Heat in Buildings - national scheme: island communities impact assessment screening

2. Step Two - Gather Your Data and Identify Your Stakeholders

• What data is available about the current situation in the islands?
• Do you need to consult?
• How does any existing data differ between islands?
• Are there any existing design features or mitigations in place?
• Who do you need to consult with?

The available data indicates fuel poverty and extreme fuel poverty are higher in rural and island communities.

In the period 2017-2019, the fuel poverty rate varied from 13% in East Renfrewshire to 40% in Na h-Eileanan Siar compared to the average in Scotland of 24%. Seven local authorities had significantly higher fuel poverty rates than the national average, these were: Na h-Eileanan Siar (40%), Highland (33%), Argyll and Bute (32%), Moray (32%), Dundee City (31%), Shetland Islands (31%) and Orkney Islands (31%). Five local authorities had significantly lower fuel poverty rates than the national average, these were: East Renfrewshire (13%), West Lothian (18%), Midlothian (19%), North Lanarkshire (20%) and City of Edinburgh (21%).

In the same period, the extreme fuel poverty rate varied from 7% in East Renfrewshire to 24% in Na h-Eileanan Siar compared to the average in Scotland of 12% . Seven local authorities had significantly higher extreme fuel poverty rates than the national average, these were: Na h-Eileanan Siar (24%), Orkney Islands (22%), Shetland Islands (22%), Highland (22%), Argyll and Bute (19%), Moray (19%) and Perth and Kinross (18%). All of these local authorities also had a greater prevalence than average of lower energy efficient properties. Four local authorities had significantly lower extreme fuel poverty rates than the national average, these were: East Renfrewshire (7%), Midlothian (7%), North Lanarkshire (7%) and East Dunbartonshire (8%). Midlothian and North Lanarkshire have a higher prevalence of higher energy efficient homes compared to the national average. East Renfrewshire and East Dunbartonshire have a similar prevalence of higher energy efficient homes compared to the national average.

In the period 2017-2019, both the median fuel poverty gap and the median gap adjusted for 2015 prices were generally higher in island and rural local authorities.

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). A total of eleven local authorities had rates above the national average (4%), with the highest being Na h-Eileanan Siar (18%), Orkney Islands (17%), Dumfries & Galloway (15%), Shetland Islands (14%). These local authorities also had the lowest proportions of properties in the highest efficiency bands. Glasgow City (1%), Aberdeen City (1%), Renfrewshire (2%), South Ayrshire (2%) and Fife (3%) had the lowest average shares of F or G rated dwellings and were statistically different from the national average. Correspondingly, Glasgow City and Renfrewshire also had higher than average proportions of B or C rated dwellings. 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. West Lothian had the highest proportion of B or C rated dwellings (61%) compared to 45% in Scotland overall.

Therefore, eligibility for the scheme may be proportionally higher in the island region.

Two barriers to undertaking energy efficiency work on islands are an undeveloped local supply chain and potential higher costs for installation measures.

The current design of the scheme mitigates these main issues through two design features. These features will be replicated in the new scheme. The scheme will operate a national pricing model where the cost of measures are averaged across the country to provide a single measures price. So the cost of installing a heat pump on an island will be the same as for a central mainland location.

The supply chain and shortage of available tradespeople to undertake the work is mitigated by a guaranteed national service which will be built into the contract. One of the KPIs within the current contract is completion of the customer journey from installation to inspection within 65 days.

The new contract will also aim to encourage improvements to local supply chains through community benefit targets included in the contract.

As of 6 September 2021, the Scottish Government no longer provides support through our delivery schemes for the installation of Oil and LPG heating systems. The new scheme will support households in the transition to decarbonised heating systems across the entire scheme including those in off gas areas. To support this, grant levels will be adjusted to account for the higher costs associated with lower emissions installations and the need for greater insulation measures than is needed to support installs of fossil fuel measures. Where possible, the new scheme will look to mitigate any electrical supply issues through the provision of micro generation technology and increasing supply capability for households where low/ zero emissions heating systems are being installed.

The retrofit process undertaken will conform to PAS 2030 and PAS 2035 standards. This means that the long term suitability of any work will be considered as part of the survey and measure recommendation. This long term approach will contribute towards the sustainability of island communities.