Support for private discover why energy efficient properties make sense for everyone I
As a landlord you will be aware that the energy performance of housing has become more important because of rising fuel prices and the introduction of the Energy Performance Certificate (EPC). Advice and financial assistance are available to help improve the energy performance of your properties in Scotland. Your local Energy Saving Scotland advice centre can advise on the range of support suitable for you, your properties and your tenants.
Benefits to landlords of improving the energy efficiency of their properties Some of the benefits of making your properties more energy efficient are: could raise property values higher EPC ratings, which could make properties easier to let more satisfied tenants which may lead to lower turnover of tenancies lower energy bills for tenants leading to reduced rent arrears and defaults meeting energy and heating efficiency standards set for the landlord accreditation scheme reduced levels of fuel poverty experienced by tenants reduced incidence of condensation and dampness reduced carbon dioxide emissions from properties. 01
What support is available to landlords? Private Sector Landlord Loans Funded by the Scottish Government, the private sector landlord loans scheme provides interest-free loans of 1,000 to 100,000 to help private to install measures that will improve the energy efficiency of their properties. The loan can be used for a wide range of measures including: improved lighting and controls new boilers and heating controls building and pipe work insulation. Advisors based in your local Energy Saving Scotland advice centre can assist private with their loans application. Free Property Assessments Private can get free, independent, impartial advice from an energy specialist on how to improve the energy efficiency of their tenanted properties. The specialist will visit the property to assess what can be done. A report will then be produced with information about the current energy efficiency of the property and recommendations on how to improve it. The specialist will take you through your options. An assessment of which renewables systems may be suitable can also be undertaken at the same time if you are interested in technologies such as solar PV, heat pumps, and wind turbines. Green Homes Cashback Scheme Private can also apply for a grant of up to 500 towards energy efficiency measures that are recommended in either the Energy Performance Certificate or Green Deal assessment. Landlord Green Appliance scheme A grant of up to 500 is available to landlords who want to replace their old inefficient appliance with a new energy efficient one. The appliances eligible under this scheme are fridges, freezers, fridge-freezers, dishwashers and washing machines. The grant value differs slightly depending on the appliance being purchased and the energy rating. All appliances purchased need to have an A++ or higher energy rating. Call your local Energy Saving Scotland advice centre on 0800 512 012 to find out how to apply. Landlord s Energy Saving Allowance Landlords can reduce the amount of tax they pay when they improve the energy efficiency of their properties. The Landlord s Energy Saving Allowance (LESA) is available to: individual landlords who pay income tax on profits from letting corporate landlords whose rental business is registered as a company and who pay corporation tax on profits from letting. 02
The tax allowance is up to 1,500 for each property installing any of the following measures: loft insulation cavity wall insulation solid wall insulation draught proofing hot water system insulation floor insulation. The allowance will be available up to 1 April 2015. To find out more about the Landlord s Energy Saving Allowance contact your local Energy Saving Scotland advice centre on 0800 512 012. Feed-in Tariffs (FITs) Landlords can apply for the FITs scheme as long as they have installed an eligible electricity generating renewables system up to 5MW in size. The FITs scheme provides long term payments based on the amount of renewable energy produced. Eligible systems include solar electricity panels (PV), wind turbines and micro-combined heat and power systems that are MCS certificated, or micro hydro turbines. The FITs scheme will benefit landlords as it can: make the property more attractive to tenants generate a long term income for the landlord reduce fuel bills for your tenants which may lead to reduced rent arrears and defaults. It is up to the landlords and tenants of domestic or commercial properties to come to an arrangement about the receipt of FITs payments and the benefits of on-site electricity use. Please note that landlords may have to pay tax on income generated from FITs. Further guidance is available from HMRC: www.hmrc.gov. uk/manuals/bimmanual/ bim40510.htm Landlords can call their local Energy Saving Scotland advice centre on 0800 512 012 and speak to an advisor for further information on FITs. Renewable Heat Incentive (RHI) On 10 March 2011, the UK Government announced details of the Renewable Heat Incentive, the first financial support scheme of its kind for renewable heat generating technologies. Prior to the launch of the RHI the Renewable Heat Premium Payment is available to households who install an eligible renewable heating system. Grants are available for solar thermal panels, heat pumps and biomass boilers. Grants of between 300 and 1,250 are available depending on the type of system. A landlord may apply for the voucher, or the tenant can apply, if purchasing the system with the landlord s permission. All claims for this scheme must be made by 31 March 2013. The domestic RHI is to be launched in summer 2013. It will provide payments over a number of years to those installing domestic renewable heating systems. Owners of systems installed since 15 July 2009 can apply and will receive support if they meet the RHI eligibility criteria. How the RHI scheme will affect landlords is not known at this stage as there may be certain criteria attached to the RHI payment including providing information on the performance of systems. For more details on RHI please visit www.decc.gov.uk/rhi Call your local Energy Saving Scotland advice centre on 0800 512 012 to find out more. 03
Support that depends on the circumstances of your tenants Some of the support available to you as a private sector landlord depends on the circumstances of your tenants. Your local Energy Saving Scotland advice centre will be able to advise you of which offers you are eligible for and how to access these. Green Deal The UK Government s Green Deal initiative has been available since 1 October 2012. The Green Deal allows households to pay for energy efficiency measures through fuel bill savings generated by these measures. This scheme is underpinned by an Energy Company Obligation (ECO) which will provide funding support for some low income households and for installing more expensive measures such as external and internal wall insulation. Green Deal measures are arranged through organisations registered as Green Deal providers. Measures are installed at no up-front cost, as the person responsible for fuel bills in the property repays the cost of the measure through a charge on their energy meter. The Green Deal measure package has to meet a Golden Rule, which limits the amount of Green Deal finance that a provider can attach to the energy meter to ensure that the annual repayments are lower than the estimated annual fuel bill savings. In rented properties, both the landlord and tenant have to agree to the Green Deal funded measures being installed in the property. However, landlords may take advantage of void periods to take out the Green Deal support (when they tend to undertake their normal cycles of improvement). A landlord would assume responsibility for payments during void periods and would have to inform incoming tenants of the Green Deal charge that would apply to their fuel bills. Any defaults on payments are the responsibility of the bill payer, as for normal fuel bills. If tenants are elderly, disabled or have children and meet certain benefit or tax credit eligibility criteria, then they may be eligible for ECO grant funding for heating and energy efficiency measures outwith the Green Deal. Furthermore, households located in the bottom 15 per cent of the index of multiple deprivation areas will also qualify for additional ECO support. Contact your local Energy Saving Scotland advice centre on 0800 512 012 to gain advice on the Green Deal process and to find out whether your tenant would be eligible for grant support through the ECO scheme. 04
Home Energy Scotland The Home Energy Scotland service from the Scottish Government offers free, impartial advice on saving energy, saving money and keeping your property warmer during the colder months. This service offers personalised support to anyone in Scotland who finds it hard to heat their home. A range of support is offered from money-saving advice to free insulation. Some offers depend on where your property is in Scotland. Private landlords should encourage their tenants to call the Home Energy Scotland Hotline on 0800 512 012 to find out what offers they are eligible for. If the tenant qualifies for discounted or even free insulation and heating measures, this may make the property more energy efficient, increase its value and lead to a lower turnover of tenancies. To find out more, landlords can visit www.homeenergyscotland. org.uk to see what Home Energy Scotland offers and pass on the good news to their tenants to help them create a warmer home and save money. Support for gas connection costs The companies that operate the gas transportation network can provide support towards the cost of gas connections for some households that are at risk of experiencing fuel poverty. To qualify for this support, properties usually have to be in the most deprived areas, or your tenant should be in receipt of qualifying benefits, meet certain age requirements or meet the Scottish Government s definition of being in fuel poverty. To be in fuel poverty a household must have to spend more than 10 per cent of its income, net of housing costs, on energy. Connections for recipients of measures funded by the Scottish Government through its Energy Assistance Package can also qualify for the gas connection subsidy. Connections can often be provided at no charge for households that qualify. To find out more about support for gas connection costs contact your local Energy Saving Scotland advice centre on 0800 512 012. 05
What to do next You can find out more information at www.energysavingtrust.org.uk/privatesectorlandlords or call your local Energy Saving Scotland advice centre on 0800 512 012. The Highlands and Islands North East Scotland Strathclyde and Central South East Scotland South West Scotland Energy Saving Trust 2nd Floor, Ocean Point 1 94 Ocean Drive Edinburgh EH6 6JH Phone: 0131 555 7900 SC101 Energy Saving Trust December 2012. E&OE. Design: opx.co.uk