Community Energy Solutions David Lacey Operations Director
Who are we? Community Energy Solutions is a community interest company set up by the Regional Development Agency, One North East and the Department of Energy and Climate Change (DECC).
We are a non-profit distributing company. We have no shareholders dividends and no directors emoluments to pay. An asset lock ensures that any margins or other forms of income are redirected into the funding of new projects.
From 1 st April 2009 CES has been working to a new remit from One North East called: Mobilisation of Microrenewables
The Plan Year 1 (2009/10) Tender for equipment Tender for installers Train the workforce Develop relationships with customers Commence delivery Year 2 (2010/11) Mass marketing and delivery Address funding for 2011 and beyond
Renewables More than 30% of our electricity generated from renewables, up from about 5.5% today. 12% of our heat generated from renewables, up from about 1% today
Market Drivers Pushers National targets Local Authority targets Pullers Feed in Tariff (FiT) Renewable Heat Incentive (RHI)
Feed-In Tariff (FiT) and Renewable Heat Incentive (RHI) Contribution towards the Governments Low Carbon Transition Plan which includes the Renewable Energy Strategy. 34 percent cut in emissions on 1990 levels by 2020 More than 1.2 million people will be in green jobs. 7 million homes will have benefited from whole house makeovers, and more than 1.5 million households will be supported to produce their own clean energy. Around 40 percent of electricity will be from low-carbon sources, from renewables, nuclear and clean coal. We will be importing half the amount of gas that we otherwise would. The average new car will emit 40 percent less carbon than now.
The Feed-In Tariff Administered by OFGEM Started on 1 st April 2010 Applies to installations since 15th July 2009 Eligible technologies are: –Wind –Solar PV –Hydro –Anaerobic Digestion –Micro - CHP
TechnologySize Payment p/kwh (early years) Term (years) PV retrofit<4kw41.325 Wind<1.5kw26.720 Hydro<15kw19.920 Micro -CHP<2kw10.010 FiT Generation Tariffs – a Selection Note: a typical average supply tariff price is 13p/kwh
PV Generation and Export Technology Scale FIT (Generation Tariff) p/kWh FIT + Export (add 3p/kWh) PV <4kW retrofit 41.3 44.3 Note: Export payments may be negotiable.
Deeming For small scale installations only and until smart meters are installed the amount of exports for the payment of export tariffs will be deemed. These arrangements will not apply if an export meter is fitted.
What Does it Mean? Assume a 2.5kwp array is installed It will need about 18.5 square metres of roof space. It will generate about 2,000kwh/annum. Assume half is consumed on site and half is exported. Then……..
The Economics (1) Value of generated electricity is 2,000 x 41.3 = £826/annum Value of exported electricity is 1,000 x 3 = £30/annum Value of electricity used on site is 1,000 x 13 = £130/annum
The Economics (2) Assume cost of 2.5kwp array installed is £8,500 Annual saving and income is £986 Payback is achieved in 8.6 years. Income in remaining 16.4 years is £16,170 index linked and tax free.
System Size (kWp) Area (m ² ) Installed Cost (£) Estimated Year 1 FiT (£) Estimated Year 1 Savings (£) Total Lifetime FiT (£) Total Lifetime Electricity Savings (£) Payback Year Total Profit (£) 2.0155,95072810822,9754,817721,892 2.7207,45098214631,0166,503630,069 3.5269,9501,27319040,2068,430638,686
CES has tendered for the supply of PV equipment and its installation using OJEU procedures to ensure that the best possible deal has been secured. We can supply equipment for installation by your MCS accredited contractors. We can supply equipment and have it fitted by our own MCS accredited contractors.
CES has partnered with, a cooperative energy service company (esco). It has access to large amounts of low interest capital funding from green organisations. A Special Purpose Vehicle (SPV) would be set up to manage the flow of funds (including FIT). After the interest and capital is paid off the PV equipment will revert to original ownership.
PV OPTIONS (1) Buy the kit and install it yourself. a)Advantages i.Benefit in full from FIT income ii.Could purchase via CES at OJEU tendered prices iii.Free electricity for residents b)Disadvantages i.Must find capital ii.Must have MCS trained workforce to install iii.Must project manage the contract.
PV OPTIONS (2) Buy on installed and working basis. a)Advantages Benefit in full from FIT income Could contract with CES using our OJEU tendered fitted and working prices Free electricity for residents CES can project manage b)Disadvantages Must find capital
PV OPTIONS (3) Buy on Solar For Free basis. a)Advantages No capital required Benefit from FIT income after kit paid off Free electricity to residents b)Disadvantages No FIT income until capital and interest paid off.
The Renewable Heat Incentive Administered by OFGEM Starts on 1 st April 2011 Applies to installations since 15 th July 2009 Eligible technologies are: –Air Source Heat Pumps –Ground Source Heat Pumps –Solar Thermal –Biomass Boilers –Biogas and Bioliquids –Renewable Combined Heat and Power –Renewable District or Community Heating
TechnologySize Payment p/kwh (output is deemed) Term (years) Solid biomass Up to 45kw 9.015 Ground Source Heat Pumps Up to 45kw 7.023 Air Source Heat Pumps Up to 45kw 7.518 Solar Thermal Up to 20kw 18.020 RHI Tariffs – a Selection
Other Business Issues CES is licensed by OFGEM via Northern Gas Networks to deliver the OFGEM Fuel Poor Voucher Scheme. We have scoped out 32 potential mains extension projects. CES has signed a Memorandum of Understanding with the Energy Saving Trust regarding renewables leads. CES is negotiating with North East Procurement to set up a web driven system for social housing providers and fuel rich one-off customers to buy renewables kit from us.
For Information and Help Please contact Community Energy Solutions: By e-mail: firstname.lastname@example.org By phone: 0191 537 7202