How to maximize the value of insulation for the life of the building Dennis D’Arcy

Multiple benefits of Energy Efficiency are hard to ‘sell’ OVERVIEW OF 3 KEY INSULATION BENEFITS 1. Energy Savings 2. Health and well-being 3. Landlord benefits

MBAV 31 Aug 2018

ICANZ RESEARCH 2012

MBAV 31 Aug 2018

Ceiling R 4.O Walls R 2.0 Floor R 2.5 Ducting R 1.5

ESTIMATE – Conservative potential long term energy savings from Insulation (Tax Free, 2013 prices)

MBAV 31 Aug 2018

Victoria Potential NET $ savings p.a.

Adjusted (combined effect) p.a.

25 Yrs Tax Free savings

Ceilings 586 876

700 Walls 192 17,500

Floors 98

Ducting 200 Current estimates are higher

Health Effects – Mortality rates attributed to high and low ambient temperatures

MBAV 31 Aug 2018

Long term morbidity trends – Impact of Climate change

MBAV 31 Aug 2018

NZ research - Quantifying the $ relationship between insulation and health outcomes

Known health effects from living in low energy efficient houses • Morbidity • Heat stroke • Respiratory illnesses • Cardiac illness • Doctors Visits • Days off work • Days off school

• EXAMPLE: Recent studies in New Zealand have found a definite link between insulation and health. The Wellington School of Medicine and Health Sciences study showed:

• There was a significant improvement in the self-reported health of those living in the insulated houses compared to those whose houses were not insulated.

• Adults and children in insulated houses reported visiting their GP less. • Adults and children in insulated houses reported that they were

admitted to hospital less often for respiratory conditions. • Adults and children in insulated homes were significantly less likely to

report sick days. • Benefit /Cost ($ spent) in Warm-Up NZ program * Adults – 3.9:1 * Children – 6.0:1 • Current Melbourne health study by DELWP – impact of energy

efficiency upgrades on 1000 households (2018 -2020)

MBAV 31 Aug 2018

Landlords & Tenants: Added non-energy benefits

• NEB were quantified at 2.5 times greater in $ value than energy savings

• Energy efficient and comfortable properties are in higher demand if advertised correctly

• Growing evidence that improved asset sales prices are commensurate with higher energy ratings

MBAV 31 Aug 2018

MBAV 31 Aug 2018

MBAV 31 Aug 2018

NCC 2022??

ESTIMATE: Lost Potential ……………………………………!!!!

Victoria Potential $Net savings p.a

Potential Net $ foregone p.a.

Potential $ foregone over 25 yrs

Ceilings 700

350

8,750 Floors

Walls

Ducting 200 100+ 2,500++

Health Preventative care ~ 300 - 400? Potential health $ benefits could be greater than $ from energy savings

Some examples of issues from poor installation • Gaps of 5%-10% 0f insulatable surface

can lead to losses of up to 50% of potential benefits.

• Some uninsulated areas (e.g. walls) cannot be cost/effectively rectified after construction

• Incorrectly insulated areas can lead to moisture build up, fabric damage and mould

MBAV 31 Aug 2018

Poorly insulated ceiling / properly insulated ceiling

MBAV 31 Aug 2018

Ceiling Insulation - To be installed 50mm over top plate without contacting roofing material

MBAV 31 Aug 2018

Walls – Neat fit, no gaps top or bottom.

MBAV 31 Aug 2018

MBAV 31 Aug 2018

MBAV 31 Aug 2018

Guesstimate – How many insulation installers are there?

Full time Contractors ~700 – 1500 ~ 250 trained, 25 fully accredited. Currently can earn over $2k/week

~ 450 – 1250 untrained and not accredited

- high drop - out rate for beginners Part time * plasterers * carpenters * plumbers * other Rarely do electricians install ( as distinct from uninstall!) insulation. Should they audit installed insulation? Have any completed an insulation installation training course?

MBAV 31 Aug 2018

~ 2500 - 3500 - Untrained * little knowledge of key installation issues * most unlikely to be aware of AS3999 * unlikely to do SWMS for insulation - Not accredited

What’s missing….??

• Although insulation performance is included in NCC there is no installation standard required (AS 3999…NCC 2022?).

• No formal compliance inspection of installed insulation during construction or prior to handover. Mistakes and omissions hidden.

• Surprising level of poor understanding regarding how to correctly install insulation and what impact this will have for the long life of the building.

• Installed insulation is often ‘uninstalled’ by other trades or put back ineffectively. • No market pressure from builders (despite Royal commission findings) to use

trained and accredited installers (exc. Government retrofit projects) • Installed insulation is often ‘uninstalled’ by other trades or put back ineffectively. • Have you checked your property? How much tax free $$ have you forgone and

for how long??

MBAV 31 Aug 2018

Insulation Installer training and accreditation process

MBAV 31 Aug 2018

Insulation Installer Accreditation

First group of industry trained installers 2012

MBAV 31 Aug 2018

Thank You Dennis D’Arcy