Mike Malina Director Energy Solutions Associates on behalf B&ES

1. Building & Engineering Services Association www.b-es.org Mike Malina Director Energy Solutions Associates on behalf B&ES Funding Low Carbon Technologies and Energy Efficiency NEMEX – Sustainability Live 2nd April 2014

2. Reduce the need for Energy in the buildings design Use Energy more efficiently in the building – Controls – Use a Building Energy Management System (BEMS) Remaining fossil fuels to be used as efficiently as possible and phased out as soon as practicable Supply Energy from Low Carbon and Renewable Sources where appropriate 4 3 1 2 Energy Hierarchy - What Delivers an energy efficient Building? Shorter Financial Payback Longer More Environmental benefits Less

3. What's the image – Sustainable Buildings 2050 New Build 10% Retrofit 90%

4. Schemes – Incentives Renewables Obligation Carbon Emissions Reduction Target (CERT) Community Energy Saving Programme (CESP) Warm Home Discount EPCs DECs Carbon Reduction Commitment (CRC) Energy Efficiency Scheme Energy Technology List (ETL) The Enhanced Capital Allowance (ECA) Scheme • Feed-In Tariffs (FITs) • The Green Deal • Renewable Heat Incentive scheme (RHI)

5. What is the appropriate technology – the right application Always start and review existing systems in buildings and the Energy Hierarchy So what about Low Carbon & Renewable systems? Solar Water and Heating Ground Source Heat Pumps Air Source Heat Pumps Biomass Bio-Fuels (Liquid) Rainwater Harvesting Grey Water Systems Photovoltaics for Microgeneration Micro Wind Energy Micro Hydro Generation Systems Fuel Cell Technology Anaerobic Digestion * Combined Heat and Power Water Conservation Mechanical Heat Recovery Ventilation Wireless Control Technology Passive ventilation and light systems Integrated and Hybrid systems technologies Energy Efficiency Low Energy Lighting • Are these integrated with each other or the existing building systems?

6. So Where's the money? www.greeninvestmentbank.com/

8. Green Deal – Economy & Jobs Green Deal was launched in January 2013 and applies to both the domestic and non-domestic sector. Government Statement: The Green Deal is expected to involve up to 100,000 workers by 2015 and to help reduce home and business energy bills across the UK . It is available to households and businesses, regardless of whether they own or rent their property. Green Investment Bank – September 2012 £3bn of seed capital – Actually £160m so far. The Government believes Green Deal loans will be repaid at a rate no more than 6.92% - this is significantly higher than average household loans. On a loan of £5,000, the overall rate that is repayable is just under 8% over 10 years, or 7.7% over 25 years. Domestic scheme – October 2012 Commercial – ? 2015…….

9. What is the Green Deal? In one slide... The customer receives a package of energy efficiency measures at no up-front cost from a ‘Green Deal provider’. The cost of the measures is paid back over the long term (for example, 25 years) through repayments made via energy bills. The customer’s energy supplier will act as a conduitto pass the Green Deal repayments to the Green Deal provider. The cost of the repayments will be equal to or less than the likely energy bill savings. Green Deal finance will not be structured as a conventional loan: the customer will not be liable for the capital sum, only the repayments whilst they occupy the property. If the occupants of the property change, the obligation to pay the Green Deal charge on the energy bills will pass to the new occupier. The Green Deal will include owner-occupiers, the private and social rented sectors and the commercial sector.

10. Green Deal Advisor visits and reports Green Deal Process Green Deal Provider offers Green Deal Plan Assessment Finance Installation Repayments and follow up Work carried out by Green Deal Installer Cost of measures paid back via electricity bill Non-domestic Commercial – More likely to use Private Finance Social Landlords? Housing Associations? Conflicts – rules…..

11. Measures covered under Green Deal scheme • Heating, ventilation and air conditioning • Condensing boilers • Heating controls • Under-floor heating • Heat recovery systems • Mechanical ventilation (non-domestic) • Flue gas recovery devices • Ground source heat pumps • Air source heat pumps • Solar Thermal • Heating system insulation • (HW. cylinder, pipework) • Building fabric • Cavity wall insulation • Loft insulation • Flat roof insulation • Internal wall insulation • External wall insulation • Draught proofing • Floor insulation • Lighting • Lighting fittings • Lighting controls • Water Heating • Innovative hot water systems • Water efficient taps and showers • Fenestration • Energy Efficient Glazing and Doors • Energy Generation • Solar Photovoltaic • Micro Combined Heat and Power • Micro Wind Generation

12. Commercial measures covered under Green Deal scheme Chillers Ductwork Insulation HVAC Controls Hot Water Controls and systems Hot Water taps Pipework Insulation Roof lights, lamps and luminaires Radiant heating Sealing improvements Solar blinds, shutters and shading devices Transpired solar collectors Variable speed drives for fans and pumps Air - Water source Heat Pumps

13. Renewable Heat Incentive (RHI) What is the RHI? Why do we need it? Government Policy: - Increasing the use of low-carbon technologies Why: Almost half of the final energy consumed in the UK is in the form of heat. Its generation accounts for 47% of UK CO2 emissions. Renewable Heat currently satisfies less than 1% of heat demand. Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable and lower carbon technology The RHI is world’s first long-term financial support programme for renewable heat

14. Making the best use of the Renewable Heat Incentive (RHI) Ground source Heat Pumps Air source Heat pumps Biomass Solar Thermal

15. Renewable Heat Incentive (RHI) UK Off-gas grid fuel use 2.2 million homes heated by electricity (8.1%) 1.1 million (4.0%) by heating oil 240,000 (0.9%) by solid fuel 170,000 (0.6%) by LPG An oil heated home is 50% more expensive than mains gas An LPG heated home is 100% more expensive than mains gas Nearly 4 million homes in the UK are off the gas grid

16. Renewable Heat Incentive (RHI) Domestic and Non Domestic RHI requirements Non-domestic RHI Commercial Industrial Public sector – hospitals, schools District heating for multiple homes Biomass Heat pumps (ground source and water source) Geothermal Solar thermal collectors Bio-methane and biogas

17. Renewable Heat Incentive (RHI) Non-domestic RHI

18. Combined scheme could make the returns more favourable

19. https://www.gov.uk/government/news/energy-saving-measures-boost-house-priceshttps://www.gov.uk/government/news/energy-saving-measures-boost-house-prices For an average home in the country, improving its EPC (Energy Performance Certificate) from band G to E, or from band D to B, could mean adding more than £16,000 to the sale price of the property.

20. Green Deal and Renewable Heat Incentive (RHI) Ultimately it will be down to cost and the incentive Capital and running costs Any additional costs of finance – if applicable Comparison costs and benefits of different systems – customer choice and sales influence! Government and the industry need to do a lot of promotion and education – both industry and consumer Key for the industry is to ensure the correct and appropriate specification. Training is essential.

21. Renewable Heat Incentive (RHI) - Training www.piperassessment.co.uk/

22. www.b-es.org/sustainability/

23. www.goo.gl/gejnt Seminar (20% discount using code VBB09)

24. Building Pressure Testing Building Log Books Building Energy Management Systems Commissioning Management Energy Management Audits Energy Performance Certificates Low Carbon Energy Solutions Thermal Imaging Specialists Training, Building Regulations Water Management Audits If you don't measure your energy - you can't manage it ! Mike Malina Energy Solutions Associates In the realm of ideas everything depends on enthusiasm; In the real world, all rests on perseverance! mike@energyassociates.co.uk Training Provider