, at the recent Greener Homes & Buildings show and he gave an outline of a number of research projects they are backing. One of these projects - by Anne Thorne Architects - showed that they are going for the demanding Passivhaus standard, which is more or less the standard that we are going to have to aim at in every case.

Neil gave some costs: they are allocating a budget of £120,000 per property for a sustainable renovation. Of this perhaps £60-£70,000 will actually be used for the renovation itself, the rest might go on overheads, sorting out the supply chain issues - which are right at their infancy and help to increase costs - dramatically, and post-occupancy monitoring and evaluation.

The government announced in the new energy bill that it would institute a Pay As You Save scheme to support households that wanted to carry out eco-renovation. No figure has yet been put on the loans that will be available to householders but before the election the Tories were touting the figure of £6,500.

This is about one tenth of what Retrofit for the Future is allocating. In Germany where similar pioneering work was done quite a few years ago costs in the region of £20-£40,000 per property were common, and another figure that has been offered is around at least 10% of the value of the house.


In other words, £6,500 is going to be nowhere near enough.

Everybody working in this field is advocating that whenever any work is done on a property the opportunity should be taken to renovate it to the highest possible energy efficiency standard to reduce the electricity and heating cost demands. These measures will of course pay for themselves in the future.

In other words if you are having workmen going into your house or scaffolding being put up, it makes sense to get them to do other jobs that need to be done while they are there rather than to get them back later. It would be more expensive if you were to do that and a valuable opportunity would be lost. For example if the roof is being replaced it makes a good idea to put solar water heating panels on it at the same time or at least put the pipes through the insulation and the roof so that they can be added easily later when a budget permits without having to tear apart your earlier work.

The danger is that in an era where savage public spending cuts are to be made then the amount of money that is going to be loaned to householders will be nowhere near enough, and the work will not be done to the sufficient standard. Another opportunity will have been wasted to help not only the UK reach its carbon emissions reductions targets but also for householders to reduce their ongoing energy costs.

Demand reduction is the best investment. It also means that we have to build fewer power stations and there is less likelihood of the lights going out in the future.