Introduction to PV - Regensw
Introduction to PV
David Rizzo Head of Energy Solutions – Wales and West British Gas Community Energy
Agenda
Introduction Feed In Tariffs Assessing viable installations Best Options Rent a Roof v Investment Process What can be installed Return on Investment Micro Generation in the SW – FiT/RHI
Close
FAQ’s
Introduction: the Feed in Tariff (FiT)
How it Works Generation Tariff - This is a set tariff through the selected energy supplier the generator a set amount for every unit of electricity your PV system generates until Apr 2035.**
The scheme will support the following up to a 5MW limit.
There are three key areas where a FiT installation programme can deliver real benefit to your community:
Hydro Wind
Export Tariff - This is the amount earned related to electricity generated (or deemed exported) which is exported back to the national grid.**
Why it Works
Technology Available
1
It reduces carbon emissions
2
Helps tackle Fuel Poverty
3
A Cost Neutral proposition
Solar*** Micro CHP (maximum of 30,000 installs)
Avoided Costs - These are the savings you should make on your electricity bill by not having to import electricity from the national grid, and by generating your own electricity ‘on-site’. **DECC assume a 50/50 split between Generation and Export and payments will be made accordingly
***Our propositions are centred on Solar PV due to our extensive working knowledge in the area however we can support other technologies if required
The requirements for the optimum PV installs
Optimum property Requirements: Roof Internal
Roof orientation South
Roof Tilt15-35o
Roof Condition Good
Suitable Electrical systems
Credit meter preferred Roof size >16m2
Space for generation meter
No Shading
Desktop surveys can prioritise properties for full technical survey. Do you prioritise on FiT returns or number of installations?
Other Scaffolding access
Tenant agreement
Generation meter space
A tried and tested approach which takes into account thousands of PV installs
The European Commission database of solar radiation provides a low-cost method for modelling kWh output per kWp taking into account location, orientation and tilt of the installed panels.
kWh Generation Inputs
Panel Efficiency
System size
Over 60% of the total annual production occurs Apr-Aug 500 450 400 Average monthly production (kWh)
Each technical survey provides detailed output expectations based on the location specific measurements taken during the visit.
Monthly Forecast Production of a 4kWp Unit
350 300 250
200 150 100
Roof Tilt 50 0 Jan
Roof orientation
Seasonal insolation
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Number of properties you can typically expect to have the potential for PV For every 100 Social Housing properties we generally see the following…
75 will have inadequate roof space
24 will not be south facing
15 will have inadequate electrics
10 will be optimal for PV
12 will have no space for scaffolding
16 will have shaded roofing
39 will have a prepay meter
Rent a Roof v Self Investment: A return on Investment Model example The decision will ultimately depend on available funds & appetite for risk. System Specification
3.68KWp
Cost of System
£11,000
£8,300
£7,995
Electricity Generation
3157kwh
1973kwh
1544kwh
RPI
3%
3%
3%
FiT Inflation
3%
3%
3%
Annual Maintenance & Insurance
70
70
90
IRR
12.65%
7.94%
7.05%
2.30KWp
1.8KWp
So if you are borrowing or have a cost of capital of 8.5% you have a negative NPV on a 2.3kwp system.
From the initial engagement through to commissioning
1
2
3
Tenant Engagement
Technical survey
Communications, letters, news items, community involvement day
4 Planning Permission (where req’d)
5 DNO Liaison/ Applications
6 Operational Planning
7 Installation day
Commissioning Day
Standard process: - Arrive and set up - Review plan for installation with household - Prepare materials and safety measures - Install panels and DC, then inverter and AC - Check installation and clean up site
Checks inside the property: - Meter compatibility - Suitable location for inverter, - Wiring - Generation meter
Standard process: - Arrive and review install - Explain commissioning and operation of equipment - Householder sign-off
Central to the success of this programme will be setting a challenging yet realistic installation run-rate
The South West in particular offers a natural opportunity for organisations to take advantage of both FiT and RHI
Feed in Tariff
The South West has the best solar irradiation levels in the UK, with PV systems generating relatively large amounts of electricity and therefore larger FIT revenues, compared to other regions of the UK.
Renewable Heat Incentive
The solar energy stored in the naturally found granite bedrock in the South West, acts as an initial heat source and supports improved conditions for heat pump installations.
9
Where does Renewable Heating fit into our Homes? Heating via ground Source heat pump or Wood Fuel heating
Low temperature Radiators or Underfloor Unvented hot water / thermal energy storage Hot water from a combination of solar thermal and heat pump Renewable Gas supply
London & Quadrant’s £20m PV programme & Learning's
Once the scheme was awarded to them, “British Gas carried out desktop and technical surveys in parallel and were on site installing on our properties within 5 working days of contract signature. Robin Feeley Head of Sustainable Development London & Quadrant
However on other occasions there have been barriers that have prevented initiatives from meeting their proposed timelines: + DNO Cost + Internal Stakeholder management
Toyota - Biggest solar array in UK •
The largest industry connected solar array in the UK.
•
The system will generate 3.6 million kWh of electricity per year from 16,800 Sharp solar panels (245w each), connected by 100 km of cable. It covers land equivalent to 14 football pitches and generates enough power to provide electricity for over 1,000 homes each year.
•
Construction started in May on the multi million £ project, which will supply 5 per cent of Toyota’s energy needs and save 2,000 tonnes of CO2 per year. The project is on track to begin delivering power to Toyota in July
Toyota’s plant in Burnaston, Derbyshire
Walking The Walk . Philip Hammond MP, Secretary of State for Transport, unveils the first of British Gas' new fully electric and solar powered cars. The Nissan LEAFs will be used by staff at offices in Staines and Windsor. Both sites have solar-powered charging canopies.
The unveiling comes as British Gas announced its aim to have 1,000 electric vans being used by British Gas heating engineers by 2015, starting with 25 next year.
British Gas will also supply and install vehicle charge points for Renault's new range of zero emission fully-electric vans and cars across Britain. The deal builds on the agreement with Nissan to be the preferred supplier of charge points to their electric car in the UK – the Nissan Leaf.
FAQ’s
Q. How much is the maintenance
A. Annual remote monitoring = £25
cost?
Exception visit =£45 (where not covered under warranty)
A. If there is a lease on the roof then the RTB purchaser can take the property with the lease and continue to benefit from free electricity
Q. What about Right to Buy?
If you have a licence agreement for the roof then you can either create a lease or include the NPV of the future FIT payments in the purchase price. The new owner will then receive the FIT as well as the electricity The RTB purchaser could also pay the NPV buy-out price and remove the panels.
Q. How much do I need to budget for Insurance?
Q. Will there be any DNO costs?
Q. Can you install with prepayment meters?
A. The owner of the equipment will normally insure. Expect to pay 0.3 – 0.5% of the installation cost a year although it may be possible to add the installations to your block insurance policy.
A. There is an administration cost to submitting G83 applications. The DNO can ask for infrastructure contributions if they need to strengthen the grid. We have seen this in rural areas but not yet in the South East..
A. There is nothing stopping you from installing where there is a prepayment meter. The issue comes where the meter runs out of credit and disconnects. At this point the inverter will cease to operate and no electricity will be generated or exported.
Contact details
David Rizzo Head of Energy Solutions – Wales and West
British Gas Community Energy 07979 567394
[email protected]
britishgas.co.uk/communityenergy
David Rizzo Head of Energy Solutions – Wales and West British Gas Community Energy
Agenda
Introduction Feed In Tariffs Assessing viable installations Best Options Rent a Roof v Investment Process What can be installed Return on Investment Micro Generation in the SW – FiT/RHI
Close
FAQ’s
Introduction: the Feed in Tariff (FiT)
How it Works Generation Tariff - This is a set tariff through the selected energy supplier the generator a set amount for every unit of electricity your PV system generates until Apr 2035.**
The scheme will support the following up to a 5MW limit.
There are three key areas where a FiT installation programme can deliver real benefit to your community:
Hydro Wind
Export Tariff - This is the amount earned related to electricity generated (or deemed exported) which is exported back to the national grid.**
Why it Works
Technology Available
1
It reduces carbon emissions
2
Helps tackle Fuel Poverty
3
A Cost Neutral proposition
Solar*** Micro CHP (maximum of 30,000 installs)
Avoided Costs - These are the savings you should make on your electricity bill by not having to import electricity from the national grid, and by generating your own electricity ‘on-site’. **DECC assume a 50/50 split between Generation and Export and payments will be made accordingly
***Our propositions are centred on Solar PV due to our extensive working knowledge in the area however we can support other technologies if required
The requirements for the optimum PV installs
Optimum property Requirements: Roof Internal
Roof orientation South
Roof Tilt15-35o
Roof Condition Good
Suitable Electrical systems
Credit meter preferred Roof size >16m2
Space for generation meter
No Shading
Desktop surveys can prioritise properties for full technical survey. Do you prioritise on FiT returns or number of installations?
Other Scaffolding access
Tenant agreement
Generation meter space
A tried and tested approach which takes into account thousands of PV installs
The European Commission database of solar radiation provides a low-cost method for modelling kWh output per kWp taking into account location, orientation and tilt of the installed panels.
kWh Generation Inputs
Panel Efficiency
System size
Over 60% of the total annual production occurs Apr-Aug 500 450 400 Average monthly production (kWh)
Each technical survey provides detailed output expectations based on the location specific measurements taken during the visit.
Monthly Forecast Production of a 4kWp Unit
350 300 250
200 150 100
Roof Tilt 50 0 Jan
Roof orientation
Seasonal insolation
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Number of properties you can typically expect to have the potential for PV For every 100 Social Housing properties we generally see the following…
75 will have inadequate roof space
24 will not be south facing
15 will have inadequate electrics
10 will be optimal for PV
12 will have no space for scaffolding
16 will have shaded roofing
39 will have a prepay meter
Rent a Roof v Self Investment: A return on Investment Model example The decision will ultimately depend on available funds & appetite for risk. System Specification
3.68KWp
Cost of System
£11,000
£8,300
£7,995
Electricity Generation
3157kwh
1973kwh
1544kwh
RPI
3%
3%
3%
FiT Inflation
3%
3%
3%
Annual Maintenance & Insurance
70
70
90
IRR
12.65%
7.94%
7.05%
2.30KWp
1.8KWp
So if you are borrowing or have a cost of capital of 8.5% you have a negative NPV on a 2.3kwp system.
From the initial engagement through to commissioning
1
2
3
Tenant Engagement
Technical survey
Communications, letters, news items, community involvement day
4 Planning Permission (where req’d)
5 DNO Liaison/ Applications
6 Operational Planning
7 Installation day
Commissioning Day
Standard process: - Arrive and set up - Review plan for installation with household - Prepare materials and safety measures - Install panels and DC, then inverter and AC - Check installation and clean up site
Checks inside the property: - Meter compatibility - Suitable location for inverter, - Wiring - Generation meter
Standard process: - Arrive and review install - Explain commissioning and operation of equipment - Householder sign-off
Central to the success of this programme will be setting a challenging yet realistic installation run-rate
The South West in particular offers a natural opportunity for organisations to take advantage of both FiT and RHI
Feed in Tariff
The South West has the best solar irradiation levels in the UK, with PV systems generating relatively large amounts of electricity and therefore larger FIT revenues, compared to other regions of the UK.
Renewable Heat Incentive
The solar energy stored in the naturally found granite bedrock in the South West, acts as an initial heat source and supports improved conditions for heat pump installations.
9
Where does Renewable Heating fit into our Homes? Heating via ground Source heat pump or Wood Fuel heating
Low temperature Radiators or Underfloor Unvented hot water / thermal energy storage Hot water from a combination of solar thermal and heat pump Renewable Gas supply
London & Quadrant’s £20m PV programme & Learning's
Once the scheme was awarded to them, “British Gas carried out desktop and technical surveys in parallel and were on site installing on our properties within 5 working days of contract signature. Robin Feeley Head of Sustainable Development London & Quadrant
However on other occasions there have been barriers that have prevented initiatives from meeting their proposed timelines: + DNO Cost + Internal Stakeholder management
Toyota - Biggest solar array in UK •
The largest industry connected solar array in the UK.
•
The system will generate 3.6 million kWh of electricity per year from 16,800 Sharp solar panels (245w each), connected by 100 km of cable. It covers land equivalent to 14 football pitches and generates enough power to provide electricity for over 1,000 homes each year.
•
Construction started in May on the multi million £ project, which will supply 5 per cent of Toyota’s energy needs and save 2,000 tonnes of CO2 per year. The project is on track to begin delivering power to Toyota in July
Toyota’s plant in Burnaston, Derbyshire
Walking The Walk . Philip Hammond MP, Secretary of State for Transport, unveils the first of British Gas' new fully electric and solar powered cars. The Nissan LEAFs will be used by staff at offices in Staines and Windsor. Both sites have solar-powered charging canopies.
The unveiling comes as British Gas announced its aim to have 1,000 electric vans being used by British Gas heating engineers by 2015, starting with 25 next year.
British Gas will also supply and install vehicle charge points for Renault's new range of zero emission fully-electric vans and cars across Britain. The deal builds on the agreement with Nissan to be the preferred supplier of charge points to their electric car in the UK – the Nissan Leaf.
FAQ’s
Q. How much is the maintenance
A. Annual remote monitoring = £25
cost?
Exception visit =£45 (where not covered under warranty)
A. If there is a lease on the roof then the RTB purchaser can take the property with the lease and continue to benefit from free electricity
Q. What about Right to Buy?
If you have a licence agreement for the roof then you can either create a lease or include the NPV of the future FIT payments in the purchase price. The new owner will then receive the FIT as well as the electricity The RTB purchaser could also pay the NPV buy-out price and remove the panels.
Q. How much do I need to budget for Insurance?
Q. Will there be any DNO costs?
Q. Can you install with prepayment meters?
A. The owner of the equipment will normally insure. Expect to pay 0.3 – 0.5% of the installation cost a year although it may be possible to add the installations to your block insurance policy.
A. There is an administration cost to submitting G83 applications. The DNO can ask for infrastructure contributions if they need to strengthen the grid. We have seen this in rural areas but not yet in the South East..
A. There is nothing stopping you from installing where there is a prepayment meter. The issue comes where the meter runs out of credit and disconnects. At this point the inverter will cease to operate and no electricity will be generated or exported.
Contact details
David Rizzo Head of Energy Solutions – Wales and West
British Gas Community Energy 07979 567394
[email protected]
britishgas.co.uk/communityenergy
