The construction industry has an urgent need for an energy efficiency policy to enhance sustainability in building practices, explains Nic Gillanders, CEO of SCIS Group
With a general election heading our way later this year, it is imperative to address the complexities of government policies and advocate for a streamlined approach to drive energy efficiency initiatives forward at scale across the UK.
The political landscape of energy efficiency policy
It is easy to get tied up in arguing party politics. A Labour government could, for example, inject much-needed stimulus into the energy efficiency market by streamlining regulations and incentivising insulation measures.
However, it could burden businesses with additional taxes that could stifle market growth. The point is that we need to look at the bigger picture. Put simply, we need a long-term strategy for energy efficiency in the UK—regardless of whatever political party is in charge.
Ensuring high-quality housing for the UK and meeting sustainability commitments are paramount, and without a cohesive, long-term strategy, we risk falling short of these essential goals.
A call for long-term strategy
What the construction industry truly craves is a clear and consistent long-term strategy from the government.
Without it, both installers and consumers are left in a state of uncertainty, unable to plan for the future.
We need a collaborative approach that involves the government working hand-in-hand with the private sector to develop sustainable business and operational models, such as public-private partnerships for financing energy efficiency projects and performance-based contracting for guaranteed energy savings.
These models would encourage investment by providing financial incentives and support customer solutions by ensuring the successful implementation of energy efficiency measures.
The impact of policy uncertainty
Let’s look back at the major approaches to energy efficiency policy from the last few years.
The ECO3 scheme, which finished two years ago, took a single-measure approach to energy efficiency.
This led to organisations spending millions of pounds getting ready to deliver the scheme, involving upskilling teams and evolving whole business models.
Six months into the ECO4 scheme, the Great British Insulation Scheme (GBIS) was launched, reverting to a single-measure approach reminiscent of the ECO3 scheme.
Such policy direction shifts push the industry one way and then another, leaving businesses scrambling to adapt.
It is no surprise that companies that overhauled their operations for the ECO4 scheme are uninterested in properly committing to GBIS—most likely, they predict that the trend of ever-changing policy will continue and thus are reluctant to commit to yet more business disruption.
No wonder E3G, the climate change think tank, estimates that at the current rate of delivery, GBIS’ aim to upgrade 300,000 homes by March 2026 would actually take around 146 years.
Clearly, constant policy flip-flopping has disrupted the energy efficiency industry’s momentum and has hampered its ability to deliver energy efficiency at scale.
Ever-changing policy, often driven by nervousness around delivering on election promises, ultimately puts household occupants at risk from both financial and health perspectives.
Instead of consulting with industry for viable solutions, the abrupt rollback of initiatives exacerbates the challenges faced by residents and undermines efforts to improve energy efficiency.
The industry must see a commitment to simplified policy—a single scheme with uniform processes—to enable it to reach its potential and contribute as best it can to the UK’s net zero goals.
Fostering collaboration for effective policy
Collaboration is at the heart of effective policy implementation. The government—whichever that may be later this year—cannot address energy efficiency challenges in isolation.
It requires input and support from industry stakeholders from the outset through delivery. By fostering stronger partnerships between government bodies, industry players, and community organisations, we can develop effective and sustainable strategies.
One effective approach would be establishing multi-stakeholder working groups or task forces dedicated to specific energy efficiency initiatives.
These groups can facilitate meaningful discussions, share expertise, and co-create policy solutions that address the diverse needs and perspectives of all stakeholders.
The industry must also push to incorporate mechanisms for ongoing feedback and consultation to ensure that policies remain adaptive and responsive to potentially changing circumstances.
This collaborative approach not only fosters innovation in policy development but also ensures that end consumers benefit from more effective and tailored solutions that address their energy needs and contribute to lower energy bills.
It allows policymakers to harness the collective wisdom, capabilities, and resources of the energy efficiency industry to drive positive outcomes.
Charting the course forward
The energy efficiency industry is at a critical juncture. Policymakers must recognise the importance of simplifying policies, committing to nationwide strategies that deliver tangible impact, and fostering collaboration to drive meaningful change.
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