The cost-of-living crisis is pushing more households into fuel poverty than ever before. With a further increase in the Energy Price Guarantee looming, Richard Partington, Managing Director at renewable energy and battery specialist AceOn Energy, discusses the company’s work with the Wrekin Housing Group to deliver solar and battery storage solutions to save tenants money on their bills now and for years to come.
The latest research from the National Energy Action charity suggests that 8.4 million households will be in fuel poverty from April 2023, as the energy cap rises again and government support for bills is pared back to only the most vulnerable. Gas and electricity prices have more than doubled in 18 months, and as a result people are using their heating less, turning down their thermostats or switching off the heating completely to avoid unaffordable bills.
A separate poll for Citizen’s Advice showed that a third of UK adults would find it difficult or impossible to manage a £20 increase in their monthly outgoings. It is desperate times indeed and there doesn’t seem to be any end in sight.
For local authorities and housing associations, there are ways to help tenants with the current cost-of-living crisis and for many years to come, but this requires a longer-term vision and investment plan. Temporary fixes, such as creating energy hardship funds and increases to welfare and rent-relief payments will of course alleviate the impact of the immediate crisis but there must also be a plan to tackle fuel poverty long-term and this goes hand-in-hand with sustainability goals.
Energy efficiency goals
The Wrekin Housing Group — which provides 13,000 homes for affordable rent and low-cost home ownership across Shropshire, Staffordshire and Telford & Wrekin —is exploring innovative new ways to achieve its energy efficiency goals. From retrofitting ground source heat pumps and insulation to building new Passivhaus homes, 88% of the housing group’s homes are now A-C rated but a further £1.6m is needed to bring the remaining 1,600 homes up to standard by 2030.
AceOn worked with the Wrekin Housing Group on a Government-funded scheme to install green energy systems into 68 existing homes and 11 new properties. As part of the £1m project, AceOn supplied solar PV roof panels, inverters and 7kWh energy storage batteries. Our batteries and inverters are compact enough to fit into an understairs cupboard, making them ideal for retrofit as well as new build applications, and they are simple to install. A typical installation takes just 1.5 days.
Storage batteries are key to unlocking the potential of renewable energy generation and helping tenants get more from the electricity their solar panels generate. With a battery, the tenant can store any unused energy for use later, such as during the evening when the solar panels are no longer generating. This reduces the amount of energy households need to draw from the Grid.
To ensure the green energy systems fitted for the Wrekin Housing Group work at their best, tenant education has been very important. Every home fitted with a new installation received an induction to their solar energy system, and information leaflets with details of how to maximise the energy generated as well as contacts for support.
Energy bill reduction
While figures vary between properties (based on usage, efficiency of the home etc), on average the Wrekin Housing Group tenants’ have been able to achieve at least 60% self-consumption of the renewable energy generated and stored. This equates to almost 2,100kWh of free electricity per household — and a saving of some £580 per year (this will be more in 2023 when prices rise again). We’ve even received tenant feedback from individuals who were previously worried about affording their rising energy bills but who are now paying up to 70% less.
For the Wrekin Housing Group, which is trying to reduce its carbon footprint by 90% — from 24,000 tonnes a year to 2,400 tonnes — by 2050, the 720-tonne reduction in carbon dioxide (equivalent to a 1.6m kWh reduction in energy consumption off the grid) over a 10-year period from the 79 solar installations we worked on with them has been very much welcomed. But installing green energy systems can have even more potential benefits for providers.
Renewergy model
We recently partnered with Rebel Energy to provide a unique model for housing associations and local authorities to make green energy schemes more affordable. Under the Renewergy model, AceOn provides and installs the solar system and battery storage, and Rebel Energy provides smart meters and takes care of the operating and billing services for tenants. The model allows tenants to benefit from discounted energy via the Renewergy tariff while the social landlord receives an income from any energy generated but not used by the tenant, which is then sold back to the grid.
This additional revenue stream can help housing providers to recoup their initial investment faster, or it can be used to finance additional energy efficiency measures to upgrade housing stock or to fund other services. It all helps to make investing in game-changing green technology more affordable as the payback times are vastly reduced — even more so when energy prices are so high.
But even without the perfect storm of the cost-of-living and energy crises, climate change is still the biggest challenge we will face in our lifetime and the time for action is now. With the introduction of simple to install and affordable technologies, like solar and battery storage systems, we can turn the tide on carbon emissions — now and for decades to come — while improving the financial security of tenants, boosting their quality of life and helping the environment in the communities we serve.
1. https://www.nea.org.uk/news/8-4-million-uk-households-will-be-in-fuel-poverty-from-april-says-national-energy-action/
2. https://www.theguardian.com/business/2023/jan/02/more-than-third-of-uk-adults-would-struggle-to-find-extra-20
To see a TV news clip of the Wrekin Housing Group project click here.
To watch a video highlighting the project benefits click here.
