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WHAT’S GOING TO MAKE BUILDINGS GO RENEWABLE? TONY NORTON The latest on Buildings and renewable energy Bristol Hotel, 22nd July 2010 Genesis Centre, Taunton 11th May 2010 Tony Norton, head of low carbon development

Carbon reduction targets  EU level  National level

20% CO2 reduction by 2020 20% of energy from RE by 2020

34% CO2 reduction by 2020 80% CO2 reduction by 2050 15% of energy from RE by 2020 Zero carbon homes by 2016 Zero carbon public sector buildings 2018 Zero carbon buildings by 2019

The size of the challenge

20%

25

20

Renewable generation TWh

15%

15

10

Severn tidal

5

offshore wind marine energy transport onshore wind 0 Existing

Scenario 1

Scenario 2

Scenario 3

built environment - existing built environment - new LfG, biomass, hydro, EfW, AD Energy efficiency and demand red'n

-5

Existing

Current Achieving Policy to 2020 15% As of September 2008

Achieving 20%

Policy to drive low & zero carbon STICKS

Planning policy Regulation

PPS1 supplement & consultation

Compared to 2006 Part L Equal to CO2 emission reduction for:

Oct 2010

2013

2016

- 25% CO2

- 44% CO2

Zero carbon

Code Level 3 

Code Level 4 

Code Level 6 

CARROTS

Market competition Incentives

New build CSH & BREEAM Existing buildings EPC‟s, DECs

FIT and RHI

Regulation - zero carbon Remaining 30% regulated + all unregulated

3 3 2 2 1 1

Cost not exceeding £100 per tonne CO2

- More on site - Exported heat / coolth - s106 - Control/appliances - Direct elec. - Investment -Others

70% of regulated 20-25% of regulated

Zero carbon energy efficiency standard

Zero carbon energy efficiency standard

Zero carbon energy efficiency standard

46kWh/m2/yr 39 kWh/m2/yr

Renewable resources in the SW

Source: CIBSE Solar Heating Design & Installation Guide

Source: GOSW, REvision 2020

Feed-in Tariffs (FITs) • New Government financial incentive for all renewable electricity up to 5MW

• Based on very successful schemes elsewhere such as in Germany • Started 1 April 2010

• Designed to provide 5-8% return on investment • Different tariffs depending on type and scale of technology • Paid for all electricity generated and not just that exported to the grid • 3p/kWh extra if you export to the grid • Various eligibility criteria

Feedin Tariff levels

Tariff level for new installations in period (p/kWh) [nb tariffs will be inflated annually] Technology

Tariff lifetime (years)

Scale Year 1: Year 2: Year 3: 1/4/101/4/111/4/12-31/3/13 31/3/11 31/3/12

Anaerobic digestion

=500kW

11.5

11.5

11.5

20

Anaerobic digestion

>500kW

9

9

9

20

Hydro

=15 kW

19.9

19.9

19.9

20

Hydro

>15-100 kW

17.8

17.8

17.8

20

Hydro

>100 kW-2 MW

11

11

11

20

Hydro

>2 MW – 5 MW

4.5

4.5

4.5

20

MicroCHP pilot*

=2 kW*

10*

10*

10*

10

PV

36.1

33

25

PV

=4 kW (new 36.1 build**) =4 kW (retrofit**) 41.3

41.3

37.8

25

PV

>4-10 kW

36.1

36.1

33

25

PV

>10-100 kW

31.4

31.4

28.7

25

PV

>100kW-5MW

PV Wind

Stand system** =1.5kW

Wind

29.3

29.3

26.8

25

alone 29.3

29.3

26.8

25

34.5

34.5

32.6

20

>1.5-15kW

26.7

26.7

25.5

20

Wind

>15-100kW

24.1

24.1

23

20

Wind

>100-500kW

18.8

18.8

18.8

20

Wind

>500kW-1.5MW

9.4

9.4

9.4

20

Wind

>1.5MW-5MW

4.5

4.5

4.5

20

9

9

to 2027

Existing microgenerators transferred from the 9 RO

How the Feed-in Tariff works Use 800kWh £104 saved

2kW peak solar PV

Export 800kWh Income £24

Generates 1,600kWh Income £661

TOTAL ANNUAL BENEFIT = £789

In almost all cases, you will still need to buy electricity from the grid

Renewable Heat Incentive (RHI) • Out for consultation under the previous Government

• New Government financial incentive for renewable heat • First country in the world to introduce • Proposed to start 1 April 2011

• Designed to generate 12% return on investment, apart from solar thermal (6%) • Different tariffs depending on type and scale of technology

• Various eligibility criteria • New Government “committed to increasing the amount of renewable heat in the UK” & is currently looking at the RHI & will make an announcement “as soon as possible”

Solid biomass Bioliquids Biogas on-site combustion

Up to 45kW Up to 45kW Up to 45kW

9p/kWh 6.5p/kWh 5.5p/kWh

Deemed Deemed Deemed

Tariff lifetime (years) 15 15 10

Ground source heat pumps Air source heat pumps Solar thermal

Up to 45kW

7p/kWh

Deemed

23

Up to 45kW Up to 20kW

7.5p/kWh 18p/kWh

Deemed Deemed

18 20

Technology

Technology

Scale

Scale

Proposed tariff

Proposed tariff

Deemed or metered

Deemed or metered

Tariff lifetime (years) 15 15

Solid biomass

45-500 kW

6.5p/kWh 2p/kWh (fueltariff)

Deemed Optional: for metered kWh above deemed number of kWh

Biogas on-site combustion

45-200 kW

5.5p/kWh

Deemed

Ground source heat pumps Air source heat pumps

45-350 kW

5.5p/kWh

45-350 kW

2p/kWh

Deemed

20

Solar thermal

20-100 kW

17p/kWh

Deemed

20

Technology Solid biomass Ground source heat pumps

Scale 500 kW & above 350 kW & above

Proposed tariff 1.62.5p/kWh 1.5p/kWh

Deemed

Proposed RHI levels

10 20

Metered

Tariff lifetime (years) 15

Metered

20

Deemed or metered

Small installations

Medium installations

Large installations

!! Important !! • To be eligible for the Feed-in Tariff (FITs) or the Renewable Heat Incentive (RHI) your installation must be installed by a Microgeneration Certification Scheme (MCS) approved installer using a MCS approved product • List of SW based MCS installers, which is updated weekly, available from www.regensw.co.uk/projects/microgeneration

www.microgenerationcertification.org

The Coalition Government „I want this to be the greenest Government ever‟

Eric Pickles Secretary of State

“Expensive and unnecessary” ref. suspension of CSH rating for new homes „I endorsed the concept of building all new homes to a zero carbon standard, and that remains my position‟

Grant Shapps Minister for housing and local government

„I will be publishing a final zero carbon definition in a matter of weeks‟

„The renewables industry will come of age under this Government...our coalition agreement is explicit in its support for the sector‟ „I want to see more homes, communities and businesses generating their own energy‟ & „work with industry to overcome the challenges it is facing. „ „We are committed to an ambitious renewable heat agenda‟. „renewable heat will be a key part of‟ our strategy‟

Chris Huhne Secretary of State

Greg Barker Minister for climate change

CLG structural reform plan 8th July

WHAT’S GOING TO MAKE BUILDINGS GO RENEWABLE? TONY NORTON The latest on Buildings and renewable energy Bristol Hotel, 22nd July 2010 Genesis Centre, Taunton 11th May 2010 Tony Norton, head of low carbon development