Transcript File - Kensa Heat Pumps
GSHPs and the Renewable Heat Incentive
Market Context
Long term strategic role for heat pumps
The 4 th carbon budget ascribes a prominent long-term role for heat pumps in achieving binding domestic emissions reductions
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Market Context
UK Heat Strategy - “The Future of Heating, Meeting the Challenge” DECC, 2013 Indicates a clear and strategic role for heat pump technology
www.kensaheatpumps.com
Market Context
www.kensaheatpumps.com
22m homes in the UK >4m homes off the gas grid Those heated by oil, lpg and electricity are the “low hanging fruit”
GSHP’s & the Domestic RHI
Domestic RHI
Aimed at domestic installations Rewards generation of renewable heat, deemed RHI pays on Renewable Heat contribution GSHP will always provide more renewable kWh/yr than an ASHP due to higher efficiency Higher efficiency also yields larger fuel cost savings
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GSHP’s & the Domestic RHI
Target market
RHI will drive opportunities for larger, off gas grid properties Private domestic retro fit Oil or lpg heated High fuel bills, bulk fuel purchases Higher heat loads >16kW, single phase electricity supplies Existing heat distribution systems Higher flow temperatures
www.kensaheatpumps.com
www.kensaheatpumps.com
GSHP’s & the Domestic RHI
Benefit 1: Benefit 2: Benefit 3: Attractive GSHP Tariff /kWh: 18.8p RHI paid on Renewable Heat contribution. Higher intrinsic SPF for ground source means higher Star Rating and therefore
more renewable kWh/yr
Flat tariff rate structure means Domestic RHI will benefit larger properties By definition likely to have more land area
KENSA HAS SINGLE PHASE OUTPUT UNITS UP TO 24kW!!
3 bed semi: 8kW RHI: £11k / 7yrs Benefit 4: 4 bed det: 12kW RHI: £17k / 7yrs 5 bed det: 15kW RHI: £20k / 7yrs No planning or noise (MCS022) issues to deal with!
8 bed mansion: 24kW RHI: 37k / 7yrs
GSHP RHI Example
5 bedroom house Domestic RHI example for Ground Source Heat Pumps
5 bed property 4-5 occupants 180m2 floor area Circa 1960’s build Basic insulation measures – cavity wall, loft, glazing 15kW heat load Heating via radiators (50 ° C – 3 Stars) EPC: 21,000kWh/yr Land area required (slinkies): 720m2
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GSHP RHI Example
5 bedroom house Domestic RHI example for Ground Source Heat Pumps
£1082 per year fuel cost saving vs oil £2845 first year RHI income
£27,492 combined benefit over 7 years
Before index linked tariff increases and fuel price inflation Typical installation cost: £18,000 Based on slinkies
Payback: 5 years
Rate of return: 11.5%
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Kensa On Line RHI Calculator
• • • • • Website based tool Calculates expected RHI and fuel saving benefit under domestic RHI Varies results based on geographical location Suggests likely land area required for slinkies Aimed at helping driving enquiries for installers
Non Domestic RHI
Launched 2011 Includes support for residential district
heating systems
Recently uplifted tariffs for ground source heat pumps Increased from 4.3p/kWh to 8.7p/kWh Payments made over 20 years, based on metering Includes support for new build District residential schemes can be combined with ECO funding
More attractive long term rate of return than domestic scheme www.kensaheatpumps.com
Kensa micro-district solution
Individual heat pump at each dwelling Linked to a communal ground array New build or retro fit Capital subsidy provided by Energy Company Obligation (retro fit) Supported by 20 year income stream through the Non Domestic Renewable Heat Incentive Technically robust solution Myriad of operational and tenant fuel cost benefits over other solutions
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Traditional district scheme problems
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Traditional schemes featuring a central boiler plant are not popular Difficult to implement as a retro fit solution Inefficient Heat losses as hot water circulated through the “district” Burdensome HA has to manage billing Bulky Requires considerable space Expensive Requires back up system to eliminate risk of catastrophic district-wide failure
Ground source heat pump
Kensa high temperature units, installed externally
Micro district heating
Individual gshp per property linked to a shared ground array serving 2+ properties
Technically robust
Smaller number of deeper boreholes Flexibilty over borehole location No plant room or central pump
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Kensa micro-district solution
Energy saving
Low cost, low carbon heating and hot water reducing energy bills
Scaleable solution
Can be applied to apartment blocks or clusters of terraced or semi detached houses/bungalows, sheltered accommodation, holiday lets and more…
Renewable Heat Incentive
20 year income stream for district schemes under the non domestic RHI
Energy Company Obligation (Retro fit)
Attractive capital subsidy, especially when displacing electric heating
New Build
New build developments are eligible for the non-domestic RHI
Simple billing
No centralised billing – each tenant has control over own heating system and energy bill
Micro-district costed example
Micro District Ground Source Heat Pump System
Based on 2 bedroom End of Terrace Lifetime CO2 savings 87 tonnes Typical annual running cost saving vs NSH £450 Total capital cost Heat pump, ancillaries and installation Boreholes and ground collector system New radiator system and DHW cylinder Design (EPC, borehole design) £15,000 £3900 £6600 £4100 £400 Existing system replacement costs ECO funding contribution Total Net Cost Total RHI contribution Overall rate of return (IRR) £2500 £3500 £9000 £16,000 6%
Air Source HP
67 tonnes £350 £7850 £3500 0 £4100 £250 £2500 £0 £5350 £2900 0%
New Builld - Kensa Shoebox
Heat source for Shoebox heat pumps Multiple boreholes 100 150m deep
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3kW capacity Small & extremely quiet Provides heating & hot water
System architecture
Individual ground source heat pump and hot water cylinder in each apartment Low temperature primary circuit Communal Ground array Eligible for RHI payments – considered as district heating
District Htg New Build Example
Abbeydale Hall - Luxury new build apartments
4 blocks of 3 apartments Each shares a communal borehole field of 3 x 130m boreholes 3kW Shoebox heat pump installed in each flat Developer retains the non domestic RHI
www.kensaheatpumps.com
www.kensaheatpumps.com
Reasons why GSHP’s win!
Domestic RHI
Very attractive domestic RHI tariff rates and high renewable heat content Compelling rates of return / payback, especially in larger properties Kensa range >16kW single phase models – ideal for larger domestic properties
District and Non Domestic RHI
District residential heating solutions possible using the Non Domestic RHI “Decentralised” district systems possible by linking ground loops – not possible with any other technology Opportunity to apply in new build Opportunity to tap in to ECO funding (district retro fit)
PLUS OF COURSE…
Planning exempt (permitted development rights) No noise nuisance Lowest possible running costs and long life expectancy