Boxed Energy claims its sustainable energy finance deal for social landlords has cut 500 tonnes of carbon since 2015
A venture created to offer sustainable energy finance for social landlords claims it has helped the sector deliver more than 500 tonnes in carbon savings since 2015 by funding upgrades to inefficient heating systems in communal buildings.
Boxed Energy is a joint venture between Places for People and FCS Energy, and it employs funding from infrastructure investor Equitix, in partnership with the Green Investment Bank (GIB), to install efficient heating infrastructure without, it says, impacting housing capital budgets.
In addition to providing upfront capital for new heating systems, Boxed Energy also manages all commissioning and long-term maintenance of the heating plants through its technical partners, which are incentivised to deliver efficiency savings through an innovative Heat Supply Agreement (HSA).
The Heat Supply Agreement (HSA) is a contract between Boxed Energy and a landlord for the supply of heat services over a 20-year period. Over the duration of the HSA, landlords pay a standing charge for their new system’s installation, an O&M charge for all proactive and reactive maintenance, and a heat charge based on the cost of energy supplied.
Furthermore, the HSA heat charge has an energy efficiency element built in that guarantees energy savings for residents, and incentivises Boxed Energy to operate the heating system as efficiently as possible. Through increased efficiency, reductions in energy consumption of between 25-30% are targeted at each site, resulting in substantial carbon savings for landlords over time, it claims.
Boxed Energy has installed an initial 21 systems at supported and sheltered accommodation sites across England, supplying heat and hot water to more than 800 residences, and claims to have generated more than 500 tonnes of CO2 savings through increased efficiency.
Mike Button, director of Boxed Energy, said: “The growing pressure on social housing budgets and uncertainty in the industry has left many landlords postponing investment into vital aspects of their business, such as aging and increasingly inefficient heating infrastructure.
“The Boxed Energy finance model allows landlords and residents to benefit from the most highly-efficient heating systems on the market – ensuring a guaranteed service to customers and reduced carbon emissions – without any upfront capital expenditure.”