Environmentally Friendly Funding – Financing our Future

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Objectives

• Introduction to Carillion Energy Services

• Financial Incentives for installing Micro Generation

• Review of the current market

• Examples of sucessful projects

• Benefits of a whole house approach

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About Carillion

• Carillion has an annual revenue of over £5 billion, employs around 46,000 people and operates across the UK, in the Middle East and North Africa, Canada and the Caribbean.

• We have a portfolio of award-winning work in areas vital to society: health, education and regeneration, road, rail, defence and commercial property and Energy Services. From first concept to ongoing facilities management and support services, we provide high quality, cost effective and sustainable solutions, tailored to the needs of our customers.

Territories in which Carillion has active operation as at 2011

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About Carillion Energy Service

• The UK’s leading independent energy support services company

• Employs over 4,000 people with further 12,000 people working within our supply chain

• We have significant experience in supporting commercial customers minimise their energy and water usage.

• Deliver c240k major home energy improvements per annum and we are the second largest supplier of heating systems in the UK

• Operational skills and expertise in complex delivery and aftercare based on 20 years experience

Lighting

Water Efficiency

Building Fabric

Controls

Ventilation & Air-Conditioning

Space & Water Heating

Solar PV

© Mike Renwick (Illustrator) Creative Eye

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Financial Incentives for Micro Generation

• Fantastic Range of Opportunities to fund and finance building improvements to reduce carbon emissions and fuel poverty.

• Potential to install various systems with no capital expenditure for both public sector land lords and private home owners.

• Potential to invest in micro generation technology to generate attractive returns that can be invested in other areas of improvement.

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Financial Incentives

CERT/CESPCERT/CESP

Green DealGreen Deal RHIPPRHIPP

RHIRHI

FITFIT

Incentives Incentives

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Financial Incentive – FIT

What are feed in tariffs ?

• Introduced 1st of April 2010 the Clean Energy Cash Back Scheme is a set of government defined tariffs that legislate utility companies to pay a defined rate for every kilowatt of electricity produced.

How do the Feed-In Tariffs help?• The Tariffs give three financial benefits:• A payment for all the electricity you produce,

even if you use it yourself • Additional bonus payments for electricity you

export into the grid • A reduction on your standard electricity bill,

from using energy you produce yourself

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Financial Incentive - FITs

Which systems are eligible?• Solar PV, Wind, Hydro, Micro CHP, Anaerobic Digestion.

How many systems have been installed since April 2010? • Ofgems latest figures reported up until the 26th February 2011 show a

total of 24,744 installations since April 2010.

• PV installs make up the bulk of capacity with 17,250 installations to date.

• Majority of installations in the South East and South West of England.

How are FITs funded? • Payment from FIT comes from the UK energy suppliers

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Renewable Heat Incentive - Phase 1

• RHI Introduced to support renewable heating products.

• Phase 1 of RHI commences on July 1st 2011

• First Phase to concentrate on Industrial Sector and Public Buildings including district heating systems

• RHI Phase 1 covers – Biomass and Biogas, Ground Source Heat Pumps and Solar Thermal.

• Air Source Heat Pumps not included in Phase 1

• £860 million budget for Phase 1 to run through spending period up to April 2014.

• Unlike FIT, RHI funded through central government funding

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RHI Premium Payment

• RHI Premium Payment introduced for domestic dwellings

• Covers solar thermal, ground source and air source heat pumps, and biomass.

• Total fund of £15 million to cover the period July 2011 to October 2012

• Managed by Ofgem

• Focus on properties off the gas network, installations to be monitored.

• Phase 2 of RHI for domestic properties to be introduced in October 2012 to coincide with the Green Deal

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Carbon Emissions Reduction Target (CERT)

• Extended until December 2012

• 68% professionally installed insulation

• £1.3 billion to be invested.

• Universal scheme – all can access

• Enhanced rates for priority and super priority group

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Community Energy Saving Programme (CESP)

• Runs until December 2012

• £350 million to be invested

• Measure specific uplift structure to encourage investment in external wall insulation and fuel switching.

• Further uplift structure in place to encourage whole house and whole area investment.

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The Green Deal

• The Green Deal is the Government’s flagship carbon reduction policy that will apply from October 2012.

• Green Deal providers will install energy efficiency measures at zero upfront cost to the customer.

• The repayments for this work are collected through the energy bill, these repayments cannot exceed the cost saving that the work generates for the customer.

• This charge is placed on the property, not the customer. If the property is sold the next owner becomes eligible to make the payments.

• The Energy Company Obligation (ECO) will be introduced as part of the Green Deal and will replace CERT and CESP in targeting vulnerable and hard-to-treat householders.

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UK Micro Gen Market

• Introduction of FIT in April 2010 has resulted in major growth in the UK PV market.

• 100’s of new installers on the MCS web site

• Free of Charge PV – Is this for me? What are the benefits / challenges?

• How can I ensure I choose the appropriate technology for my project?

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PV Case Study - Welwyn & Hatfield(Feed in Tariff)

• Project Size - Carillion Energy Services has installed 339, 2.6Kwp, Solar PV systems into the homes of Welwyn and Hatfield Community Housing Trust (WHHT) tenants

• Benefit to the Client: WHHT is being supported in meeting its fuel poverty alleviation and carbon reduction targets, whilst also supporting its tenants, and adding value to its building stock.

• Benefit to the Tenant: Each tenant receives up to £120 of free electricity per annum allowing for a significant reduction in overall fuel bills. 34% reduction recorded on average

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PV Case Study – Welwyn & Hatfield

• Close Partnership Working: Carillion Energy Services has worked in partnership with WHHT tenant liaison officers to provide a comprehensive customer service package to tenants. Working in stages of 50 properties / households at a time all tenants have been advised accordingly as to the benefits of Solar PV. They have also been provided with reference literature and 1-2-1 consultations.

• Funding Model: This contract has been funded by the Clean Energy Programme which has been developed to capitalise on the national Feed-in-Tariff. The programme involves no upfront charge to the tenant or WHHT and demonstrates the capability of Carillion Energy Services to secure significant funding working with the investment community. It also highlights our ability to mobilise a large scale renewable energy programme rapidly.

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ASHP Case Study - South White Housing (FIT and RHI Domestic)

• Project Size: The installation of approximately 300 Solar PV systems and 67 Air Source Heat Pumps on social housing properties

• Benefit to Client: Reduced carbon emissions and fuel poverty of residents. As heat pumps were funded by South White potentially eligible for RHI in 2012

• Benefit to the tenant: The idea for the project evolved after local residents raised concerns to South Wight Housing regarding energy efficiency and the negative impact of rising fuel bills, the primary objective of the scheme was therefore the alleviation of fuel poverty in an area of high unemployment and social decline.

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Solar Thermal Case Study - Jesmond Pool(RHI Commercial)

• Project Size – 61m2

• Benefit to Client – Systems heats hot water for swimming pool via heat exchanger.

• Annual saving from fuel bills

• Eligible for RHI payment

• Saving 7 tonnes of CO2 per year

• Funding Stream – community owned swimming pool, self funded through charity group.

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GSHP Case Study - Isle of Orkney(RHI Domestic)

• Size of Project – 9 GSHP installations on 2nd Isle of Orkney. Installations were bore hole installs as appose to trench.

• Benefit to client – reduced carbon emissions displacing oil and solid fuel.

• Potential to claim from domestic RHI fund in 2012

• Benefit to residents – reduction in fuel bills, major reductions of over 40% reported.

• Project was successful in winning Scottish Government Energy Efficiency award in 2010.

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Any Questions?

• How do I get my project started?

• Self funded or free of charge – which is the best option?

• What is the most appropriate technology for my building?

• Maintenance and running costs?

• How do I find an installer / product (MCS)?

• Are there any planning / building regulations I should be aware off?

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