Assessing the role of ground source heating & cooling as one of the 8 key renewables techs

1. Transformation of the British GSHP marketDavid Matthews, Chief ExecutiveGround Source Heat Pump Association22nd October 2012

2. Assessing the role of ground source heating & cooling as one of the 8 key renewables techs Solar thermal – HW in summer. mCHP – it only saves a bit of carbon. Fuel cell might be a very interesting proposition. Biomass – rural “high enthalpy” applications. ASHP– more expensive and only small carbon saving as compared to gas. Noise issues. Continue with fossil fuels – they run out! GSHP – low cost & carbon. Needs some space.

6. Increase in percentage share of total final consumption of energy from renewable sources 16.0% 14.0% 12.0% 10.0% Percentage points increase 8.0% 6.0% 4.0% 2.0% 0.0% EU UK Italy Malta Spain Latvia Ireland Austria Poland Finland France Cyprus Greece Estonia Hungary Slovakia Belgium Portugal Sweden Bulgaria Slovenia Lithuania Germany Romania Denmark Netherlands Luxembourg Czech Republic EU Member States 12% Renewable Heat; 29% large scale electricity, 2% Small Scale electricity, 10% transport

8. UK 2007 • One in 4 to 5 of Swedish homes use a GSHP & Mature markets have codes of practice, standards & training

9. UK HP experience Advanced Markets: market supported by codes of practice, standards and training Medium sized markets: in process of transformation Advanced Low penetration markets e.g. UK: need considerable intervention

11. UK today

12. UK today

13. UK today

15. Commercial Office Type 1: Source Carbon Trust & http://www.cibse.org/pdfs/ECG019.pdf

18. RHI Spend 2011/15 Good Policy Framework Financial Schemes Regulation Schemes Quality Scheme Supported by flanking measures of: Public Awareness Training

19. RHI Spend 2011/15 Good Policy Framework Financial Schemes Regulation Schemes Quality Scheme Supported by flanking measures of: Public Awareness EST? Geo.power? Training SSC, Awarding Bodies, Geotrainet, IGSHPA, Design, Install, Specify

20. RHI Spend 2011/15 Within £864m – fixed annual envelope (nominal): Actual Spend New Spend 2011/12: £56m £56m 2012/13: £133m £77m 2013/14: £251m £174m 2014/15: £424m £250m Total £864m

21. The Renewable Heat Incentive-implications for non-domestic ground source installations Phase 1: 3 or 4.3 p/kWh (100 kWth) over 20 years Metered Phase 2: 12.5 to 17.3 p/kWh (MCS) over 7 years Deemed

22. The Renewable Heat Incentive-implications for non-domestic ground source installations Phase 1: 3 or 4.3 p/kWh (100 kWth) over 20 years Metered Phase 2: 12.5 to 17.3 p/kWh (MCS) over 7 years Deemed

23. Renewable Heating Action Plan for Europe – barriers: large upfront investment cost return on investment cost not including fuel inflation owner – tenant dilemma i.e. rented accommodation chicken and egg – low awareness, low demand etc. RES – H still considered “exotic” lack of critical mass The European perspective

24. Social housing Private rented housing Private mass-market housing Private upmarket housing How do we engage the middle 2 sectors? Community schemes? Owner – tenant dilemma i.e. rented accommodation

25. older, home owners from higher status. (not income) advertise in local press backed by local authority visiting fairs etc. is not so important effective marketing – saving money, future proofing, environmental reasons to target groups increase emotional involvement of client with installation to build momentum currently solar grant needs to be £1000 to £1500 to remove cost barrier e.g. £4000 to £6000 GSHP SEA / RENUE Report on“Barriers to installing DSHW systems”:

26. To alleviate cost issues (the major barrier): arrange low-interest loans install when heating system being refurbished group installations for economies of scale target new build Train installers in customer care, disseminate info in Energy Efficiency Advice Centres and use case studies of existing customers SEA / RENUE Report on“Barriers to installing DSHW systems”:

27. Renewable Energy House – Brussels

30. www.gshp.org.uk david.matthews@nef.org.uk