GSHPs and the Renewable
Heat Incentive
Market Context
Long term strategic role for heat pumps
 The 4th carbon budget ascribes a
prominent long-term role for heat
pumps in achieving binding domestic
emissions reductions
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Market Context
 UK Heat Strategy
- “The Future of
Heating,
Meeting the
Challenge”
DECC, 2013
 Indicates a clear
and strategic
role for heat
pump
technology
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Market Context
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 22m homes in the
UK
 >4m homes off the
gas grid
 Those heated by oil,
lpg and electricity
are the “low
hanging fruit”
GSHP’s & the Domestic RHI
Domestic RHI
 Aimed at domestic
installations
 Rewards generation of
renewable heat, deemed
 RHI pays on Renewable
Heat contribution
 GSHP will always provide
more renewable kWh/yr
than an ASHP due to
higher efficiency
 Higher efficiency also yields
larger fuel cost savings
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GSHP’s & the Domestic RHI
Target market
 RHI will drive opportunities for
larger, off gas grid properties
 Private domestic retro fit
 Oil or lpg heated
 High fuel bills, bulk fuel purchases
 Higher heat loads
 >16kW, single phase electricity
supplies
 Existing heat distribution systems
 Higher flow temperatures
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GSHP’s & the Domestic RHI
 Benefit 1:
Attractive GSHP Tariff /kWh: 18.8p
 Benefit 2:
RHI paid on Renewable Heat contribution.
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Higher intrinsic SPF for ground source means higher Star Rating and therefore
more renewable kWh/yr
 Benefit 3:
Flat tariff rate structure means Domestic RHI will benefit larger properties
By definition likely to have more land area
KENSA HAS SINGLE PHASE OUTPUT UNITS UP TO 24kW!!
3 bed semi: 8kW
RHI: £11k / 7yrs
 Benefit 4:
4 bed det: 12kW
RHI: £17k / 7yrs
5 bed det: 15kW
RHI: £20k / 7yrs
No planning or noise (MCS022) issues to deal with!
8 bed mansion: 24kW
RHI: 37k / 7yrs
GSHP RHI Example
5 bedroom house Domestic RHI example for Ground Source Heat Pumps
 5 bed property
 4-5 occupants
 180m2 floor area
 Circa 1960’s build
 Basic insulation measures – cavity wall, loft, glazing
 15kW heat load
 Heating via radiators (50°C – 3 Stars)
 EPC: 21,000kWh/yr
 Land area required (slinkies): 720m2
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GSHP RHI Example
5 bedroom house Domestic RHI example for Ground Source Heat Pumps
 £1082 per year fuel cost saving vs oil
 £2845 first year RHI income
 £27,492 combined benefit over 7 years
 Before index linked tariff increases and fuel price inflation
 Typical installation cost: £18,000
 Based on slinkies
 Payback: 5 years
 Rate of return: 11.5%
www.kensaheatpumps.com
Kensa On Line
RHI Calculator
•
Website based tool
•
Calculates expected RHI and
fuel saving benefit under
domestic RHI
•
Varies results based on
geographical location
•
Suggests likely land area
required for slinkies
•
Aimed at helping driving
enquiries for installers
Non Domestic RHI
 Launched 2011
 Includes support for residential district
heating systems
 Recently uplifted tariffs for ground source
heat pumps
 Increased from 4.3p/kWh to 8.7p/kWh
 Payments made over 20 years, based on
metering
 Includes support for new build
 District residential schemes can be
combined with ECO funding
 More attractive long term rate of return
than domestic scheme
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Kensa micro-district solution
 Individual heat pump at each dwelling
 Linked to a communal ground array
 New build or retro fit
 Capital subsidy provided by Energy
Company Obligation (retro fit)
 Supported by 20 year income stream
through the Non Domestic Renewable
Heat Incentive
 Technically robust solution
 Myriad of operational and tenant fuel
cost benefits over other solutions
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www.kensaheatpumps.com
Traditional district scheme problems
 Traditional schemes featuring a central boiler plant
are not popular
 Difficult to implement as a retro fit solution
 Inefficient
 Heat losses as hot water circulated through the “district”
 Burdensome
 HA has to manage billing
 Bulky
 Requires considerable space
 Expensive
 Requires back up system to eliminate risk of catastrophic
district-wide failure
Kensa micro-district solution
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Energy saving
Ground source heat pump
Kensa high temperature
units, installed externally
Low cost, low carbon heating and hot
water reducing energy bills
Renewable Heat Incentive
20 year income stream for district
schemes under the non domestic RHI
Micro district heating
Energy Company Obligation (Retro fit)
Individual gshp per property
linked to a shared ground
array serving 2+ properties
Attractive capital subsidy, especially
when displacing electric heating
New Build
Technically robust
New build developments are eligible
for the non-domestic RHI
Smaller number of deeper
boreholes
Flexibilty over borehole
location
Scaleable solution
No plant room or central
pump
Can be applied to apartment blocks or clusters of
terraced or semi detached houses/bungalows,
sheltered accommodation, holiday lets and more…
Simple billing
No centralised billing – each tenant
has control over own heating system
and energy bill
Micro District Ground Source Heat Pump System
Based on 2 bedroom End of Terrace
Micro-district
costed example
Air Source HP
87 tonnes
67 tonnes
£450
£350
£15,000
£7850
Heat pump, ancillaries and installation
£3900
£3500
Boreholes and ground collector system
£6600
0
New radiator system and DHW cylinder
£4100
£4100
Design (EPC, borehole design)
£400
£250
Existing system replacement costs
£2500
£2500
ECO funding contribution
£3500
£0
Total Net Cost
£9000
£5350
£16,000
£2900
6%
0%
Lifetime CO2 savings
Typical annual running cost saving vs NSH
Total capital cost
Total RHI contribution
Overall rate of return (IRR)
New Builld - Kensa Shoebox
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System architecture
 Individual ground
source heat pump
and hot water cylinder
in each apartment
Heat source for
Shoebox heat
pumps
 Low temperature
primary circuit
3kW capacity
Multiple
boreholes 100150m deep
 Communal Ground
array
 Eligible for RHI
Small & extremely
payments –
quiet
considered as district
Provides heating & hot
heating
water
District Htg New Build Example
Abbeydale Hall - Luxury new build apartments
 4 blocks of 3 apartments
 Each shares a communal borehole field of
3 x 130m boreholes
 3kW Shoebox heat pump installed in each
flat
 Developer retains the non domestic RHI
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Reasons why GSHP’s win!
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Domestic RHI
 Very attractive domestic RHI tariff rates and high renewable heat content
 Compelling rates of return / payback, especially in larger properties
 Kensa range >16kW single phase models – ideal for larger domestic properties
District and Non Domestic RHI
 District residential heating solutions possible using the Non Domestic RHI
 “Decentralised” district systems possible by linking ground loops – not possible with any other technology
 Opportunity to apply in new build
 Opportunity to tap in to ECO funding (district retro fit)
PLUS OF COURSE…
 Planning exempt (permitted development rights)
 No noise nuisance
 Lowest possible running costs and long life expectancy