Micro Renewables The Future of Plumbing? March 11, 2010 David McKenzie Scottish Microrenewables...

Preview:

Citation preview

Micro RenewablesMicro RenewablesThe Future of Plumbing?The Future of Plumbing?

March 11, 2010March 11, 2010 David McKenzieDavid McKenzie

Scottish Microrenewables Working GroupScottish Microrenewables Working Group

World Plumbing Day

Microrenewables Working Group

Advice to Daughters:

“If you want a long and contented marriage, marry a plumber”

Source: My wife

Microrenewables Working Group

AGENDA

• Microrenewables – What and Why

• Role of the plumbing industry

• Challenges to be overcome

Microrenewables Working Group

• Scottish Microrenewables Working Group

– SELECT, SNIPEF, HVCA, SBF, SUMMITSkills, EU Skills, CLE, SRF

– Represents majority of businesses in Scottish Construction / Building Services Engineering

• 3,500 Companies• 35,000 Operatives • > 10,000 Apprentices

– Commissioned by Minister for Energy in August 2008 to focus on identifying and removing barriers to success in microrenewables for small / medium size Scottish firms

Microrenewables Working GroupRenewable Energy Targets

By 2050• Scotland 80% Green House Gas reduction

By 2020• EU overall 20% renewable energy• UK 15% renewable energy• Scotland 20% renewable energy

– 50% Renewable Electricity– 11% Renewable Heat– 10% Renewable Transport Fuels

Microrenewables Working Group Scottish Energy Usage

Industrial Heat14%

Commercial Heat7%

Electricity Industry and Commerce

13%

Electricity Domestic

13%

Transport29%

Domestic Heat24%

Domestic energy use = 37% of all energy use

Source: SRF

Microrenewables Working GroupChallenge for domestic energy

Renewable Electricity (Target 50%)

• UK target 2% for small scale / domestic– Equivalent to 10GW

• Scotland target would be approx 1GW

Renewable Heat (Target 11%)

• 9.3% can be met by industrial and commercial• Domestic > 1.7%

Source: SRF

Equivalent to 85000 – 275000 homes by 2020> 65% to be installed by plumbers

Microrenewables Working Group What are Micro Renewables

“Generation of electricity or heat using renewable resources within certain capacity limits”

Technologies• Renewable Electricity (electrical skills)

– Solar PV– Small wind turbines– Micro hydro

• Renewable Heat (plumbing skills)– Solar Thermal– Heat Pump – Air, Ground and Water Source– Biomass Boilers

Microrenewables Working Group

How Microrenewables will change the Plumbing Industry

Consumers / householders will have a menu of heat options– Renewable / non-renewable– New homes / existing homes– New technologies or technology variations by the month– Financing will become increasingly complex

Installers• Will become energy advisers • Optimal Design and Financial Options will be key• Training - increasingly more important and complex

Moving from product installer to trusted services provider

Microrenewables Working GroupFixing Barriers to Success

Finance• Scottish Government Grants through 2011

– 30% of eligible costs to £4,000 maximum

• UK wide incentives– Feed-in Tariffs (FiTs) renewable electricity April 2010– Renewable Heat Incentives (RHIs) April 2011

• Challenge– No additional funding– Find imaginative ways to package available funds

Microrenewables Working GroupFixing Barriers to Success

Challenge - Lack of DemandAnswer - Proper Marketing

Marketing is not just:• Brochures, adverts, web-sites, exhortations, speeches• Asking early adopters Marketing is:• Segmentation, segment analysis, education, buyer

emotions, packaging, delivery channels, financing, etc• Noting that 90% of householders buy what their local

plumber / electrician recommends (EST: 6 / 2009)• Too important / too urgent to be left to the industry • A way to get householders to pay a bigger share

Moving from product installer to trusted services provider

Microrenewables Working Group

Summary

• Microrenewables– Are a non-negotiable part of Scotland’s future– Major opportunity for the building services engineering

industry, particularly plumbing– A potential economic growth factor

• Challenges – Get installers on board / make renewables mainstream– Get maximum bang for the finance buck– Drive demand

Recommended