Energy Efficiency Standard for Social Housing post 2020 (EESSH2) review: interim guidance for social landlords

Action by landlords in the review period

12. Landlords and tenants are under exceptional financial pressure in the current climate, but the suspension of EESSH2 milestones must not be used as a rationale for non-investment in the improvement of housing stock.

13. The aim of the EESSH2 review is to ensure that investment is targeted toward effective long-term solutions that deliver net zero and support the eradication of fuel poverty. It will help support the delivery of the statutory target that by 2040 no more than 5% of households in each local authority area should be in fuel poverty.^[6]

14. The Review will develop new targets for domestic dwellings, that meet the aims outlined in the ZEST report and the Scottish Government's response. These targets will be set on the basis of what is considered achievable by the milestone date, assuming continued investment in houses between now and that date. In the meantime, landlords should continue to invest in appropriate measures to improve the energy efficiency of their tenants' homes, and where possible in zero direct emissions heating, to ensure that they are in the best position possible to work towards the new standard when this is set.

15. During the review period, landlords should continue with planned investment in energy efficiency measures and decarbonising heating systems, prioritising this investment on measures that will contribute towards meeting the net zero target.

16. Priority should be given to what has the biggest impact for the lowest cost. Fabric first is essential as a low regret investment. The following areas should be prioritised for investment in the review period:

• Fabric first (measures to improve thermal efficiency and heat loss, and any associated ventilation required);
• Measures that use zero emission electrical heating;
• Reducing the energy use of property (kWh/m²/year);
• Projects for connecting to district heating;
• Projects for communal heating systems;
• Projects that make a significant difference to hard-to-treat properties; and
• Projects that help to model the actual performance of new technologies, its impact on buildings, and its use by tenants;
• Improving data collection and management.

17. The following table is an illustrative list of measures that should be considered for investment in the review period.

Fabric Measures

Double glazing

Secondary glazing

Loft insulation top-up

Floor insulation

External solid wall insulation

Internal solid wall insulation

Cavity wall insulation

Flat roof insulation

Additional cavity wall insulation

Additional external wall insulation

Insulated doors

Triple Glazing

Hot water tank and pipe insulation

Room-in-roof insulation

Air-tight membranes

Draught-proofing

Heat Measures

Heating controls and thermostatic radiator valves

Upgrade electric heating from storage heaters to high retention storage heaters

Thermal batteries for water heating

Water heat reclamation

Air source heat pump

Ground source heat pump

Solar photovoltaic panels

Solar thermal hot water

Battery storage linked to photovoltaic panels

District and communal heating

18. Where projects go ahead, landlords should consider installation of monitoring equipment to test the actual performance of energy efficiency measures, and encourage behaviour change, but it is not mandatory to install them.

19. There is a risk that insulation measures unintentionally reduce domestic air quality and lead to significant future health problems for people and buildings. The benefit of monitoring is that it allows landlords to see the impact of measures, so that if necessary they can design in ventilation to projects. We also know that future heating systems are likely to require behaviour change by occupiers, and it is important that people get information in a form that influences their behaviour by allowing them to see the impact of how they live. For this reason CO₂ monitors are now required in new builds.^[7] By anticipating future problems the cost of monitoring equipment is likely to be outweighed by future savings. However, while there are definite advantages to having monitoring equipment, it is a question of judgement for the landlord when and if they are installed. The installation of monitoring equipment is not compulsory. As the main purpose is to see how insulation measures change air quality this would only be relevant if they are installed before installation of insulation and new heating.

20. Where heating systems need to be converted, changed, or upgraded during the review period, landlords should prioritise the installation of zero direct emissions heating technologies e.g. heat pump or connection to a heat network.

21. We do not expect clarity on hydrogen until at least 2026 which is when the UK Government is expected to make its final decision on the use of hydrogen for heat. In order to make progress on our climate change targets in the meantime, social landlords must plan for the decarbonisation of their housing stock now in the context that there is no guarantee that hydrogen will be both available and cheaper than electrification or heat network routes.