Boxed Energy joint venture between Places for People and FCS Energy helps social housing sector to deliver carbon savings
A sustainable energy finance solution developed for the social housing sector is helping to deliver carbon savings through funding upgrades to inefficient heating systems within communal buildings.
Boxed Energy, a joint venture between Places for People and FCS Energy, employs funding from infrastructure investor Equitix, in partnership with the Green Investment Bank (GIB), to install highly-efficient heating infrastructure without impacting housing capital budgets.
In addition to providing upfront capital for new heating systems, Boxed Energy manages all commissioning and long-term maintenance of the heating plants through its technical partners, who are incentivised to deliver efficiency savings through a Heat Supply Agreement (HSA).
The 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.
The 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.
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 generating more than 500 tonnes of CO2 savings through increased efficiency.
“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, ” said Mike Button, director of Boxed Energy.
“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.”