Mat Colmer Energy Saving Trust DTI Low Carbon Buildings Programme

Market Transformation R&D Demonstration and early adopter Mass market adopter Late adopter Support Marketing Regulation Grants

Aims of the programme Phase 1 of the Low Carbon Buildings Programme is a demonstration scheme Raise awareness by linking demonstration with wider programme of activities Measure trends in costs of microgeneration technologies Reduce carbon emissions from buildings by combining energy efficiency measures and microgeneration products

Available funding Phase 1 £34.5m Stream 1 Householders Stream 2 2A (retrofit) Private sector 2B (new build & refurbishment) Public & private sector Phase 2 £50m Public sector & charitable organisations

Electricity Heat Solar Photovoltaics Wind turbineHydro turbine Heat pumpBiomassSolar thermal hot water Stream 1 Householders Programme re-launch on May 29th Online application system available on the programme website Provisionally accredited installers online 1st come 1st served – no monthly cap Maximum grant amount of £2,500 per property Planning permission must have been sought prior to grant application Grants are time limited

Electricity Heat Solar Photovoltaics Wind turbineHydro turbine Heat pumpBiomassSolar thermal hot water Max. £2,500 Stream 1 Householders Max. £400Max. £1,200 Max. £600 (stoves) £1,500 (boilers)

Householder current allocations TechnologyCommitted £No.s committed Paid £No.s paid Total apps Biomass room heater £5,56311£1, GSHP£287,500240£124, Hydro£19,3005£005 PV£3,896,337527£2,290, SWH£781,5161,955£603,1171,5092,469 Wind£1,635,3791,390£473, ,697 Biomass boiler£147,047101£69, Total £6,772,6424,229£3,563,0852,2375,326 Data as at 14 th May 2007

Stream 1 applications by technology Data as at 14 th May 2007

Stream 1 allocations (£) by technology Data as at 14 th May 2007

Questions?

Scope of Stream 2– building types Private or public sector, including housing developments and agricultural processes and marketing No restrictions on building type New build or refurbishment Assessment = Commitment + Aspiration

Electricity Heat CHP Solar Photovoltaics Wind turbineHydro turbineFuel cellsStirling engine Heat pumpBiomassSolar thermal hot water Renewable CHP Stream 2A Grants up to £100k, new-build & retrofit Competitive quarterly bidding rounds Constrained by State Aid requirements 40% subsidy for all sectors (50% for SMEs) months to spend grant Public sector & commercial eligible

Electricity Heat CHP Solar Photovoltaics Wind turbineHydro turbineFuel cellsStirling engine Heat pumpBiomassSolar thermal hot water Renewable CHP Stream 2B Grants up to £1m, new-build & major refurbishment 2 stage competitive bidding process 1st stage = building assessment (Carbon Trust) 2nd stage = technical appraisal and grant award (EST) Exemplar projects. Route map for future standards 24+ months to spend grant Public sector and commercial eligible

Energy hierarchy The LCBP requirement to address basic energy efficiency measures first is consistent with the energy hierarchy. This is an established concept which outlines the most sensible approach to using energy which is: 1.Use less energy - Be Lean 2.Then use renewable energy as far as possible - Be Green 3.Then for the rest, use it as efficiently as possible - Be Clean The basic measures required as a condition of getting a grant under this scheme will reduce the amount of energy used These measures are also likely to be cheaper to install, and save more money, than any microgeneration installation It is therefore sensible to consider them first and only then consider microgeneration to reduce carbon dioxide emissions further

Stream 2 assessments Supported projects will be selected by a panel of experts independent from the DTI and the Energy Saving Trust (the Independent Panel) Demonstrating planning consent will lend strength to a submission Energy efficiency is a key assessment criteria

Energy efficiency Applicants must demonstrate what steps they have taken or will be taking to reduce energy demand prior to the installation of the low or zero carbon technologies for which they are seeking funding –For new buildings, the Independent Panel will expect evidence of how, and by how far, the design will go beyond the minimum requirements of the Building Regulations Part L (2006) regardless of the developments geographical location –If the Building Regulations do not apply to the project (e.g. listed buildings) evidence of how much energy efficiency the development is project is aiming to achieve is still required

Stream 2A - overview One stage grant application process Grant application scored by independent panel Maximum £100,000 grant ( % of project cost) Grant application process requires candidate to detail the energy efficiency measures they will be undertaking (Section E.) –This is weighted “High” in the scoring process and candidates will be judged against other applicants in that call –Commitment to energy efficiency is written into the grant offer letter

Stream 2A timeline Grant Award Project Selection (Independent Panel) Application

Future rounds are subject to available funds Stream 2A timeline Grant Award Project Selection (Independent Panel) Application

Stream 2A summary Stream 2ANumber of applications received by EST Indicative grant requested Number of applications sent to panel Number of applications approved by the panel Indicative grant offer amount Round 1102£3,627, £478,311 Round 287£3,286, £416,326 Round 3104£4,177,06884n/a Total Stream 2A297£5,364,306220n/a£894,637 Data as at 14 th May 2007

Questions?

Stream 2B - overview Two stage application process –Building assessment –Grant application –Both stages reviewed by independent panel Competition on the basis of carbon emissions reduction (beyond Part L 2006 level) Carbon Trust working with candidates at three main stages: –Before grant application –During design, build stages –After completion Carbon Trust will be mentoring and supporting project team and collecting data for case studies and dissemination activities

Grant Award Opportunities Assessment Project Selection Applicati on (Building Assessm ent) Support through build/commission stages Grant Application Stream 2B process Applicants expected to pledge a certain level of carbon emissions reduction and provide some evidence of commitment to development of a low carbon building Independent panel selects projects at both stages Carbon Trust provides a low carbon consultant who works with client on options for energy efficiency and renewables Applicant applies for grant for renewables to DTI Carbon Trust low carbon consultant supports building project throughout building and commissioning Carbon Trust monitors the building after completion and writes up a case study

Stream 2B summary Stream 2BNumber of applications received by EST Indicative grant requested Number of applications sent to panel Number of applications approved by the panel Indicative grant offer amount Round 1 (Building Assessment) 48£11,367, n/a Round 1 (Grant award) 9£3,730,48494£1,600,000 Round 2 (Building Assessment) 43£16,496, n/a Round 2 (Grant award) 13£7,181,64613n/a Round 3 (Building Assessment) 16£2,313,247167n/a Round 2 (Grant award) 48£11,367, n/a Total Stream 2B (Building Assessment) 107£30,177, n/a Total Stream 2B (Grant award) 22£10,912,130224£1,600,000 Data as at 14 th May 2007

Stream 2 applications by technology Data as at 14 th May 2007

Reasons for rejection A quote for the chosen technology is not provided The installer listed is not accredited under the Low Carbon Buildings Programme or if subcontracting, this is not clearly stated The Section E supporting document is not included "Cost Technical Detail" Excel spreadsheet is not provided For new buildings, Section E does not show evidence of how, and by how far, the design will go beyond the minimum requirements of the Building Regulations Part L (2006) –If the Building Regulations do not apply to the project (e.g. listed buildings) evidence of how much energy efficiency the development is project is aiming to achieve is still required The application form is not fully completed (example: no installers listed in Section C) One or more of the mandatory compliance questions in Section F are not confirmed with a tick Work on the installation has commenced

Reasons for rejection Application is received after the deadline Electronic documents are not provided –The programme requires the application form, Section E and the Cost Technical Detail spreadsheet to be provided (preferably by ) No paper application is received. This must be printed and signed The signed hard copy of the application form submitted is not the same as that provided electronically Inconsistent information on Excel spreadsheet, applications and quotes The proposed installation does not represent good value for money –To demonstrate best value, the applicant should be able to demonstrate that they have sourced at least three quotations and to have justified their final choice of installer (within Section E of the Application Form) Lack of justification of choice of technologies

Certification of installers (Phase 1 only) Grant funded installations must be carried out by an certified installer Clear Skies: –details of certified installers available on existing schemes' website ( & –air and water source heat pumps, fuel cells, microCHP & renewable CHP not covered currently UK Microgeneration Certification Scheme: –Now open for applications –takes over responsibility for the certification of installers and products –fuel cells, microCHP & renewable CHP covered after appropriate standards have been developed –

Questions?

Phase 2 Phase 2 is managed by BRE on behalf of the DTI £816,810 allocated to 48 projects Public sector and charitable organisations can apply for up to £1m –Private sector must apply through Phase 1 Taking applications until March 2008 –Grant awards on a first come, first served basis No specific energy efficiency criteria applied –No technical support from the Carbon Trust Framework Suppliers have been appointed to oversee the supply and installation of microgeneration technologies under Phase 2 –Applicants are encouraged to engage with Framework Suppliers at an early stage and get their help with submitting an application

Electricity Heat Solar Photovoltaics Wind turbineHydro turbine Heat pumpBiomassSolar thermal hot water Phase 2 Grant levels for Phase 2 vary according to technology and will be applied to total installation costs (excluding VAT) as follows:

Electricity Heat Solar Photovoltaics Wind turbineHydro turbine Heat pumpBiomassSolar thermal hot water Phase 2 Up to 30%Up to 35% Up to 50%Up to 30%Ineligible Up to 35%

Phase 2 applications by technology Data as at 14 th May 2007

Contacts Low Carbon Buildings Programme - Phase 1 Low Carbon Buildings Programme - Phase 2