Tallarna

Tallarna accelerates large-scale building decarbonisation by connecting all parts of the retrofit value chain.
Climate Change Mitigation Retrofit Advancing Net Zero

Problem Addressed

27 million British homes will need to be retrofitted by 2050 to meet the UK’s net zero aims (Net Zero). At the same time, large-scale intervention is needed to prevent soaring utility bills exposing millions to fuel poverty.

Current attempts to address these challenges are being hindered by incomplete stock data, complex planning processes, poor confidence in project outcomes, and insufficient funding. While many tools have tried to solve this, they have proved too static and siloed, keeping the worlds of engineering, energy modelling, and finance separate.

Solution Overview

Tallarna addresses the issue of large-scale decarbonisation by connecting all parts of the retrofit value chain. Creating a holistic ecosystem, customers are empowered to identify, design, insure, fund, and contract projects in one place. The company specialises in the social housing sector but has wider applicability to commercial real estate and, soon, industrial sites.

Initially, minimal data input is required to understand buildings’ energy usage and create digital twins. These are then leveraged to generate decarbonisation pathways and business cases. Tallarna’s AI platform, KESTREL, analyses thousands of retrofit options to find the best fit for a given portfolio and to suggest financially viable projects. Each project’s capex requirements and payback time are specified to fit the user’s goals, as well as the forecasted carbon and energy reductions.

KESTREL then quantifies the risk of project underperformance, with generated metrics mapping to a Fortune 500, A-rated insurer’s underwriting criteria. This enables a project’s financial outcomes to be guaranteed, providing confidence to ESG funders.

Tallarna facilitates access to large-scale ESG finance, with customers able to enjoy zero/low capex solutions and off-balance sheet treatment. Retrofit projects pay for themselves through the realised energy savings in a pay-as-you-save model. Between 10-25% of the energy savings stay with buildings’ residents/occupiers, helping address fuel poverty.

Tallarna provides access to a trusted ecosystem of technology partners and contractors for projects, or customers can introduce their own parties if preferred. This ensures procurement is undertaken with the greatest confidence and work is performed to the highest standards.

Tallarna offers customers ‘decarbonisation-as-a-service’. This translates to a yearly license fee which encompasses the onboarding and hosting of buildings on KESTREL, scoping of retrofit projects, forecasting of energy savings, and the delivery of initial financing terms. This fee is based on the number of properties uploaded, allowing customers to pay according to their needs. Once customers are confident that there is a business case to retrofit their properties, Tallarna will carry out technical, financial, and insurance due diligence. This equates to a one-off fee.

Key Benefits

For residents: 1) More comfortable homes 2) Day 1 bill savings 3) Reduced exposure to energy bill hikes 4) Fast repairs.

For landlords: 1) Legislative compliance 2) Net Present Value uplift 3) Low capex outlay 4) Projects that pay for themselves.

For technology providers: 1) Reduced transaction costs 2) New route-to-market 3) Performance guarantees 4) Efficient funding.

For consultants: 1) Faster assessment 2) Larger projects 3) Shorter sales cycle 4) Incremental revenue.

For ESCOs: 1) Faster assessment 2) Risk mitigated 3) Transparent ROI 4) Greater project buy-in.

Company name

Tallarna Limited

UK availability

Yes

Solution launch date

2018

Links

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Case Study

Tallarna has over 100,000 homes onboarded onto KESTREL, with two pilot projects in procurement for over 1,000 properties.

Based on Tallarna’s modelling, carbon reductions and energy usage reductions of 60-70% will be achieved on average in the initial fabric-first decarbonisation tranche. Their testing has demonstrated that this equates to total annual bill savings of £500-£700. The percentage of this left with residents on day 1 is flexible. The savings’ balance services project finance and O&M over 30 years, at which point the project reverts to the landlord. This certainty in a project’s business case and the flexibility of legal structuring moves retrofits through to contracting.

Facts and Figures

10-20 %

Of the energy savings stay with buildings’ residents/occupiers, helping address fuel poverty.

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