Social housing net zero standard consultation: island communities impact assessment

Step 3 - Data Collection.

20. A full description of this evidence gathering process undertaken is included in annex A, however a summary of the process is included below.

21. The evidence gathering process was undertaken over a number of steps for the Heat in Buildings Strategy and updated where appropriate to ensure applicability to the consultation on proposals for a new Social Housing Net Zero Standard.

• Analysis of pre-existing data sources
• Early engagement with Highlands and Islands Enterprise
• A Public consultation on the Heat in Buildings Strategy consisting of
  • Written responses to the consultation
  • Findings from stakeholder-facing workshops

22. To support this data, stakeholder engagement was undertaken as part the design of the new Social Housing Net Zero Standard, with representatives from island communities involved in the discussions to develop the new standard.

Summary of main impacts across data gathering and consultation

23. In summary, the key areas in which possible impacts on island communities have been identified through our data gathering and consultation concern:

• Installation and operational costs for clean heating systems.
• Higher living costs, heating costs and high levels of fuel poverty:
  • Rural and island households spend statistically significantly more on heating than their urban equivalents (see Annex A).
  • Fuel poverty levels are higher in more rural (43%) and rural small towns (34%) than in urban areas (24%). One reason for this is that the majority (93%) of urban dwellings are within the coverage of the gas grid, whereas almost two-thirds (65%) of those in rural areas are not. Connection to the gas grid allows households to use mains gas for heating and hot water. As mains gas is currently the cheapest of the major commercial fuels, gas grid access can be a significant determinant in the required cost of heating a home to a satisfactory temperature. The majority of households using electricity in Scotland, whether in urban or rural settings, currently rely on traditional emitters such as storage heaters (see Annex).
• Availability of appropriate finance and funding which takes account of these challenges.
• Ability of traditionally constructed buildings to accommodate standard energy efficiency measures:
  • Islands and rural communities generally have a relatively larger share of stone walled, detached dwellings of a traditional build form. Maintaining an adequate indoor temperature in these types of properties can be challenging and costly due to the rate of heat loss through large, uninsulated external walls.
  • Island and rural local authorities generally had the highest proportion of the least energy efficient dwellings (those rated EPC F or G) on average over 2017-19 (SAP 2012, RdSAP v9.92). Island and rural local authorities tended to have lower than average proportions of B or C rated dwellings with Shetland Islands (8%), Na h-Eileanan Siar (9%) and Orkney Islands (15%) having the lowest^[7].
• Availability of the supply chain for installation, concerns over applicability of PAS 2035, availability of maintenance with reports of long times for maintenance where no local contractors are available:
  • Island and rural communities can face supply and access issues due to the remoteness of their locations. The flow of goods and services may be restricted or impacted, sometimes at short notice. Further, the smaller population of these locations may mean a reduced local skills base, placing greater demand on qualified work such as the installation of clean heating systems. We also recognise the opportunities that employment in low and zero emissions could present on islands, providing essential job opportunities.
• Longer project realisation times recognising constraints on accommodation for incoming workers as well as weather and travel disruption to more rural areas.
• Infrastructure and resilience:
  • Our islands face particular challenges around distance, topography, weather and connectivity. These can lead to infrastructural and logistical challenges and costs (such as in regards to electric grid connectivity and access to rural locations) not encountered by other communities, and require additional support to ensure ongoing resilience.
  • Resilience of electrified heat systems in areas with no national electricity grid connection was raised.
  • Potential for more rural areas to have higher incidences of a single phase electricity distribution network which may impact technology selection in rural areas.
  • Concern over resilience levels of rural areas that are reliant on one fuel for heating – where there has been traditionally a mix of fuels available.
• Ongoing community representation and engagement was considered a key requirement to develop trust and buy in.
  • Our island communities are unique and face challenges specific to their location. To address specific contextual island issues continuing engagement and reflection is required. Ongoing appropriate representation and engagement is central to ensuring our transition to net zero supports and benefits islands communities by providing a dialogue to shape and direct delivery.