HeatPlant Introduction

1. E.ON HeatPlantBringing affordable to renewable energy to deprived communitiesEdmund Hunt, E.ONMicrogeneration and Heating Funding ManagerCAN East Midlands Opening 19/5/09

2. HeatPlant Introduction • What is Heatplant • Features and Benefits • HeatPlant for Communities • The Package • Working with you • How it benefits you

3. What is HeatPlant? • A ground source heat pump package developed for the UK housing market. • Over 8 years, E.ON has installed over 1000 in social houses • Almost every one has been funded by E.ON through CERT (EECs) or Government’s LCBP • Calorex manufactures the unit • E.ON manages established sub contractors to install it • It supplies both heating and hot water • It’s efficient, reliable and low cost, with 1 unit of energy producing at least 3 units of heat

4. Features and benefits - cost and carbon savings Energy and cost benefits - Less risk of being affected by energy price increases • Cheaper to run • Low maintenance costs compared to boilers Carbon benefits over coal - More convenient and reliable - Clean and healthy - Lower carbon footprint and renewable energy 70% decrease in CO2 emissions

5. HeatPlant for communities • 365,000homes remained using coal heating in 2004* • 196,000 private homes and 34,000 rented homes • 136,000 LA/RSL homes • Whole communities need to be treated, not just individual households • HeatPlant will provide these communities with a better heating solution – for free if: • Residents are homeowners or private rented tenants • Home is not connected to gas and is heated by coal • 5 other households accept in the same street – any fuel, any tenure Discounts up to 75% are available for other customers, and the council can ‘top this up’ *Taken from BRE Domestic Energy Survey 2006

6. The Package Please note the above exclusions do not apply to damage caused by negligence

7. 2. Marketing 3. Delivery 1. Stakeholder engagement Working with councils • E.ON will be working with communities and yourselves to install HeatPlant • We manage the campaign and fund it where appropriate, including venue hire • All we need from you is a postcode of the area you wish to target and endorsement of campaign 3 weeks 6 weeks 3 weeks Additional considerations Community Groups Use community groups to find areas, add leverage to campaign and use as resource Top up funding Ringfence minimum of 18K to deliver HeatPlant for free to 6 electric properties OR 40K to give 6 properties free HeatPlant if on oil ‘Green’ movers and shakers Find the green interest groups or residents with an interest in low carbon living Use them to find areas/assist with project

8. How it benefits you Low Running Cost and Low Carbon Solution HeatPlant will reduce the carbon emissions & running costs of each home, with a longer life than boilers & the ground loop lasts 50 years Low cost Installation The package cost is at least £11,500 but E.ON can fully fund this or offer significant discounts, including project management & design appraisals E.ON Approved Partners The HeatPlant unit is manufactured to the E.ON specification by Calorex and all installation work is carried out by E.ON approved contractors. Project management and resource E.ON offers off-gas mapping, campaign management, flyer dropping services, event management and leverage with central government NI 186 and 187 Reducing carbon (70% decrease from E.ON trial) in private and social housing sector, and eliminating fuel poverty with low energy costs NI 188 Innovative, community approach demonstrating change acting quickly to achieve all levels (commitment and prioritisation to implementation) within short timescale and low budget.

9. Successes to date “E.ON’s HeatPlant offer is a fantastic opportunity. I urge other communities to get involved. I know it will make a real difference to those who have had the pump installed and to the wider community.” John Maples, MP (Warwickshire) “I’ve lived alone in my house for 11 years and have seen the cost of solid fuel rise and rise. I get through 6 bags of coal a month at about £18 a bag. “E.ON has replaced everything from my new heating system to new radiators and the savings I’ll make will go a long way. I can have the house warm whenever I want, and there’s constant hot water without the cost. This new system gives me control over my heating, and it’s clean so I don’t have to deal with the mess of a coal fire. I’m really pleased with it so far!” Mrs Collins, Lighthorne Heath, Warwickshire "I'm pleased to see that E.ON, one of Britain's largest energy companies, is pushing for renewable energy. It is exciting that people in my constituency will be among the first to experience the benefits of HeatPlant.“ David Heath MP (Somerton and Frome) “I believe this is a great scheme that not only helps St Newlyn East people reduce their fuel bills, but also cuts carbon dioxide emissions. I urge everyone who thinks they qualify to call E.ON today to register their interest and then attend the meeting in the Oxnam Room. This is a great opportunity for the village and receives my full support.” Matthew Taylor , MP (Cornwall)

10. Backup

11. How does a Heat Pump work? • Domestic Fridge Condenser Heat rejected to kitchen Expansion Valve Compressor Heat extracted from food in the fridge Energy used to evaporate the Refrigerant Evaporator

12. How does a Heat Pump work? • Ground Source Heat Pump Condenser Heating Return Heating Flow Heat rejected to heating system Expansion Valve Compressor Heat extracted from the ground Energy used to evaporate the Refrigerant Evaporator

13. How does HeatPlant work? • - A water antifreeze mixture is pumped into a loop of pipe buried in the ground. • - The water absorbs heat from the ground which has a far field temperature of between 10 – 12C. • - The HeatPlant unit extracts heat from the ground loop and releases heat into the hot water system and the space heating system using a heat exchanger.

14. How does HeatPlant work? • - The HeatPlant is a dual temperature Heat Pump that provides heating at between 350C to 550C and Hot water to 600C • - It uses R134a to achieve these high temperatures that most other heat pumps can’t reach • - This gives an overall improvement in running costs eliminating the need for an immersion heater to heat the hot water from 500C upwards

15. Customer Journey • - Application • - Walk around/ drive by inspection – photo’s • - Survey – energy assessment and air pressure test of the property • - Recommendations for energy saving measures, eg loft insulation • - Provide /accept quote. • - Initial payment required (if applicable) minimum approx 4K • - Arrival of welfare and storage facilities for drilling contractors • - Drilling – up to 3/4 days per property – need to be done consecutively • - Interim payment required (if applicable) • - Installation of heatpump and connection to ground loop • - Installation of internal system • - Final payment required (if applicable) • - QA visit and customer pack.

16. Indicative cost to the customer ( based on a 5kW Heatpump) • Electric Heating • 3 Bed Mid Terrace ....................Approx £3,000.00 • 3 Bed Semi Bungalow ..............Approx £1,800.00 • 3 Bed Semi House ....................Approx £1,000.00 • Oil Heating • 3 Bed Mid Terrace ...................Approx £6,300.00 • 3 Bed Semi Bungalow .............Approx £6,000.00 • 3 Bed Semi House ...................Approx £5,800.00 • LPG Heating • 3 Bed Mid Terrace ...................Approx £7,100.00 • 3 Bed Semi Bungalow..............Approx £6,800.00 • 3 Bed Semi House ...................Approx £6,400.00