Rob Snaith Micro-Renewables and Microgeneration Specialist Energy Saving Scotland advice centre Highlands and Islands 17th April 2010 Financial Incentives for Renewable Energy

Our Service – 3 Levels Initial advice / literature sent out More in-depth telephone advice Free Home Renewables Visit

Renewables Home Visit Service Free home visit – for customers with a serious and realistic interest in installing renewables Reduced SAP survey on household Impartial advice and recommendations on practical energy efficiency measures and renewable technologies Advice on grants, incentives, and next steps to take We try to advise on practical options for customer in their current circumstances, but also for the property in general should they decide to sell

Importance of Thermal EfficiencyImportance of Thermal Efficiency –Not going to get the best out of a system if the energy created is being lost straight away: Loft insulation up to regulation levelLoft insulation up to regulation level Cavity wall insulation if relevantCavity wall insulation if relevant Well-fitted windows with draught proofingWell-fitted windows with draught proofing Draught proofing on doorsDraught proofing on doors External wall and under-floor insulationExternal wall and under-floor insulation First Things First

Heat Producing TechnologiesHeat Producing Technologies 1)Biomass 2)Solar Hot Water 3) Heat Pumps (ground/ air & water) Electricity Producing TechnologiesElectricity Producing Technologies 4) Micro Wind 5) Solar Photovoltaics (PV) 6) Micro Hydro Systems

Stoves or larger scale boilers used to burn wood, generally in one of three forms: chips, logs or pellets Stoves or larger scale boilers used to burn wood, generally in one of three forms: chips, logs or pellets High degree of control High degree of control Most efficient when working hard, so good for less well-insulated homes Most efficient when working hard, so good for less well-insulated homes Need space for the burner and suitable, dry, storage space for the fuel. Chips are least efficient so need most space, then logs, then high density pellets Need space for the burner and suitable, dry, storage space for the fuel. Chips are least efficient so need most space, then logs, then high density pellets Stand alone room heaters cost around £2000, larger scale boiler to provide heat for an average 3 bedroom home would be about £10,000 Stand alone room heaters cost around £2000, larger scale boiler to provide heat for an average 3 bedroom home would be about £10,000 For system to be considered truly ‘renewable’, need a local, sustainable supply For system to be considered truly ‘renewable’, need a local, sustainable supply Biomass

Pellet boiler. Pellet Room Stove.

Can provide 100% of household hot water needs in the Summer & 50% over the year Requires 3-4m 2 south facing roof space Costs £3000-£4500 Can be over-sized to provide some space heating as well Needs a large, dual coil hot water cylinder Solar Thermal

Heat Pumps Extracts heat from natural sources (ground/air/water). Ground source can be horizontal trench or vertical borehole Home needs to be well insulated Costs roughly around £1000 per thermal kW, domestic installation ranges from £6000- £15,000 Ground source tends to be more expensive due to digging/drilling costs

Micro Wind Ideally a high location, such as the brow of a hill, with very little nearby obstruction to reduce wind speed or create turbulence Ideally a high location, such as the brow of a hill, with very little nearby obstruction to reduce wind speed or create turbulence A local average wind speed of 6m/s or more. This can be checked on government website A local average wind speed of 6m/s or more. This can be checked on government website Systems vary greatly in size and cost, a small 1kW roof mounted turbine can be installed for around £1500, larger mast mounted systems up to 6kW can cost up to £20,000 Systems vary greatly in size and cost, a small 1kW roof mounted turbine can be installed for around £1500, larger mast mounted systems up to 6kW can cost up to £20,000 For roof mounted turbines, need to consider structural integrity of the building due to added weight and vibrations For roof mounted turbines, need to consider structural integrity of the building due to added weight and vibrations Usually need full planning permission Usually need full planning permission

Solar Photovoltaics (PV) Converts sunlight into direct current A typical 1.5kWp (12 panels) domestic array will meet 1/3 rd annual household electricity requirement Will need 12-15m 2 south facing roof space, roof pith of 35 o is optimal. Need direct sunlight, so any shading has a major effect on efficiency. Costs around £9000 for 1.5kWp

Micro Hydro Converts potential energy of water into mechanical and electrical energy Key factors for the site are head and flow Design and sizing is very site-specific 50m head with flow speed of 15l/s could produce around 3.5kW and would cost around £10,000 Lower head sites tend to be more expensive due to larger turbine and civil costs Planning and water abstraction licence will be required

Financial Incentives Energy Saving Scotland Home Renewables Grant Energy Saving Scotland Home Loan Low Carbon Buildings Programme Clean Energy Cashback / Feed In Tarrif Renewable Heat Incentive All require MCS accredited products, list can be found at:

30% grant up to maximum £ % grant up to maximum £4000 Covers automated wood fuel systems, heat pumps and solar thermal installations Covers automated wood fuel systems, heat pumps and solar thermal installations Have to have relevant energy efficiency measures installed. Have to have relevant energy efficiency measures installed. 2 grants per property allowed 2 grants per property allowed Energy Saving Scotland home renewables grant For heat-producing technologies in existing homes

Energy Saving Scotland Home Loan For all renewable technologies, and insulation works in existing homes Interest free loan, with 8 year payment period Maximum level for electricity producing technologies is £4000, for heat producing technologies it’s £ Technology needs to have been recommended in a Home Renewables Vist or Energy Performance Certificate

Low Carbon Buildings Programme (LCBP) For heat-producing technologies in new-builds UK Government grant scheme Different funding levels for different technologies Automated stoves – 20% to max. £600 Boilers Systems – 30% to max. £1500 Can apply for 3 different technologies, with an overall maximum of £2500

Clean Energy Cashback Incentive for electricity producing technologies, from April 2010 Generation Tariff – Set payment for every kilowatt generated Export Tariff – Flat rate of 3p per kW, or customer can negotiate separate deal with energy company Installations commissioned from 15 th July 2009 are eligible for full tariff Further information, including payback calculator at:

Renewable Heat Incentive (RHI) Scheme similar to Clean Energy Cashback, but for heat producing technologies Expected to start in April 2011, under consultation at the moment so no details confirmed yet. Proposals are: Small scale biomass installations will receive 9 pence per kilowatt hour Output will not be metered, but ‘deemed’ – based upon reasonable heat requirement which the installation is intended to serve Payments will last for the expected lifetime of technology, 15 years for domestic wood-fuel systems. Consultation documents can be found here:

Renewable Heat Incentive (RHI) Worked Example Average 3 bed semi-detached house with decent insulation, likely to have a deemed heat requirement of around kWhr / year Wood fuel boiler system costing around £10 000, minus 30% grant gives £7000 RHI would give an annual payment of x 9 pence = £ per year, for 15 years. Therefore simple payback period is £7000 / £1170 = 6 years

Thanks and time for questions/comments