Introduction
New technologies can provide a solution to fuel poverty where conventional energy efficiency improvements are inadequate or impracticable. They can provide heat and power more cheaply through greater efficiencies or through cheaper fuels. They are particularly relevant therefore in solid-walled and non-traditional construction properties, and in those houses that are not connected to the mains gas network and therefore rely on more expensive fuels.
What is the policy context?
The UK Government is strongly supportive of the development of micro-generation technologies. The most visible manifestation of this support is the Budget commitment to devote an additional £50 million to developing the market for these technologies through the Low Carbon Buildings Programme. Further to this a major report on micro-generation technologies, commissioned by the Department for Trade and Industry concluded that these could contribute up to 30% of the UK’s electric demand by 2050.
NEA believes that the synergies between affordable warmth and sustainable energy are very strong. Whilst the political motivation for implementing micro-generation technology is being fuelled by the climate change agenda and carbon saving targets, it is also clear that these technologies can reduce household fuel bills. Of course, the UK Government has statutory requirements to remove vulnerable householders from fuel poverty by 2010 and to remove all householders from fuel poverty by 2016. This is an ambitious social policy. The potential benefits of micro-generation technologies in providing affordable warmth are obvious but little serious attention has been paid to more detailed issues. For example, it is critical that the more vulnerable householders are able to use the system correctly to maximise the benefits. This means providing simple controls and non-technical instructions. NEA is pioneering this work through innovative demonstration projects in partnership with a range of agencies.
What are the new technologies?
- High-efficiency boiler technologies
- Air-source heat pumps
- Ground-source heat pumps
- Solar thermal (hot water)
- Micro-wind
- Photovoltaics
- Fuel cells
- Micro-CHP (combined heat and power)
- Biomass heating
- Micro-hydro
- Heat recovery ventilation systems
Does NEA deploy community energy solutions?
NEA is currently focusing upon utilising these technologies as single household solutions to providing affordable warmth. Whilst recognising that Community Energy Solutions have a role to play, the structure of existing grant programmes has inevitably meant a concentration on stand-alone technologies in individual properties.
What projects is NEA working on currently?
NEA has a varied portfolio of projects to assess the value of new energy technologies, this includes:
- Installing and monitoring the performance of one hundred air-source heat pumps in domestic properties
- Installing and monitoring the performance of ten multi-fuel burning stoves in domestic properties
- Assessing the potential for emerging technologies such as loft-source heat pumps
- Investigating the social aspects of new energy technologies
- Working with local authorities to establish an appropriate policy context for the installation of micro-generation technologies
A key theme of the current work programme is to determine the most appropriate technologies to install under a range of scenarios. For example, solar thermal (hot water) will be far more cost-effective (reduced payback period) if it is installed in a family property where hot water use represents a high proportion of the overall fuel bill. NEA is reporting to Defra on the mechanisms which must be put in place in order for new energy technologies to be successfully integrated into major Government grant schemes such as Warm Front.
NEA is also working closely with installers, manufacturers and householders to ensure that specifications are correct in order to maximise the benefits from the various technologies.
Are the current grant programmes adequate?
The Low Carbon Buildings Programme is a very significant indicator of Government support and helps to provide confidence for the industry to develop. However, NEA is concerned that the subsidies offered to householders will only encourage the ‘able to pay’ sector to apply for grants and may exclude the more vulnerable householders. For example, although a solar thermal installation attracts a subsidy of £400 for a successful application, this still means that the householder must find a further £2000 up front. Fuel-poor households do not have access to this level of capital. NEA is campaigning through the Micro-generation Council for a dedicated funding stream aimed at low-income householders.
Will micro-generation feature in the Warm Front Scheme?
NEA is determined to ensure that a menu of alternative measures is made available under the grant scheme aimed specifically at targeting fuel-poor households. Hard to treat properties not connected to the gas mains are currently offered oil central heating with a grant maximum of £4,000. Although this is well intentioned, the unpredictable rise in oil costs over the past three years (2004-19 pence per litre / 2006- 42 pence per litre) means that householders cannot afford to run the system. A Warm Front Evaluation Management Board has been established to decide which alternative technologies might be most suitable for the scheme. NEA is developing tight specifications and a checklist for each technology which can be used by surveyors to ensure that the correct mix of technology, householder and property type is achieved. NEA is working closely with Defra and hopes to actively trial these technologies with Warm Front funding during 2007.