The UK Green Investment Bank (GIB) and Equitix are committing £5m to install energy efficient heating systems in more than 1000 sheltered homes managed by affordable homes provider Places for People. The funding is GIB’s first investment in the UK social housing sector, and will see upgrading carried out at up to 28 developments across the country, including a pilot scheme of seven completed installations in the north west of England.
The Equitix managed fund Energy Saving Investments (ESI), in which GIB is a cornerstone investor, is investing £2.5m in the project. This will mobilise an additional £2.5m of additional private sector capital from the Equitix Energy Efficiency Fund (EEEF).
Biomass and gas boiler systems will be fitted externally to minimise disruption to residents by Boxed Energy, a joint venture between Places for People and Fontenergy Construction Services. Once operational, the boiler systems will be sold to Boxed Esco Services, which will then manage and maintain the equipment, selling the generated heat to Places for People under a 20-year energy performance contract.
Bill Rogers, managing director of GIB, said: “The project will bring cost savings, carbon savings and provide the social landlord with the practical benefits of outsourcing its energy arrangements. This is a model we’d like to see rolled out at scale across the rest of the UK”.