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Wednesday, 20 July 2011

Air Source Heat Pumps (ASHP) – the Basics

You may have heard about Heat Pumps as the up and coming form of renewable heating technology. In theory the systems should be able to provide the whole heating for a building at little or no cost to the owner, with the added bonus of not using fuels to create the heat energy. Does it sound too good to be true? Or is it the future of heating?

It is important to acknowledge that there are two types of Heat Pumps, Ground Source Heat Pump and Air Source. Both have their own applications and both are more suitable for particular types of building and properties, depending on the requirements. This article aims to look at Air Source Heat Pumps and give an overview as to their benefits and drawbacks.

An Air Source Heat Pump absorbs and extracts heat from the outside air. It works in much the same way that a fridge extracts heat from the inside to keep it cool. This heat is used to heat the home via traditional methods such as radiators. It can even provide the hot water.

Daikin ASHP An Air Source Heat Pump is an external box, very similar to those utilised in an air conditioning system that needs to be positioned on a suitable, preferably sunny, external wall, which has a clear air flow and isn’t obstructed. Heat from the air flow is absorbed into a fluid which is pumped through a heat exchanger which is inside the actual Heat Pump. This heat is considered ‘low grade’ so it then passed through the heat pump compressor, which compresses it and concentrates it into a higher temperature ‘useful’ heat, which is capable of heating or providing hot water. The system can continue to extract the heat from the air even when the temperature is as low as minus 15 degrees Celsius.

There are two main types of air source heat pump available in the market.

Air to Water System: This uses a wet central heating system to distribute the heat and hot water. This is the most common system available because it uses existing technology in most households and buildings.Air to Air System: This distributes the heat using fan circulation throughout the property. Because this system uses hot air to heat the building it is less likely to provide the hot water as well.

Firstly, the Air Source Heat Pump is not entirely green. It relies on electricity to work and to keep the pump operational. Although it can lower fuel bills, the actual reductions can be less depending on the fuel type you are replacing. For example, if you have converted from electric heating the saving can be substantial, but from gas, less so.

The system also does not produce the level of heat that gas or oil boilers do. The Air Source Heat Pump delivers a lower temperature but over a much longer period. This means that during cold spells or the winter the heating may have to be left on all the time to heat the building efficiently. The radiators will never be hot to the touch like with a conventionally fuelled system.

To maximise the efficiency of an Air Source Heat Pump the building itself also needs to ensure that it is well insulated. Because the heat output is lower than with a conventionally fuelled system, the building needs to be well insulated and draught proofed to prevent heat loss.

Although there are little ongoing costs for maintenance, the user will have to ensure that the external Air Source unit is kept clean and the area surrounding it clear.

The initial installation costs can be very high, much higher than fitting a new conventional heating system on an existing building. However, the ongoing cost savings and efficiencies can far outweigh the initial costs. Fitting a Heat Pump into a newly built building can help to reduce the costs.

As previously mentioned having an Air Source Heat Pump can help to reduce fuel bills on a property and, by extension, can help to reduce your carbon footprint. As a user you won’t be reliant on fuel deliveries or combustible fuels, just the electricity to run the actual system. The unit is very low maintenance system, so ongoing servicing costs are much reduced.

In a world where conventional fuel sources are diminishing, Heat Pumps represent an excellent alternative. Although they do have drawbacks the benefits are substantial, both in long term cost savings and in carbon footprint reductions. It is definitely a technology to consider if you are looking for renewable technologies in the future!

Written by Symon Silvester

Photo by DaveBleasdale

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Tuesday, 19 July 2011

Grants and Funding Options for Commercial and Residential Geothermal Heat Pumps

All offices and homes need to have a heating and cooling system in place. Whether it is for a residential or a commercial setup, buying and installing heat pumps can be an expensive affair. The size of the system that is needed, the kind of technology it operates on as well as the complexity of the entire system are some of the various factors their price depends on. A general rule of thumb is that each kWth will cost around £1000. In the long run such systems can save a household as well as a commercial organization up to £840.

Heat pumps are a green system of generating heat. These models are based on air or ground sources, which work at extracting heat from the ground or the surrounding air. Going green is a noble cause and one that should be encouraged. The UK government has come up with several schemes in order to promote such instalments.

For commercial set ups, some of the schemes that you can consider are the Renewable Heat Incentive (RHI) where £860 million is going to be put towards commercial as well as residential heating operations in a two-phased process. Another is the Community Sustainable Energy Programme (CSEP), which is working towards creating awareness as well as supporting the cause of renewable energy. The funds will be diverted towards NGOs working for the cause. Feed-in Tariffs will allow people to claim and collected payments for the low carbon electricity they create. This will be for up to 5W generated at the spot for a period of 25 years.

The Enhanced Capital Allowance (ECA) allows any business to claim up to 100% of its capital allowance for the first year of implementation. These can be claimed as taxable profits. The Carbon Reduction Commitment (CRC) is a regulatory scheme that will encourage energy efficiency. This scheme has been in force since April of 2010. Esco Funding is where third parties involved completely involved in energy management. They help you create models for energy management as well the needed funding from the right sources.

When it comes to the residential sector, besides the RHI as well as Feed-In Tariffs, there is Scottish Community & Household Renewable Initiative (SCHRI), which is the counterpart of the Scottish LCPB phase 1 scheme and gives up to £4000 towards the entire acquisition and instalment of a system. Homes can also decide to follow the norms of the Code for Sustainable Homes that is national standard and is voluntary. The pilot scheme allows people to install such heat pumps on a trial basis in their homes at no installation costs. The repayments are made over an extended period and they are often evened out with the savings they make from the entire set up.

These are just some of the various schemes that are available from the private sector as well as the government to help encourage heat pumps in commercial and residential set ups. Each region will also have its own set of incentives that you will be able to be a part of. Making the right enquiries will land you with the right grant or scheme.

Air Source Heat Pumps (ASHP) – the BasicsRenewable Technologies: Ground Source Heat PumpsRenewable Heat Incentive (RHI) detailsInterested in the Renewable Heat Incentive (RHI)?Feed in Tariff – The Effect on Green Energy Production

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Consent of a Lender for Solar PV Rent a Roof Schemes

Since the introduction of the feed in tariff scheme in April 2010 a number of installers have begun to offer free solar panels to home owners who cannot afford, or do not wish to pay for, solar panels. The companies install the panels in exchange for the home owner entering into a lease of the airspace immediately above their roof which allows the installer to claim the feed in tariff payments for the term of the lease (which will usually be for the term of the tariff payments, i.e. 25 years.

As the scheme involves granting a legal interest (the solar panel lease) in your property to the installer, if you have a mortgage then your lender will need to give its consent. There are two reasons for this, firstly it is a breach of the conditions of most mortgages to grant a lease of all or part of your property without the lender’s consent and secondly the lease will not be binding on the lender and can be terminated by the lender. In order to make the process of obtaining consent more simple the Council of Mortgage Lenders (CML) has issued guidance to installers and home owners.

The first stage is to enter into a lease. The installer should draft the lease (since he will usually have a specimen). It will then need to be approved by the home owner who ought to seek legal advice before entering into it. The lease will need to meet certain minimum requirements to ensure that it will be acceptable the lender.

Some solar panel leases require the home owner to pay an annual maintenance charge. The Council of Mortgage Lenders requires that the maximum charge is £60 per annum. The installer must be responsible for insuring the panels and the equipment, for repairing the equipment and the lease must allow for the lender, in the event that it has to repossess and the presence of the panels is affecting its ability to sell, to remove the panels and terminate the lease without penalty.

Once the lease is entered into it must, as all leases of 7 or years or more must, be registered at Land Registry and for this the lender’s consent is required

Once the lease is entered into the installer makes an application, on behalf of the borrower, to the lender. The installer must provide evidence of its accreditation with MCS, signed authorisation from the home owner for the lender to communicate directly with the installer, a copy of the lease and the contact details of the installer.

The lender will then make a decision on a case by case basis and will communicate the decision to the provider and/or the lender. If any changes are made to the lease in future the lender should be notified in order to assess whether it is able to continue to give consent.

To assist installers, the Council of Mortgage Lenders has drafted a template letter which installers can provide to lenders and which confirms to the lender that the agreement with the home owner meets the minimum CML requirements. A draft of the template letter is attached.

To (insert name of lender):

Your borrower (insert name) has applied to us to install photovoltaic panels (‘the panels’) and enter into an year lease in respect to the air space above the roof.

We can confirm this application relates to photovoltaic panels fitted to the roof of the property and associated equipment to be installed in the property.

(borrower name) has been informed that the lease they are entering into is a long-term legally binding agreement. They have been recommended to seek professional advice from a suitably qualified conveyancer relating to the terms of the lease and the possible impact on the value of their property.

We attach a copy of the lease [only include if lease to be sent]. We will advise you of any intended changes to the lease agreement, where that change may impact on your minimum requirements, so that you can review your position on whether you can give consent to the lease.

We can confirm the following:

1) We will not install the panels unless we have undertaken an appropriate physical inspection of the property to ensure it is suitable for all the equipment to be installed, without detrimental impact.
2) We will be responsible for insuring all the installed equipment. Such insurance is to be in place for the full term of the lease and to include any damage caused to the property or injury to any person.
3) We will ensure that the borrower is advised that they must inform their buildings insurance company of the installation of the equipment, and that we are responsible for insuring the panels themselves, and any ancillary equipment.
4) The system is to be maintained by us and:
(A) the maximum maintenance fee payable by (borrower name) is £60 or less per annum at the start of the lease. The fee may be increased annually by no more than the Retail Price Index; OR
(B) we will not charge a maintenance fee.
5) We or (borrower name) under the terms of our lease will be obliged to obtain all relevant legal consents (e.g. planning permission, buildings consent, listed buildings consent, restrictive covenant permission and any title permissions). Any documents obtained by us will be forwarded to the applicant who will be advised to keep copies of any consent obtained, no matter who obtained the consent.
6) Where the property is leasehold we will obtain (or request the borrower to obtain) the relevant consents from the landlord/block manager/residential committee where appropriate. We will forward details to (name of borrower) and request that they retain the documents.
7) Where the lender’s consent is obtained to register the lease, we will retain a copy of this consent.
8 ) If the lease requires (the borrower) to maintain vegetation/trees (for example by pruning) to ensure the panels’ efficiency, it will exclude the necessity to undertake work to vegetation/trees protected by law (e.g. tree preservation orders, where the property is in a conservation area).
9) We confirm we are liable to repair, at our expense, any damage to the property caused by us (or our contractors) when installing, re-installing, maintaining or removing the panels and associated equipment.
10) The lease agreement does not exceed 30 years.
11) The lease agreement allows for the necessary removal and re-instatement of the equipment for essential roof repairs and improvements, providing a reasonable grace period for continuous removal, and a reasonable total grace period over 12 months, during which we will not seek to recover from the homeowner any losses in renewable benefits such as Feed-in-Tariff payments, where we remove and reinstate the panels within those grace periods.
12) Where we remove and re-instate the panels within those grace periods we:
(A) will only charge the homeowner/occupier for reasonable costs incurred in respect of such removal and subsequent reinstatement of the equipment; OR
(B) will not charge for costs associated with the removal and subsequent reinstatement of the panels.
13) In the case of repossession, (lender name) or any subsequent lender:
(A) will have the right to break the lease if, having used reasonable endeavours to sell the property, is reasonably advised that the presence of the panels is adversely affecting demand;
(B) not be liable for any costs of removal; repair to the roof as part of the removal; or penalty costs of any description, including
- where damage has been caused by the borrower/occupier;
- where damage or loss of income is caused as a result of disconnected electricity supply;
- for any breach of landlord covenants during the repossession period.
14) Within the lease, the definition of ‘successors in title’ includes a ‘mortgagee in possession’.
15) The lease agreement validly excludes security of tenure under the Landlord and Tenant Act 1954, where the lease applies to a property in England and Wales.

Please note all reference to equipment above includes the panels and all ancillary equipment (including wires) installed by or on behalf of us.

We take responsibility for full compliance with the obligations contained in this letter. We will be legally liable to you for non-compliance.

Signed
(name of Provider)

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Using Foam Board Insulation

When it comes to thinking of types of insulation probably the first thing that comes to mind is the typical mineral wool style insulation that you normally find in the loft. This insulation type is now the most common standard when it comes to fitting insulation into the home, in fact so common that it is not only installed professionally under the various grant schemes that are available but is also available in most DIY shops in large rolls.

Mineral wool insulation is cheap and common, but it does have its drawbacks. For a start the recommended depth to meet current insulation standards in the loft is around 300 millimetres or close to 12 inches in depth. In a loft the joists are normally around 100 millimetres in height so applying this much insulation will mean that the mineral wool will far exceed the joists. This will make it practically impossible to board out and to use the loft for storage. In fact for safety purposes if a professional company undertakes the installation they will normally apply safety notices inside the loft explaining that it is now unsafe to access without a crawl board since it will not be possible to tell where the joists are under all that insulation. This could lead the unwary to fall through the ceiling below.

A further drawback is that over time the mineral wool will rot. Normally mineral wool comes with a predicted 25 year life span, although this is just a guide line as the fabric gets dirty, dusty, damp and damaged and starts to lose its optimum thermal properties. The large amount of mineral wool installed is to help make up for these losses over the lifetime.

So in short it is not ideal, but there are other options. There is a foam board insulation, or to give the proper name Polyisocyanurate. This is also known as PIR, polyiso or ISO, or collectively by particular generic brand names in the market place such as Kingspan and Celotex.

This is a material that is produced as corrosion resistant foam and used as a rigid board. These boards can also be lined with aluminium to help improve the thermal efficiency of the board even more. This material is produced in thicknesses of 50-100 millimetres which does replicate the same thermal efficiency as the recommended depths for mineral wool. As a result the material is easy to fit, store and install and can be applied into most insulation requirements including walls and easily fits into the joists in lofts. Thus allowing the loft to be boarded and used for storage. In addition to thermal benefits the insulation can reduce noise and vibration, especially when used as wall insulation in modern building construction.

The reduced size of the insulation depth needed and the fact that PIR boarding doesn’t degrade over time makes this a valuable insulation material for the future. The major drawback is that it is expensive compared to the mineral wool insulation. In an age of cost savings and reductions it is more common to use mineral wool in both new building and in retro fitting. If space is a key issue to you then it is in your interest to consider Polyisocyanurate or PIR. It is a versatile material which should help to save you money in the long term!

Written by Symon Silvester

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