Ground Source Heat Pump Solutions for Social Landlords Chris Davis Commercial Director, Kensa Heat...
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Transcript of Ground Source Heat Pump Solutions for Social Landlords Chris Davis Commercial Director, Kensa Heat...
Ground Source Heat Pump Solutions for Social Landlords
Chris DavisCommercial Director, Kensa Heat Pumps
Tackling fuel poverty through renewable heat
• Client: Trent & Dove Housing
• Project: Installation of ground source heat pump systems, replacing electric heating
• Supplier: Kensa Heat Pumps
• Installed by: Kensa Contracting, GeoDrill, J. Tomlinson
• Number of properties: 133 bungalows
• Funding: Non Domestic RHI and Energy Company Obligation
• ECO supplier: EdF Energy
Ground source heat pumps in action
Tackling fuel poverty through renewable heat
Ground source heat pumps in action
• 133 bungalows, across 15 sites• Off the gas grid, in rural
Staffordshire• Heated by night storage heaters• Elderly residents
Tackling fuel poverty through renewable heat
Ground source heat pumps: great idea, but….
Typical social landlord reaction to ground source heat pumps:“Like the technology in theory, but….”• Cost is a barrier• Complex, high risk, difficult• Poor experiences with other technologies• Don’t have enough information to influence others
All can be an issue, but not if…
Tackling fuel poverty through renewable heat
• The scheme is well thought through and planned;• You work with specialists with a track record
in the social sector;• The right properties in the right locations
are selected;• You take advantage of ALL the funding
options available;• You consider ALL the benefits
Ground source heat pumps: great idea, but….
Tackling fuel poverty through renewable heat
A different approach for social landlords
• A different approach for social landlords• Turnkey delivery• Innovative approach to the RHI• Support with up front capital
contribution• Longer term income stream• Fundable• Retrofit and new build
Tackling fuel poverty through renewable heat
About Kensa
• UK manufacturer• Single technology solution provider• Established 1999• Based in Truro, Cornwall• Industry accredited• Over 4000 installations• Social housing specialists• UK market leader• Recently established delivery arm – Kensa Contracting
Tackling fuel poverty through renewable heat
Ground Source Heat Pump Technology
• Highly energy efficient space and water heating solution• Electrically driven appliance• Moves solar energy from the ground
into the property• Utilises “collector” pipework buried
in the ground• Typically one unit of electricity
produces between 3 and 4 units of heat
Borehole
Hot water cylinder
Radiator system
Heat Pump
Tackling fuel poverty through renewable heat
Ground Source Benefits
• Tenant Benefits• Lowest possible tenant heating and hot water
energy costs• Highest efficiency; unaffected by outside weather
conditions• Typical savings of around 50% vs night storage
heaters and 30% vs oil• No bulk fuel purchases• Lower standard rate electricity charges than split
tariffs• Reduces cost of other household electrical
consumption• Improved comfort, health, well-being, quality of life
Gas boile
r, 70% efficie
nt
LPG boile
r, 70% efficie
nt
Oil boile
r, 70% efficie
nt
Night stora
ge, 100% efficie
nt
Biomass pelle
t boile
r, 85% efficie
nt
HP, 250% efficie
nt
HP, 300% efficie
nt0
4
8
12
16
Heating System Running Cost p/kWh
Fuel cost p/kWh Fuel cost p/useful kWh
Tackling fuel poverty through renewable heat
Ground Source Benefits
For a typical social home:• 8,000kWh heating/hot water per year
Electrically heated:• £784 per year running cost• + “supplementary” heating costs
Ground source heat pump heated:• £355 per year running cost
SAVING: £429 per year!
Gas boile
r, 70% efficie
nt
LPG boile
r, 70% efficie
nt
Oil boile
r, 70% efficie
nt
Night stora
ge, 100% efficie
nt
Biomass pelle
t boile
r, 85% efficie
nt
HP, 250% efficie
nt
HP, 300% efficie
nt0
4
8
12
16
Heating System Running Cost p/kWh
Fuel cost p/kWh Fuel cost p/useful kWh
Tackling fuel poverty through renewable heat
Ground Source Benefits
Landlord Benefits• Planning exempt (no noise issues)• Lower CO2 emissions, improved
SAP ratings• Other building maintenance costs
reduced • E.g. less damp due to under heating
• Minimal service & maintenance costs• No mandatory annual safety inspection
• Minimal preventative maintenance
• Extremely low lifetime ownership costs• 20 – 25 year heat pump unit life expectancy
• >100 year borehole life expectancy
Tackling fuel poverty through renewable heat
Renewable Heat Incentive
• Designed to support 2020 Renewable Energy targets • 15% of energy from renewable sources
• Tariff based payment• Aimed at covering additional costs of a renewable heat technology• Two streams• Domestic• Non domestic
• including residential district heating
Tackling fuel poverty through renewable heat
Non Domestic RHI
• Opportunity for social housing (both new build and retro fit) to benefit from adopting district systems supported by the Non Domestic RHI and ECO
Domestic Non Domestic
Coverage Individual domestic properties Residential district, commercial
Includes retro fit Yes Yes
Includes new build No YesTariff payment 7 years 20 years
Measurement Deemed Metered
Paid on “Renewable” heat only All heat
Tariff rates Modest – requires fuel cost saving to produce payback
Attractive – GSHP rates recently doubled
Can be used in conjunction with ECO* No Yes
Tackling fuel poverty through renewable heat
• Individual Kensa Shoebox heat pump in each home
“Micro District” ground source heating
• Shared ground array, serving 2 or more properties
• Designed, delivered and installed by Kensa
• Eligible as “district heating” for ECO and RHI purposes
• Scalable and versatile
• Each home has own radiators, hot water cylinder and controls
• No heat loss through district pipework
• No need to apportion energy bills
• New build or retrofit
• No need for a plant room
Tackling fuel poverty through renewable heat
Energy Company Obligation (ECO)
• Provides an upfront capital subsidy• Typically 20-25% of the total cost
• Supports district heating schemes• District heating now confirmed as a primary measure
• Rural areas attractive
• Grant level dependent on CO2 savings• Displacement of electric heating is preferable
• Ofgem recently confirmed 40 year lifetime for district ground source heat pump systems
• EdF Energy has provided Kensa customers with over £1m in ECO funding for GSHP projects
Tackling fuel poverty through renewable heat
The Unique Kensa Shoebox Heat Pump
• Designed to be installed inside the property;
• Small, compact dimensions – fits in a standard airing cupboard;
• 6kW model ideal for social housing retro fits;
• Ultra-quiet, using twin, low output compressors;
• Up to 65°C flow temperature (R134a refrigerant), so able to cope with domestic hot water with no need for back up;
• Designed for use with standard heating controls.
Tackling fuel poverty through renewable heat
Feasibility & Design
Delivery
Compliance
& Support
Kensa’s process
• Feasibility study
• Clear cost and return analysis
• Property survey and EPC
• Geotechnical survey
• Full system design (incl MCS, borehole array, mechanical)
• Tenant liaison
• On site project management
• Drilling contractors
• Heating system contractors
• Commission and hand over
• Access ECO funding
• RHI compliance and application
• Comprehensive system warranty
• Remote access meter readings
• Ongoing technical support
• Responsive maintenance
Tackling fuel poverty through renewable heat
GSHP System Costs and Returns
Typical 2 bedroom bungalow, 8000kWh/yr
Budget NSH re-placement, £3,500
Additional landlord contribution, £7,000
ECO, £3,000
INSTALLED COST:
£13,500
Investment costs Income streams£0
£5,000
£10,000
£15,000
£20,000
£25,000
Budget NSH re-placement cost,
3500
Additional cost (before ECO subsidy), 10000
ECO subsidy, £3,000
RHI over 20 years, £16,500
Inv e s t me nt c os t s v s i nc ome s t r e ams
TOTAL RHI INCOME OVER 20 YEARS: £16,500
Tackling fuel poverty through renewable heat
Kensa funding
• Options for “micro-district” or individual properties• Kensa finance packages typically cover the borehole
and ground source heat pump installation• RHI income offsets cost of finance• Landlord may need to provide some contribution
towards the internal heating system• Up to the value of a NSH replacement system
• Dependent on energy demand/house size, fully funded schemes are possible
Tackling fuel poverty through renewable heat
New build• Non Domestic RHI model also applies in new build• Not possible with Domestic RHI• Ofgem has confirmed RHI payments are allowable even if
in receipt of an HCA grant (although some conditions apply)
• Allows social housing new build to benefit from:• 20 year RHI income stream• Cost effective • Lowest possible tenant running costs• Lowest lifetime ownership costs – long service lifetime and
no mandatory annual servicing requirement
Example: New Linx Housing• 53 unit development• Micro district ground source heat pump system• Accesses funding through HCA and RHI
Tackling fuel poverty through renewable heat
Conclusions
• Changes to the Non Domestic RHI tariffs have created opportunities in the social housing sector for district ground source heat pump systems
• Such systems are technically robust and can be delivered at lower capital cost (when compared to “stand alone” single property installations)
• ECO funding can provide upfront capital subsidy, to circa 25% of the project cost
• Long term financial returns can be compelling
• GSHP-based systems deliver the lowest running costs to the tenant and the lowest lifetime ownership costs for the landlord
• Both retrofit and new build projects will benefit from the RHI income