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Eradicating Fuel Poverty under the Energy Company Obligation
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Eradicating Fuel Poverty under the Energy Company Obligation

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Eradicating Fuel Poverty under the Energy Company Obligation

Eradicating Fuel Poverty under the Energy Company Obligation

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  • 1. Home Heating Solutions Enabling affordable, low carbon District Heatingthrough Biomass and theRenewable Heat Incentive (RHI)
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. Biomass vs Gas (Cost per MW)£200.00£150.00£100.00 £50.00 £- Biomass Cost at 2.5% Annual Increases Gas Cost at 9% Annual Increases
  • 9. 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
  • 10. 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
  • 11. Thank you for reading Matt LucasBusiness Development Director Home Heating Solutionsmatt@homeheatingsolutions.net 07502220638