Proceedings of the 13th International Conference of Environmental Science and Technology Athens, Greece, 5-7 September 2013 A COMPARISON OF THE ECONOMIC SAVINGS BETWEEN THERMAL SOLAR SYSTEMS AND THERMAL INSULATION IMPROVEMENTS FOR SOCIAL HOUSING IN CHILE M. PILAR GARATE * and PEDRO M. GURIDI * *Universidad Técnica Federico Santa María Av. Santa María 6400, 7660251, Santiago, Chile. [email protected] ABSTRACT Chilean´s energy matrix is mainly based on fossil sources. The lack of natural resources and increasing international prices has forced the state to promote the use of renewable energy sources and to implement a national energy efficiency program. In this context, in 2009 a law was promulgated that promotes the use of thermal solar systems in social housing granting a tax discount to those companies that incorporate this technology. As a consequence of this law, thermal solar systems have been installed in more than 600 social houses during 2012, distributed in projects throughout the country, and it is expected that in 2013 this number will increase to approximately 1500. The present work analyzes the economic effects on the energy consumption in social housing of the thermal solar systems and compares them with improvements in thermal insulation. The objective is to evaluate the effectiveness of public policies orientated to social housing. The savings due to thermal Solar System were calculated using the so-called f-Charts. Those charts allow estimating the percentage of the energy required to satisfy the demand of the family for sanitary hot water that can be provided by the thermal Solar System. A comparison for a period of evaluation of 20 years was made between the case with and without the thermal Solar System. These savings were compared with the ones obtained considering a higher standard than the Chilean norm for thermal insulation in floor, ceiling, walls and the replacement of glass by double hermetic glass. The calculation of the necessary heat flow for heating was obtained using the method of circuits of thermal resistances. Although the incorporation of thermal solar system in social housing is an effective measure to reduce energy consumption, the economic savings are greater when a higher standard of thermal insulation is applied, particularly the incorporation of double hermetic glass windows. The savings are even greater if higher prices of the heating fuel are considered. From the results we infer that a deep analysis of public politics oriented to social housing regarding energy efficiency should be carried out. The possibility of subsidies to insulation needs to be analyzed in detail. KEYWORDS: Thermal Solar System, Insulation, Social Houses, f-Charts, Circuits of Thermal Resistances, Double Hermetic Glass. 1 INTRODUCTION During the past few years problems such as greenhouse effect, global heating, historical housing deficit and increasing international energy prices, have forced the Chilean state to implement energy efficiency policies [1]. Being social housing one of the most sensible areas, many efforts have focused in the development of green and sustainable social housing. The most recently is a law promulgated in 2009 that grants a tax discount to those companies that incorporate thermal solar technologies in their projects. However there are other strategies for reducing energy consumption that have not been considered. The main drawback in the implementation of energy efficient housing is the high initial investment due to the specificity of the required materials and its high cost in the Chilean market. Since its publication approximately 600 families have benefited from the incorporation of solar thermal systems in their homes, and it is expected that at the end of 2013 will benefit another 900 families. Using the so-called f-charts the energy savings of a particular house can be estimated. As mentioned before, other strategies such as improvement of thermal insulation need also be considered in a global analysis of a energy efficient housing design. The methodology used to determine these savings corresponds to the thermal resistance circuits. The comparison between both results seeks to determine which of the measures is more effective and should have a greater impact on energy and heating costs savings. In order to validate the study data of local: temperature, solar radiation, demand of hot sanitary water and energy required for heating corresponding to a social house located in the commune of Lo Espejo [2,3] in Santiago, Chile, were used. 2 METHOD OF F-CHARTS Construction companies in Chile can only make use of the tax discount if they are able to demonstrate, by calculation reports, that the contribution made by the thermal solar systems meet at least 30% of the average annual hot sanitary water demand. Additionally, they must be registered in the list of the Electricity and Fuels goverment office. By Thermal Solar System it is understood a system that “Integrates a Thermal Solar Collector, Accumulating Tank and a set of other components responsible to make the functions of capturing the solar radiation, transform it directly into thermal energy, which is transmitted to a work fluid, and finally to store this thermal energy either in the same working fluid or another, to be used in the points of hot sanitary water consumption”. That system needs to be supplemented with a conventional heating water system; however, it is not considered part of the Solar Thermal System [4-8]. The first part of the calculations corresponds to determine the solar energy available for each month, depending on the average daily global solar radiation, the number of days of the month, the orientation of the solar collectors and the shadow losses [9,10]. The second part consists of calculations of the amount of monthly energy needed to meet the demand of hot water that depends on: the consumption by person, the number of residents, the temperature of the water in the pipes, the area of the collectors, the optical efficiency of the system and the volume of hot water storage. With these data we obtain the “relation between absorption and energy demand” and the “relation between losses and energy demand” for each month. We weighted and normalized these relations to determine the percentage of energy that is able to meet the solar thermal system, that is the annual solar contribution. Finally, the ratio between the calculated annual solar contribution and the annual energy demand gives the percentage of solar contribution. In figure 1 it can be seen that except for winter months, the thermal solar system may provide all the required energy for hot sanitary water production. 600.00 500.00 400.00 300.00 200.00 Demand [MJ/month] 100.00 Input [MJ/month] January February March April May June July August September October November December 0.00 Figure 1. Supply and demand graph of solar energy. 3 PROPOSAL OF OPTIMAL INSULATION Chilean Thermal Regulations establish the maximum acceptable thermal transmittances for housings depending on the temperature zone where are located [11]. First, the thermal transmittance circuit for a real social house was calculated (see fig.2) [12-15] which is essential to determine the heat losses of the housing. Thermal transmittances depend of factors such as: characteristics of the materials, disposition in the housing (series or parallel) and convection coefficient. The same calculation was also made for the constructive elements selected for extra insulation. Those materials, Polystyrene Expanded (EPS) and doble-pane (insulated glazing), were selected according to an economic balance between investment and heat losses. With the complete thermal transmittance circuit the heat losses were estimated. Considering the energy cost and the fact we are studying a social housing, a heating technology that uses kerosene as fuel was selected to provide the power necessary to compensate the calculated heat losses. With all these data we carried out an economic analysis varying the thickness of the insulation. Figure 2. Thermal Transmittance circuit for housing floor. In red is shown the circuit with the extra insultation. The optimal level of insulation was found minimizing overall costs in the long term to achieve thermal comfort during the project life cycle. As it can be seen in figure 3, the optimum solution corresponds to a level of extra EPS insulation of 50 [mm] in ceiling, floor and walls and the installation of doble- pane in windows. $ 3,500,000 $ 3,000,000 Costo [$] $ 2,500,000 $ 2,000,000 $ 1,500,000 $ 1,000,000 $ 500,000 $- Heating Cost [$] Additional Investment [$] Total [$] Figure 3. Heating cost, Additional investment and total cost. 4 RESULTS 4.1 Comparison between proposals Making a comparison between both proposals it can be concluded that the proposed improvements in housing insulation present a better energy and economic savings. The results are resumed in table 1. Nevertheless, both measures could be adopted if the appropriate incentives for construction companies are implemented. The Thermal Solar System saves USD 2,000 for a period of evaluation of 20 years approximately, while the proposal of additional isolation saves USD 3,000 for the same period approximately. Table 1: comparison of thermal solar system and insulation improvement. Thermal solar system Insulation improvement Savings (NPV) USD 2.000 USD 3.000 IRR 21,83% 46,57% Payback 6 years 3 years Cost reduction 51,35% 55,70% Among the factors affecting the economic convenience of improved insulation for housing we must mention the energy demand, determined by weather conditions (expressed in terms of temperature) and the length of days of use, the technology used for heating and the value of the kilowatt-hour of fuel, aspects of architecture, design and construction and materials selection, selection of construction techniques, housing design, housing condition (isolated, twin or continuous), orientation of the glass surfaces, avoid unnecessary thermal bridges and ultimately the type of selected additional insulation. The highest the demand of energy for heating more convenient is to implement this proposal. 4.2 Housing form factor The Economic evaluation carried out to verify the suitability of the proposed improvements in insulation responds to the particular conditions of the studied house, i.e., its design, surface and location. To apply the same evaluation for different types of housing a form factor would be calculated that allow counting for different types of housing. The form factor of a housing is a geometric relationship between volume enclosing habitable housing and exposed surface. As the heat losses are proportional to the exposed surface this is an important factor for determining the thermal behavior of the housing. The exposed surface is related to the condition of the house and outbuildings. To calculate this factor it is necessary to determine the amount of housing space and its weighted thermal transmittance (Uweighted). 𝑈𝑤𝑒𝑖𝑔ℎ𝑡𝑒𝑑 = 𝐹𝑜𝑟𝑚 𝐹𝑎𝑐𝑡𝑜𝑟 = ∑𝑖 𝑈𝑖 ∗𝐴𝑖 ∑ 𝑖 𝐴𝑖 (Eq. 1) 𝑈𝑤𝑒𝑖𝑔ℎ𝑡𝑒𝑑∗𝐴𝑒𝑥𝑝𝑜𝑠𝑒𝑑 𝑉ℎ𝑎𝑏𝑖𝑡𝑎𝑏𝑙𝑒 (Eq. 2) The form factor calculated using equation 2 is then normalized considering the original housing design. Then this form factor is used to modify the energy demand for heating of housing with different geometrical dimensions but same habitable volume. In table 2 are shown the normalized form factor for different housing conditions (see fig. 4). Figure 4: Isolated, twin and continuous housing. Table 2: Normalized form factor for different housing conditions. Original design Regular one floor Regular two floors Continuous 1 0,99 0,71 Twin 1,21 1,11 0,88 Isolated 1,33 1,23 1,05 The better the normalized form factor of a housing, the worse performance in terms of energy and cost savings, i.e. generate greater savings for housing with worse form factor. Although economic performance was lower in housing with good form factor these savings remain still important and attractive as is shown in table 3. Table 3: IRR for different housing conditions. Original design Regular one floor Continuous 46,57% 46.18% Twin 56,60% 50,01% Isolated 62,50% 53,59% Regular two floors 36,26% 42,50% 48,16% 5 CONCLUSIONS In the present work it has been shown that installation of thermal solar systems and improvements in thermal insulation in social housing will result in energy and heating cost savings. However, the combination of extra insulation and doble-pane generates higher economic savings. Consequently, it should be necessary to consider a revision of the thermal transmittance regulations. It is important at this point to mention that an improvement in thermal insulation not only generates energy and heating cost savings but also improves the quality of life of the people living in those houses. Better thermal comfort in summer days, extra acoustic insulation, better quality of the air in winter days are some of the extra benefits. The implementation of energy efficiency measures and innovation in residential dwellings would comply with the requirements associated with the concept of self-sustainable housing. Finally, in terms of public policies it should be mandatory to carried out a general analysis of the energy efficiency measures apply to social housing in order to promulgate laws that may result not only in energy and heating cost savings but also in a significant improvements of the quality of life of the most vulnerable population. Particularly in that case, it should be advisable to modify the thermal transmittance national regulations and also incorporate tax discount for companies that incorporate doble-pane in their social housing projects. REFERENCES 1. Programa País de Eficiencia Energética. http://www.acee.cl/ 2. Ministerios de Desarrollo social. Encuesta de Caracterización Socioeconómica Nacional 2011. [En línea]. [Consultado el 02 de agosto de 2012]. 3. 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