Issue 144 n page 44 Renewable Energy - 1 of 4
Rufus Bellamy, BH&HPA
National Adviser on
conservation and
environmental management
considers new schemes to
boost renewable energy and
assesses their potential
importance for the industry
Renewable energy in the UK looks set to receive a
significant boost thanks to the recent introduction of
the government’s new Feed-in Tariffs (FiTs) and the
upcoming Renewable Heat Incentive (RHI) scheme.
Many in the environmental field have hailed the two
schemes, which involve energy companies paying for
the electricity and heat produced by small-scale
renewable energy systems, as a ‘game changer’. They
have also generated significant interest in the parks
industry, with several park owners and managers
looking into joining the schemes and thinking about
starting to generate their own energy and produce
their own heat.
‘Most of us are celebrating the boost to the industry that
the new Feed-in Tariffs and Renewable Heat Incentives
will bring,’ says Lu Quinney, Editor of ‘Renewable
Energy Installer’ writing in the latest edition of the
magazine. ‘Add to this the fact that this year’s Ecobuild
(green building exhibition) was packed to the gills with
visitors and there’s proof that renewables are gaining ground
and the industry is set to explode.’
Renewable energy companies working within the
holiday and residential park home business back up this
optimistic outlook. ‘We’ve been inundated by caravan and
camping parks for renewable energy systems,’ says Alan
Ward, Technical Sales Director of the EnergyWorx 2,
a company that installs renewable energy systems at
parks such as Kelling Heath Leisure Park and
Woodhill Touring Park in Norfolk.
Is it a good idea?
Not everyone is happy about the potential impact of
the FiTs and RHI scheme. One of its most vocal
critics is The Guardian’s correspondent George
Monbiot who argues in the newspaper’s environment
pages that it is a ‘rip-off’ because it will be a very
expensive way to save a relatively small amount of
carbon dioxide. This is because the scheme will
primarily encourage people to invest in solar photovoltaic (PV) electricity panels which, Monbiot argues,
are not a very effective way of generating electricity
given the UK’s climate and its pattern of energy
demand.
Monbiot’s argument has resulted in an impassioned
debate on the Internet, in particular from Jeremy Leggett,
Chairman of the installation company Solar Century, who
argues that the tariffs will drive innovation and allow
savings due to economies of scale – both of which will
make photovoltaic more effective. To see who is right
Monbiot and Leggett have bet £100 on whether solar
PV electricity in homes will or won’t be pricier in 2013
than conventional electricity. It will be interesting to see
who is right.
What are Feed-in Tariffs?
The whys and wherefores of the scheme add an extra
dimension to the question of whether it makes sense for a
park to get involved with the FiTs and the RHI.
However, the first step to answering this question is to
look at the nuts and bolts of the schemes.
FiTs became available in Great Britain in April
2010. Now households, communities or businesses that
install a renewable electricity generating system will be
paid a fixed sum for every kWh of electricity it produces
and another fixed sum for every kWh that is ‘exported’
to the grid. According to the Energy Saving Trust
(EST), these payments are in addition to the bill savings
made by using the electricity generated on site. The
EST is an independent body that provides information
for people across the UK looking to save energy,
conserve water and reduce waste.
The renewable energy generating technologies
that are covered by the scheme are solar electricity (PV),
wind turbines, hydroelectricity, anaerobic digestion and
micro combined heat and power. Different tariffs apply
to the different technologies. The approach that gets the
biggest tariff is solar PV electricity systems (of less than
or equal to 4kW) retrofitted to an existing building.
Micro combined heat and power systems get the least.
The largest size of system that is eligible for payments
is 5Mw.
Renewable Energy - 2 of 4 July-August 2010 Issue 144 n page 45
Parks already signing up
What’s the deal?
The economic case for the tariffs is set out on the EST’s
website - www.energysavingtrust.org.uk – along with details
of how to take part:
‘Once you have a microgeneration technology installed, you
should experience a monthly reduction in your electricity bill and
then receive income from your Feed-in Tariff provider. However, if
you have taken out a loan to pay for the installation you will have to
make monthly repayments to your loan company. Feed-in Tariffs
are designed so that the average monthly income from your installation will be significantly greater than your monthly loan repayment
(with a 25-year loan).’
The website provides a cashback calculator to help work
out potential earnings. For example, someone fitting a 2.5kW
photovoltaic solar system would be in line to get a payment of
41.3p per kWh generated, along with a further payment of 3p
per kWh for each unit not used and exported to the grid.
Keep in mind that the current FiT levels are only fixed
until 31 March 2012. After this date, the rate will decrease in
line with the Retail Prices Index. That said, if BH&HPA
members get their solar PV system commissioned by the
2012 cut-off date, they will be ‘locked in’ on the highest rate
for 25 years.
What about the RHI?
The RHI is the sister scheme to the FiTs and is intended to
work in much the same way as the FiTs, but instead of paying
for electricity generated by small-scale renewable systems it is
designed to pay for the heat generated by systems such as solar
thermal panels, heat pumps and biomass boilers. The scheme
is due to come into operation in April 2011.
However, the scheme is still out to consultation and, as
everyone knows, the new government is trying to save money.
That said, at the time of writing there are no indications that
the scheme will be sacrificed on the altar of the national debt.
In comparison to the RHI, the FiTs are already up and
running and many parks have already taken an interest. One
early-adopter is BH&HPA Vice-President, Martin Cox. ‘I’ve
used my home as a benchmark for doing things around the park,’ he
says, explaining that he has installed a 2kW solar PV electricity system. ‘The system started in April and I’ve been getting an
average of 10.5kWh per day. We have a 25-year agreement with
the government through our supplier. We get 41.3 pence for
generation and another 1.5p for export.’ Martin’s ‘export’ payment is based on an estimate that he will export half of the
energy he generates. He is optimistic about future returns. ‘If I
generate 2,000 units a year, I’ll get £856 and also be saving
electricity costs. The system cost me about £10,000 so I’m getting an
8.5% return. That’s a better return than I’d get if I put the money
in the bank!’
Martin’s advice is that it is important to get any installation work done by a company that knows what it is doing and
to make sure that the equipment supplied is specified properly.
He is now looking at his next renewable system, this time on
the park itself. He has already installed an all-new highly
efficient boiler and a solar system on one of the park’s shower
blocks supplied with water preheated by a solar system. Later
this year, the plan is to add an air source heat pump to provide
the energy at night ready for the morning use of the showers.
If this is successful, it will be installed in the second shower
block on the park. Air source heat pumps have also been used
for underfloor heating in three new apartments constructed
during 2009 and have proved to be very successful.
However, his vision doesn’t end there. ‘We’ve got a
swimming pool with a large roof,’ he says. ‘I thought it would be at
least 10 years until I got it covered with solar panels, but now I
reckon it could be next year. We have a couple of quotes for PV panels
which I am sure will have a seven to eight year payback period.’
One park that is already looking at such an ambitious
project is Wood Farm in Dorset. ‘We’re looking at putting a
17.2kW, 93 panel PV system on the roof of our swimming pool,’ says
park Manager Adrian Mowbray. ‘There won’t be much room left
on the roof after the panels have been put in place. According to our
installer NuVision, it is likely that all of the electricity the panels
produce will be used in the pool itself, so none will be exported,’ he
says, explaining that if it were not for the Feed-in Tariffs he
probably would not have gone ahead.
‘When I initially looked at the costs a few years ago, they were
around £60,000 and I wouldn’t have been able to pay off the
installation in 25 years. Now with the Feed-in Tariffs, I’ve
reviewed the situation. Although the costs are about the same, the
panels have got a lot better and, thanks to the payments we’ll
receive, the payback is about eight years. I’m now going ahead and
getting the system installed.’ continued…
Issue 144 n page 46 Renewable Energy - 3 of 4
‘One of the key things to keep in mind is that you have to have
the work done by an MCS-accredited company and use MCSaccredited equipment,’ says David Holton, co-founder of
EnergyWorx 2. MCS is the Microgeneration Certification
Scheme. This is an independent body that certifies microgeneration products and installers in accordance with consistent
standards. Without MCS accreditation, anyone who puts in a
new renewable energy system will not get any money – in fact,
to access payments the energy supplier will have to be notified
The FiTs and, potentially, the RHI do seem to offer a real
once the system is installed and presented with a FiT eligibilincentive to parks to invest in renewable electricity and heat
ity certificate which the accredited installer will provide. More
technology. However, the attractiveness of the schemes will
details are available at www.microgenerationcertification.org.
depend on BH&HPA members’ park/s, situation and
Accreditation is there for a reason. According to David
perspective on renewable energy and the machinery that
generates it. There are so many variables that any decision to several companies are ‘coming out of the woodwork’ to take
advantage of the interest in FiTs that have never done any
invest in renewable technology must be looked at on a casespecific basis; as must any decision about what technology to form of renewable work. ‘There are some real chancers around,’ he
says noting that, while accreditation is a good thing, it is
choose.
currently limiting the choice of suppliers and equipment as
However, many of those in the renewables industry
argue that the current tariff levels point to solar PV electricity companies put themselves and their products through the
as the best option. ‘PV should be given serious consideration now,’ necessary hoops.
says Abraham Cambridge from R-ECO, a renewable energy
cooperative, who recently gave a talk to the BH&HPA
Cornwall Branch. ‘The sooner you get into it the better as the
Feed-in Tariff is at its maximum.’ Others argue that even if
members miss the current high tariff level, they will not miss
the boat as, although future tariffs will be reduced, the
When considering the options for renewable technology, keep
technology they will be buying should get progressively
energy efficiency in mind. Investing in a renewable electricity
cheaper as the market responds to increased demand.
system makes little sense if the park is not using the most
Electricity generation is, however, only one half of the
renewable coin and, for many parks, heat and hot water rather efficient light bulbs or electrical equipment. The same goes for
a heating system; if a building simply leaks all the energy
than electricity is the main requirement. Here things get a
produced, then any investment is, quite literally, going out of
little more complicated. According to Alan Ward from
the window.
EnergyWorx 2 when it comes to heating water, solar PV
When it comes to energy efficiency, there is help
electricity can still have a role providing electricity to an
available.
One of the best places to get it from is the Carbon
existing immersion system. ‘This may be a cost-effective move as
Trust,
which
offers in-depth, on-site energy surveys for
you are not changing any hydraulic element,’ he says. However, he
businesses
whose
energy bills are greater than £50,000 per
argues that, ‘With the exception of this specific application, it
year.
The
Carbon
Trust can also help with the actual cost of
probably makes sense to wait and see what happens with the
installing
renewable
energy equipment. BH&HPA members
Renewable Heat Incentive before making any technology decision’.
may
be
eligible
for
one
of the organisation’s interest-free loans
His advice is to, ‘Put in any supporting infrastructure, such as the
vessels that hold water, and then hold fire until the government sorts for energy saving technology such as insulation, boilers and
heating controls. Other financial help is also on offer, such as
itself out. Then decide what kind of renewable heating system to
100% first-year capital allowances on the cost of qualifying
buy.’ According to Alan, parks should not have to wait more
plant and machinery - boilers and heat pumps for space
than six months before the political waters clear enough to
heating etc. The equipment that qualifies for this Enhanced
allow an informed decision to be made.
Capital Allowances (ECA) scheme can be found at
www.eca.gov.uk.
Are the schemes for me?
The importance of
energy efficiency
The importance
of accreditation
For those who do decide to go ahead and take advantage of the
current FiTs, then what are the key things to consider? The
first is to choose the right products and suppliers. To make this
choice the best bet is to talk with a renewable energy consultant to see exactly what kind of system will suit the park and
meet its requirements. Also, take care when selecting the
equipment and installers.
Thinking about the future
The aim of all these schemes is to try and save energy and get
Britain to produce less of its electricity and heat from fossil
fuels; however, it also presents some interesting business
opportunities. So, whether motivated by altruistic or hardheaded reason (or perhaps a mix of the two), now is perhaps
the best time ever to take another look at the role a park can
play in the country’s evolving green energy revolution.
Renewable Energy - 4 of 4 July-August 2010 Issue 144 n page 47
Park homes lead
the way with
energy efficiency
Getting energy efficiency right is key to maximising any gains
from FiTs and the RHI. One park that is showing just what
can be done is Acresfield near Garstang in Lancashire. This is
the latest development from Michael Ward who has already
invested heavily in green technology at his other parks in the
region (see page 31).
Acresfield Park has been designed with two key aims –
to be perfect for the retirement market and to be as energy
efficient as possible. Each of the homes that have been built
incorporate the very latest energy-efficient innovations, including state-of-the-art double glazing, high-efficiency boilers and
innovative walls made of a bespoke sandwich of insulation
materials. All of these elements mean that the homes should
achieve an Energy Performance rating of ‘B’. Only a small
percentage of bricks-and-mortar houses achieve this level;
a recent survey from the Halifax found that 44% of homes
fell into band ‘D’.
‘Energy costs increase year-on-year and potential purchasers
are becoming more aware of how these rising costs can erode their
retirement funds,’ says Michael Ward, explaining why he thinks
it makes good business sense to invest in energy efficiency. ‘We
have worked closely with both Country Homes and Stately Albion
to create the ‘‘Acresfield’’ models which are unique to us. We’re really
delighted with the results.’
Michael’s commitment to reducing Acresfield’s energy
consumption extends to the park’s street lighting. Each of the
lamps on the park is made up of 36 LEDs. Not only are these
incredibly energy efficient with each light having a life
expectancy of 25 years but, from a health and safety point of
view, the light produced assists those with visual impairment
to see more clearly (in comparison with the usual yellow light
produced by most street lights). l
Wood Farm's swimming pool roof is covered with a
17.2kW, 93 panel PV system
Cross section
from
Acresfield
Park homes
showing
innovative
bespoke
sandwich of
insulation
materials
Energyefficient
street
lighting at
Acresfield
Park
Useful websites
Carbon Trust: www.carbontrust.co.uk
Energy Saving Trust: www.energysavingtrust.org.uk
EnergyWorx 2: www.energyworx2.co.uk
R-eco: http://r-eco.co.uk
Microgeneration Certification Scheme: www.microgenerationcertification.org