Project Summary
Guidelight addresses the lower adoption rates of time-of-use tariffs and digital technologies among low-income and vulnerable households participating in local retrofit initiatives. By providing guidance and support, the project ensures these households can benefit from smart energy practices, avoid financial penalties, and, at the same time, help to alleviate network constraints.
Guidelight will develop an Open Access Toolkit, collaboratively designed with customers, to provide support to local authorities (LAs), social housing providers, installers, and energy advice organisations. It also focuses on monitoring low carbon technologies (LCT) performance and boosting confidence so that no one is left behind the energy transition.
Innovation Justification
There are limited products and services to support customers taking part in local retrofit programmes. The lack of guidance and tools for LAs, installers and vulnerable customers undermines the value of installing LCTs and contribute to the risk of leaving 1.58m households by 2030.
Guidelight is innovative in three aspects:
· Creating new tools to overcome barriers in LCT adoption for vulnerable customers.
· Implementing social research methods based on behavioural science to increase vulnerable customer participation in transition to Net Zero.
· Using data to tackle digital exclusion and gain post-LCT installation insights.
Using data to tackle digital exclusion
Guidelight will utilise a novel data-driven approach to understand customer behaviour and stimulate behaviour change related to LCT usage:
· By installing monitoring devices (in Beta), e.g. smart sensors, we can collect data that helps us understand how customers interact with LCTs and develop tools for LAs, customers and installers to ensure the benefit of LCTs is maximised in each household.
· Alpha will investigate the use of gamification to local retrofit programmes and DNO services for vulnerable customers, to stimulate participation in the energy system transition to Net Zero.
Using socio-technical engagement
Guidelight focuses on innovation for customers by combining technological advancements with a deep understanding of householders' practices and needs. In Alpha, Guidelight will design customised socio-technical engagement methods to enhance LCT performance to assist all vulnerable households. These methods incorporate simplified warnings for sub-optimal performance, additional sensors for studying energy consumption and environment quality, smart interactive advice protocols, and backup provisions for missing data and system failures.
Creating tools to overcome barriers in LCT adoption
Alpha will design an Open Access Toolkit of Interventions to provide support and guidance throughout the retrofit lifecycle. To ensure that the toolkit is inclusive and trusted, it will be co-designed by the CRG, which includes representatives from vulnerable households, installers, retrofit teams, LAs, and community organisations. Our project outputs will provide intuitive and user-friendly visualisations of LCT performance, personalised support for maximising financial benefits, and comprehensive monitoring and evaluation templates for post-installation assessments.
Learning from relevant projects
Insights from Smart Energy Action Plan (SEAP) project, a NGED funded pilot, and stakeholder input during the Discovery have refined our understanding of retrofitting challenges. We have learned that integrating behavioural interventions with technical innovations is crucial. These insights have shaped the plan for Alpha to promote effective energy practices. By the end of the Alpha, we anticipate improvements in technology readiness level, aiming for a TRL 4 for the Open Access Toolkit. The Beta will develop the solution, evaluating the monitoring approach, consumer engagement with flexibility services, and the impact on supporting LCT uptake for vulnerable customers.
Additionally, CSE's smart capability lens and UKPN’s novel Socially Green Tool will be utilised to enhance Alpha and identify non-technical factors that affect a household's ability to participate in and benefit from the smart energy transition.
Alignment with SIF
While LCT adoption is predicted to grow, accessibility for all communities remains uncertain. To ensure vulnerable customers can access and engage in the Net Zero transition, we need to shape LCTs retrofit programmes and energy system services collaboratively, requiring support through stimulus funding.
SIF funding is crucial for Guidelight's success as it enables coordination with utilities, and stakeholders to provide a joined-up support for consumer services. This whole system collaboration promotes inclusive LCT adoption and advances the energy transition more efficiently than through isolated support from individual organisations.
Guidelight enables a just transition (Challenge 1) through creating novel tools for tackling vulnerability and digital exclusion
Impacts and Benefits
Some customers who take part in local retrofit programmes cannot maximise the value of their home enhancements. New skills are required to understand, engage and obtain value from LCTs. Those who do not possess these capabilities because of their circumstances face detriment. The lack of guidance and tools for LAs, installers and vulnerable customers leads to financial penalties instead of support for many households.
There are no specific metrics easily available quantify the full scale of the problem. However, we estimate there will be 1.58m households at risk of being left behind the energy transition. We anticipate that the majority of individuals who meet the eligibility criteria will participate in local retrofit programmes.
Financial – future reductions in the cost of operating the network and revenues - improved access to revenues for users of network services: The socio-technical engagement methods developed by Guidelight will increase participation in flexibility and utilisation of time of use tariffs. This will lead to reduced peak capacity and network reinforcement costs for DNOs. This could also lead to new and improved access to revenues for users of network services.
Financial – cost savings per annum on energy bills for customers: The data approach and tools developed by Guidelight will result in more efficient use of LCTs (in retrofit homes), which can save consumers £96 per year on energy bills.
New to market - processes:
• Guidelight will inform the supply chain on how to incorporate the Open Access Toolkit, improving retrofit installation and delivery of grant-funded schemes.
• Unlocking the value of services for local authorities, social housing providers, installers, and energy advice organisations will provide additional benefits to customers.
Environmental - carbon reduction – indirect CO2 savings per annum: Currently, retrofit installations are limited to off-gas grid customers, who are using electric heating. Guidelight`s tools and guidance will make the use of energy in the household more efficient which will indirectly contribute to a small carbon reduction.
Societal Benefits
1. Energy Consumer Empowerment: Low-income and vulnerable households, despite participating in local retrofit programmes, face financial penalties and lack guidance to become smart energy users. Guidelight will empower vulnerable households to take active part in the journey to Net Zero.
2. CSAT: The current engagement mechanisms used by DNOs for LCT uptake in low-income and vulnerable households are available but do not account for interventions throughout the retrofit lifecycle, including long-term monitoring and support. The use of an Open Access Toolkit can improve the service our customers receive.
To quantify the societal benefits, analysis was conducted during the Discovery. It considerd these factors:
• Increased financial skills resulting in cost savings on energy bills for consumers.
• Quality of life improvement for customers.
• Digital channels reducing the need for face-to-face interactions with DNOs, improving customer experience.
• Sense of community as customers feel more connected fostering a sense of belonging.
Guidelight's Open Access Toolkit promotes customer self-reliance. Swift resolutions and convenience improve quality of life, while smart apps optimise LCT performance, lower energy bills, and enhance financial skills, fostering community connection and belonging.
The business case prepared during Discovery assumes the utilisation of socio-technical approaches by approximately 250 households per year. At UKPN scale, Guidelight has estimated a Net Present Value of £13 million up to 2030.
It is important to note that these benefits represent the high-level cost benefit analysis during the Discovery and require further evaluation during Alpha. The quantification of cumulative net benefits to energy consumers, calculated at a network partner level, will be further developed, and refined during the project's implementation, including the forecasted rollout plan for the Guidelight solution.
Impacts and benefits
Since the Alpha Application stage Guidelight has undergone significant development, offering positive net benefits to consumers and justifying the necessary investment.
a) Pursuit Outside SIF: Guidelight addresses a critical need to decarbonise domestic heating, aligning with government targets and public funding initiatives. The project aims to transform LCT delivery, particularly for vulnerable customers, who often face barriers in accessing and effectively utilising heat pumps. As policies and funding continue to support heat pump uptake, the necessity for solutions like Guidelight becomes increasingly apparent. To move forward effectively, it's advisable to break down the project scope into smaller, more focused endeavors. This approach would involve conducting further research and cost-benefit analyses, which could then be proposed for inclusion in future projects. Upon completion of each of these smaller projects, the findings can be synthesised and integrated into a larger-scale demonstration with a clearly defined scope for potential inclusion in a SIF Beta phase during subsequent rounds of funding.
b) Progress Towards Benefits: Guidelight's primary objective is to improve the uptake and optimised usage of heat pumps among vulnerable consumers. Through social and technical interventions, we aim to enhance energy efficiency, reduce bills, and promote environmental sustainability. The project has advanced by developing an 'Open Access Toolkit,' refining solutions through stakeholder engagement, and conducting trials to assess feasibility and effectiveness.
c) Quantitative Measurements: Our analysis indicates net present value (NPV) of £7.4m, based on a 10-year analysis, and whole-life benefits of £12m resulting from Guidelight's interventions. These include savings on customer energy bills, enhanced energy advice, improved digital skills, and reductions in health impacts and engineer call-out charges. These benefits align with broader economic, environmental, and societal goals, contributing to productivity increases, import substitution, and improved energy system resilience.
d) Project Changes and Justification: Guidelight's options have evolved based on stakeholder feedback, and market insights. Guidelight Open Access Toolkit with light touch monitoring solutions emerged as the preferred option due to its comprehensive socio-technical toolkit and scalability. However, uncertainties remain regarding monitoring device costs, market availability, and technological feasibility. To address these challenges, we propose breaking down the scope into smaller projects, conducting further research, and refining cost-benefit analyses. This iterative approach allows for better understanding and mitigation of risks, ensuring a well-defined scope for future SIF applications.
In summary, Guidelight demonstrates promising benefits for consumers and the wider energy landscape.
