Energy efficiency, zero emissions and low carbon heating systems, microgeneration and heat networks - skills requirements: consultation analysis

10. Sector Support for Skills Requirements

Question 10

What support do you think would help the sector achieve these skills requirements?

10.1 A vast majority of respondents provided suggestions for the type of support required to help the sector achieve these skills requirements (81%).

Financial support for training

10.2 A common theme that emerged from the consultation responses was that a continued package of support for energy efficiency across the supply chain would be vitally important.

10.3 Here, there was strong support for industry-wide investment in skills to help the sector achieve the proposed skills requirements. There was clear and strong feedback that a "long-term commitment" and "long-term certainty of funding" would be key to success.

"Industry will not invest if it does not have confidence that the scheme is going to run for a period of time sufficient to see a return on investment in terms of both finance and staff resources. Making sure all policies and regulations conform during delivery will encourage industry to invest and benefit Scottish targets to improve the housing stock and reduce carbon emissions. Elmhurst Energy

"Feedback that we continually receive from the supply chain through our work with them on the Scottish Government's Sustainable Energy Supply Chain Programme, suggests that the most important thing that can be done to ensure that local supply chains are expanded and up-skilled is for the Scottish Government to provide them with long term certainty – in terms of what the Scottish Government plans to do and how much funding will be allocated. The view from some suppliers is that this time period needs to be at least 5 years. With long term certainty of funding comes long term confidence to invest in training and staff". Energy Saving Trust

10.4 "Significant" financial support to assist the sector as a whole with training would be required (e.g. through grant and bursary funding depending on the route into training, financial support to people whilst they reskill to avoid the disincentive of a reduced income during the training period, support for the cost of PAS2035 certification, provision of low interest loans), as well as "transparency of the routes to funding".

10.5 A common message was that financial support for upskilling and reskilling would be crucial in the short-term, and as part of a longer-term strategy to support workforce development (e.g. that could include "regular mandatory refresher training").

10.6 There was wider commentary around the need to engage with the sector on skills and to encourage and stimulate demand for workforce development, particularly among micro businesses and SMEs (e.g. where factors such as the cost of training/apprenticeships and time away from work can be barriers to engagement). Financial support was therefore viewed as essential to encourage companies to "train staff beyond the minimum skills requirement".

10.7 More generally, it was considered important to undertake industry facing awareness raising campaigns around the growth opportunities in energy efficiency /microgeneration/heat network, as illustrated in the quote below.

"…sole traders to large business, need to feel confident that there are long-term business opportunities in these sectors in order to invest in their staff and new talent". MCS Charitable Foundation and MCS Service Company Ltd

10.8 On the supply side, it was considered important that capital funding for facilities and equipment was also supported (e.g. to enable providers to adapt teaching and assessment practices accordingly).

10.9 The Scottish Government's commitment to support upskilling was therefore welcomed, as was support for this type of activity through other programmes (e.g. Flexible Workforce Development Funding, capital investment for Scottish colleges for equipment to deliver training for energy efficiency).

Promoting the sector as an attractive career opportunity

10.10 An "unprecedented recruitment drive" was called for. For example, it was noted that:

"For the construction sector, there is a huge opportunity to drive change for net zero. Using data from the Climate Change Committee, modelling suggests an additional 22,500 workers will be needed in Scotland by 2028 in delivering retrofit of buildings, representing an increase of around 9% of the size of the current workforce. The Government must support the construction sector to create new pathways into the market and it will require industry participants to work cross-sector". Sustainable Energy Association

10.11 There was very strong support for a plan of action to be developed to help inspire and attract young people into the sector, as reflected in a couple of organisation quotes below.

"The construction sector as a whole is often seen as the employment of last choice for young people". It is hoped that the development of a clear skills pathway that young people can engage with and easily navigate may encourage new entrants to the sector". National Insulation Association

"Feedback from industry representatives to the Sustainable Energy Supply Chain Programme has also highlighted that that industry representatives do not believe that their industry is attractive enough to young people and… would welcome Scottish Government interventions to help to remedy this". Energy Saving Trust

10.12 It was considered crucial that support was aimed at attracting future talent and developing "clear" and "new" skills pathways into and through the sector (e.g. from the apprenticeship pathway to shorter, conversion courses for those coming into the industry from other sectors). Further, targeted campaigns and clear communication and engagement with and between young people, schools, colleges and industry would also be required.

10.13 Supporting growth in the number of installers was considered critical. Parts of the sector were considered by some to have a growing ageing workforce (e.g. installers) – this was therefore identified as an issue that would need to be addressed going forward.

10.14 It was considered vital that action was taken to stimulate demand for people to train to become heat pump installers. Here, it was mentioned that there are existing heating installers who have "many of the skills required for heat pumps currently installing fossil fuel systems". A common theme was that this pool of talent could be tapped into to "help grow the heat pump market" (e.g. this could include "retraining older workers"). It was noted that wider policy support would be required from the Scottish Government to achieve this (see below).

10.15 Snipef Management Ltd also made referenced to plumbers recognised through the Scottish and Northern Ireland Joint Industry Board (SVQ level 3 (SCQF 7)). The organisation noted that these plumbers have the "key fundamental skill sets to quickly upskill to be able to deliver renewable technology", and could support "the push to 2025 targets of 64000 heat pump installations a year".

10.16 Further, Scottish Power felt that there was an opportunity to harness and utilise the experience and knowledge of the current workforce "to support learning of new entrants, colleges and trainers".

10.17 Wider feedback was on the requirement to develop a management talent pipeline and providing CPD opportunities to help keep the workforce's experience of industry practice up-to-date and that skills levels are maintained going forward. A suggestions for the latter was that all qualifications could have mandatory in-built CPD stipulations, and that skills levels requirements could be re-evaluated in future years to accommodate new and evolving technologies.

Increased apprenticeship opportunities

10.18 A common theme was that increased support was needed for businesses to take on "new employees and especially apprentices who can push the industry forward through the green transition". Further, funding would be required to give businesses confidence in employing apprentices.

10.19 Supporting industry, particularly SMEs, to provide apprenticeships, was emphasised. Further, this could focus on providing long-term employment and career paths for new entrants to the sector. It was noted that an increase in apprenticeships would allow industry to develop a "properly trained workforce".

10.20 Linked to points around attracting future talent, there was some feedback regarding a perceived "lack of attractive low carbon apprenticeships" available to young people when they leave school.

The supply of, and delivery models for, training provision

10.21 A variety of points were raised around the provision of training.

10.22 First, a common theme was, that in addition to addressing the demand side issues described above, there would also need to be work undertaken, and support provided, to ensure "a rapid response from the training sector to deliver the right skills".

10.23 There was also reference made to the methods used for the delivery of training, and that various approaches might be valuable, including for example:

• Use of contractor or system holder/material supplier to deliver training.
• On-site training.
• On-the-job training.
• Distance learning.
• Increased use of digital technology (e.g. including to reach remote and rural communities).
• RPL and installer experience could be used as methods of achieving/showing accreditation.

10.24 A wider suggestion was that there could be better coordination of training resources, and a "single point of contact for businesses" to help them identify what training is required, where to access training, and how to fund it.

10.25 Historic Environment Scotland raised a wider point around the capacity of the wider skills ecosystem – "skills bodies, public bodies, private training companies and third sector organisations all have a role to play in developing a sustainable skills supply that is appropriate for the local workforce".

Rurality Issues

10.26 A number of organisations, raised specific points related to rural and remote geographies (e.g. a local authority, Energy Saving Trust, Scottish Lands and Estates, SELECT, The Chartered Institute of Building, Tighean Innse Gall), including:

• That investment to meet the proposed skills requirements should be available to installers across Scotland (i.e. beyond the central belt).
• That training providers need to be available in island, remote and rural communities. It was suggested that the Scottish Government could ensure at least one provider is accredited in each local authority area to deliver recognised prior learning, or SVQ/NVQs for new entrants.
• That there could be increased use of digital technology to support training/accreditation, particularly in remote and rural areas.
• Increased use of digital technology would require improved connectivity in rural areas.
• That rural economies could be strengthened if indigenous SME installers were supported to grow with the local markets (e.g. heat pump markets) rather than additional capacity to satisfy demand being supplied to these markets from larger regional or national installers.
• When assessing skills requirements for energy efficiency it would be important to consider the current knowledge base, the context of the built environment in Scotland and its long-term plans for energy efficiency. The Scottish housing stock is diverse and varies across Scotland and between rural and urban areas.

Wider Support from the Scottish Government

10.27 In addition to financial support and incentives, there was strong feedback that the Scottish Government would have an important role to play in other ways to help ensure the sector can achieve the proposed skill requirements.

10.28 For example, it was considered important that the Scottish Government:

• Ensured a joined-up, coherent and collaborative approach between all stakeholders and partners.
• Strengthened the future relationship between the public sector and the construction industry. Here, there was wider reference to the development of the Scottish Construction Accord.
• Undertook, in partnership with others, targeted information and promotional campaigns (e.g. using a variety of channels and aimed at different stakeholders groups) about the proposed changes, to ensure suppliers are aware of the opportunities, to advertise the package of support available, to incentivise uptake, etc.
• Identified and guaranteed the future pipeline of "green" work in order to allow businesses to be confident in any skills investment they make.
• Continue to develop policies that will deliver "demand certainty as well as a continued need to engage with the supply chain to emphasise the Scottish Government's commitment to this agenda and the wider work it is doing to support the supply chain, and to encourage consumer demand for energy efficiency and low carbon heat".

10.29 As outlined earlier at Section 10.3, there was strong feedback that a "long-term commitment" and clear direction would be key to success. These points are further reflected in the quotes below.

"Along with financial incentives, the biggest plea we would like to make it the need to demonstrate to the installer base that the Government do have a long term commitment and that that commitment is real. This will provide confidence to the sector and give them a reason to invest their money and time in the required additional training and certification requirements which they have previously not needed". NAPIT Registration

"We need to see a clear commitment to phase out the use of fossil fuels in heating by a certain date in all buildings alongside strong new build standards. This will signal to all that there is a market shift happening and a limited time frame on being a gas boiler installer – giving a valid reason to retrain/enter the market". NIBE Energy Systems UK

"Specifically, the HPA would like to see a commitment to phase out the use of fossil fuel heating by a certain date in all buildings. This should come in alongside strong new build standards the leave no need for the retrofit of low carbon heating. Doing this will provide a firm commitment and clear direction two installers that there is a market shift happening and the limited time frame on being a fossil fuel installer, this will give them a reason to retrain. Evidence of this has previously been seen in other countries, such as France, where the firm long-term commitment to end the use of oil boilers resulted in installer training numbers doubling between 2019 and 2020. The HPA membership have also seen early signs of such growth following the government commitment to a target of 600,000 heat pumps per year by 2028, but to ensure the success in the long run firm regulatory commitments and policy is needed from the Scottish Government to ensure that this initial opportunity is capitalised on fully". Heat Pump Association