Onsite renewable energy Identifying the opportunities

Gareth Walton SW Microgeneration Co-ordinator Regen SW/Energy Saving Trust

West of England Carbon Challenge 25 March 2011

Current policy drivers for onsite renewables • Legally binding targets to reduce CO2 emissions at least

34% on 1990 levels by 2020 & at least 80% by 2050

• 15% of total UK energy from renewables by 2020

• All new buildings to be zero carbon within a decade – dwellings from 2016, public sector from 2018 & commercial from 2019

• Reducing emissions from existing buildings

• Emissions from existing buildings approaching zero by 2050

• Reduce emissions from homes by 29% on 2008 levels by 2020

0

5

10

15

2009 2020

% o

f to

tal e

ner

gy f

rom

ren

ewab

les

The size of the challenge

Feed-in Tariffs (FITs) • Government financial incentive for renewable electricity up to 5MW - started 1

April 2010

• Open to everyone – individuals, businesses, organisations & public sector

• Generation tariff rather than a grant towards the capital cost

• Paid for all electricity generated & not just that exported to the grid

• 3p/kWh extra for electricity exported to the grid

• Varying tariffs depending on type & scale of technology

• Designed to give a 5-8% return on investment – ie you make a profit

• Guaranteed income for 10-25 years depending on type & scale of technology – index linked (& tax free for individuals)

• Government currently proposing to reduce the tariff rates for solar PV above 50kW & to increase them for farm-scale AD

www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/feedin_tariff/feedin_tariff.aspx

Technology Scale

Tariff level for new installations in period (p/kWh) Tariff

lifetime (years)

Year 1: 1/4/10-31/3/11

Year 2: 1/4/11-31/3/12

(RPI adjusted)

Year 3: 1/4/12-31/3/13

(Not RPI adjusted)

Anaerobic digestion

=500kW 11.5 12.1 11.5 20

>500kW 9 9.4 9

Hydro

=15 kW 19.9 20.9 19.9

20 >15-100 kW 17.8 18.7 17.8 >100 kW-2 MW 11 11.5 11 >2 MW – 5 MW 4.5 4.7 4.5

MicroCHP pilot =2 kW 10 10.5 10 10

PV

=4 kW (new build) 36.1 37.8 33

25

=4 kW (retrofit) 41.3 43.3 37.8 >4-10 kW 36.1 37.8 33 >10-100 kW 31.4 32.9 28.7 >100kW-5MW 29.3 30.7 26.8 Stand alone system 29.3 30.7 26.8

Wind

=1.5kW 34.5 36.2 32.6

20

>1.5-15kW 26.7 28 25.5 >15-100kW 24.1 25.3 23 >100-500kW 18.8 19.7 18.8 >500kW-1.5MW 9.4 9.9 9.4 >1.5MW-5MW 4.5 4.7 4.5

Export tariff N/A 3 3.1 3 As

technology

Feed-in

Tariffs 2010-2013

Comprehensive FITs Review looking at changes to tariffs from April 2012 intended to be completed by the end of 2011.

“Installations already accredited for FITS will not be affected”.

Technology Scale

Tariff level for new installations in period (p/kWh) Tariff

lifetime (years)

Year 1: 1/4/10-31/3/11

Year 2: 1/4/11-31/3/12

(RPI adjusted)

Year 3: 1/4/12-31/3/13

(Not RPI adjusted)

Anaerobic digestion

=500kW 11.5 12.1 11.5 20

>500kW 9 9.4 9

Hydro

=15 kW 19.9 20.9 19.9

20 >15-100 kW 17.8 18.7 17.8 >100 kW-2 MW 11 11.5 11 >2 MW – 5 MW 4.5 4.7 4.5

MicroCHP pilot =2 kW 10 10.5 10 10

PV

=4 kW (new build) 36.1 37.8 33

25

=4 kW (retrofit) 41.3 43.3 37.8 >4-10 kW 36.1 37.8 33 >10-100 kW 31.4 32.9 28.7 >100kW-5MW 29.3 30.7 26.8 Stand alone system 29.3 30.7 26.8

Wind

=1.5kW 34.5 36.2 32.6

20

>1.5-15kW 26.7 28 25.5 >15-100kW 24.1 25.3 23 >100-500kW 18.8 19.7 18.8 >500kW-1.5MW 9.4 9.9 9.4 >1.5MW-5MW 4.5 4.7 4.5

Export tariff N/A 3 3.1 3 As

technology

Feed-in

Tariffs 2010-2013

Comprehensive FITs Review looking at changes to tariffs from April 2012 intended to be completed by the end of 2011.

“Installations already accredited for FITS will not be affected”.

Technology Scale

Tariff level for new installations in period (p/kWh) Tariff

lifetime (years)

Year 1: 1/4/10-31/3/11

Year 2: 1/4/11-31/3/12

(RPI adjusted)

Year 3: 1/4/12-31/3/13

(Not RPI adjusted)

Anaerobic digestion

=500kW 11.5 12.1 11.5 20

>500kW 9 9.4 9

Hydro

=15 kW 19.9 20.9 19.9

20 >15-100 kW 17.8 18.7 17.8 >100 kW-2 MW 11 11.5 11 >2 MW – 5 MW 4.5 4.7 4.5

MicroCHP pilot =2 kW 10 10.5 10 10

PV

=4 kW (new build) 36.1 37.8 33

25

=4 kW (retrofit) 41.3 43.3 37.8 >4-10 kW 36.1 37.8 33 >10-100 kW 31.4 32.9 28.7 >100kW-5MW 29.3 30.7 26.8 Stand alone system 29.3 30.7 26.8

Wind

=1.5kW 34.5 36.2 32.6

20

>1.5-15kW 26.7 28 25.5 >15-100kW 24.1 25.3 23 >100-500kW 18.8 19.7 18.8 >500kW-1.5MW 9.4 9.9 9.4 >1.5MW-5MW 4.5 4.7 4.5

Export tariff N/A 3 3.1 3 As

technology

Feed-in

Tariffs 2010-2013

Comprehensive FITs Review looking at changes to tariffs from April 2012 intended to be completed by the end of 2011.

“Installations already accredited for FITS will not be affected”.

Technology Scale

Tariff level for new installations in period (p/kWh) Tariff

lifetime (years)

Year 1: 1/4/10-31/3/11

Year 2: 1/4/11-31/3/12

(RPI adjusted)

Year 3: 1/4/12-31/3/13

(Not RPI adjusted)

Anaerobic digestion

=500kW 11.5 12.1 11.5 20

>500kW 9 9.4 9

Hydro

=15 kW 19.9 20.9 19.9

20 >15-100 kW 17.8 18.7 17.8 >100 kW-2 MW 11 11.5 11 >2 MW – 5 MW 4.5 4.7 4.5

MicroCHP pilot =2 kW 10 10.5 10 10

PV

=4 kW (new build) 36.1 37.8 33

25

=4 kW (retrofit) 41.3 43.3 37.8 >4-10 kW 36.1 37.8 33 >10-100 kW 31.4 32.9 28.7 >100kW-5MW 29.3 30.7 26.8 Stand alone system 29.3 30.7 26.8

Wind

=1.5kW 34.5 36.2 32.6

20

>1.5-15kW 26.7 28 25.5 >15-100kW 24.1 25.3 23 >100-500kW 18.8 19.7 18.8 >500kW-1.5MW 9.4 9.9 9.4 >1.5MW-5MW 4.5 4.7 4.5

Export tariff N/A 3 3.1 3 As

technology

Feed-in

Tariffs 2010-2013

Comprehensive FITs Review looking at changes to tariffs from April 2012 intended to be completed by the end of 2011.

“Installations already accredited for FITS will not be affected”.

Proposed changes to Feed-in Tariffs for PV above 50kW & AD up to 500 kW from FITs Fast Track Review

Technology Scale

Tariff level for new installations in period (p/kWh) Tariff

lifetime (years)

Tariff level from 1/4/11

Proposed tariff level from 1/8/11-

31/3/12

Year 3: 1/4/12-31/3/13

PV

>50 - ≤150 kW 32.9 (>50 - ≤100 kW)

30.7 (>100 - ≤150 kW) 19.0 ?

25 >150 - ≤250 kW 30.7

15.0 ? >250kW - ≤5MW

8.5 ?

Stand alone system ?

Technology Scale

Tariff level for new installations in period (p/kWh) Tariff

lifetime (years)

Tariff level from 1/4/11

Proposed tariff level from ASAP -

31/3/12

Year 3: 1/4/12-31/3/13

Anaerobic digestion

≤250 kW 11.5

14.0 ? 25

≤250 kW - ≤500 kW 13.0 ?

No changes proposed for PV up to 50kW from tariffs shown in previous slides

No changes proposed for AD above 500kW from tariffs shown in previous slides

www.decc.gov.uk/en/content/cms/consultations/fit_review/fit_review.aspx

22.5kWp solar PV

Generates 20,269kWh

Use 20,269kWh £1,520 saved

No export

TOTAL ANNUAL BENEFIT = £8,188

In this & almost all cases, you will still need to buy electricity from the grid

22.5kWp solar PV

Generates 20,269kWh

Income £6,668

How the Feed-in Tariff works

Fuel bill savings

£38,000

No export

Total income = £166,700

Generation tariff

£166,700

In this & almost all cases, you will still need to buy electricity from the grid

Financial benefits over 25 year FITs lifetime

The total income & total benefit is likely to be greater than those shown here because FITs is

index-linked & energy costs are likely to increase

Total income = £166,700 System cost = £70,000

Total income = £166,700 System cost = £70,000

PROFIT = £96,700

Total income = £166,700 System cost = £70,000

PROFIT = £96,700 Fuel bill savings = £38,000 TOTAL BENEFIT = £134,700

Renewable Heat Incentive (RHI) • New Government financial incentive for renewable heat

• £860m from 2011 to 2014 - directly funded by Government

• Like the FIT a generation tariff rather than a grant towards the capital cost

• Different approaches for the domestic & non-domestic sectors

• Non-domestic RHI tariffs available sometime after July 2011

• Domestic RHI tariffs not available until October 2012

• No details of domestic tariffs have been published – a consultation document will be published later this year (post-May)

• From July 2011 to October 2012 one-off direct payments (called RHI Premium Payments) available for domestic installations only

• Further details on RHI Premium Payments to be published in May 2011

• Note: a single renewable heating installation serving multiple residential dwellings, such as district heating, counts as a non-domestic installation

www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/policy/incentive/incentive.aspx

RHI tariff levels for non-domestic installations only

Technology Scale Tariff rate (p/kWh)

Tariff

lifetime

(years)

Solid biomass & municipal solid waste

<200kWth 7.6 (Tier 1) 1.9 (Tier 2)

20 200-1000kWth 4.7 (Tier 1)

1000kWth & above 2.6

Ground source & water source heat

pumps & deep geothermal

<100kWth 4.3 20

100kWth & above 3

Solar thermal <200kWth 8.5 20

Biomethane injection & biogas

combustion, except from landfill gas

Biomethane - all

scales

Biogas <200kWth

6.5 20

Payments for biomass installations up to 1000kWth are split into two tiers – the Tier 1 higher rates are paid for the first 1,300kWh of heat generated each year with the lower Tier 2 rates paid for heat generated

beyond that.

Selecting & installing renewable energy 1. Know how much energy (electricity & heating) you use

2. Reduce your energy demand through energy efficiency measures such as increased insulation, low energy lightbulbs, efficient appliances, better heating controls etc – this reduces the size & cost of any renewable energy system needed & is usually very cost effective

3. Identify any opportunities &/or constraints to renewable energy on your site or property

4. Check with your local planning authority whether there are any planning issues

5. Select appropriate renewable energy technology or technologies

6. Get quotes from 3 installers (MCS if up to 50kW for FITs & 45kW for RHI)

Renewable energy technologies Heat

Electricity Water heating Space heating

Solar photovoltaics (PV) • Generates electricity from daylight, although they produce most in direct sunlight

• The SW receives the highest levels of solar irradiation in the UK & is well suited to solar PV

• Can be supplied as panels or tiles & can be built into the fabric of a building, bolted on afterwards or built on a frame on the ground

• 3 main types of PV panel varying in cost & efficiency

• Must be correctly angled & orientated for best performance, with the ideal position facing South at an angle of 30 degrees

• Variation from this will result in reduced performance, but facing between SE & SW at an angle of between 30 to 40 degrees is generally OK

• Shading dramatically reduces performance & should be avoided

• Building’s roof must be able to take the weight of the panels

Title

PV for free?

Solar PV performance

• Must be correctly angled & orientated for best performance, with the ideal position facing South at an angle of 30 degrees

• Variation from this will result in reduced performance, but facing between SE & SW & at an angle of up to 40/50 degrees is generally OK

• Shading dramatically reduces performance & should be avoided

Civic Hall, Totnes 14kW PV array Provides approx 1/3 of the building’s electricity Cost approx £50,000 (2010) Total FITs income & energy bill savings approx £135,000

Vassall Centre, Bristol 12.6kW PV array Cost approx £55,000 (2009) Total FITs income approx £94,000 + energy bill savings

Michael Eavis barn roof pics

Worthy Farm, Pilton near Glastonbury 200kW PV array Cost approx £550,000 (2010) Total FITs income & energy bill savings approx £135,000 Total FITs income approx £1.4m + energy bill savings

Title

Title

Title

AS Malmesbury array pic

PV for free? • Various companies offering PV for free or reduced cost

• Range of different offers – often target different property types

• Issues to consider: - How much of the electricity generated will you use? - Who pays? (for all the equipment) - Who owns it? - Who gets the FITs? - Who gets the electricity & is it free? - Maintenance & repairs? - Insurance? - Moving property before 25 years is up?

See www.energysavingtrust.org.uk for a full list of questions

Wind • Generates electricity from the wind

• Can be stand-alone or building mounted (for small-scale)

• Require a good average wind speed - A small difference in wind speed will make a large difference to the amount of electricity generated

• Advisable to monitor wind speeds at the site before deciding whether to install

• Local topography can significantly affect the wind speed – features such as trees & buildings can dramatically reduce windspeed

• Need to be carefully sited, especially in built-up areas, to be effective

• Noise & visual impact may need to be considered

• Generally speaking building-mounted turbines have considerably lower outputs than stand-alone turbines, due to turbulence from the building

• Building structure should be checked to see if it can cope with the additional stresses & vibration generated by the turbine

• Annual service needed

Portland Marina, Dorset Three 20kW wind turbines

Okehampton Rural Business Centre 6kW wind turbine, biomass boiler & PV BREEAM Excellent & up to 80% CO2 reduction Wind turbine cost approx £28,000 (2008) Payback of less than 10 years pre-FITs

Yeovil Innovation Centre 15kW wind turbine Cost approx £56,000 (2009) Total FITs income approx £160,000 + energy bill savings

Hydro • Generates electricity from running water

• Highly site specific

• Require a good year-round flow of water & preferably a good height difference, known as ‘the head’, between the top of the scheme & the turbine unless run-of-river scheme

• May require some civil works

• Licences & approval from the Environment Agency are required

• Mitigating measures such as a mesh screen & a fish ladder may need to be installed

• Noise may be an issue

• Annual service needed

Forest of Dean Stone Ltd 12kW hydro Provides 1/3 of the company’s electricity Cost approx £70,000 (2010) Total FITs income & energy bill savings approx £305,000

Biomass • Biomass stoves can provide space heating for individual rooms

& water heating if they have a back boiler connected

• Biomass boilers provide space & water heating for whole buildings or a group of buildings

• Suitable for ‘new build’ or existing buildings

• Main fuels are woodchips, pellets, or logs

• Almost CO2 neutral

• CO2 & cost savings will depend on the fuel being replaced

• In general, work best with fairly constant heating demand

• Biomass boilers in particular most efficient when operating close to full load

• Sufficient space for the stove/boiler & for fuel storage is needed plus good access to the fuelstore for deliveries

• Smoke control zones

• Require ash removal, although in general very small amounts produced

KEVICC School, Totnes 18kW PV array 400kW biomass boiler Total FITs income approx £133,000 + energy bill savings

Devon County Council HQ, Exeter 840kW biomass boiler

Large biomass pics

South Petherton Hospital Two 100kW biomass boilers Provide 50% of the hospital’s heat requirements

Solar thermal • Provides hot water from the sun

• Supplementary heat source such as a boiler or an immersion heater usually needed when output is low eg in the winter

• 2 main types - flat plate & evacuated tubes. Evacuated tubes are more efficient, but also more expensive.

• Must be correctly angled & orientated for best performance - can face between SE & SW at an angle of between 30 to 50 degrees

• Shading reduces performance & should be avoided

• Building’s roof must be able to take the weight of the panels

• The heating system, particularly the hot water tank & boiler, needs to be compatible

• Should last for approx 25 years & require very little maintenance

South Gloucestershire Council’s offices, Yate 30kW solar thermal array 400kW biomass boiler

Clifton Lido solar thermal pics

Clifton Lido, Bristol 30kW solar thermal array

Heat pumps • Use similar technology to fridges to extract heat from the air, ground or

water

• Can provide space & water heating

• Require electricity to run & the CO2 & financial cost of this needs to be considered

• The more efficient the heat pump is running, & the higher the CO2 savings & the lower the running costs

• Provide a low-temperature heat output - best suited to meeting a low heat demand eg well insulated properties with underfloor heating

• If providing water heating, best to use it to pre-heat the water & then use another heat source to get the water to the necessary temperature

• Ground source heat pumps (GSHPs) require either horizontal trenches or vertical boreholes to be dug

• Air source heat pumps (ASHPs) & water source heat pumps (WSHPs) require less space than GSHPs but have lower CoPs

• Noise may be an issue for ASHPs

• WSHPs may require approval from the Environment Agency

The Hub, Bristol Vertical borehole ground source heat pump

Water source heat pump pics Cotswold water park

Cotswold Water Park, Cirencester 300kW water source heat pump

!! Important !! • To be eligible for the Feed-in Tariff (FITs) or RHI

installations of 50kW & 45kW respectively must be installed by a Microgeneration Certification Scheme (MCS) approved installer using a MCS approved product

• Can search for nearest installer by postcode on www.microgenerationcertification.org/mcs-consumer/installer-search.php

• Can search for installers for larger-scale installations on Regen SW’s company directory www.regensw.co.uk/directory/

Detailed FITs case studies

Friends of the Earth/Arup FIT for the Future report including a number of detailed FITs case studies including costs

www.foe.co.uk/resource/reports/fit_for_future.pdf

EST FITs calculators

www.energysavingtrust.org.uk/Generate-your-own-energy/Cashback-Calculator www.energysavingtrust.org.uk/business/Business/Local-Authorities/Funding/Feed-in-Tariffs

RHI biomass calculator

www.biomassenergycentre.org.uk/portal/page?_pageid=77,363178&_dad=portal&_schema=PORTAL

Thank you

Gareth Walton SW Microgeneration Co-ordinator

gwalton@regensw.co.uk

01392 474329 07886 672577

www.regensw.co.uk www.energysavingtrust.org.uk