Industry Leader Case Studies: Gentoo Group PAYS

Wednesday, 09 November 2011 16:40

Gentoo were one of five organisations chosen to trial a Government-backed initiative, the Pay As You Save (PAYS) pilot scheme, which was sponsored by the Department of Energy and Climate Change (DECC) aimed at improving the environmental performance of housing stock in the UK.

The Home Energy PAYS pilot scheme, which was managed by the Energy Saving Trust (EST), gave Gentoo customers in 11 properties the opportunity to benefit from the installation of energy efficient measures and microgeneration technologies in their homes, with no upfront costs required. Customers were offered a range of “eco upgrades” that included double glazing, external wall insulation, Solar PV systems, ‘A’ rated combi-boilers and thermostatic radiator valves; and rather than be expected to pay for the installations upfront, weekly repayments are being spread over a long enough period so that they are always lower than predicted energy bill savings.

Gentoo’s PAYS scheme was broken down into three phases; phase 1, phase 1a and phase 2. Phases 1 and 2 were funded by the EST, while phase 1a was funded by Gentoo. The average cost per property varied depending on which phase it was part of, ranging between £3,500 and £10,000. The lower cost per property excluded the cost of Solar PV systems, which remained the property of Gentoo. The higher cost per property was down to the installation of external wall insulation and the additional works required for this to take place, i.e. roof line renewal. The average weekly repayment also varied depending on the phase of the scheme, ranging from £2.70 to £4 per week.

Gentoo found the uptake of energy efficient measures amongst customers to be very high. In Phase 1, 96% of customers chose to participate in the scheme, while phase 2 uptake resulted in 100%, suggesting a strong desire amongst Gentoo customers to pay for the measures over a period of time. Early results from the scheme suggest phase 1 properties have exceeded the predicted reduction in carbon emissions, from 38% predicted versus 51% actual. Customers are also expecting large reductions in the size of their energy bills, with early indications suggesting decreases of up to 45%.

Gentoo’s Pay As You Save scheme was recently recognised in the 2011 Sustainable Housing Awards, finishing ahead of Carillion Energy Services and Radian to win the Sustainable Housing Finance Award.

If you would like to find out more about the Gentoo PAYS scheme, please visit www.gentoogroup.com/planet

Project summary:
Organisation: Pay As You Save (PAYS) Gentoo Group
Total Project Cost (for all properties): £500,000
Measures Installed: Double glazing, external wall insulation, Solar PV systems, ‘A’ rated combi-boilers and thermostatic radiator valves.