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Improving the Energy Performance of‘Hard-to-Treat’ Houses
7 May 2013, Glen Tanar
Renewables, Eco Bling and the RHI
Eric WellsSustainable Development Officer
(Climate Change)
Economic DevelopmentWoodhill House
Renewable Energy
1. Solar PV2. RHI – Non Domestic3. RHI – Domestic –where are we?4. RHPP – Interim Payments5. RHPP – Social Landlord Comps.
Renewable Energy
Feed-In Tariffs….• A UK Government Scheme designed to
incentivise small-scale renewable electricity generation.
Renewable Energy
Feed-In Tariffs….Supports:
• Solar PV
• Wind
• Hydro
• Anaerobic Digestion
• micro-CHP (demonstrator)
Solar PV
Solar PV
Solar PV
Renewable Energy
Solar PV
16 Panels(3.7kW)DomesticArray
Renewable EnergySolar PV
Invertor
GenerationMeter
Solar PV
What do you need?1. A good South Facing Roof
2. No shade
3. Planning Permission?
Solar PV
Cost (Nov 2011) - £11,000Generation (Year 1) 3,210 kWhFiT Income (@ 45p) £1,445Elec Export (@3.2p) £51Total Income £1,496Elec Saving (est.) £200?Payback < 7yrs
[Tariff paid over 25 Years]
Solar PV
Cost (May 2013) ~£6,000Generation (Year 1) 3,210 kWhFiT Income (@ 15.4p) £495Elec Export (@4.6p) £75Total Income £570Elec Saving (Tenant) £200?Payback (Landlord) 10.5yrsROI 9.5%
[Tariff paid over 20 Years]
Solar PV
Risk & Other Factors
• Roof Repairs• Maintenance
So what’s the catch?....
Solar PV
Cost (May 2013) ~£6,000EPC Band <DGeneration (Year 1) 3,210 kWhFiT Income (@ 7.1p) £228Elec Export (@4.6p) £75Total Income £303Elec Saving (Tenant) £200?Payback (Landlord) 20yrsROI 5%
[Tariff paid over 20 Years]
Renewable Heat Incentive….
Renewable Energy
Renewable Heat Incentive….
• Spending Review 20 October 2010• £850m direct Government support• Came into effect November 2011(non-domestic)• ROI 12% on additional cost
(6% for Solar Thermal)• MCS Certified installers for small/medium• Installations after 15 July 2009 qualify
Renewable Energy
Renewable Heat Incentive….
• Phase 1 – November 2011Commercial / Industrial / Community
• Phase 2 – Autumn 2012, now Spring 2014Domestic (Green Deal)(Interim Premium payment)
Renewable Energy
Renewable Heat Incentive….Phase 1 Technologies:
Solar ThermalBiomass (wood fuel)Ground/Water Source Heat PumpsDeep GeothermalBiomethane
(Air Source Heat Pumps under consideration- May be included in Phase 2)
Renewable Energy
Small Scale District Heating
• Two or more properties connected to a central boiler
Examples Using Wood Fuel….Wood Chip / Wood Pellet
Renewable Energy
RHI – District Heating
ArbuthnottOld School
RHI – District Heating
HaddoEstate
RHI – District Heating
HaddoEstate
RHI – District Heating
HaddoEstate
RHI – District Heating
Haddo EstateCottonhillock
Other Examples:
• Pantoch Cottages, Banchory
• Dalfling Farm, Kemnay
RHI – District Heating
Costs / Overheads:• Boiler House• DH Main• Heat Exchanger• Heat Meters• Maintenance
RHI – District Heating
Renewable EnergyRHI – Biomass Installations
(Tier 1 is installed capacity x 1,314 peak load hours)
[Metered Usage]
Technology Scale tariff (p/kWh) Tariff
Lifetime
Small Biomass <200kW Tier 1: 8.6Tier 2: 2.2 20
Medium Biomass 200kW – 1MWTier 1: 5.3Tier 2: 2.2 20
Large Biomass >1MW 1.0 20
Example:
Tenant uses 2,000 litres Heating oilCost @ 65p/l = £1300Heat use aprox 16,000kWh
RHI – District Heating
Example:RHI – 16,000kWh x 8.6p = £1,376Tenant pays 6p/kWh = £960Landlord Income = £2,336Fuel Cost @ 4p/kWh = -£800
= £1,536[Paid over 20 Years, RPI adjusted]
RHI – District Heating
Funding
• Scottish Government DH Loan Scheme
- Up to £400,000 @ 3.5% interest
RHI – District Heating
Domestic Users (RHI Phase 2)
- Original Target Autumn 2012….Autumn 2013……Now Spring 2014
- Announcement Summer 2013
- (Interim Premium payment - RHPP)
Domestic RHI
Proposals:Eligible –
• Homeowners (not Second homes)• Private Landlords
• Bespoke Tariff for RSLs and New Build(perceived lower install costs)
Domestic RHI
Proposals:
Technologies:- Air source heat pumps- Ground source heat pumps- Biomass Boilers (heating whole house)- Pellet Stoves with back boilers (whole house)- Solar Thermal
* MCS Installer & Equipment
Domestic RHI
Biomass Boilers - Max 45kW?- Must meet 99% of peak heat load- Biomass only
Pellet stoves withback boiler eligible.
- Emmissions criteria
…NB not Log stoves
Domestic RHI
Energy Efficiency Measures required….
• Green Deal Assessment (SAP 2012)…‘Green ticks’
eg - Loft insulationCavity wall insulationDraught proofing(**Solid wall insulation exempted)
Domestic RHI
Proposals:
Tariff Period – 7 years(Expected boiler life – 20 years)
Domestic RHI
Technology Tariff (p/kWh) Tariff
Lifetime
Air Source Heat Pumps 6.9 – 11.5 7
Ground Source Heat Pumps 12.5 – 17.3 7
Biomass 5.2 – 8.7 7
Solar Thermal 17.3 7
RHI Payments
• Based on ‘Deemed’ energy use(Green Deal Assessment -SAP 2012)
• Paid over 7 years
• Some installations metered
• Heat Pump min CoP 2.9
Domestic RHI
Domestic RHI
Example: 7.5kW IVTGround SourceHeat Pump(2 Boreholes)
Deemed 15,000kWh pa ?RHI payment @15p/kwh ?= £2,250
Commissioned Nov 2005(Will not qualify)
RHPP-2Interim Premium Payments:
RHPP-2 1st May 2012 to 31st March 2013 – now extended to March 2014Subject to available funding?
Domestic RHI
Solar Thermal £300Biomass Boilers £950
Ground Source Heat Pumps £1250Air Source Heat Pumps £850
RHPP-2….Social Landlords scheme 1:‘Fast Track’ grants (Apply by 28 June)
Winners Announced 15 JulyInstall by 31 March 2014
Domestic RHI
Solar Thermal £2,000Biomass Boilers £6,100
Ground Source Heat Pumps £7,900Air Source Heat Pumps £4,400
RHPP-2….Social Landlords scheme 2:‘Reach Out’ grants (Apply by 27 September)
Winners Announced 14 OctoberInstall by 30 June 2014
Domestic RHI
Solar Thermal £2,000Biomass Boilers £6,100
Ground Source Heat Pumps £7,900Air Source Heat Pumps £4,400
Renewable Energy
More Information:
DECC – www.decc.gov.uk
Ofgem – www.ofgem.gov.uk
EST – www.est.org.uk
Renewable Energy
Eric WellsSustainable Development Officer (Climate Change)
Economic DevelopmentWoodhill House
Westburn Road, Aberdeen
tel: 01224 664734email: [email protected]
