Solar Energy/ Energy SavingGetting the best out of FITs / RHI

Save Money? and the Planet?

Is it as simple as that? - what are the catches?

1

Reach Within to Embrace Humanity

Keith Tovey ( 杜伟贤 )

United Reformed Church and

Rotary District 1080

22nd October 2011

Presentation will be placed on WEB tomorrow at: http:/www2.env.uea.ac.uk/cred/creduea.htm

2

Summary of Session

• Presentation of key issues ~ 30 minutes

• Questions and Answers

• Examination of actual examples for solar energy

• Several people has sent in information of their actual properties and these will be used as potential assessments

• Computers available for exploring options

• Final Discussion / Question and Answer Session

3

Summary of Presentation• Background to issues facing energy supply in

UK

• Renewable Energy Options available to Householder/Community

• Background to the financial incentives for local energy generation

• Background to the Solar Technologies

• An example of solar thermal and solar PV

• The subject is so wide ranging – so please as questions as we go along if there are things you do not understand

Potentials for Saving Money and the Planet• In next 10 years there is a need to address the issues of Energy Security

and Carbon Reduction of Energy Supply.

• In Energy Efficiency

• In Energy Management

• In Electricity Production

• Move from high carbon fuels: coal, oil, gas

to

• Nuclear

• Renewables

• Carbon Capture and Sequestration

4

Reduction in Energy Use

Will not be available on scale required until 2025 at the earliest.

An important component to consider now because of inaction on renewables and conservation in past - but not until 2019 at earliest

Available now but financial support needed for small scale and emerging technologies.

STOP PRESS! 19th October 2011

Plans for the UK's first carbon capture project at the Longannet power station in Fife costing £1bn have been scrapped, the energy secretary has confirmed.

19 October 2011 Last updated at 16:35

Longannet carbon capture scheme scrapped

0

20

40

60

80

100

120

140

2000 2004 2008 2012 2016 2020

Bil

lion

cu

bic

met

res

Actual UK production

Actual UK demandProjected productionProjected demand

5

Import Gap

Energy Security is a potentially critical issue for the UK

On 7th/8th December 2010: UK Production was only 39%: 12%

from storage and 49% from imports

Prices have become much more volatile since UK is no longer self sufficient in gas.

The prognosis for future energy prices is not good

Gas Production and Demand in UK

UK becomes net importer of gas

Completion of Langeled Gas Line to Norway

Oil reaches $140 a barrel

Existing Nuclear

Existing Coal

Oil

UK GasImported

Gas

New Nuclear

• 1 new nuclear station completed each year after 2020.• 1 new coal station fitted with CCS each year after 2020•1 million homes fitted with PV each year from 2020 - 40% of homes fitted by 2030 •19 GW of onshore wind by 2030 cf 4 GW now

Data for modelling derived from DECC & Climate Change Committee (2011) - allowing for significant deployment of electric vehicles and heat pumps by 2030.

Our looming over-dependence on gas for electricity generation

6

7

Options available for the HouseholderEnergy Generation•Solar thermal - providing hot water - most suitable for domestic installations, hotels – generally lees suitable for other businesses

•Solar PV – providing electricity - suitable for all sizes of installation

• Example 2 panel ( 2.6 sqm ) in Norwich – generates 826kWh/year (average over 7 years).

• The more hot water you use the more solar heat you get!

• Renewable Heat Incentive available from 2012

• Area required for 1 kW peak varies from ~ 5.5 to 8.5 sqm depending on technology and manufacturer

• Approximate annual estimate of generation

= installed capacity * 8760 * 0.095

hours in year load/capacity factor of 9.5%

8

Options available for the HouseholderEnergy Generation•Micro Wind - roof mounted turbines

•Mini Wind - mast mounted turbines – can be good as long as well clear of buildings, trees, etc – can be a good option for farms

Building Mounted - ~ 1kW machines ~ generally poor performance because of turbulence except in a few locationsNot generally recommended

Mast mounted away from buildings - 6kW Potential output 6000 – 10000 kWh depending on location

Vertical Axis machine – better in turbulence

9

Options available for the Householder

Energy Generation•Onshore Wind - sensible for community schemes – e.g. Orkney, Germany, Denmark etc – the cheapest form of renewable energy

• Biomass boilers - can be sensible but need a reliable fuel supply. In cost terms with the proposed Renewable Heat Incentive there are attractions for homes heated by oil or electricity but not, at present, mains gas.

• Most convenient if running on pellets

• Cheaper with wood chip but more difficult to automate

10

Options available for the Householder

Energy Generation•Other schemes

- mini hydro – site specific

- anaerobic digestion – suitable for large installation

- gasification/pyrolysis – very large installations

Micro-Hydro (Itteringham Mill, Norfolk)

5.5kW annual output depends on flow 12000 – 18000kWh

Advanced Biomass CHP using Gasification at UEA

11

Options available for the Householder

Energy Saving Technologies•Ground Source Heat Pumps:

• ideal for new building dwellings or new community buildings – schools/community centre.

• Best if used with under floor heating (hence best with new build)

• Can be retrofitted using existing radiators – but performance will be lower.

• More attractive financially for retrofitting if existing heating is oil, bottled gas or electricity.

• Need a ground area approximately twice area of building to be heated or use more expensive vertical boreholes

•Air Source Heat Pumps

• Less efficient than ground source heat pumps

• Less use can be made of off peak electricity unless there is a sizable thermal store

•Micro Combined Heat and Power (CHP)

• generating both electricity and heat

??? Fit double radiators or ones with fins

12

Ground Source: Heat Pumps

Typically twice floor area of house is required for heat collection.Best performance with under floor heating – i.e difference between heat supply and source temperature is as low as possible

Zones of house can be controlled via a manifold

Options available for the Householder – Heat Pumps

13

Heat pumps run off electricity

For a well designed ground source heat pump system: Typically 3.5 – 4.5 as much heat is produced as electricity consumed – the Coefficient of Performance (COP).

If a buffer tank is included in system, then off peak electricity can be used to heat store overnight – minimising use of full rate electricity.

Air source heat pumps require external fan system, and are not as efficient as air temperature is low when most heat is needed.

Retro fitting with existing radiators will lead to poor COP, but could be improved by fitting double radiators and/or a buffer tank

Options available for the Householder – Heat Pumps

14

Micro CHP

Replaces normal boiler

Provides heat and electricity – would normally run on gas

Currently there are incentives under the Feed In Tariff.

Options available for the Householder – CHP

• To be eligible to claim for any Incentive the installation must be installed by a registered MCS installer.

• Certificate of installation must be presented at time of registration.

All Installations must be MCS Accredited

• Non Fossil Fuel Obligation (NFF0) - 5 separate tranches in 1990s. Was a Feed in Tariff, but failed to deliver largely because of planning issues. Only suitable for large generators.

• Renewable Obligation (RO) - from 1st April 2002. Sets targets which all suppliers had to meet – otherwise they were fined for non-compliance (Buy Out). The fines were recycled to those bodies who held certificates (ROCs) of Renewable Generation. Currently worth around £0.3 billion.

These “Buy-out Fines” are inflating unit price of electricity by around 0.1p or 0.5-1.0%.

Used by both large scale and small scale generators

• From 1st April 2010 all small generators < 50kW were transferred to the Feed In Tariff (FIT) Scheme as were all new small schemes. Medium sized schemes can opt to be in FIT or RO scheme. Large schemes can only be in RO.

15

Renewable Energy Incentives in UK - Electricity

16

Renewable Obligation Certificates

The Regulator

OFGEM

SUPPLIERS

Trader and Brokers

Renewable Generator

Notifies Regulator how much generated.

Sells ROCs to Trader

Sells Electricity with or without ROCs

Notifies OFGEM of compliance -i.e. ROCs or pays FINE

Supplier Buys ROCs from Trader

ROC’s issued

FINES recycled to holders of ROCs in proportion to number of ROCs held.

Because of recycling, ROCs have value greater than their nominal face value

Notifies Regulator how much generated.

Wholesale Price

Jan 2011 4.950p

cf Jan 2010 4.521p

17

Incentives under the Renewable ObligationSeveral benefits to generator (e.g. wind)

• Whole sale price of Electricity

• Value of the Renewable obligation Certificate

• Mark up price arising from Buy- Out Fines

• Other small benefits

• BUT if target is met – ROC certificates become worthless

• Overall value might be up to 10p but could be much less

• At highest level of incentive – i.e. actual current value of ROC ~ 5.0p cost for reducing 1 tonne of CO2 ~ £95 per tonne

ROC Certificate 3.996p

Recycled Fines 1.0 – 1.5p

Prices per kWh

• The Renewable Obligation encounters risk and much paperwork for small potential generator

• Led to Introduction of Feed in Tariff from 1st April 2010.

• A fixed amount is paid per unit and guaranteed for up to 25 years.

• BUT General Capital Grants no longer available• Payment is for electricity generated whether it is actually exported

to grid on consumed on premises.

A frequently asked Question

• Will I have electricity when there is a power cut – assuming of course the sun is shining (if I have solar) or the wind is blowing (if I have a wind turbine)?

• NO!! – unless you have facilities for both “Island Mode Operation” and Grid Connection which can be very expensive for the small generator.

18

Feed in Tariff

19

Renewable Energy Incentives in UK - Heat• Renewable Heat Incentive (RHI) – World’s First was due to start on

1st October 2011 for non domestic properties – but has been delayed because of a technicality over large scale biomass.

• Domestic RHI will be available from October 2012 and valid for all installations commissioned after 15th July 2009.

• Will include: • Solar Thermal; Biomass• Ground Source Heat Pumps• Air Source Heat Pumps – probably

This incentive will pay for any heat generated in similar manner to Feed In Tariff for Electricity

All Houses:Voucher valid for 3 months

Houses not heated by gas from Gas Grid: Vouchers valid for 6 months

£300 – solar thermal voucher £950 biomass boiler voucher

£850 air source heat pump valid for 6 months£1250 ground or water source heat pump voucher

Because of delay in implementation. Temporary Grants for Domestic Installations – implementation 01/10/12

• Payments currently range from 4.7p per kWh to 43.3p per kWh GENERATED depending on technology and capacity of generator.

– e.g. for small scale retro-fitted solar, the payment would be 43.3p for kWh generator and guaranteed for 25 years, but new entrants from 1st April 2012 will get 37.8p

• An additional 3.1p per kWh is paid for any electricity surplus to demand which is exported.

• These prices are index linked to CPI and TAX FREE

• This amounts to a renewable incentive of ~39p per kWh and £742 per tonne of CO2

( assuming a wholesale price of ~ 5p)

• Nearly 8 times the subsidy for wind generation under the ROC scheme

20

Feed in Tariff

21

Energy Source

Scale Installation date EXISTING ONES CONTINUE Duration (years)01/04/10 – 31/03/12 Post

Aug 1st 2011

> 01/04/2012

Payments To 31/03/11

From 01/04/11

Ofgem – Aug 2011Reduced tariffs in later years

Solar PV ≤4 kW new 36.1 37.8 34.6 25Solar PV ≤4 kW retrofit 41.3 43.3 39.6 25Solar PV >4-10kW 36.1 37.8 34.6 25Solar PV >10 - 50kW 31.4 32.9 30.1 25Solar PV >50-150kW 31.4 32.9 19.0 17.4 25Solar PV >150-250kW 29.3 30.7 15.0 13.7 25Solar PV >250kW - 5MW 29.3 30.7 8.5 8.5 25Solar PV Standalone 29.3 30.7 8.5 8.5 25Wind ≤1.5kW 34.5 36.2 34.2 20Wind >1.5 - 15kW 26.7 28.0 26.7 20Wind >15 - 100kW 24.1 25.3 24.2 20Wind >100 - 500kW 18.8 19.7 19.7 20Wind >500kW - 1.5MW 9.4 9.9 9.9 20Wind >1.5MW - 5MW 4.5 4.7 4.7 20Existing generators transferred from RO

9 9.4 9.4 to 2027

Export Tariff 3 3.1 3.1

Feed in Tariffs – Introduced 1st April 2010

• Tariffs are index linked each year for existing generators only new generators are affected by revised prices which have still to be confirmed.

• Tariffs also available for hydro, anerobic digestion and mini CHP.

22

Feed in Tariffs – Example for PV

Payment for tariffs will be from a levy on Utility Companies which MAY see a cumulative rise in bills of around £1 billion or more.

In addition there will be a payment of 3.1p per kWh for any electricity exported as opposed to consumed on premises.

BUT an export meter is needed to identify this.

Householder will save on imported electricity at ~ 13 – 14p per kWh, so optimum financial model may not be to generate as much as possible i.e. for each unit generated and consumed it is worth 43.3+ 13 = 56.3p /kWh for each unit exported it is worth 43.3 + 3.1 = 46.4 p/kWh

If no export meter is fitted : For domestic consumers it is deemed that 50% of generation will be exported.

23

Technology

Domestic Installations

Industrial & Commericial Installations

Community Installations

Total Installations

NumberInstalled Capacity

NumberInstalled Capacity

NumberInstalled Capacity

NumberInstalled Capacity

  MW   MW MW   MWNORFOLK                Hydro 2 0.021 0 0 0 0 2 0.021Micro CHP 3 0.003 0 0 0 0 3 0.003Photovoltaic 1667 4.691 17 0.071 7 0.074 1691 4.836Wind 28 0.197 7 0.048 5 0.026 40 0.27Total Installed Capacity (MW)

  4.912 0 0.119   0.099   5.13

Total 1700   24 12   1736  

SUFFOLK                Micro CHP 2 0.002 0 0 0 0 2 0.002Photovoltaic 1519 4.216 16 0.103 6 0.027 1541 4.347Wind 28 0.188 2 0.01 1 0.006 31 0.204Total Installed Capacity (MW)

  4.406 0 0.113   0.033   4.552

Total 1549   18 7   1574  

Installations under Feed In Tariff Scheme ( to 28/09/2011)

The annual output from all schemes installed is ~ 7.5 GWh – the same output as 1.8 modern 2 MW wind turbines such as those at Kessingland.

Tariff name Eligible technology Eligible sizes

Tariff rate (pence/ kWh)

Tariff duration (Years)

Small biomass Solid biomass; Municipal Solid Waste (incl. CHP)

< 200 kWth Tier 1: 7.6

20Tier 2: 1.9Medium biomass 200 kWth to

1,000 kWth

Tier 1: 4.7 Tier 2: 1.9

>1,000 kWth 2.6Large biomass Small ground source

Ground & Water -source heat pumps; deep geothermal

<100 kWth 4.320

Large ground source >100 kWth 3

Solar thermal Solar thermal <200 kWth 8.5 20Biomethane injection and combustion except from landfill gas – all scales < 200 kWth 6.5 20

Renewable Heat Incentive from 01/10/11 for Non-Domestic Installations

Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break. The Tier Break is: installed capacity x 1,314 peak load hours, i.e.: kWth x 1,314

24

Stop Press!!! 18:00 on 29th September 2011The EU have rejected support level for large Biomass and scheme cannot now start until amendments to RHI Order are in place.

Configuration of a Solar PV System

25

• All electricity must be converted from DC to AC by use of inverters.

• Inverters are only 92 - 93% efficient

• Often these are installed in the loft

Rated Peak Output e.g. 1.25 kW

PV panel

1.151kW

Inverter

Generation Meter Normal House

Meter

Electricity Supply

Connected to spare Consumer Unit outlet (or auxillary)

Solar Rosette Diagram for East Norfolk/Suffolk

26

0 30 60 90 120 150 180 210 240 270 300 330 360 N NE E SE S SW W NW N

Azimuth <20  

20-30  

30-40  

40-50  

50-60  

60-70  

70-80  

80-90  

90-100  

100  

Note: • Optimum direction for solar energy in East Anglia is

NOT due south but ~ 10-15 degrees West of South.• Reduction for west facing roof is < 20%• For solar thermal a more westerly orientation is

often preferable, but depends on hot water use during day

27

Solar PV – the Technologies

Monocrystalline: Traditional Technology with good performance in terms of Peak Watts per given area – typically 6.9 sqm needed for each installed peak kW. Tend to be cheaper than HIT panels. A good option if area is not restricted.

Polycrystalline: Cheaper than Monocrystalline – rather less energy dense ~ 7.35 sqm/ installed peak kW. A good option if area is not restricted

Thin Film: cheapest panels – can also be flexible: much less energy dense ~ 11sqm/ installed peak kW

HIT Techonology: HeteroJunction with Intrinsic Thin Film: Currently most energy dense ~ 5.6 sqm per installed peak kW. Also most expensive. The option to go for if roof area is limited.

Note: total installed peak power should be matched with the same size of inverter

28

Simulation of Daily Performance of a PV System

Demand 9.62 kWh

Generated 6.28 kWh

Apparent Saving 3.34 kWh

Net Import 6.76 kWh

Net Export 3.42 kWh

Export ~ 51.5%

Note: Amount of electricity consumed during sunshine hours 2.86 kWh

29

Simulation of Daily Benefit of a PV System

Option 1: Householder pays for installation•Gets 43.3p/kWh for each unit generated•Gets a further 1.51p (50% of electricity is deemed as exported)•Saves ~14p/kWh for all electricity consumed in day time which is less than that generated

UnitsCost/

SavingIncome

Net Benefit

kWhOriginal Consumption 9.62 £1.35Saving from day time consumption 2.86 £0.40Electricity generated in day 6.28 £4.17export ed @50% 3.14 £0.09Net benefit £4.66Residual payment for night time £0.95

Note: This simulation is for a house with 1.25 kW peak array for a sunny day in October. The household daily consumption is 9.62 kWh

30

Simulation of Daily Benefit of a PV System

Option 2: Company Pays for Installation Householder gets electricity•Three different interpretations of FREE!•Free Electricity 1: All electricity consumed by consumed is FREE!

Unlikely that this option will apply.•Free Electricity 2: All electricity in a day up to that generated is free.

Could be an option for an Ethical Company•Free Electricity 3: All electricity consumed in day time which is less than that generated is FREE.

Probably option most companies opt for

Units (kWh) BenefitsFREE! Generated Consumer Company

Free Electricity 1 9.62 6.28 £1.35 £4.26Free Electricity 2 6.28 £0.88 £4.26Free Electricity 3 2.86 £0.40 £4.26

FREE

3131

Solar Circuit

Configuration of a Solar Thermal System

3232

Normal hot water circuit

Solar Circuit

Solar Pump

Configuration of a Solar Thermal System

33

Solar Thermal – actual performance

0.0

1.0

2.0

3.0

4.0

5.0

F M A M J J A S O N D J F M A M J JMonth

kWh/

day

BSD1 BS01

BS02 BS16

BS17 BS26

BS27 BS52

• However, performance can be significantly affected by way normal central heating boiler is used for backup.

• A factor of two in output has been measured for otherwise identical installations

Typically domestic situations will have 2 or 3 panels

Getting the most out of Solar Thermal:

• Tank with small residual hot water at top of tank in early morning

• If Central Heating boiler heats up water – less opportunity for solar heating.

Zone heated by solar energy

34

Solar Thermal Energy captured when combined with central heating

Tank with small residual hot water at top of tank in early morning

No hot water provided by central heating boiler.

Gain from solar energy is much higher.

More solar energy can be gained if boiler operation is delayed.

Boiler ON/OFF times should be adjusted between summer and winter for optimum performance

35

Getting the most out of Solar Thermal:

The Future

The Government will

• maintain the Feed-In-Tariffs to support investment in emerging small-scale generation technologies in electricity, saving £40M by improving their efficiency,

and complement this with

• the Renewable Heat Incentive to reward ground-source heat pumps and other renewable heat sources,

while making efficiency savings of 20% by 2014-15 compared with the previous government’s plans.

36

For complete information see Section 4 ofhttp://www.hm-treasury.gov.uk/d/nationalinfrastructureplan251010.pdf

According to the Comprehensive Spending Review

37

The Consequence of possible changes

• The UK Government has always “Grandfathered” rights such as these so those receiving FITs etc will continue to benefit for the duration of the contract

• The incentives are index linked and Free of Tax for Domestic Consumers

FINANCIAL TIMES: October 19, 2011 10:00 pmSolar panel subsidy to be slashedBy Pilita Clark and Jim Pickard

• New installations after April 1st 2012 were scheduled to receive reduced incentives ~ 37p cf 43.3p, but latest indications are that incentive will be much lower 30p or even lower???

• However, costs of equipment have come down by ~ 30% in recent years

From the National Infra-Structure Plan 2010 following Comprehensive Spending Review

The Government will (para 4.18):• Support investment in low carbon energy supply by:

maintaining Feed-In Tariffs for small-scale generation, funded through an obligation on electricity suppliers equating to a levy of almost £900 million over the period to 2014-15. At the same time, the efficiency of Feed-In Tariffs will be improved at the next formal review [2012], rebalancing them in favour of more cost effective carbon abatement technologies.

May be an issue for PV as carbon abatement using PV is

>£700 per tonne saved way above many other strategies cf

~£95 for large scale wind, ~£20 or less for cavity insulation

38

For complete information see Section 4 ofhttp://www.hm-treasury.gov.uk/d/nationalinfrastructureplan251010.pdf

Equivalent to £36 per household over 4 years

• For Renewable Obligation: there is a small levy ~ 1% on all bills meaning that those who use most pay most –

• For Feed in Tariff: there is also a levy on all electricity consumed.

– Those with capital to pay for installation will be paid and will save on electricity consumed and will benefit more than any rise in tariffs.

– Those who do not install will see their bills rise and will be subsidising those who have installations.

• Current Proposals for Renewable Heat Incentive will pay for heat generated from Government Funds from general taxation.

• Under previous Government the RHI proposal was for “deeming” payments i.e. You would get the credit even if you did not use a Solar Water Heater. Would have been open to abuse.

39

Who really pays for Electricity Incentives?

40

Conclusions (1)

• Current Renewable Electricity in UK is saving around 12 Mtonnes of CO2 a year.

• The Renewable Obligation is increasing electricity bills by around 1%, levied on all consumers.

• The Feed in Tariff will see a further increase in bills, and will provide an income for those installing PV, etc as well as reduced electricity consumption.

• BUT those not installing will see their bills go up disproportionately.

• There is a greater return on capital if size of scheme is matched with demand

41

Conclusions (2)• The Feed in Tariff for PV is currently an attractive

method to generate income with returns of > 4% cf savings

• The Renewable Heat Incentive has yet to be finalised

• Following the Comprehensive Spending Review a review of incentives in 2012 may well significantly reduce benefits for PV, but increase those for other strategies – e.g. insulation, micro-CHP???

• Previous experience indicates that existing Rights to Tariffs/Benefits such as these are always “Grandfathered”

• Finally: If you want to take advantage – do so before 1st April 2012.

This presentation is available at

http://www2.env.uea.ac.uk/cred/creduea.htm