Energy efficiency costs money but brings long-term benefits.
Energy-efficient homes are not only good news for the environment – housing associations' financial health depends on them.

To win new-build funding from the Housing Corporation, a project needs an EcoHomes "pass" mark (see "Green standard", below). By the end of 2006, the minimum standard required to get corporation cash will be a "good" rating.

A new home's eco-rating can be improved by working eco-friendly elements into the scheme early in the design stage, for example by choosing a brownfield, rather than a greenfield, site. And clearly, a seven-storey building will not have the same heating demands as seven bungalows.

There are also small modifications that can be added at a later stage that will have a big impact on homes' environmental performance. These add-ons have the additional advantage that they can be fitted into homes that are already built, so existing tenants can benefit from the prospect of a greener environment and the lower fuel bills an EcoHome offers.

Keep that carbon dioxide down
Improving a home's energy performance boosts its eco-rating dramatically. Luckily, energy is the area where gains can be made most simply.

"Reducing the amount of energy used by a home is a relatively straightforward process. It will reduce its CO2 emissions and that will immediately increase its eco-rating," says Nick Delvin, projects engineer with consultant environmental engineer XCO2 Conisbee.

Upgrading insulation systems offers an immediate benefit. "The better a building is insulated, the less need there is to heat it and, of course, the less energy is consumed," says Delvin. "For a building that has no insulation, adding just a little will make a huge difference.

"For example, draughts caused by ill-fitting doors and windows lose a lot of heat: these gaps have to be closed." Installing new, well-fitted windows costs money, but the long-term benefits are considerable.

Solar water heaters also cut energy consumption. Solar heating systems use sunlight to produce hot water, and the cost savings are impressive: this method is 70% cheaper than producing heat by burning fossil fuels.

Upfront costs are pretty big, at about £1500 to £2500 per home to install the system. However, there is financial help available: housing groups can apply to Clear Skies, a government-backed scheme, for a grant of £500 towards the cost of the heater.

Clear Skies also provides grants for biomass boilers, which burn organic matter such as sustainable-resourced wood or vegetable matter, to produce heat.

Photovoltaic panels
Greener homes can also use photovoltaic panels, which convert sunlight directly into electricity. Although the technology costs up to £5000 per home to install, it drastically cuts CO2 emissions.

The technology's use is supported by the Energy Saving Trust, an organisation set up by John Major's government in 1992 in the aftermath of the Rio Earth Summit. The Energy Saving Trust offers local authorities and associations a grant covering 50% of the cost of installing photovoltaic panels through its Practical Help scheme.

All these methods to achieve greener homes cost money, but Delvin and the Energy Saving Trust stress that the main thing to consider is the long-term benefits of energy-saving devices. "There is still a perception that making improvements to homes is expensive," says Delvin, "but small incremental changes ultimately add up to big cost savings in the future, and they also help the environment."

  • www.bre.co.uk
  • www.practicalhelp.org.uk
  • www.clear-skies.org.uk
  • www.est.org.uk

Green standard

EcoHomes is the system for assessing the environmental performance of new, converted or renovated homes. The method, developed by construction research body BRE, reviews seven categories: ecology and land use, health and well-being, energy, water, pollution, materials and transport. There are four ratings: “pass”, “good”, “very good” and “excellent”. Independent professionals are licensed by BRE conduct assessments. These assessors can also act as advisers in the design and build process.