gshps and the renewable heat incentive. market context long term strategic role for heat pumps the...
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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
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Market Context
UK Heat Strategy - “The Future of Heating, Meeting the Challenge”
DECC, 2013
Indicates a clear and strategic role for heat pump technology
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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”
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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
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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 area
KENSA 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 pump
Kensa high temperature units, installed externally
Micro district heating
Individual gshp per property linked to a shared ground array serving 2+ properties
Technically robust
Smaller number of deeper boreholes
Flexibilty over borehole location
No plant room or central pump
Energy saving
Low cost, low carbon heating and hot water reducing energy bills
Scaleable solution
Can be applied to apartment blocks or clusters of terraced or semi detached houses/bungalows, sheltered accommodation, holiday lets and more…
Renewable Heat Incentive
20 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 billing
No centralised billing – each tenant has control over own heating system and energy bill
New Build
New 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 £2500
ECO funding contribution £3500
Total Net Cost £9000
Total RHI contribution £16,000
Overall rate of return (IRR) 6%
Air Source HP
67 tonnes
£350
£7850£3500
0
£4100
£250
£2500
£0
£5350
£2900
0%
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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 quiet
Provides 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 properties
District 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