Latest News
News and updates from Carbon Zero Consulting.
RHI Premium Payments
Posted by Carbon Zero Consulting on 21/0711 at 03:43 PM
Householders could get up to £1,250 of government 'grant' funding to help towards the cost of installing biomass boilers, air or ground source heat pumps and solar thermal panels.
The Government’s new £15 million ‘Renewable Heat Premium Payment’ scheme opens on 1st August until March next year - when progress will be reviewed. Up to 25,000 installations could theoretically get support. Recipients of premium payments will also be eligible for RHI tariff payments in late 2012
The scheme will be mainly focused on homes off the gas grid, who have to rely on heating oil and direct electric.
Selected participants will be asked to provide feedback on system performance to allow Government to gather information to better understand the efficiency of these heat technologies
To achieve this; heat meters will be provided to record flow and temperature characteristics (efficiency) of the system. (But who will pay for the installation? - This could 'soak up' most of the premium payment!).
The surveys will provide more detailed information to allow DECC to compare manufacturers’ and installers’ claims about performance with energy real data.
CZC's view is that the Premium payment scheme is a sticking plaster that is too small and too late. The continued delay and uncertainty on tariff rates and dates has caused havoc in an already unsteady market - in ground and air source heat pumps particularly. Many homeowners are waiting to see confirmation of tariff rates (end of 2011 maybe?) or simply 'popping some PV' on the roof because FIT rates are established and fixed!.
Crisis, what Crisis?
Posted by Carbon Zero Consulting on 07/0711 at 08:16 AM
The rash of ground source installation company failures continues!
Some big names have bitten the dust recently and many smaller operators are disappearing off the radar.
Those managing to keep going are losing money, or at best breaking even or being propped up by major investors - for now.
Good riddance to some of those companies - BUT, equally, the industry has lost many excellent operators with years of expertise vital to a formative industry.
What is going on? Heres a few factors that are contributing - please respond if you disagree or want to add more! (see my Blog)
1. The economy in general is not conducive to domestic spending on expensive ground source systems
2. Commercial building is just starting to reappear from a major slump
3. The RHI is the 'poor relation' of FITs. It has been delayed, chopped, changed and delayed again. This has eroded confidence in domestic RHI. For many potential customers, the vague promise of 'a few pence per kWh at the end of 2012' is insignificant compared to ground source capital cost or the quick win with PV.
4. By the way - why has the government favoured FITs? The UK is a heat dominated society, RHI should have greater importance
5. Rumour has it that the RHI will not support installation in new build homes. Another major blow to heat pump sales!
6. Gas has gone up - but it is still very cheap compared to ground source capital costs
7. Uncertainty over government RHI support for Air source. Will they or won't they?!
8. 'Cowboy' operators; A job can be won by undersizing systems to reduce material costs. 6 months later the system fails but the installer has long since got his money!
9. The knock-on effect of 8 above is that project costs are driven down to a level where competent operators cannot afford to take on a project - or if they do; the project loses money.
RHI Update
Posted by Carbon Zero Consulting on 24/0611 at 03:56 PM
OFGEM has now released draft guidance documents for the RHI.
http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=3&refer=e-serve/RHI
Subject to final Westminster approval; non-domestic installations will be eligible for RHI payments from 30th September 2011.
Domestic RHI is due to start alongside the Green Deal in 'Late 2012'.
Here are a few bits that stand out;
Heat pump COP must exceed 2.9, either singly or each unit as part of a multi-pump system. Only HEAT will attract payment. COOLING will not.
An absurdity is that renewable heat can be used to produce COOLING via an absorption chiller!
Cooling during the summer utilising a heat pump greatly improves the efficiency of a ground source by 're-charging' heat to the ground. An absorption chiller cannot do this - the 'waste' heat is lost to the atmosphere rather than doing useful work in the ground
Eligible uses of heat are; space heating, hot water and processes such as drying or chemical processing within a building.Heating of surfaces outside (ice/snow prevention) will not be eligible
Solar PV FIT rates
Posted by Carbon Zero Consulting on 21/0611 at 09:33 AM
Following the latest government consultation, the FIT rates for PV are confirmed (from 1 August 2011) :
>50 kW to ≤ 150 kW Total Installed Capacity = 19.0p/kWh
>150 kW to ≤ 250 kW = 15.0p/kWh
250 kW to 5 MW and stand-alone installations = 8.5p/kWh
So from August, PV schemes will be restricted to a maximum of 50 kW to be fiancially attractive.
Drought and Ground Source Heating
Posted by Carbon Zero Consulting on 10/0611 at 11:39 AM
The Environment Agency today announced that East Anglia and other parts of England are in drought or 'near drought'. What does this mean for operation and efficiency of Ground Source systems? In short - very little! Open loop systems are predominantly non-consumptive - pumping groundwater from one borehole and injecting back into another. All that changes is its temperature. As such open loop systems are NOT at risk Closed loop borehole systems will not be affected at all. Closed loop horizontal (e.g slinky) systems would potentially be affected if the drought extended into the next heating system as dry soil is less thermally efficient than wet soil. However - if you are using a horizontal system for cooling this summer, efficiency will be reduced. If drought continues into autumn/winter then we will certainly comment further. Also see our website http://www.envireauwater.co.uk for regular water resource updates.