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Eradicating Fuel Poverty under the Energy Company Obligation

Date post: 28-Nov-2014
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Eradicating Fuel Poverty under the Energy Company Obligation
11
Home Heating Solutions Enabling affordable, low carbon District Heating through Biomass and the Renewable Heat Incentive (RHI)
Transcript
Page 1: Eradicating Fuel Poverty under the Energy Company Obligation

Home Heating Solutions

Enabling affordable, low carbon District Heating

through Biomass and the Renewable Heat Incentive

(RHI)

Page 2: Eradicating Fuel Poverty under the Energy Company Obligation

What is District Heating?

Renewable, carbon neutral heat and hot water generation

Proven technology for the past 30 years in Europe

“On demand” reliable supply 24/7/365 Economical, flexible, adaptable Central energy centre with distribution

pipework

Page 3: Eradicating Fuel Poverty under the Energy Company Obligation

What is Biomass? Biomass is biological material derived from

living, or recently living organisms Essentially stored solar energy Made out of residual forest products

(sawdust, branches, tree tops, etc.) Comes in the form of compressed wood

pellets or wood chips

Page 4: Eradicating Fuel Poverty under the Energy Company Obligation

What is the RHI?

Renewable Heat Incentive – A 20 year support mechanism for renewable energy installations

Government guaranteed annual payments Inflation proof, index-linked to the retail

price index Provides for cost effective heat energy

with predictable, stable future pricing £860 million committed in the first year

Page 5: Eradicating Fuel Poverty under the Energy Company Obligation

Installation Considerations Minimum system size is 6 standard residential units

(terraced houses or flats) however the larger the system the lower the energy cost

Unlimited maximum can be applied to a single building or an entire estate

Rapid deployment 4 to 6 weeks from project approval to commissioning of system

Off-site manufactured “Energy Cabins” minimised disruption to tenants

Compatible with all existing “wet” heating systems no special adaptations required

Needs tenant consultation and approval, however this is accepted almost universally due to the savings on offer

Page 6: Eradicating Fuel Poverty under the Energy Company Obligation

Benefits to Tenants Lower energy costs initially with fixed price

increases annually that are significantly lower than the fossil alternative

“On demand” energy, heat and hot water are always available as and when needed

Renewable and sustainable - Carbon Neutral Local control over energy supply = local energy

independence Familiar heating with conventional radiators and

thermostats so no learning curve Local employment and training opportunities

Page 7: Eradicating Fuel Poverty under the Energy Company Obligation

Benefits to Housing Association/Local Authority

The RHI provides guaranteed long term support, with a 10% ROI Equity participation provides annual revenues to HA/LA Can be rapidly deployed at any suitable site The ESCO model provides for the unlocking of RHI for domestic

properties (as well as commercial) No operations, no maintenance, no risk or exposure by the HA/LA Increased desirability and value of housing stock Elimination of CRC tax (if applicable); no climate change levy applied to

energy cost Low carbon footprint with a high RDSAP score (A or B EPC rating) Annual savings from gas boiler inspections, there is no need for gas

safety certificates and no periodic boiler changes The ESCO bypasses the OJEU process, as the HA/LA purchases Energy

NOT equipment Exceeds code for sustainable homes Code 5 (85%+ renewables)

standards All fuel derived from renewable and sustainable Sources which improves

the “green” credentials of the HA/LA

Page 8: Eradicating Fuel Poverty under the Energy Company Obligation

£-

£20.00

£40.00

£60.00

£80.00

£100.00

£120.00

£140.00

£160.00

£180.00

£200.00

Series1Series3

Biomass vs Gas (Cost per MW)

Biomass Cost at 2.5% Annual IncreasesGas Cost at 9% Annual Increases

Page 9: Eradicating Fuel Poverty under the Energy Company Obligation

Why Home Heating Solutions?

One of the UK’s largest independent installers for energy efficiency measures with over 8,000 measures installed every month

A safe pair of hands in the field committed to customer service, quality as well as health and safety with all the relevant accreditation and certifications

Proven “ESCO” model of operating allowing all stakeholders to win

Ability to offer a holistic “Whole House Approach” for properties that need other components upgrading e.g. Insulation, draft proofing, lighting etc

Ability to leverage in other external funding streams, such as the Energy Company Obligation (ECO) reducing outlay for the HA/LA

Page 10: Eradicating Fuel Poverty under the Energy Company Obligation

Next Steps

We’ll gladly come and talk to you in more detail and answer any questions you might have.

Identify a suitable site and arrange access

HHS will conduct a physical site survey and present back on all the options including the overall savings and return available

Page 11: Eradicating Fuel Poverty under the Energy Company Obligation

Thank you for reading

Matt Lucas

Business Development Director

Home Heating Solutions

[email protected]

07502220638


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