David Lacey Operations Director Community Energy Solutions
Community Energy Solutions is a community interest company set up by the Regional Development Agency, One North East and the Department of Energy and Climate Change (DECC). Who are we?
We are a non-profit distributing company. We have no shareholders dividends and no directors emoluments to pay. An asset lock ensures that any margins or other forms of income are redirected into the funding of new projects.
From 1st April 2009 CES has been working to a new remit from One North East called: “Mobilisation of Microrenewables”
Year 1 (2009/10) Tender for equipment Tender for installers Train the workforce Develop relationships with customers Commence delivery Year 2 (2010/11) Mass marketing and delivery Address funding for 2011 and beyond The Plan
More than 30% of our electricity generated from renewables, up from about 5.5% today. 12% of our heat generated from renewables, up from about 1% today Renewables
“Pushers” National targets Local Authority targets “Pullers” Feed in Tariff (FiT) Renewable Heat Incentive (RHI) Market Drivers
Contribution towards the Government’s Low Carbon Transition Plan which includes the Renewable Energy Strategy. 34 percent cut in emissions on 1990 levels by 2020 More than 1.2 million people will be in green jobs. 7 million homes will have benefited from whole house makeovers, and more than 1.5 million households will be supported to produce their own clean energy. Around 40 percent of electricity will be from low-carbon sources, from renewables, nuclear and clean coal. We will be importing half the amount of gas that we otherwise would. The average new car will emit 40 percent less carbon than now. Feed-In Tariff (FiT) and Renewable Heat Incentive (RHI)
Administered by OFGEM Started on 1st April 2010 Applies to installations since 15th July 2009 Eligible technologies are: Wind Solar PV Hydro Anaerobic Digestion Micro - CHP The Feed-In Tariff
FiT Generation Tariffs – a Selection Note: a typical average supply tariff price is 13p/kwh
PV Generation and Export Note: Export payments may be negotiable.
For small scale installations only and until smart meters are installed the amount of exports for the payment of export tariffs will be “deemed”. These arrangements will not apply if an export meter is fitted. “Deeming”
Assume a 2.5kwp array is installed It will need about 18.5 square metres of roof space. It will generate about 2,000kwh/annum. Assume half is consumed on site and half is exported. Then…….. What Does it Mean?
Value of generated electricity is 2,000 x 41.3 = £826/annum Value of exported electricity is 1,000 x 3 = £30/annum Value of electricity used on site is 1,000 x 13 = £130/annum The Economics (1)
Assume cost of 2.5kwp array installed is £8,500 Annual saving and income is £986 Payback is achieved in 8.6 years. Income in remaining 16.4 years is £16,170 index linked and tax free. The Economics (2)
CES has tendered for the supply of PV equipment and its installation using OJEU procedures to ensure that the best possible deal has been secured. We can supply equipment for installation by your MCS accredited contractors. We can supply equipment and have it fitted by our own MCS accredited contractors.
CES has partnered with, a cooperative energy service company (esco). It has access to large amounts of low interest capital funding from “green” organisations. A Special Purpose Vehicle (SPV) would be set up to manage the flow of funds (including FIT). After the interest and capital is paid off the PV equipment will revert to original ownership.
Buy the kit and install it yourself. Advantages Benefit in full from FIT income Could purchase via CES at OJEU tendered prices Free electricity for residents Disadvantages Must find capital Must have MCS trained workforce to install Must project manage the contract. PV OPTIONS (1)
Buy on “installed and working” basis. Advantages Benefit in full from FIT income Could contract with CES using our OJEU tendered “fitted and working prices” Free electricity for residents CES can project manage Disadvantages Must find capital PV OPTIONS (2)
Buy on “Solar For Free” basis. Advantages No capital required Benefit from FIT income after kit paid off Free electricity to residents Disadvantages No FIT income until capital and interest paid off. PV OPTIONS (3)
Administered by OFGEM Starts on 1st April 2011 Applies to installations since 15th July 2009 Eligible technologies are: Air Source Heat Pumps Ground Source Heat Pumps Solar Thermal Biomass Boilers Biogas and Bioliquids Renewable Combined Heat and Power Renewable District or Community Heating The Renewable Heat Incentive
CES is licensed by OFGEM via Northern Gas Networks to deliver the OFGEM Fuel Poor Voucher Scheme. We have scoped out 32 potential mains extension projects. CES has signed a Memorandum of Understanding with the Energy Saving Trust regarding renewables leads. CES is negotiating with North East Procurement to set up a web driven system for social housing providers and fuel rich one-off customers to buy renewables kit from us. Other Business Issues
Please contact Community Energy Solutions: By e-mail: firstname.lastname@example.org By phone: 0191 537 7202 For Information and Help
Thank You. Questions?