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Rob Snaith Micro-Renewables and Microgeneration Specialist

Financial Incentives for Renewable Energy. Rob Snaith Micro-Renewables and Microgeneration Specialist Energy Saving Scotland advice centre Highlands and Islands 17th April 2010. Our Service – 3 Levels Initial advice / literature sent out More in-depth telephone advice

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Rob Snaith Micro-Renewables and Microgeneration Specialist

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  1. Financial Incentives for Renewable Energy Rob Snaith Micro-Renewables and Microgeneration Specialist Energy Saving Scotland advice centre Highlands and Islands 17th April 2010

  2. Our Service – 3 Levels • Initial advice / literature sent out • More in-depth telephone advice • Free Home Renewables Visit

  3. Renewables Home Visit Service • Free home visit – for customers with a serious and realistic interest in installing renewables • Reduced SAP survey on household • Impartial advice and recommendations on practical energy efficiency measures and renewable technologies • Advice on grants, incentives, and next steps to take • We try to advise on practical options for customer in their current circumstances, but also for the property in general should they decide to sell

  4. First Things First • Importance of Thermal Efficiency • Not going to get the best out of a system if the energy created is being lost straight away: • Loft insulation up to regulation level • Cavity wall insulation if relevant • Well-fitted windows with draught proofing • Draught proofing on doors • External wall and under-floor insulation

  5. Heat Producing Technologies • Biomass • Solar Hot Water • 3) Heat Pumps (ground/ air & water) • Electricity Producing Technologies • 4) Micro Wind • 5) Solar Photovoltaics (PV) • 6) Micro Hydro Systems

  6. Biomass • Stoves or larger scale boilers used to burn wood, generally in one of three forms: chips, logs or pellets • High degree of control • Most efficient when working hard, so good for less well-insulated homes • Need space for the burner and suitable, dry, storage space for the fuel. Chips are least efficient so need most space, then logs, then high density pellets • Stand alone room heaters cost around £2000, larger scale boiler to provide heat for an average 3 bedroom home would be about £10,000 • For system to be considered truly ‘renewable’, need a local, sustainable supply

  7. Pellet boiler. Pellet Room Stove.

  8. Solar Thermal • Can provide 100% of household hot water needs in the Summer & 50% over the year • Requires 3-4m2 south facing roof space • Costs £3000-£4500 • Can be over-sized to provide some space heating as well • Needs a large, dual coil hot water cylinder

  9. Heat Pumps • Extracts heat from natural sources (ground/air/water). • Ground source can be horizontal trench or vertical borehole • Home needs to be well insulated • Costs roughly around £1000 per thermal kW, domestic installation ranges from £6000- £15,000 • Ground source tends to be more expensive due to digging/drilling costs

  10. Micro Wind • Ideally a high location, such as the brow of a hill, with very little nearby obstruction to reduce wind speed or create turbulence • A local average wind speed of 6m/s or more. This can be checked on government website • Systems vary greatly in size and cost, a small 1kW roof mounted turbine can be installed for around £1500, larger mast mounted systems up to 6kW can cost up to £20,000 • For roof mounted turbines, need to consider structural integrity of the building due to added weight and vibrations • Usually need full planning permission

  11. Solar Photovoltaics (PV) • Converts sunlight into direct current • A typical 1.5kWp (12 panels) domestic array will meet 1/3rd annual household electricity requirement • Will need 12-15m2 south facing roof space, roof pith of 35o is optimal. • Need direct sunlight, so any shading has a major effect on efficiency. • Costs around £9000 for 1.5kWp

  12. Micro Hydro • Converts potential energy of water into mechanical and electrical energy • Key factors for the site are head and flow • Design and sizing is very site-specific • 50m head with flow speed of 15l/s could produce around 3.5kW and would cost around £10,000 • Lower head sites tend to be more expensive due to larger turbine and civil costs • Planning and water abstraction licence will be required

  13. Financial Incentives • Energy Saving Scotland Home Renewables Grant • Energy Saving Scotland Home Loan • Low Carbon Buildings Programme • Clean Energy Cashback / Feed In Tarrif • Renewable Heat Incentive • All require MCS accredited products, list can be found at: www.microgenerationcertification.org

  14. Energy Saving Scotland home renewables grant For heat-producing technologies in existing homes • 30% grant up to maximum £4000 • Covers automated wood fuel systems, heat pumps and solar thermal installations • Have to have relevant energy efficiency measures installed. • 2 grants per property allowed

  15. Energy Saving Scotland Home Loan For all renewable technologies, and insulation works in existing homes • Interest free loan, with 8 year payment period • Maximum level for electricity producing technologies is £4000, for heat producing technologies it’s £10 000 • Technology needs to have been recommended in a Home Renewables Vist or Energy Performance Certificate

  16. Low Carbon Buildings Programme (LCBP) • For heat-producing technologies in new-builds • UK Government grant scheme • Different funding levels for different technologies • Automated stoves – 20% to max. £ 600 • Boilers Systems – 30% to max. £1500 • Can apply for 3 different technologies, with an overall maximum of £2500

  17. Clean Energy Cashback • Incentive for electricity producing technologies, from April 2010 • Generation Tariff – Set payment for every kilowatt generated • Export Tariff – Flat rate of 3p per kW, or customer can negotiate separate deal with energy company • Installations commissioned from 15th July 2009 are eligible for full tariff • Further information, including payback calculator at: • www.energysavingtrust.org.uk/Generate-your-own-energy

  18. Renewable Heat Incentive (RHI) • Scheme similar to Clean Energy Cashback, but for heat producing technologies • Expected to start in April 2011, under consultation at the moment so no details confirmed yet. • Proposals are: • Small scale biomass installations will receive 9 pence per kilowatt hour • Output will not be metered, but ‘deemed’ – based upon reasonable heat requirement which the installation is intended to serve • Payments will last for the expected lifetime of technology, 15 years for domestic wood-fuel systems. • Consultation documents can be found here: • www.decc.gov.uk/en/content/cms/consultations/rhi/rhi.aspx

  19. Renewable Heat Incentive (RHI) • Worked Example • Average 3 bed semi-detached house with decent insulation, likely to have a deemed heat requirement of • around 13 000kWhr / year • Wood fuel boiler system costing around £10 000, minus 30% grant gives £7000 • RHI would give an annual payment of 13 000 x 9 pence • = £1170.00 per year, for 15 years. • Therefore simple payback period is £7000 / £1170 = 6 years

  20. Thanks and time for questions/comments

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