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Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader of Southampton City Council

Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

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Page 1: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Southampton City Council & Future Solent

Solar PV Programme 2016 - 20Invest to avoid rising energy prices and taxation

Councillor Simon Letts – Leader of Southampton City Council

Page 2: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Southampton's Solar PV Programme

• What we wanted to do

• Our track record in delivering projects

• The strong evidence base – Prof Bahaj

• Bumps along the way – FiT reductions etc – Simon and Alan

• Some data showing the impacts

• The next steps and future opportunities

Page 3: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

UK Solar Irradiation and Southampton Solar PV Yield

• Did you know?

• The amount of sunlight that hits the Earth’s surface in one hour is enough to power the entire world for a year.

Solar irradiance is a measure of the suns power. Irradiance levels vary considerably at different times of the year, depending on the seasons, the weather and the time of day.

Projected Yield

SAP (Sheffield

)

PV Syst

Met Office

Southampton 800+ 900+ 1100

  Generation

30 kWp 70 kWp

SAP kWh 24000 56000PV Syst kWh 27000 63000PV SOL kWh 30000 70000

Page 4: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Council’s track record of delivery

• Insulation programmes linked to fuel poverty and health

• A corporate solar PV programme (2010)

• Corporate and schools energy programme – (c£1.5 million demand reduction and energy performance projects)

• Schools investments (retrofit and new build) - Solar PV schemes

• Behaviour change programme

• Heating upgrades including renewable heat schemes

• District Energy schemes

Page 5: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Southampton Geothermal Heating Company, Southampton

City Wide DE Scheme

70,000,000 kWh energy generated p.a.

11,000 tonnes CO2 saved p.a.

Providing heat chilled water & electricity to

45+commercial consumers

800+ residential consumers

Page 6: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

• Energy Efficiency in Action

Energy Efficiency in Action Energy Efficiency in Action

BBC TV Studio’s

ParkviewRSH

HospitalCivic Centre

Southampton Solent

University

Skandia Life

DeVereHotel

Quays

West QuayThe Heat Station

IKEA

Carnival

ABP

Page 7: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Council District Energy Schemes

• £16 million Weston scheme

• £25million Thornhill, Shirley, Millbrook

• Insulation and district heating

• Rooftop Solar

• Heating cost reductions of over 30%

• Nearly 2,000 homes from 2012 - 2016

Page 8: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Changes to Renewable Energy – Doctor Alan Whitehead MP

Page 9: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

www.energy.soton.ac.uk

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Professor AbuBakr S Bahaj – Chief Scientific Advisor SCC Energy and Climate Change Division & Sustainable Energy Research Group Faculty of Engineering and the Environment University of Southampton, Southampton, SO17 1BJ, United Kingdom

Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Page 10: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

o City mapping to provide support to Master Plan & carbon reduction targets.o Research approach centred on scenarios that reflects City needs, social

acceptability and wellbeing.

Transportation networkSolar irradiation

Socio-economic statistics

Building / LiDAR 3D data

City open spaces

Satellite imageBase map

Southampton - Energy PotentialSolar Photovoltaic (PV)

Page 11: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

MWh

Non domestic

Appropriate areas for PVResults optimisation process filter out about 2/3 roof areas due to various obstacles (inappropriate slope, orientation, or areas being too small)An applicable roof area is defined as: oFacing South (-45 to 45, 0°being due south).oAppropriate inclination (between 0°and 60°).oNot shaded (annual radiation >800 kWh/m²).oEconomically applicable: larger than 8 m² .

Solar radiation for Southampton

Radiation received by roofs

PV Applicable areas

MWh

Domestic

Page 12: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Citywide solar PV capacity

  Domestic Non-domestic TOTAL

  MW MW MW

Small (<3kW) 43 21 64Medium (3 - 15 kW) 62 33 96Large (>15 kW) 16 83 99

sub total 121 137 258

City power production – Solar PV

Annual electricity productionoTotal 247 GWh/year.

Domestic: 120 GWh, Non domestic: 127 GWh.

o 2011 Southampton electricity consumption, 1015 GWh. o Solar photovoltaics electricity from roofs ~ 25% of city’s electricity needs.

Pitch roofFlat roof

DomesticNon-domestic

Page 13: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Analysis of current and future FiT

Feed tariff (FiT)

o DECC plans to further reduce FiT.o Export tariff remains unchanged, at 4.85 p/kWh.o Income from a PV systems will rely on FiT & export

tariff, normally assume half of generation is exported.

Scenario 1 = 12.47p/kWh current FiTScenario 2 = 1.63p/kWh DECC changeScenario 3 = no FiT, export tariff only

= 2.43p/kWh Depends on availability of export metre!

kWp Current Proposed %

≤ 4 12.47 1.6387%

04 - 10 11.3 1.6386%

10 - 50 11.3 3.6967%

50 - 150 9.63 2.6473%

150 - 250 9.21 2.6471%

250 - 1000 5.94 2.2862%

1000 - 5000

5.94 1.0383%

Page 14: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Building type, expected capacity & generation

Southampton City Council buildings

Domestic buildings

>150 kW

100 – 150 kW

50 – 100 kW

10 – 50 kW4 – 10 kW<4 kW

Non-domestic

>500 kW

200 – 500 kW

100 – 200 kW50 – 100 kW10 – 50 kW<10 kW

Wyndham Court•Number of households: 185•Number of council properties: 84•Installation capacity: 84 kW•Generation: 262 MWh/year•Feed-in tariff: £ 15 589 per year

Wyndham Court•Number of households: 185•Number of council properties: 84•Installation capacity: 84 kW•Generation: 262 MWh/year•Feed-in tariff: £ 15 589 per year

Page 15: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Building distribution & subsidy reductiono To encourage “well-sited”, medium scale projects, PV systems of 10-50 kWp

will receive highest subsidy. o Most council properties, both domestic & non-domestic, are in this band.

Distribution of Council buildings in relation to different FiT bands after subsidy reduction

Proposed FiT as a function installation bands

kWp Current Proposed %

≤ 4 12.47 1.6387%

04 - 10 11.3 1.6386%

10 - 50 11.3 3.6967%

50 - 150 9.63 2.6473%

150 - 250 9.21 2.6471%

250 - 1000 5.94 2.2862%

1000 - 5000

5.94 1.0383%

Page 16: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Income taking into account borrowing, FiT and 50% export of electricity

Impact of subsidy and reductiono Significant income from avoided electricity import, at 16.07 p/kWh

(domestic) & 10.20 p/kWh (non-domestic). Analysis assumes 50% export. o Payback period increased significantly due to FiT reduction, but still within

10 years as most building are within highest subsidy region.

o Electricity price is likely to increase in the future, not considered here.

Page 17: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Income with and without avoided import

o Payback period will extend significantly if power is not consumed locally.o Investment may not paid off under certain scenarios.

∞ ∞ ∞ ∞

Impact of subsidy and reduction

Page 18: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Income without avoided import

Impact of subsidy reductiono Payback period will extend significantly if without income from avoided

electricity import.o Investment may not paid off under certain scenarios

Page 19: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Energy and Climate Change Division – www.energy.soton.ac.uk Prof A S Bahaj : Southampton Solar City: Assessment of Solar Energy Potential from City Buildings

Building PV potential and energy efficiency

Online tool / database

o Enable easy access to research resultso Provide user-friendly platform for researchers, project managers, or

people who want to know more about their homes.o Demonstrate the energy saving potential of Southampton, as well as

Solent Region.

PV potential of SCC properties EPC of Southampton homes

Page 20: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

Conclusions and Next steps

• Scenarios to come – Grid parity – rising electricity prices Falling Panel prices – anti dumping Alternative subsidy regimes

• The Council’s role To aggregate and create scale Identify development and delivery funding

• Please register an interest with us to take advantage of future opportunities

Page 21: Southampton City Council & Future Solent Solar PV Programme 2016 - 20 Invest to avoid rising energy prices and taxation Councillor Simon Letts – Leader

THANK YOU

Let’s make solar work!Questions?