Trent & Dove Housing’s Ground Source Heat Pump Project Steve Grocock Property Services Director, Trent & Dove Housing

Trent & Dove Housing’s Ground Source Heat Pump Project

Steve GrocockProperty Services Director, Trent & Dove Housing

Tackling fuel poverty through renewable heat

Introduction

• Trent & Dove Housing (TDH): LSVT in 2001 from ESBC

• 5,700 units in Burton and Uttoxeter

• £25 million turnover

• Looking at expanding into surrounding areas

• Celebrated building our 1,000th property in early 2015

• Short, medium and long-term strategy to deal with all of our dwellings


APE

1) High Valued Properties (86) 2) Visit worst

energy performing

properties (525)

3) Investigate all Excessive deaths in voids and compare with deaths in total

stock

4) Check low/no Housing Demand

5) Negative NPV Properties (319)

6) Bedsits (168)

7) Lifespan (RR&V, Planned

Maint., Component

Renewal)

8) Sycamore Court (24)

9) Install GSHP (133)

10) Investigate all off-gas

properties (415)

11) Assess all 2bed flats (1,066)

12) High Turnover/ Properties

13) Low Performing non-

financial properties

Asset Performance

Evaluation Modelling


National Excess Winter Deaths

-

20,000

40,000

60,000

80,000

100,000

120,000

106,400

44,950

82,670 67,560

29,080

41,060

89,600

49,510

25,990

70,260 67,790

34,110

46,270

58,100

34,590

48,490 42,380

47,380

21,160

47,200

37,940

25,650

47,690

22,900

48,440

23,450

31,640

25,270

36,450

24,000

31,526


Excess Winter Deaths and Average Winter Temperature, England and Wales, 1999/2000 – 2012/2013

1999/2000

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

0

10,000

20,000

30,000

40,000

50,000

60,000

48,440

24,840

27,230

23,97023,450

31,640

25,27023,740

24,690

36,450

25,810

26,080

24,000

31,526

Num

ber

of e

xces

s w

inte

r de

aths


Tenancy Deaths Over a Five Year Period, 2010/11 - 2014/15

Apr '10

Jun '10

Aug '10

Oct '10

Dec '10

Feb '1

1

Apr '11

Jun '11

Aug '11

Oct '11

Dec' 11

Feb '1

2

Apr '12

Jun '12

Aug '12

Oct '12

Dec '12

Feb '1

3

Apr '13

Jun '13

Aug '13

Oct '13

Dec '13

Feb '1

4

Apr '14

Jun '14

Aug '14

Oct '14

Dec '14

Feb '1

5

Apr '15

Jun '15

Aug '15

Oct '15

Dec '15

Feb '1

60

50

100

150

200

250

300

350

400

450

925 44

5969

88103

124131

140 149157 170

175188

206225 242

247269

273282 294

300311

320334 341

353

389

Num

ber o

f ter

min

ation

s by

tena

nts p

assin

g aw

ay

Over the five-year period there were 389 terminations (voids) caused by tenants dy-ing


Trent & Dove Excess Winter Deaths Over Five Years

2010/11 2011/12 2012/13 2013/14 2014/15

-15

-10

-5

0

5

10

15

2

-10

4

2

13


Considerations for the GSHP project

• Cost £1.8m (mid-year)

• Income estimated at £2.1m (index-linked)

• Underwriting of income

• Procurement / financial regulations

• VAT

• Specialist support

• Construction design & management


Cost

• £1.8m (£13,500 per dwelling)

• Benchmarked against 7 other RP’s

• Spoken to previous clients

• Spoken to/visited tenants that have had GSHP installed by Kensa


Income

• ECO funded £350k

• RHI (index-linked over 20 years) £1.9m

• Total Income £2.250m

• T&D will make approximately £450k

• ECO – 100% underwritten by Kensa

• RHI – 65% (£1.1m) underwritten by Kensa


VAT

• Wet System and borehole at 5%

• Approximately £90k in VAT (5%)

• Instead of £360k (20%)

Saving of £270k in VAT costs


Procurement

• Could have tendered this, but would not have got this deal

• T&D financial regulations allows ‘special circumstances’ clause to be used

• Fast track programme – start mid-January 2015, complete mid-May 2015 (4 months)

• Use Partnering Gas/CH Contractor (based at T&D’s Offices)

• OJEU rates – they will maintain the system for the foreseeable future


Specialist Assistance

• Kensa calculates and designs each wet system and borehole

• Encraft checks all calculations and signs off each dwelling/bore hole

• Encraft ensures the system is installed to each specification

• Each system signed off by Encraft after it has been fitted


Management

• Appoint internal project manager and surveyor (remember 18 separate sites)

• Appoint internal TLO

• Early appointment of a CDM Co-ordinator (internal) – gave advice on organisation & planning for each site & ensured health & safety and welfare arrangements were adequate.

• 10 tenants declined (7 %)

• Drill borehole so when tenant moves out a wet system can be installed


T&D Issues

Consider:

• Off-gas properties (450);

• Excess winter deaths;

• Electrically heated properties;

• Elderly and vulnerable tenants;

• Eliminate/reduce cold-weather illness, and;

• Save a few polar bears in the process too!


Off Gas Properties

• 450no. (8% of total stock)• 133 semi-detached bungalows• Mainly rural areas• 18 separate sites• No TDH plan to do anything with these bungalows


T&D Energy Bills

• Identify the worst performing stock (250no.) (highest energy bills)

• Identify the elderly / vulnerable tenants (supported housing / extra care) bungalows with the highest energy bills (250no.)

• Identify properties with excess winter deaths over the past 5 years (50no.)

• Programme the 550no. and make appointments for an Energy Auditor to visit

• Currently T&D have visited 130 properties, saving each household an average of £248 per annum


Conclusion• Fantastic contractor

• First rate sub-contractor (drillers, trencher, wet system installer)

• On budget

• On time

• Outstanding tenant feedback

• £750 p.a. on average saving per household (reduced from £1,500 per annum)

• We aren’t too bad either!


Advice

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Documents

Trent & Dove Housing’s Ground Source Heat Pump Project Steve Grocock Property Services Director, Trent & Dove Housing