Gentoo has published a report which outlines early findings from its work on a Government backed energy efficiency scheme with the aim to share its findings and experiences so far.

Following an open competition, Gentoo was one of five companies chosen to deliver the first ever UK trial of the Government backed Pay As You Save (PAYS) scheme, sponsored by the Department of Energy and Climate Change (DECC). 

The Group is one of five participants nationally, including British Gas and B&Q and the Gentoo pilot currently incorporates 117 properties where energy efficiency improvements including condensing combi boilers, double glazing and solar PV panels have been installed with no upfront costs to the customer

The costs of these improvements are being recovered through a weekly PAYS charge to the customer.  This is calculated based on the total cost of works divided by the number of weeks in a specified repayment period and energy savings are measured using RdSAP property energy assessments.  Gentoo has used experience from its previous Retrofit Reality project to ensure that customers are not charged more than they will save.

Sally Hancox. Director of Gentoo Green said:  “At Gentoo we are always keen to give things a go and trial new ways of doing things and it was great to be selected for this scheme.  We have already learned some valuable lessons, even at this early stage and we are keen to share these findings with others. 

“Our research project, the ‘Green Debate’ revealed there was an appetite amongst our customers for not only taking part in such projects but also a willingness to pay a little extra a week to reduce their energy bills whilst helping the planet too.”

The ‘Green Debate’, a poll of 600 Gentoo customers carried out by Gentoo Green, sought to gain a statistically significant insight into attitudes around paying for energy efficiency improvements through a weekly charge. The research found that 84% of customers would be prepared to pay for improvements.  Of those, 45% said they would pay more than £5 a week for measures such as photovoltaic panels, efficient boilers and double glazing.

This first PAYS report is focussed on customer satisfaction and how those involved in the process have found it.  Significant experience has been gained in customer engagement around energy efficiency retrofits.  Each participating customer is continually engaged throughout the process, from initial consultations to three monthly visits following the completion of the works. Home energy saving advice is provided at the outset, and a helpline number is provided to customers with any queries or problems around using the technologies installed.  A ‘green’ customer consultation officer is also regularly on site during the undertaking of works to respond to any direct queries.

Early indications from the data that has been collected so far indicates that customers are experiencing significant savings however Gentoo is still gathering and recording data.  Figures suggest that the savings are more than enough to cover the payments and are actually in excess of the estimated savings.  As the Group gathers more information it will know if the results are accurate and aims to continue to share its findings in future reports.

Gentoo is now taking this learning one step further and has developed a new product, the Energy Saver Bundle.  This puts the principals of the Green Deal into practice, ahead of its planned introduction next year.  It gives customers the chance to make their homes warmer and more energy efficient - with no upfront cost, saving them money whilst they enjoy the benefits the eco upgrades bring.

Based on the location and condition of the property, customers are being offered a mixture of measures suited to their home aimed at reducing the energy it requires, in turn saving money.  A small charge, which will be less than the money that is expected to be saved, will be applied to contribute towards the cost of some of these improvements.

Unlike the proposed Green Deal, Gentoo would not have to recover 100% of costs in an Energy Saver Bundle.  As such, a much better deal could be secured by the customer, helping provide significant assurances that they will make the savings necessary to see an immediate financial benefit despite necessary repayments.  Further to this the repayment period could be reduced from 25 years to 15.  Continual monitoring of energy consumption data would allow actual customer savings to be calculated with a view to ensuring that in all instances customers are in receipt of a fair deal.

The customer is being given the choice as to the number of measures to be included in the works and the first measure, a boiler upgrade, is always free.  Charges have been established on the basis of customers being able to enjoy some savings as well as comfort.

It is hoped that customers will be given the opportunity to pay the Energy Saver Bundle charge either through their rent account or through their energy bills.  This choice based approach, both with measures and payment method, adds flexibility both from the customer perspective and in terms of maintenance needs.  Gentoo is currently in negotiation with British Gas about charges going via the meter.

We hope that learning from the findings of these projects could significantly influence policy development, helping ensure a good deal for social housing when the Green Deal is introduced in 2012.  The Green Deal is imminent and Gentoo wishes to ensure it is shaped in a way which will be beneficial to the social housing sector.