gshps and the renewable heat incentive
DESCRIPTION
GSHPs and the Renewable Heat Incentive . Market Context. Long term strategic role for heat pumps The 4 th carbon budget ascribes a prominent long-term role for heat pumps in achieving binding domestic emissions reductions. Market Context. - PowerPoint PPT PresentationTRANSCRIPT
GSHPs and the Renewable Heat Incentive
www.kensaheatpumps.com
Market Context
Long term strategic role for heat pumps The 4th carbon budget ascribes a
prominent long-term role for heat pumps in achieving binding domestic emissions reductions
www.kensaheatpumps.com
Market Context
UK Heat Strategy - “The Future of Heating, Meeting the Challenge”
DECC, 2013 Indicates a clear
and strategic role for heat pump technology
www.kensaheatpumps.com
Market Context
22m homes in the UK
>4m homes off the gas grid
Those heated by oil, lpg and electricity are the “low hanging fruit”
www.kensaheatpumps.com
GSHP’s & the Domestic RHI
Domestic RHI Aimed at domestic
installations Rewards generation of
renewable heat, deemed RHI pays on Renewable
Heat contribution GSHP will always provide
more renewable kWh/yr than an ASHP due to higher efficiency
Higher efficiency also yields larger fuel cost savings
www.kensaheatpumps.com
GSHP’s & the Domestic RHI
Target market RHI will drive opportunities for
larger, off gas grid properties Private domestic retro fit Oil or lpg heated
High fuel bills, bulk fuel purchases Higher heat loads
>16kW, single phase electricity supplies
Existing heat distribution systems Higher flow temperatures
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GSHP’s & the Domestic RHI
Benefit 1: Attractive GSHP Tariff /kWh: 18.8p Benefit 2: RHI paid on Renewable Heat contribution.
Higher intrinsic SPF for ground source means higher Star Rating and therefore more renewable kWh/yr
Benefit 3: Flat tariff rate structure means Domestic RHI will benefit larger properties
By definition likely to have more land areaKENSA HAS SINGLE PHASE OUTPUT UNITS UP TO 24kW!!
Benefit 4: No planning or noise (MCS022) issues to deal with!
3 bed semi: 8kWRHI: £11k / 7yrs
4 bed det: 12kWRHI: £17k / 7yrs
5 bed det: 15kWRHI: £20k / 7yrs
8 bed mansion: 24kWRHI: 37k / 7yrs
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GSHP RHI Example
5 bedroom house Domestic RHI example for Ground Source Heat Pumps 5 bed property 4-5 occupants 180m2 floor area Circa 1960’s build Basic insulation measures – cavity wall, loft, glazing 15kW heat load Heating via radiators (50°C – 3 Stars) EPC: 21,000kWh/yr Land area required (slinkies): 720m2
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GSHP RHI Example
5 bedroom house Domestic RHI example for Ground Source Heat Pumps £1082 per year fuel cost saving vs oil £2845 first year RHI income £27,492 combined benefit over 7 years
Before index linked tariff increases and fuel price inflation Typical installation cost: £18,000
Based on slinkies Payback: 5 years Rate of return: 11.5%
Kensa On Line RHI Calculator• Website based tool• Calculates expected RHI and
fuel saving benefit under domestic RHI
• Varies results based on geographical location
• Suggests likely land area required for slinkies
• Aimed at helping driving enquiries for installers
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Non Domestic RHI
Launched 2011 Includes support for residential district
heating systems Recently uplifted tariffs for ground source
heat pumps Increased from 4.3p/kWh to 8.7p/kWh
Payments made over 20 years, based on metering
Includes support for new build District residential schemes can be
combined with ECO funding More attractive long term rate of
return than domestic scheme
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Kensa micro-district solution
Individual heat pump at each dwelling Linked to a communal ground array New build or retro fit Capital subsidy provided by Energy
Company Obligation (retro fit) Supported by 20 year income stream
through the Non Domestic Renewable Heat Incentive
Technically robust solution Myriad of operational and tenant fuel cost
benefits over other solutions
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Traditional district scheme problems
Traditional schemes featuring a central boiler plant are not popular
Difficult to implement as a retro fit solution Inefficient
Heat losses as hot water circulated through the “district”
Burdensome HA has to manage billing
Bulky Requires considerable space
Expensive Requires back up system to eliminate risk of
catastrophic district-wide failure
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Kensa micro-district solution
Ground source heat pumpKensa high temperature units, installed externally
Micro district heatingIndividual gshp per property linked to a shared ground array serving 2+ properties
Technically robustSmaller number of deeper boreholesFlexibilty over borehole locationNo plant room or central pump
Energy savingLow cost, low carbon heating and hot water reducing energy bills
Scaleable solutionCan be applied to apartment blocks or clusters of terraced or semi detached houses/bungalows, sheltered accommodation, holiday lets and more…
Renewable Heat Incentive20 year income stream for district schemes under the non domestic RHI
Energy Company Obligation (Retro fit)Attractive capital subsidy, especially when displacing electric heating
Simple billingNo centralised billing – each tenant has control over own heating system and energy bill
New BuildNew build developments are eligible for the non-domestic RHI
Micro-district costed example
Micro District Ground Source Heat Pump SystemBased on 2 bedroom End of Terrace
Lifetime CO2 savings 87 tonnes
Typical annual running cost saving vs NSH
£450
Total capital cost £15,000Heat pump, ancillaries and installation £3900
Boreholes and ground collector system £6600
New radiator system and DHW cylinder £4100
Design (EPC, borehole design) £400
Existing system replacement costs £2500ECO funding contribution £3500Total Net Cost £9000
Total RHI contribution £16,000Overall rate of return (IRR) 6%
Air Source HP
67 tonnes
£350
£7850£3500
0
£4100
£250
£2500£0
£5350
£29000%
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New Builld - Kensa Shoebox
System architecture Individual ground
source heat pump and hot water cylinder in each apartment
Low temperature primary circuit
Communal Ground array
Eligible for RHI payments – considered as district heating
3kW capacity
Small & extremely quietProvides heating & hot water
Heat source for Shoebox heat pumps
Multiple boreholes 100-150m deep
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District Htg New Build Example
Abbeydale Hall - Luxury new build apartments 4 blocks of 3 apartments Each shares a communal borehole field of
3 x 130m boreholes 3kW Shoebox heat pump installed in each
flat Developer retains the non domestic RHI
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Reasons why GSHP’s win!
Domestic RHI Very attractive domestic RHI tariff rates and high renewable heat content Compelling rates of return / payback, especially in larger properties Kensa range >16kW single phase models – ideal for larger domestic propertiesDistrict and Non Domestic RHI District residential heating solutions possible using the Non Domestic RHI “Decentralised” district systems possible by linking ground loops – not possible with any other technology Opportunity to apply in new build Opportunity to tap in to ECO funding (district retro fit)PLUS OF COURSE… Planning exempt (permitted development rights) No noise nuisance Lowest possible running costs and long life expectancy