Delivering affordable, energy-efficient housing for communities

This blog is our summary and key takeaways from  Session 5 from the New Homes in New Ways Summit, hosted by Sano with ZED PODS, Octopus Energy and UCL. Watch the Summit on our YouTube channel.

How can we make energy-efficient, net-zero homes viable for social housing?

We have the technology and skills to build homes that cost very little to run, but traditional models of viability make it challenging to deliver energy-efficient homes for households most at risk of, or impacted by, fuel-poverty.

This panel explored some of the innovative technologies, approaches and solutions that are enabling the delivery of genuinely affordable and energy efficient social rent homes. 

The panel was chaired by Jessie Wilde, Deputy Director, Housing Festival, Emilia Alava, Passivhaus Designer, Sano, Emma Fletcher, Low Carbon Housing Director, Octopus Energy, Dr. Reham Kohdabuccus, Operations and Technical Director, ZED PODS, Prof Rokia Raslan, Professor in Built Environment Decarbonisation, UCL.

In England, we need 90,000 homes a year to meet the current demand, but Jessie Wilde opened to say that the challenge isn’t just about getting homes on the ground, it’s about serving residents. The systemic failure of housing includes the challenge of fuel poverty.

A household is considered in fuel poverty when they’re on a lower income and unable to heat their home at a reasonable cost that is manageable to them. Over 3 million, around 13% of households in England are currently in fuel poverty. 

Jessie added that powering and heating our buildings accounts for about 30% of the UK’s total energy usage. We have national ambitions to reach net zero by 2030, we therefore must consider the impact of this. 

The panellists grappled with a number of questions during the panel, including:

How can we get social value figures to count in viability assessments?

Rehan said we need to look at the full value proposition, not just the capital expenditure cost but the whole value chain. Our priority must be healthier homes, because healthy homes mean healthy people, which reduces the burden on the public purse. He added that every £1 spent on a zero carbon home could equate to five times back in social value. Other panellists agreed with this, however the conversation recognised the complexity of it in practice. For example, an audience member representing a housing association raised the important question of how the value proposition can be translated into a financial number that can be captured and taken into account in viability assessments. Jessie highlighted that local authorities are also grappling with this, and cited a Bristol City Council example. Rehan discussed a model developed by ZED PODS that puts a figure on the social value generated, but panellists agreed that there is important work to be done in this regard.

Who benefits from an energy-efficient home?

Panellists discussed the challenge that the end user who benefits from the energy-efficient technology is often not the one who funds the increased cost of it. Emma also raised that it might not be fair for tenants in homes with different energy ratings (and therefore higher bills) to be paying the same rents. Amelia added that the he landlord also benefits from energy-efficient homes, not just the resident, and added that a life-cycle cost perspective is helpful in this regard. The above question of how to include social value in viability assessments is also relevant here.

Where does retrofit come in?

Rokia highlighted the importance of retrofit in the conversation about energy-efficient homes. She said that one of the reasons we don’t have enough affordable housing is because we don’t have enough existing housing. She added that there is a really big risk in the social housing sector that we end up selling off stock because it’s too expensive to retrofit, instead of making the homes fit for purpose. She added that there is much to learn from retrofit, which is driving innovation forward in this area, which often filters down into the wider industry and the new build space.

How can academia support the industry here?

Panellists recognised that partnerships between academia and industry are important in driving this forward as there is a need for social science research and data. They gave examples of where this has been successful. 

How can MMC help make energy-efficient homes viable

As an example of this, Amelia described a hybrid model, which brings together the best practices of MMC and traditional build. This looks like pre-manufacturing the complex elements in a controlled environment for consistency, and then taking the lower risk elements outside of the factory. In this way, they’re able to lower the costs while maintaining speed and quality. 

Jessie closed by reiterating how important this conversation is, and the panellists were keen to keep engaging and collaborating and advocating for energy-efficient homes in the social rent sector. They highlighted that there is real momentum, great examples and a lot of hope for what’s possible in the future.