Rob SnaithRob Snaith

Micro-Renewables and Microgeneration SpecialistMicro-Renewables and Microgeneration Specialist

Energy Saving Scotland advice centre Highlands and Energy Saving Scotland advice centre Highlands and IslandsIslands

17th April 201017th April 2010

Financial Incentives Financial Incentives for Renewable Energyfor Renewable Energy

Our Service – 3 Levels

• Initial advice / literature sent out

• More in-depth telephone advice

• Free Home Renewables Visit

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

• Importance of Thermal EfficiencyImportance of Thermal Efficiency– Not going to get the best out of a system if the energy Not going to get the best out of a system if the energy

created is being lost straight away:created is being lost straight away:

• Loft insulation up to regulation levelLoft insulation up to regulation level

• Cavity wall insulation if relevantCavity wall insulation if relevant

• Well-fitted windows with draught proofingWell-fitted windows with draught proofing

• Draught proofing on doorsDraught proofing on doors

• External wall and under-floor insulationExternal wall and under-floor insulation

First Things FirstFirst Things First

• Heat Producing TechnologiesHeat Producing Technologies1)Biomass 2)Solar Hot Water3) Heat Pumps (ground/ air &

water)

• Electricity Producing Electricity Producing TechnologiesTechnologies4) Micro Wind 5) Solar Photovoltaics (PV)6) Micro Hydro Systems

• Stoves or larger scale boilers used to burn wood, generally in one Stoves or larger scale boilers used to burn wood, generally in one of three forms: chips, logs or pelletsof three forms: chips, logs or pellets

• High degree of controlHigh degree of control

• Most efficient when working hard, so good for less well-insulated Most efficient when working hard, so good for less well-insulated homeshomes

• Need space for the burner and suitable, dry, storage space for the Need space for the burner and suitable, dry, storage space for the fuel. Chips are least efficient so need most space, then logs, then fuel. Chips are least efficient so need most space, then logs, then high density pelletshigh density pellets

• Stand alone room heaters cost around £2000, larger scale boiler Stand alone room heaters cost around £2000, larger scale boiler to provide heat for an average 3 bedroom home would be about to provide heat for an average 3 bedroom home would be about £10,000£10,000

• For system to be considered truly ‘renewable’, need a local, For system to be considered truly ‘renewable’, need a local, sustainable supplysustainable supply

BiomassBiomass

Pellet boiler.

Pellet Room Stove.

• 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

Solar Solar ThermalThermal

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

Micro Wind

• Ideally a high location, such as the brow of a hill, with very Ideally a high location, such as the brow of a hill, with very little nearby obstruction to reduce wind speed or create little nearby obstruction to reduce wind speed or create turbulenceturbulence

• A local average wind speed of 6m/s or more. This can be A local average wind speed of 6m/s or more. This can be checked on government websitechecked on government website

• Systems vary greatly in size and cost, a small 1kW roof Systems vary greatly in size and cost, a small 1kW roof mounted turbine can be installed for around £1500, larger mounted turbine can be installed for around £1500, larger mast mounted systems up to 6kW can cost up to £20,000mast mounted systems up to 6kW can cost up to £20,000

• For roof mounted turbines, need to consider structural For roof mounted turbines, need to consider structural integrity of the building due to added weight and vibrationsintegrity of the building due to added weight and vibrations

• Usually need full planning permissionUsually need full planning permission

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

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

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

•30% grant up to maximum £400030% grant up to maximum £4000

•Covers automated wood fuel systems, heat Covers automated wood fuel systems, heat pumps and solar thermal installationspumps and solar thermal installations

•Have to have relevant energy efficiency Have to have relevant energy efficiency measures installed.measures installed.

•2 grants per property allowed2 grants per property allowed

Energy Saving Scotland home renewables grantFor heat-producing technologies in existing homes

Energy Saving Scotland Home LoanFor 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

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

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

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

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

Thanks and time for questions/comments