Scottish Government

Chapter 5 Changing our buildings

5.1 The built environment plays a central role in the development and sustainability of our future communities and economies. It is estimated that energy use in buildings is responsible for over 40% of carbon dioxide emissions - the majority of the those emissions arises from heating (80%). The Executive wants those involved in the commissioning, design and construction of buildings - including new housing developments, public sector buildings and commercial premises to incorporate as standard much higher levels of energy efficiency and low carbon technologies within new and existing buildings so as to bring about a reduction in carbon dioxide emissions.

Better building design

5.2 An effective approach to energy efficiency needs to be design led. For example, ensuring that new buildings and changes to existing buildings are energy efficient can be achieved by good, careful design at the outset in order to minimise the total energy demand of the building. Passive measures such as orientation, layout and materials chosen can reduce energy demand even before considering the generation of energy demand from renewable sources. Designing for passive energy efficiency can also minimise on-going maintenance costs.

5.3 Investing in good design to secure beneficial outcomes such as energy efficient, sustainable buildings and showing leadership in this area is a key objective of the Executive's recently launched statement on Architecture, published during February 2007. It sends out a clear message regarding expectations. It illustrates what can be achieved and outlines how the Executive will create the conditions in which these ambitions can be realised.

5.4 These messages flow through to the Executive's planning policies which set out how energy efficiency, good design and the incorporation of microgeneration form an essential part of new developments. Energy standards in Scottish building regulations deal with the energy efficiency of the building fabric and services.

5.5 All new development plans and policies must ensure that developers consider onsite generation of renewable energy to reduce predicted annual carbon dioxide emissions. At the design stage, developers must consider the potential for incorporating microgeneration technologies as part of a range of energy efficiency measures to be included in new residential, commercial or industrial developments.

5.6 To help professionals in the design and construction industry to raise ambition and drive forward standards, the Executive has already:

• Produced a guide to explain the key features, benefits and installation of different microgeneration technologies and to address the associated environmental concerns (This is contained in Planning Advice Note ( PAN) 45: Annex on microrenewables). This includes guidance on the siting and design of microrenewables on listed buildings, in conservation areas and on scheduled ancient monuments;
• Supported the SUST programme which aids architects and designers by providing information, resources and guidance on sustainability issues; and
• Established the Scottish Energy Systems Group which provides software support and training to organisations.

Planning Reform

5.7 To further encourage the uptake and realise the potential contribution that microgeneration can make, the Executive:

• Wants to make it easier to install microgeneration by removing or reducing some of the planning requirements. A recent research report commissioned by the Executive looking at permitted development rights has recommended, amongst other things, extending these rights in relation to microgeneration. The report recognises there are issues to be addressed regarding siting, design and noise for example. The responses to the consultation on draft Scottish Planning Policy 6: Renewable Energy indicated strong support for microgeneration, however, there were mixed views on using permitted development to encourage greater uptake, with some concerns relating to design and siting. The Executive intends therefore to consult on proposals for using permitted development to facilitate microgeneration during 2007.
• Recently consulted on Scottish Planning Policy 6 ( SPP6) on Renewable Energy which included proposals for adopting a minimum target of 10% reduction in annual carbon dioxide emissions in new developments from the installation of on-site microgeneration energy equipment. Views were supportive of the proposals, with many respondents suggesting that 10% was too low. The Executive is currently considering the issues raised by the consultation, including the minimum standard, and will include revised guidance in the finalised version of SPP 6 due to be published in 2007.

New building regulations

5.8 The Scottish Building Regulations incorporate minimum energy standards that apply when a new building is constructed or an existing building is extended, altered or converted. Revised standards will come into effect in May 2007.

5.9 The revised standards will:

• Require new buildings to meet a target level of carbon dioxide emissions and be considered holistically in terms of energy;
• Lead the UK with the most demanding requirements for the thermal insulation of new buildings, extensions and conservatories;
• Require low energy lighting for new dwellings which will be at the best level in the UK; and
• Require condensing boilers for replacement and alteration work in dwellings.

5.10 These energy standards will encourage the incorporation of low and zero carbon technologies, including microgeneration, such as heat pumps, solar water heating and biomass boilers into building design. The standards reflect a key move towards further reducing the energy demand from buildings and exploiting more sustainable energy sources.

5.11 The energy standards were last raised in 2002 and the 2007 revision will deliver further carbon dioxide savings in the region of 18-25% for new dwellings and 23-28% for new non-domestic buildings when compared to current standards. Specific savings will largely depend on the fuel type and the size and shape of each building, but carbon savings are particularly good for those homes heated by electricity.

5.12 In total, the changes made to the energy standards in 2002 and 2007, will help to reduce carbon dioxide emissions from new buildings by over 40%. In most cases these new-build proposals have the capability to deliver the best carbon savings of any standards in the UK. Further revisions to the energy standards in Scottish building regulations will be made on a four-yearly cycle.

5.13 In terms of comparisons with European counterparts, the revised standards for new dwellings have thermal insulation levels that appear to be close to the current Finnish equivalent. This is despite the fact that winter temperatures in Helsinki are significantly lower than those in Scotland. For example, Helsinki averages minus 7 degrees Celsius in February (sometimes recording around minus 30 degrees Celsius), whereas average winter temperatures in the East and North of Scotland are around 2.8 and 3 degrees Celsius, respectively. It is thought that Sweden has slightly more demanding insulation standards but it is important to consider offsetting the true value of this against their average sub-zero winter temperatures.

5.14 It should be noted, however, that comparisons made on energy performance standards across Europe are difficult as they are all expressed slightly differently and they each use different calculation methods. SBSA is currently compiling a research brief for a benchmarking exercise that will aim to compare a home designed to the new Scottish standards against current requirements in Scandinavian countries. It is proposed that this work will be carried out by Scandinavian researchers during 2007.

5.15 It is important that Government sets out its vision to industry and the SBSA is currently considering the review of building standards for 2009. The review will consider a wide range of issues that will help to make further progress towards achieving sustainable development, including waste storage that encourages recycling, as well as, water conservation. SBSA has also commissioned research investigating the impact of even more challenging measures for reducing carbon dioxide emissions on building design and construction. This project together with the Scandinavian benchmarking project will help to inform the next review of the energy standards.

5.16 Buildings must comply with the building regulations and with the design for which a building warrant was granted. SBSA is investigating the feasibility for monitoring on-site compliance, including the use of thermal imaging cameras by local authority verifiers.

5.17 The Executive is working to ensure that planning policies and building standards are aligned. The SBSA are carrying out research into the building integration of low and zero carbon technologies including microgeneration and will use this work to ascertain whether any further changes to the building regulations are needed. This research will include the assessment of any risk or injury to people or damage to buildings. Once the research has been carried out, SBSA will publish advice and good practice guidance on the safe installation of microgeneration technologies after the research is concluded later in 2007.

Promoting greater uptake of microgeneration

5.18 The Executive's Scottish Community and Householders Renewables Initiative ( SCHRI) was established in 2002 to support the development and installation of small-scale renewables and raise awareness of renewable technologies and their benefits to Scotland. It offers advice and grant support to householders and a range of community and public sector organisations to help with the installation of microrenewable technologies.

5.19 A network of locally based development officers raise awareness of the benefits of renewable technologies, support the development of new projects, and provide expert assistance with the grant application and planning process. The Executive has allocated nearly £16 million for the scheme up to March 2008.

5.20 An independent review was carried out in 2005 which demonstrated that the scheme is extremely successful. To date it has committed funding to nearly 1700 projects across Scotland, and the popularity of the scheme is increasing as demand for installing microrenewables continues to rise. The scheme has also been successful at growing the microrenewables industry, as the number of accredited installers of small-scale renewables in Scotland has grown from 14 in 2003 to 74 in 2007. The scheme's success shows that householders, communities and the public sector are eager to do their bit to support the cause. The Executive is therefore investing an additional £2 million to provide further grant support through SCHRI.

5.21 The Executive is committed to supporting microgeneration and believes that it has the potential to provide a sustainable source of low carbon energy and help to reduce carbon dioxide emissions from buildings. There are still a number of barriers to overcome before the full potential of microgeneration can be realised, including financial costs, availability, a lack of knowledge of the benefits and cost effectiveness of various technologies, and a range of planning and technical issues.

5.22 The Executive, therefore, is carrying out a significant amount of work to help ascertain what it could and should be doing to support and develop microgeneration in Scotland. All of this will help the Executive set microgeneration targets, which it will do during 2007. As well as the work on planning and building standards already mentioned, this includes:

• Further research to gain a better understanding of the effectiveness, costs, potential carbon savings, suitability of technologies for use in Scotland, the economic potential, and to identify any risks or opportunities;
• Further research to investigate the potential uptake of different technologies based on different scenarios of support, e.g. level and availability of grant subsidies or loans, availability of ROCs, planning scenarios, etc. As the demand for microgeneration increases, it is likely that installation costs will come down and it may be more appropriate to target support or to support projects with lower intervention rates; and
• Establishing a high level working group made up of a small number of relevant internal and external stakeholders (including industry representatives) to help steer future direction of policy support. It is anticipated the group will have its first meeting during Spring 2007.

5.23 The Renewables Obligation (Scotland), or ROS, is the key driver for promoting the development of the wider renewables sector across Scotland. It places an obligation on electricity suppliers to provide more of their electricity from renewable sources such as wind, wave, tidal, hydro and biomass, and therefore creates a strong incentive to build new renewables capacity in order to meet the obligation. Under the ROS, eligible renewables generators receive Renewables Obligation Certificates ( ROCs) for each megawatt hour of electricity they generate.

5.24 Small scale and microrenewable generators can face difficulties in gaining ROCs as they often don't meet the requirements. To gain ROCs the renewable system must be connected to the grid and generate at least 0.5 MWh per annum - most microrenewables don't meet these criteria. If they do meet the criteria, the accreditation process can be difficult and can dissuade those from generating energy on a small scale.

5.25 The Executive recently consulted on proposed changes to the ROS aimed at reducing and eliminating these barriers and to help small renewable generators benefit from the financial rewards that are available under the ROS. The changes, which will take effect from 1 April 2007, will enable small generators to appoint agents to act on their behalf and allow the output from a number of small generators to be amalgamated.

Better information about energy performance of buildings

5.26 The EU Directive on the Energy Performance of Buildings aims to raise public awareness of the energy use of buildings and thereby improve energy efficiency and encourage take up of low and zero carbon technologies, including microgeneration. The Directive includes requirements to set and apply performance standards, inspect and advise on air-conditioning systems and boilers and certification schemes detailing the energy performance of all buildings.

5.27 The SBSA is leading on the implementation of this Directive for Scotland and most of the requirements are already fulfilled by the building standards system. There are three key areas which the SBSA are currently progressing including: the introduction of energy performance certificates; an information campaign on boiler efficiency; and the introduction of inspection of air-conditioning systems which will be accompanied by energy improvement advice.

5.28 Buildings when constructed, sold or rented out, including homes, public sector buildings and business premises will require an Energy Performance Certificate and these will be phased in as follows in Scotland:

• Construction from May 2007
• Point of sale during 2008
• Rental by January 2009

5.29 All public sector organisations will be required to display an energy performance certificate in a prominent place in all their new and existing buildings, which have a total floor area of over 1000m ² and where the public regularly have access. This public scrutiny will encourage public sector organisations to improve the energy efficiency of their buildings. The Executive wants the public sector to lead by example by implementing the cost-effective improvements. It wants public sector organisations to use these certificates to set more ambitious goals for enhancing the energy performance of their estates.

5.30 The energy performance certificates will give householders better information about the carbon dioxide emissions from their home - every new home in Scotland will require a certificate when it is constructed and every existing home will need one when it is sold or rented. The certificate and energy report will include information on the current average costs for the heating, hot water and lighting of the home. They will include practical tips on simple cost-effective home improvement measures that will help save energy, reduce bills and cut carbon dioxide emissions.

5.31 Energy performance certificates will allow prospective occupiers to make an informed choice and the Executive believes they have the potential to act as a driver for improving energy efficiency in the home. Prepared as one element of the Single Survey, which will be required for the sale of an existing house, it will include information on the condition of the property, a valuation, and further information on accessibility features. All of this information will be provided on the basis of one inspection of the property. The Executive will commission an awareness raising programme during 2007 on the certificate requirements to help inform home-owners and others involved in the house-selling process prior to the introduction of the Single Survey in late 2008.

5.32 The Executive is also exploring methods for using the information contained within the certificates to build a picture of progress being made on energy efficiency across all sectors. It is anticipated that this information will help to benchmark better and will highlight opportunities for more targeted advice, support and intervention.