As part of Asset Management Strategic planning, it is essential that providers assess the contribution of new build schemes and/or existing properties towards achieving Carbon Neutrality in addition to their technical assessment and subsequent financial modelling.
Housing Solutions have recognised the climate emergency and are embarking on a major journey towards achieving net zero-carbon. In September 2020, Housing Solutions commissioned ARK to undertake a desktop review of their current baseline SAP position, to investigate which measures may be advantageous towards achieving their desire for a zero-carbon position, and what effect these measures might fit within the current budget provisions for strategic investment.
ARK initially undertook a data analysis exercise to ascertain the robustness of asset information including unit-by-unit checks against the most recent Energy Performance Certificate (EPC). Our analysis included a review of:
· Housing stock including archetypes and components
· SAP engine/evaluation criteria in line with current legislation
· Current 30-year investment plan around key attributes within their SAP evaluation
Wider stock investment profile and investment plan.
Following our data analysis, ARK was able to identify that Housing Solutions held a comprehensive document and information base on their assets, enabling robust analysis and modelling to take place.
As part of our modelling, we developed a bespoke carbon neutrality model to capture, analyse and report on the EPC ratings for each property, this enabled Housing Solution to identify the projected costs of where investment is required and ascertain what works must be delivered in order to achieve a higher SAP rating (an example output slide from our model can be seen below):
As a result of ARK’s model, Housing Solutions were provided with detailed insight into their properties current SAP scores, where further investment is required and a detailed understanding of how this can be achieved. All of which must be incorporated into a Carbon Neutral Strategy, which in turn, must link strongly to their Asset Management Strategy.
To develop an outline Carbon Neutral Strategy ARK deployed our carbon neutrality model which planned and promoted interventions required under six broad strategic headings, as set out below:
Following ARK’s support, Housing Solutions now have a detailed understanding of how carbon efficient their homes are, where further or significant investment is required and a brief draft strategy setting out potential options, ideas and interventions available to Housing Solutions, for Board consideration.
Readers will be aware that the regulator requires housing stock to meet a minimum SAP requirement of SAP D by 2025 and SAP C by 2030. It is then envisaged a strategic plan is designed and delivered with net carbon zero being achieved by 2050, when housing stock will need to meet SAP A targets.
This presents challenges across the sector owing to providers essentially having stock within their respective portfolios which will struggle to meet SAP C alone, with higher targets simply being unachievable owing to build types, planning and conservation restrictions and effective technologies alone being able to improve performance.
To find out more about our work with Housing Solutions or how ARK can assist your journey toward Net-Zero please contact John Fisher – jfisher@arkconsultancy.co.uk