Energy Saving Trust

Energy Saving Trust

Ruth Wharton

ruth.wharton@est-tvs.org.uk

Regional Microgeneration Coordinator

A non-profit organisation here to help people to save money.

Providing a free & impartial service without trying to sell you anything.

www.energysavingtrust.org.uk

0800 512 012

Advice Provision

• Renewable Energy training audit

• City & Guilds 6176-02 (Feb/March)– ‘Renewable Energy in the Home’ course

• 2 microgeneration advisors

• Advisor CPD for microgeneration– In house technology training– Presentations– External visits

Supply Chain

• Contacting all MCS certificated installers

• Letter and ‘Expressions of Interest’ form

• Certified installer network• Signposting service process

– Working with London MG coordinator

• Establishing renewable installations– HECs, contact centre & outreach events

South East Installers

81 certificated

installers– 57 Solar thermal– 9 Wind turbine– 1 Hydro– 26 Heat pumps– 4 Biomass– 32 Solar PV

26 registered for signposting service

Total number of commited LCBP grant applications (April '06 - Jan '10)

0

500

1000

1500

2000

2500

3000

3500

4000

Region

Nu

mb

er

of

gra

nts

Domestic LCBP grants uptake

3458

Domestic LCBP grants uptake

Technologies installed in the South East (April '06 - Jan '10)

129

5

144

1240

1812

62 66

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Air SourceHeat Pump

BiomassRoom

Heater/Stove

GroundSource Heat

Pump

SolarPhotovoltaic

Solar ThermalHot Water

Wind Turbine Wood FuelledBoiler System

Technology

Nu

mb

er

of

gra

nts

Domestic LCBP grants uptake

South East counties installations (April '06 - Jan '10)

250223

379

610577

436

518465

0

100

200

300

400

500

600

700

Counties

Nu

mb

er

of

gra

nts

Sector Development

• Develop MCS certification assistance process– Advertise to non-certified installers

• Marketing to installers and consumers• Trade bodies (magazines)• Local authority network meetings• Regional planning permission pack• Installer evening

– London, 31st March

Regional projects

• European funding– Power programme / INTERREG

• DeCReASE– Delivering Carbon Reduction Across the

South East

• BIOMAGIC

• Microgen support service trial– Spin off from the Home Action Plan

Feed in tariffs

Financial Incentives LCBP

- Additional £45 million allocated to LCBP 22nd April 2009- No longer available for electricity generating technologies

(closed 3rd Feb 2010)- Available until April 2011 for heat generating technologies

• Phase 1– Residential– Max £2,500 / house– £30M budget– £18M spent

• Phase 2 - Extended– Public sector & charities– Additional £39 million

allocated 22nd April 2009– Upper limits per project

• 300kW heat

• 50% of the cost

• £200,000 maximum

LCBP Phase 1 (domestic) Grants

Technology Maximum Amount of Grant

Solar thermalOverall max of £400 or 30% of the relevant eligible costs, whichever is lower.

GSHPOverall max of £1,200 or 30% of the relevant eligible costs, whichever is lower.

ASHPOverall max of £900 or 30% of the relevant eligible costs, whichever is lower.

Wood pellet heaters

Overall max of £600 or 20% of the relevant eligible costs, whichever is lower.

Wood fuelled boiler

Overall max of £1,500 or 30% of the relevant eligible costs, whichever is lower.

Policies and targets

• Requires electricity suppliers (e.g. E.On, British Gas…) to gain a certain percentage of the electricity they supply from renewable sources.

• Targets:

– 15.4% electricity from renewable sources by 2015

– 30% electricity from renewable sources by 2020

Financial Incentives FITs

• Non-generation household

• Only imports electricity

• Billed by their supplier based meter readings on kWh imported Import (I):

3000kWh

Usage (U): 3000kWh

Financial Incentives FITs

Illustration of potential electricity flows for an on-site generator

Generating unit

Export (E): 1000kWh

Import (I): 1500kWh

Usage (U): 3000kWh

Offset (O): 1500kWh

Generate (G): 2500kWh

Financial Incentives FITs

Illustration of potential electricity flows for an on-site generator

Generating unit

Export (E): 1000kWh

Import (I): 1500kWh

Usage (U): 3000kWh

Offset (O): 1500kWh

Generate (G): 2500kWh

3p/kWh(or open market)

Export tariff

Differs bytechnology

and by scale

Generation tariff

Avoided costs

Import tariff

Illustration of potential electricity flows for an on-site generator

– Annual consumption (an example)

Financial Incentives FITs

Generation tariff: 41.3p/kWh

£1032.50

Export tariff: 3p/kWh

£30.00

Import tariff: 10.5p/kWh

£157.50

TOTAL £905.00

Eligibility & Payment

• 5MW limit (= 5000kW)

• Wide range of technologies– Wind

– Solar PV

– Hydro

– ...and more...

• Accreditation– Product and installer MCS certificated

• Payments to be made by suppliers

Degression

• The consumer will receive the same generation tariff for the lifetime

• Degression of generation tariff is applied to some technologies– Reflects, and to some extent encourages,

cost reductions over time due to learning, scale of production etc

– A feature of international best practice– Will be in place from year 3

Table of tariffs up to 2013(Systems installed from 1st April ‘10)

Export tariff = 3p/kWh

Technology Scale

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

[NB tariffs will be inflated annually] Tariff lifetime (years)Year 1:

1/4/10 – 31/3/11

Year 2: 1/4/11 – 31/3/12

Year 3: 1/4/12 – 31/3/13

Anaerobic digestion ≤500kW 11.5 11.5 11.5 20

Hydro ≤4kW (new build) 19.9 19.9 19.9 20

PV ≤4kW (retrofit) 36.1 36.1 33.0 25

PV ≤15kW 41.3 41.3 37.8 25

Wind ≤1.5kW 34.5 34.5 32.6 20

Wind >1.5-15kW 26.7 26.7 25.5 20

Not the full list of tariffs. Only those most relevant to domestic properties.

Systems installed before 31st March

• MCS certificated, inform energy supplier• Not MCS certificated, approach Ofgem for

accreditation under the RO

• Systems installed before 15th July 2009– Reduced generation tariff, 9p/kWh

• Systems installed 15th July 2009 – 31st March 2010– Will be treated as if they were installed on the 1st

April 2010

Thank you for listening

Any questions?