AGENDA ITEM 6

BOROUGH OF POOLE

ENVIRONMENT OVERVIEW AND SCRUTINY COMMITTEE

1 MAY 2014

BOROUGH OF POOLE CIVIC CENTRE MULTI-STOREY CAR PARK SOLAR PV SYSTEM

PART OF THE PUBLISHED FORWARD PLAN NO

STATUS (Strategic)

1. PURPOSE

1.1 To seek the support of Members for the proposal to construct a 534 panel solar photovoltaic array to over-cover floor J of the Civic Centre multi storey car park.

2. RECOMMENDATION

2.1 Members are requested to recommend the proposal to over-cover floor J of the Civic Centre Multi Storey car park with solar PV panels to Cabinet.

3. BACKGROUND/INFORMATION

3.1 As a signatory of the Covenant of Mayors the Borough of Poole made a commitment to reduce Borough-wide emissions by more than 20% by 2020. The Borough is also a signatory of the Bournemouth, Dorset and Poole Renewable Energy Strategy which sets a target of 7.5% of energy consumed to be generated by local renewable sources. This project will enhance the Borough of Poole’s green leadership credentials.

3.2 Solar Photovoltaic (PV) technology and familiarity has advanced greatly over recent years and this project is an opportunity developed through the Poole Environment Partnership.

3.3 There are a number of benefits to installing a solar panel roof on the MSCP. The Borough will not only benefit from a reduction in energy costs (11.503p/kWh) but also income from the Government’s Feed-in Tariff scheme (9.64p/kWh)1 for 20 years. By having a sizeable source of on-site energy supply the resilience of the Civic Centre to potential energy blackouts would

1 Confirmed until 1 July 2014 https://www.ofgem.gov.uk/ofgem-publications/85846/010214rpiadjustedtariffspv1.pdf

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be improved.2 Finally, a roof would be supplied for part of the top floor of the car park, protecting the vehicles against excessively hot or inclement weather.

3.4 An Energy Performance Assessment has been carried out for the Civic Centre; see Annex A, and has achieved a D rating which will allow the system to achieve the higher rate of solar PV feed-in tariff.

3.5 The project concept was presented and has been supported by the corporate change board to move to the detailed design phase. This will be available for consideration by Cabinet.

3.6 The concept is that a roof will be constructed over floor J of the Car Park only, the level nearest Commercial Road. The roof would be slanted so that panels installed on it will face south, (the optimum direction for solar panels) but the angle of elevation will be less than the optimum to limit the increase in the height of the car park. See annex B for the design concept

3.7 The project outline is that the installation will consist of around 534 solar panels covering an area of around 966m2 and producing 133kWh at peak output. The system would generate an estimated 142,200kWh of electricity per annum (c.13% of the Civic Centre’s energy use, equivalent to £16,357). The system will also be expected to generate a feed-in tariff income of £13,708 meaning that the expected revenue and savings would be £30,065.

3.8 Maintenance of the panels in expected to be minimal as it is envisaged that they will be self-cleaning. Therefore a notional cost of £100 per annum has been factored into the financial calculations for completeness.

3.9 Colleagues in Planning and Regeneration have confirmed that this project would require planning permission and the cost of this has been factored into the project management costs detailed below. Transportation, Finance, Procurement and Legal Services units have been consulted on this project.

3.10 It is expected that this model could be replicated on other multi storey car parks in the Borough after it is successfully implemented at the Civic Centre.

3.11 The Poole Housing Partnership solar PV framework contract will be used to deliver this project.

4. FINANCIAL IMPLICATIONS

4.1 The estimated capital cost of the project would be £240,000 which includes the supply and fit of the panels and the structural work required but does not include project management fees. Project management fees are expected to be 5% of the project value (£12,000), estimated by PHP to cover all costs related to the project build including planning application. Factoring in a

2 Ofgem estimates the risk of blackouts in 2015 as 1 in 4 http://www.telegraph.co.uk/finance/newsbysector/energy/10145803/Risk-of-UK-blackouts-has-tripled-in-a-year-Ofgem-warns.html

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contingency of 15% (£37,800) this would bring the estimated capital cost of the project to £289,800.

4.2 Corporate Change Board indicated that the project be funded through borrowing via the Public Works Loan Board over a 20 year period at 4.15%. The interest payments over this period would total £125,114 bringing the 20 year cost of the project up to £414,944. Over 20 years we are expecting the combined savings and income from the project to be £627,740, delivering a 20 year Return on Investment (ROI) of 45%.

4.3 Projected costs and savings from the project are detailed in Annex C.

5. LEGAL IMPLICATIONS

5.1 None.

6. RISK MANAGEMENT IMPLICATIONS

6.1 The works on the car park will necessitate closure of the top two floors of the car park, J and K, for approximately two weeks. This will co-ordinated to minimise disruption as far as possible.

6.2 Subject to the final design there may be a need to provide lighting to the underside of the solar roof installation. The impact of the lighting will be costed and included in the post-design phase costings.

6.3 The solar PV system and installer will be suitably certified to ensure the system qualifies for FiT payments

6.4 The Government constantly reviews the level of FiT payments. There is, therefore, a danger that the current FiT level could drop before the project is implemented. To secure the current FiT tariff rate it is recommended that the work be project managed and delivered through the PHP solar framework.

6.5 Some public interest may be generated by this project and therefore a reputational risk exists

6.6 It is understood that the conditions of the PHP framework requires this project to be commenced by the end of September 2014. PHP are confident that this deadline can be met if the project receives final approval by the end of June.

6.7 The Borough of Poole’s Sustainable Energy Action Plan 2014-2020 sets out a target of a 30% reduction in Borough-wide CO2 emissions and sets a target to reduce emissions for Council buildings by 2020. This project would be a big step towards this and a demonstration of the Borough’s commitment to reduce energy use and increase efficiency.

7. EQUALITIES IMPLICATIONS

7.1 None

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8. CONCLUSIONS

8.1 The proposed project will represent the Borough’s commitment to the environment and offers a strong return on investment. Therefore, the project should be recommended to Cabinet for further consideration.

Paul Cooling x.3719

Carbon Reduction Manager

Background Papers

Annex A – Civic Centre Energy Performance CertificateAnnex B – Outline Project DesignAnnex C – Financial Information Table

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Annex A.

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Annex B.

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Annex C.Financial Information Table

Costs £Estimated Capital Costs (Supply and Fit) 240,000

Project Management (5%) 12,000Contingency (15%) 37,800

Total Figure to be borrowed 289,800Interest payments at 4.5% over 20 years 125,114

Total repaid over 20 years 414,914Maintenance at £100 per annum 2,000

Total 20 year Costs 416,914

Income/Savings £Reduction in Civic Centre Energy Use (11.503p/kWh) 16,357

Feed in Tariff payments (10.71p/kWh) 13,708Total per annum income /savings 30,065Total 20 year income/savings 601,300

Returnon Investment=(Total Income−Total Expenditure)Total Expenditure

Returnon Investment=(601,300−416,914)416,914

Returnon Investment=0.449=45%

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