WARM HOMES FUND: CALL FOR EVIDENCE NATIONAL RETROFIT HUB RESPONSE
This response brings together the NRH's experience and industry insight developed over the last 3 years . It was shaped by dedicated workshops with our Board, Advisory Panel, Community and Place - Based Cross - Cutting Theme groups. Insights from the participants of these groups are referenced throughout the response. We refer to our published research, guidance and policy recommendations, including Policy Recommendations for a National Retrofit Workforce Policy , Understanding Demand for Retrofit , and Guidance for Developing a Place - Based Retrofit Strategy .
THE FEATURES OF GOVERNMENT LOANS AND EQUITY INVESTMENT
Question 1: Do you agree with our assessment of the strategic opportunities, challenges and risks presented by warm homes financial transactions? Please provide evidence to support your response.
The WHF sets out opportunities to invest in areas private finance deems too risky, where the returns sought by private finance are too high, or where complexity deters private finance. The fund wishes to address consumer demand by " reducing financial barriers, simplifying the customer journey, and supporting market confidence ." Finance is one small part of a much larger picture surrounding citizen demand for retrofit. Financial products, including loans, should be designed around the most appropriate solutions for a home and its household. Our network expressed concerns that a simple loan scheme, while capable of incentivising microgeneration and energy storage, might de prioritise repair and fabric upgrades, which bring benefits including but beyond energy bill cost savings. For government finance to act as an enabler and gateway to unlock private finance, it must build, establish and cement the uptake of appropriate quality assurance and consumer protection regimes. The quality of installs and the risk taken by finance provid ers were considered a major challenge to finance in this space.