Solar power: 5 common myths BUSTED by experts, and how UK businesses can still benefit

From concerns about poor panel efficiency and the unpredictable British weather to worries about long payback periods, Geo Green Power bust the biggest myths surrounding commercial solar energy in 2024.

Over a third of UK businesses report that unpredictable energy costs have hindered their growth in the past year. Yet almost half (44%) of these businesses do not plan to increase their onsite energy generation capacity within the next two years[1].

So, what’s putting businesses off from taking the leap into on-site renewables? Energy experts at Geo Green Power explore some of the biggest myths around solar energy and discuss how businesses can benefit from green energy in 2024 and beyond.

1. Solar panels are inefficient and won’t power your business

The efficiency of solar panels – meaning how much sunlight they convert to usable, clean electricity – has improved dramatically over recent years as the technology behind it has evolved.

Advancements in photovoltaic (PV) technology, better materials, improved manufacturing processes, and more sophisticated system designs, mean businesses produce more energy using fewer panels. The result: savings on initial installation costs and the ability to generate more electricity, reducing the amount of power businesses need to buy from the grid.

James Cunningham, managing director of Geo Green Power, a renewable energy company based in Nottingham, explains, “Higher-efficiency solar panels need less space to produce the same amount of electricity as lower-efficiency ones. This is especially important for installations in areas with limited space, like smaller commercial buildings and urban settings. By generating more power in the same footprint, businesses can more easily scale up and meet their energy requirements with solar PV.

“Last year we completed a 38 site installation roll out with Inchcape UK, installing solar panels on their car dealerships and service centres throughout the UK. Many of these dealerships operate entirely “off-grid” throughout the summer thanks to their solar PV installations and bills are significantly reduced all year round.”

2. The long payback period for panels makes them an unworthwhile investment

Investing in commercial solar panels can result in substantial cost savings in the long term, with medium-sized installations (50kW) saving businesses over £10,000 a year on energy bills, particularly when installed on a south-facing roof with ample sunlight.

Increasing their appeal to business owners, commercial solar investments also deliver a full payback on installation costs in around 4 years and require little maintenance. The return on investment starts as soon as the solar system is switched on – providing clean, renewable energy, instead of businesses having to rely on the grid.

In 2021 Geo Green Power installed a 350kW solar PV system for packaging manufacturer West Coast Corrugated in Kirby, North Liverpool. Generating over 285,000 kWh of electricity per year, the system was designed to provide approximately 30% of the site’s energy requirements, delivering full payback within 5 years and continuing to deliver savings for over 20 years thereafter.

In the last 3 years the system has helped to protect West Coast Corrugated from volatile energy markets, saving over £100,000 and reducing the initial payback time by around 6 months.

3. Installation costs are too high

Installation costs have in fact never been cheaper. From an industry high in 2022, when demand outstripped supply, the cost of panels has fallen significantly as manufacturing has increased.

Higher panel wattage has also reduced installation times, with fewer panels needing to be installed to generate the same amount of energy. Costs now range from around £40,000 for a 50kW system to £300,000 for a 500kW system, with factors like system size, panel location and access requirements influencing the final cost.

If you are basing installation costs on a proposal you received 12 months ago or more, you should request a new quote, as the figures could differ significantly.

The good news is that businesses looking to invest in renewable technology may be able to access grants for solar installations thanks to a number of Local Authority and National Government funding schemes, including the Smart Export Guarantee (SEG) which means businesses can be paid for excess power exported back to the grid.

Government and tax incentives, alongside solar costs decreasing by 82%[2], have made solar a more viable option for businesses looking to achieve long-term cost savings while improving their green credentials this year.

4. The unpredictable British weather makes solar a bad option

Even with the UK’s variable weather, solar panels can contribute substantially to energy savings and reduce carbon footprints.

Solar panels can generate electricity from both direct sunlight and diffused light, which is light scattered by clouds. The UK’s frequent cloudy weather still provides sufficient diffused light for solar panels to operate. Modern solar panels are designed to be efficient even in lower light conditions.

Cunningham adds: “Despite the common perception that they require constant, strong sunlight to be viable, solar panels can perform effectively in the UK’s weather conditions.

“There is naturally an element of seasonal variation, with the longer days of sunlight in the summer months allowing for the generation of a significant amount of electricity. In winter production does decrease, but panels still generate some power.”

5. It costs a lot to maintain solar panels

Contrary to popular belief, solar panels are relatively low maintenance due to their simple construction and the absence of moving parts. When installed properly and given the appropriate level of servicing and maintenance, they are designed to last 25 years plus.

“There remains a common misconception that maintaining solar panels can be expensive and complex,” says Cunningham. “This belief likely stems from a lack of understanding about the technology, the nature of solar panel systems and how frequently maintenance is required.”

To keep your solar panels running efficiently, an annual service is recommended. This ensures your system stays in full working order and any issues are quickly addressed. While average rainfall generally keeps panels clean, local conditions like weather, bird activity, and overhanging trees might require occasional cleaning.

Should you switch to solar?

Speaking about why Geo Green Power has put together this advice James Cunningham, the Managing Director of the company, commented:

“Naturally, the initial expenditure for solar panels can be seen as a barrier. However, as many businesses face consistently high energy bills, it’s crucial to shift our mindset from short-term costs to the long-term gains these systems provide.

“Whether it’s saving money, securing future energy supply, enhancing competitiveness, or contributing to decarbonisation, the benefits of switching to solar generation are substantial. We’re also seeing more and more businesses looking to us to help them reduce their scope 2 emissions in order to retain contracts with customers who are focusing on Net Zero ambitions.

“I urge businesses to reconsider if they’ve been deterred by high quotes or perceived limitations like limited roof space in the past. Solar technology advancements have made systems much more efficient and cost-effective, expanding opportunities for many commercial properties.”

For more information, visit: https://www.geogreenpower.com/solar-panels/commercial/

[1] https://www.energylivenews.com/2024/05/14/uk-businesses-struggle-with-soaring-energy-costs/

[2]  https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

tepeo wins Ashden Award for outstanding climate innovation

tepeo will receive a grant of £10,000 and other support

tepeo has won the Ashden Award for Energy Innovation (UK). The annual Ashden Awards revealed their 2024 winners at London Climate Action Week, the largest city-wide climate festival in Europe, happening from 22-30 June. Every year, the Ashden Awards highlight inclusive climate solutions – work that creates a fairer world, as well as lowering emissions and preparing communities for climate threats.  

tepeo was revealed as one of seven winners at the 2024 Ashden Awards, which were celebrated at the Institution of Engineering and Technology in London on 27 June. tepeo was founded in 2018 to give UK households a low cost, low carbon, smart and simple alternative to fossil fuel heating. The company’s efforts to create an efficient thermal storage solution for low carbon heating culminated in the Zero Emission Boiler (ZEB®). This a plug-n-play replacement for existing fossil fuel boilers works with a hot water tank to deliver low carbon and low-cost home heating.

More than 500 organisations applied for the 2024 Ashden Awards and tepeo was one of just two finalists in the Energy Innovation category, securing its place after a rigorous assessment and judging process and input from sector experts, including academics, business leaders, investors and journalists. The Ashden Awards were launched in 2000 and honour innovators from the public, private and non-profit sectors.

tepeo will receive a grant of £10,000 and other support to help them scale-up their work, such as publicity, connection to funders, investors and climate sector leaders.

“Receiving this prestigious cleantech award during London Climate Action Week is a testament to tepeo’s ongoing efforts to decarbonising domestic heating, which currently accounts for nearly a fifth of the UK’s greenhouse gas emissions,” commented Johan du Plessis, CEO & Founder at tepeo. “We believe that tepeo’s ground-breaking Zero Emission Boiler (ZEB®) technology can be at the forefront of the fight against climate change while also providing an effective tool to tackle fuel poverty in the UK.”

Ashden CEO Dr Ashok Sinha said: “This year’s Ashden Award winners are worthy champions. They’re tackling the biggest climate challenges, in ways that also create important benefits – like new green jobs and fairer societies. Their inclusive approach is key to their success.

The other two UK winners where Wild Haweswater (Cumbria) for the category Nature Based Solutions and Energise Barnsley (South Yorkshire) for the category People’s Energy.

To learn more about tepeo’s Zero Emission Boiler (ZEB®) visit the website.

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

The key role of grant funding in public sector decarbonisation

Nadim El Bakri

How a strategic approach is important to meeting our net zero goals. By Nadim El Bakri, Senior Energy and Carbon Analyst at Salix

Climate change is happening now and is happening fast; it is paramount to reach net zero in a timely manner to tackle this climate emergency. The message is clear and, according to the United Nations, more than 140 countries have pledged their commitment to this cause. Specifically, in Scotland, the Climate Change Act (2019) sets to reach this target by 2045.

Setting an objective is the stepping stone to define goals but there are many challenges along the way. One of these is undoubtedly the financial aspect.

The UK government estimates the cost of decarbonising UK public sector buildings to be between £25 and £30 billion. Despite this figure being indicative and based on current market prices, and despite Scotland accounting for only a portion of this, this value gives a clear indication of the financial effort required over the next 11 to 16 years.

The Scottish Government has demonstrated a strong commitment to decarbonising the public sector as part of its climate change goals.  For example, since the year 2007/2008, the Government, alongside ourselves and public sector partners, has delivered more than 1,100 energy efficiency projects through the investment of over £82m thus contributing to the removal of more than 750,000 tonnes of CO2 over the lifetime of the projects.

We understand that this is not sufficient to achieve the set target. Energy efficiency and fabric improvements are extremely important when it comes to increasing the buildings energy performance and reducing heat losses. However, these cannot fully displace the buildings heating demand. At the same time, they play a pivotal role in enabling the installation of those technologies such as heat pumps which can meet the full heating demand of the building by relying on the use of electricity rather than on fossil fuel sources such as gas, oil or, coal.

In 2021, the Heat in Buildings strategy was published, outlining an investment of £1.8 billion towards energy efficiency and zero carbon heating for buildings in Scotland. This includes a significant allocation of £200 million over five years specifically for enhancing energy efficiency and decarbonisation of public sector buildings. The Scotland’s Public Sector Heat Decarbonisation Fund falls within this pot of funding and aims at supporting local authorities, universities and arm’s-length organisations in order to decarbonise their buildings with the main focus of replacing outdated fossil fuel heating system with heat pumps and other technologies. The scheme, launched in July 2023, is supporting 12 projects valued at over £17m enabling the removal of nearly 53,000 tonnes of CO2 over the next 22 years, which is the average lifetime of the technologies included in the scope of the funded projects. These range from fabric improvements such as cavity and wall insulation or glazing to energy efficiency measures such as BMS and solar PV, and low carbon heating systems such as air Source and water source heat pumps.

Whilst a preliminary comparison of the carbon savings between loan and grant funded projects does not highlight major differences, the key distinctions reside in the projects’ scope and their philosophy. Where projects funded through loans greatly contributed to the reduction of carbon emissions, 10 of the 12 projects supported by Scotland’s Public Sector Heat Decarbonisation Fund are fully cutting their fossil fuel dependency of the selected buildings.

There are two major aspects showcasing the impossibility of comparing these two financial tools:

  • the many financial limitations imposed on public sector bodies in Scotland. Whether as the result of individual financial circumstances or because subject to policies and regulations, many public sector bodies face restrictions on borrowing money. Whilst this affects, to a certain extent, applications to grant funding, it is to a lesser degree than for loan borrowings.
  • the payback period of the technologies required to achieve decarbonisation. When combining the already high equipment costs with the associated distribution and infrastructure costs, the return on investments can be extremely long, indicating that such measures should be funded through a grant mechanism.

While the push from public sector bodies to focus on heat decarbonisation plans is increasing, there are significant financial holdbacks that can jeopardise their implementation.

Firstly, the initial investment required for low-carbon heating technologies, such as heat pumps, biomass boilers, and district heating systems, can be substantial. This can be a significant barrier for public sector bodies with limited budgets. Secondly, accessing adequate and consistent funding can be challenging. While there are grants and subsidies available, there may be too much competition to consistently secure funding which may also be limited in scope. Finally, the long-term financial benefits of heat decarbonisation may not be immediately apparent, making it difficult to justify the upfront expenditure, especially in the face of other pressing financial needs.

In conclusion, loans are and will always be a fundamental financial tool to support public sector bodies for a constant and gradual improvement of their buildings energy performances. However, full decarbonisation can only be achieved through a continuous release of grant funding since it is subject to less binding criteria which can potentially prevent the involvement of public sector organisations. As the world races against the clock to combat climate change, the strategic allocation of grant funding will play a pivotal role in determining the success in reaching net zero emissions.

References:

Net Zero Coalition | United Nations

Reducing greenhouse gas emissions – Climate change – gov.scot (www.gov.scot)

Net Zero by 2050 – Analysis – IEA

FEMP Unveils Historic Funding Milestone: $104 Million Investment Advances Net-Zero Initiatives Across Federal Facilities | Department of Energy

Recipe for a Liveable Planet: Achieving Net Zero Emissions in the Agrifood System (worldbank.org)

Climate change: Decarbonising UK public buildings to cost £25-30bn (bbc.com)

The rise of energy-efficient heat networks in the UK’s public sector (aecom.com)

Heat Decarbonisation | Pembroke college (ox.ac.uk)

Figures from Salix Internal reporting

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Strategic Utility Management in a Changing Landscape at BUU LIVE! MEUC’s Autumn Conference and Exhibition

Mark your calendars for 16 October 2024 as the Major Energy Users’ Council (MEUC) returns this Autumn to the Advanced Manufacturing and Technology Centre (AMTC) in Coventry. This must-attend event is vital for energy purchasers and managers seeking to stay ahead in this continually volatile sector.

Why Should You Attend?

  • Comprehensive Agenda: Key sessions throughout the day will cover strategic utility management, data-driven efficiency strategies, and adapting to regulatory changes. As the energy landscape evolves, staying ahead of market dynamics and regulatory changes is crucial.
  • Focussed Exhibition: The exhibition will feature leading companies and solution providers displaying innovative products and services. Delegates can explore cutting-edge solutions and discuss their applications in a relaxed environment designed to enhance your energy management practices.
  • Networking Opportunities: Connect with peers, industry experts, and key stakeholders. The event provides a unique platform to build professional relationships, exchange ideas, and explore potential collaborations.
  • Exclusive Access and Expert Care: Attendance is reserved for end users, invited guests, and exhibitors/supporters, ensuring a focused and relevant experience. MEUC takes great care of its delegates, providing all refreshments and lunch at no cost, ensuring a comfortable and engaging experience from start to finish.
  • Proven Experience: With over 35 years of expertise in hosting industry events, MEUC has perfected the art of delivering high-quality conferences tailored to the needs of energy managers. Our experience guarantees a valuable and seamless event for all attendees.

“MEUC consistently provides high-quality events that bring together major energy consumers with expert professionals to address the energy trilemma of cost, sustainability, and security.” — Kevin

Agenda Highlights:

Session 1: Prices, Regulation and Market Dynamics for Energy and Water
Kick off the conference by understanding and adapting to market conditions in a changing landscape. Topics include energy prices, regulatory strategies, and the challenges faced by water companies. This session is crucial for anyone involved in managing energy and water procurement.

Session 2: Risk and Reward? Your Future Energy Consumption Mapped Out
This session focuses on effective risk management strategies, enhancing supply security through power purchase agreements (PPAs), and integrating on-site generation and storage solutions. Learn how to align your energy strategies with sustainability goals and navigate the volatility of energy prices.

Session 3: The Future of Energy: Management and Innovation
Explore the evolution of energy markets and technological advancements. Key discussions will include smart energy solutions for industrial applications, the role of interconnectors in achieving net zero, and strategies for building resilient energy systems over the next decade.

Session 4: Emerging Trends and Practical Applications in Energy and Water Management
Dive into the latest trends and technologies shaping the future of energy and water management. Participate in interactive break-out sessions led by MEUC experts, focusing on both energy and water management strategies. This session offers practical insights and actionable strategies for improving efficiency and reducing costs.

Location

The AMTC, located in the heart of Ansty Business Park, Coventry. Its state-of-the-art facilities enhance the overall experience, ensuring that attendees gain maximum value from this day away from the office.

Don’t miss this opportunity to advance your expertise and connect with the energy sector’s best. Register now for the MEUC Autumn Conference and Exhibition. Visit the MEUC website for more information and to secure your spot.

Join us in Coventry this October and take a decisive step towards leading the future of energy management.

Register at: https://meucnetwork.co.uk/events/autumn-conf24/

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Retrofitting non-residential buildings: Bringing the opportunity within reach

Financing arrangements could help the existing non-residential buildings stock in the USA, Europe, China and India reduce emissions by over 210 MtCO2e annually, between now and 2030.

Toby Horne, Smart Infrastructure Financing Partner, Siemens Financial Services UK

Decarbonising non-residential buildings stock worldwide will play an important part in meeting 2030 and 2050 climate targets. Comprehensive retrofits of commercial buildings can reduce their energy use by up to 40%, but this is currently not happening anywhere near the scale needed to meet climate goals, according to a report released by the American Council for an Energy-Efficient Economy (ACEEE).[1]

Even greater official pressure is widely seen as the key to accelerating progress. Mandatory standards for energy-efficiency in buildings already exist in Europe, the UK, and China, with strong enforcement regimes and non-compliance penalties. For instance, minimum building energy performance standards in the UK mean that it is now unlawful to let (lease) properties in England and Wales that do not meet an ‘E’ level of energy performance.

Additionally, in April 2024 the European Commission formally adopted a directive[2] mandating members to cut building emissions and energy use. For non-residential buildings, member states must renovate 16% of their worst-performing buildings by 2030 and the 26% worst-performing buildings by 2033.

Apart from such legal obligations, initiatives to reduce carbon emissions through lower energy consumption are commercially compelling on two fronts.

Ethical and commercial benefits of decarbonisation

Firstly, companies are increasingly issuing green bonds to raise capital, making it necessary to implement carbon footprint reduction initiatives. Alongside this, businesses and consumers are increasingly looking to buy from more environmentally-friendly companies making green credentials a key competitive advantage in global markets.

Secondly, in a world that has recently experienced a major fuel crisis, reductions in energy usage save money. Reducing energy consumption, through the enabling digital technology, has therefore become a major driver of investment in ‘smart’ commercial buildings, ‘smart’ hospitals, ‘smart’ campuses and ‘smart’ public buildings.

Many elements of the smart building are also the foundation for reduced energy consumption. The main contributors to energy use reduction and decarbonisation focus on energy-efficient insulation and door controls, smart HVAC (heating, ventilation and air-conditioning controls), and sensor-driven LED lighting.[3] Smart buildings controls that activate usage only when needed also clearly play a crucial part.[4]

Flexible finance as an enabler

A lack of free capital or risk concerns about energy investments can mean a substantial number of buildings owners missing out on the deliverable operational cost reductions, carbon emission reductions and supply security that can be gained from retrofitting. However, flexible financing arrangements can secure these operational cost reductions without putting pressure on capital resources, avoid putting capital at risk, and ensure expected savings are realized. Such financing tends to come from specialist financiers, such as Siemens Financial Services (SFS), who have a deep understanding of the technology and its practical applications.

Specialist financing arrangements

Public sector initiatives need to be matched by private sector support, in particular private sector finance. Financing for ‘smart’ buildings can take a variety of forms, depending on the business processes that need to be enabled. At the technology component level, financing tools are available to help vendors and distributors add value with cash flow capabilities for their buyers. For larger installations or systems, specialist financing arrangements can be flexed and tailored to align costs with the rate of benefit gained from the energy-efficient technology.

At the most complex level, as-a-service financing arrangements provide the solution, with future expected savings from energy efficiency being harnessed and used to pay for the capital investment and more. Often, these arrangements can be made budget-neutral for the building owner, avoiding the need for any capital spending at all.

Measuring the opportunity

For CFOs looking at managing their property portfolio, it is helpful to assess just how much decarbonisation of existing buildings is susceptible to energy-efficiency-as-a-service techniques. The graph below shows highly conservative estimates[5] of the baseline annual emissions reduction that energy-efficiency-as-a-service arrangements could enable between now and the end of the decade – the first phase target date for most climate planning around the world. The model is based on official emissions data and calculates just 50% of the available emissions reduction potential.

A high priority for decarbonisation

40% of global greenhouse gas emissions come from buildings and, if left unchecked, they’re set to double by 2050[6]. Commercial and public buildings are more energy intensive per m2 than residential property, making energy-efficiency initiatives for non-residential buildings a high priority for meeting decarbonisation targets. In challenging economic times, flexible, specialist financing techniques (such as EaaS) are important enablers to help the investment in energy-efficiency maintain its required momentum.

To learn more about the topic, visit the smart buildings area at Siemens Transform on 17th-18th July at Manchester Central. Transform 2024 is a free two-day conference and exhibition focusing on the challenges organisations are facing in the UK & Ireland and how they can accelerate digital and sustainable transformation. Find out more here: https://www.siemens.com/uk/en/company/transform.html

Siemens is uniquely able to offer building owners and businesses an integrated value proposition: technology financing solutions, including energy-efficiency-as-a-service, as well as technology expertise and the technology itself. If you would like more information about accelerating your investment in energy efficiency without the need to find large amounts of capital, please visit: https://www.siemens.com/infrastructure-finance

[1] https://www.greenbiz.com/article/heres-how-scale-energy-saving-commercial-building-retrofits

[2] https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1965

[3] IEA, Toolkit: Energy efficient building technologies, 2018

[4] IEA, Energy Efficiency: Buildings, 2020

[5] Methodology: Data from national/regional statistical institutes on annual energy consumption by non-residential buildings built prior to 2010 was used to model CO2 emissions of buildings likely to benefit from deep retrofit for energy-efficiency. This was then reduced by highest likely implementation levels of such deep retrofit. Likely energy savings from deep retrofit were calculated using the lowest end of official average ranges. The resulting figures provide a highly conservative annual estimate of the energy savings achievable through deep retrofit, which can be financed through energy-efficiency-as-a-service financing techniques.

[6] https://www.theclimategroup.org/built-environment 

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Reducing red tape: Why policy clarity is crucial to unlocking the net zero potential of businesses

Anthony Ainsworth

Anthony Ainsworth, Chief Operating Officer, npower Business Solutions

For more than two years, many UK organisations have been at the mercy of the volatile wholesale energy markets, with multiple factors resulting in increased costs at a time when the recovery from the Covid-19 pandemic was still ongoing.

Today, while prices remain higher than pre-crisis, the good news is that they seem to be on a downward trajectory, with our team reporting three-year lows.

However, as we welcome a new Labour government into Number 10 Downing Street, there is no doubt that a big challenge lies ahead. While one of its core pledges is to ‘Make Britain a Clean Energy Superpower’, and its key priorities include reforming the planning system, particularly to remove the previous ‘de facto’ ban on onshore wind, these things are easier said than done. And, they will take time.

However, if the new Labour administration is successful in its mission to reduce red tape, particularly around energy infrastructure, then it could unlock a huge amount of net zero potential from both the UK public and private sectors.

This was one of the core themes that emerged from our latest Business Energy Tracker report. In it, we asked large business energy users for their views on energy risk, how they are managing this risk and their views on net zero. We also asked them what they wanted to see from the new government.

They told us that more can be done to support them, with the need for policy clarity to help them make the necessary investments to support the energy and net zero transition coming out loud and clear.

The top three asks were:

  1. Support to help organisations to reduce overall energy demand, such as grants ortax breaks for installing energy efficiency measures and on-site generation, and investing in energy management platforms, so they can better manage their demand, reduce emissions and reinvest in their operations. This is something we have long campaigned for and needs to be a key priority for the new government.
  • Reduction in non-commodity costs. Over the past few years, the level of costs applied to business invoices has increased significantly. For example, the non-commodity elements added to electricity invoices have risen from around £100 per MWh in Q1 2023, to £112 in Q1 2024 – and are set to jump to around £132 by Q4 2025. While this is being reviewed by Ofgem, businesses also want it to be a key priority for the government, to both reduce and simplify what they pay. While they know that some of these costs are necessary, they believe this is where red tape could be reduced, for example, by having one overall cost to pay.
  • Reduction in red tape to help renewables schemes successfully meet local planning procedures. While accelerating the deployment of renewable energy is crucial to meeting the UK’s net zero targets, many schemes get caught up in red tape, planning rules and delays to grid connections. As the new government has recognised, removing these barriers will enable more schemes to progress, so we will wait with interest to see how these reforms translate into real life applications.

Join the Red Tape Challenge

Both public and private organisations will be crucial to delivering the UK’s energy security and net zero targets. That is why it is important that their voices are heard at the highest level.

This year is a perfect opportunity to work with the new government to inform them which energy and net zero policies do – and don’t – work for business energy users.

This is why we have launched a new campaign – the Red Tape Challenge. This is a movement that brings together the collective voices of organisations, partners and stakeholders to tell the government what they need to achieve their ambitions.

We are asking organisations to join our campaign to help shape policy and give them the confidence to make the vital investments for net zero, and keep the UK on track to meet our sustainability and energy security targets.

This is your chance to tell us about your own challenges with red tape, and which policies are helping or hindering your business. You can have your say here.

By working together with the government, we can accelerate towards our energy and net zero ambitions.

The 2024 Business Energy Tracker is available at npowerbusinesssolutions.com/businessconfidence2024

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Innovation, not magic, will get us to Net Zero

Sandeep Kang

Comment by Sandeep Kang, Senior Product Manager at Energy Systems Catapult.

Have you wanted to achieve something but haven’t really known where to start? Well, that’s me, right now, as I write this blog post. This is the first time I’ve written a post and after doing a fair bit of research and pulling together as much info as I can get in the finite amount of time I’ve given myself, I’m giving it a go.

My challenge isn’t new, in fact, it’s no different to a lot of challenges people I’ve been speaking to recently are facing with respect to their Net Zero ambitions, priorities, and potential projects. There’s so much that needs to be done, within a limited budget, and a clock that seems to be ticking much faster than it did a few years ago. Where does one even start?

For a lot of organisations, the first thing to do is look inward. How many buildings do I have in my portfolio? What sort of buildings are they? Which ones are the worst energy offenders? Not everyone has a complete picture or a 360 view of their portfolio.

There is so much data out there, some free, some not, some high quality, some not. All of it out there, somewhere, to help people and organisations get to Net Zero. The challenge is knowing where to find it, how to access it, and getting the most out of it in a way that doesn’t break the bank or result in lengthy timescales.

Speaking to the people responsible for identifying their organisation’s portfolio  or their clients’ portfolio and determining where to start first, whether it’s locations for potential solutions or potential locations for innovative low carbon technology, they’d all say that if they could wave a magic wand, they’d just want a list of all the locations and properties prioritised by where they should start first from a retrofit and low carbon tech perspective. Simple, right?

Now, this isn’t Hogwarts, but the Catapult has performed some wizardry that enables people to get to a point where, with some confidence, they’ll know where they should start and can prioritise retrofits and low carbon tech installations. This comes in the form of Net Zero Data, specifically that Catapult’s modelled building energy demand datasets for both domestic and non-domestic buildings, as well as Energy Performance Certificate (EPC) ratings (actual and inferred) for domestic buildings which, amongst other datasets developed by the Catapult, are available through the Net Zero Market.

Net Zero Data has been developed by the Catapult so you don’t have to source, condition, integrate, and maintain data yourself. They are out-of-the-box datasets that are compatible with any GIS and analytics tool and give you instant access to insights that speed up your decision-making process rather than needing to spend time and resource in creating usable data. Simply plug and play.

Net Zero Data is already making a tangible difference to on the ground delivery. One Net Zero Data user from a local authority in the south-east of England has been using Net Zero Data to create a portfolio view of his estate. In turn, this has allowed him to prioritise domestic and non-domestic aspects of the portfolio based on modelled energy demand and when combined with his own data, it enables him to identify buildings that have potential for greener heat solutions (using the Catapult’s potential for air source and ground source heat pump datasets) in a prioritised way that can be used to build a business case for funding and investment (e.g. PSDS). All in, this helps him turn ambition into action in a much quicker way using Your Local Net Zero Hub!

This portfolio view gives this Net Zero Data user a well-rounded view of his current portfolio that allows him to assess potential low carbon technology interventions that can help reduce the energy bills for these buildings further by leveraging additional Net Zero Data datasets for Rooftop Solar PV Potential and Domestic Battery Storage Potential.

“Without Net Zero Data, I would have needed to rely on my own personal knowledge of the area, which has gaps. It’s given me a useful picture that I can aggregate to benchmark building energy demand. This has enabled me to engage with stakeholders to drive the decarbonisation, energy efficiency, and thermal comfort of community halls.” – Climate Change & Sustainability Project Officer.

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Building In Sustainability With Heat Pumps

Adveco explores how commercial organisations should approach building in sustainability with heat pumps… 

The implementation of low-carbon water heating is one of the fastest, low-impact means of introducing sustainability into an existing commercial building. A considered, well-designed replacement system will reduce carbon emissions by at least half compared to equivalent-sized gas-fired water heating and likely by much more as the electricity grid continues to become greener. Efficient, robust and relatively low maintenance, the latest generation of renewables represents a solid investment in the future of a building and the comfort it supplies to those visiting or working there.

The current renewable technology of choice is the heat pump, of which the easiest and lowest cost to implement is the air source heat pump (ASHP). The technology uses a reverse refrigerating circuit to extract heat from the air, even when ambient temperatures drop during the winter months. The efficiency of a heat pump is measured by its COP (coefficient of performance) which defines how much energy it uses compared to the heat energy it generates. The higher the number the better. The COP will fluctuate with external temperatures so it’s always best to use the seasonal COP which averages the efficiency across the year. As the ambient temperatures drop the heat pump will demand more electrical energy to run the compressor to maintain necessary operating temperatures. This is where heat pumps have a weakness because they were designed to operate at low working flow temperatures (35°) to supply radiators and underfloor heating, not the more stringent heating requirements of water (+60°C) required to prevent legionella.

This additional electrical energy required to raise temperatures comes from the grid and remains far more expensive than gas. In the past three years, electricity prices have fluctuated and climbed from three to nearly five times the cost of gas. This means building in sustainability with low-carbon technology can deliver considerable increases in operational costs if not approached with care and consideration.

Heat pumps have a valid role to play, but for water heating, they need to be used as part of a wider process to ensure cost-effective, efficient operation. This hybrid approach employs the ASHP as a source for preheating cold water flowing into the system to 45°C. This is more than achievable for most heat pumps, maximising the efficiency and reducing the energy required to run the unit. This warmed water is then fed into a cylinder where a second heating source tops up the water temperature to a safe 65°C for use throughout the building. This top-up can come in the form of a gas water heater, gaining very low operational costs, but a less meaningful reduction in carbon emission, typically around 30%. To maximise emission reduction, an electric boiler is preferred, although operational costs will climb, smart controls will optimise the two heat sources to minimise energy demands and provide control over operational costs.

With a hybrid system, there will be an increased plant, with a heat pump, boiler and larger cylinder needed to account for slower system reheat after peak demand. Compared to traditional gas water heating this can be a concern when retrofitting as space holds value.  The latest generation of renewables, from monobloc ASHPs to electric boilers, are increasingly more compact, while smart controls maximise storage optimising cylinder size.

For smaller to mid-sized organisations with basin-led hot water demands Adveco has redefined this approach with its award-winning FUSION electric water heating system. Conceived as a direct replacement for old gas systems, FUSION mounts an electric boiler onto a cylinder with prebuilt pipework. The controls and sealed multiple immersions within the boiler ensure resilience and means almost completely nullify damaging limescale in hard water areas. For soft water areas, the stainless steel cylinder provides anti-corrosion protection. The optional addition of an electric immersion also provides redundancy with short-term backup to guarantee service should repair be required. FUSION excels with a twin coil cylinder variant that enables a monobloc heat pump to be connected to preheat the water. With the latest options supporting storage capacities of up to 750 litres, there is a variant for most small to mid-sized organisations which is quick and easy to install for minimal operational disturbance.

For larger buildings, a more bespoke system is likely to be required, although the basic premise remains the same, using ASHP preheat and a secondary energy source, preferably electric. It may also be possible to integrate solar thermal technology as a mid-heat to further cut energy demands, by as much as 30% annually to further offset operational costs and reduce emissions.

When building in sustainability through water heating every building, from structure to usage, is different. So before embarking on any major renovation to a water system, it’s always sensible to gather data on current system use and especially the peak demand periods. That is easily achieved through non-invasive water metering which takes approximately a month to collate necessary data to accurately model the building’s requirements. From this data, a thermotical system design can be produced. One that delivers on the building’s demands whilst optimising the equipment necessary which translates usually into lower up-front investment and a better grasp on future operational costs. That is truly valuable as it enables more accurate planning and budgeting before making any initial move towards a more sustainable operation.

https://adveco.co/

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Unlocking Clean Energy Transitions; Optimising Steam Systems for Efficiency and Cost Reduction

Photo by Pixabay

In the landscape of clean energy transitions, energy efficiency emerges as the unsung hero, often referred to as the “first fuel.” It not only presents one of the swiftest and most economical ways to mitigate CO2 emissions but also holds the potential to slash energy bills and strengthen energy security.

But what exactly is the role of energy efficiency in clean energy transitions?

Energy efficiency stands as the cornerstone in the endeavour to curb energy demand, particularly in scenarios aiming for Net Zero Emissions by 2050. By implementing efficiency measures across various sectors, we can significantly reduce the need for energy consumption while simultaneously curbing greenhouse gas emissions. Moreover, these measures translate into tangible cost savings for consumers, serving as a buffer against unforeseen price fluctuations.

However, the path ahead is not without its challenges.

Despite recent increases in efficiency investments, the pace of global energy intensity improvements has hit a plateau. Progress notably decelerated in the latter half of the previous decade and came to a virtual standstill during the initial years of the Covid-19 pandemic. To effectively navigate towards net zero emissions, it’s imperative to ramp up efforts and double the global pace of energy efficiency progress throughout this decade.

However! Let’s focus on optimising steam systems—a crucial yet often overlooked component in the realm of energy efficiency.

Steam systems, critical in industrial settings, play a pivotal role in processes ranging from heating to power generation. However, these systems can be known for their energy inefficiencies, often resulting in significant energy losses and inflated operational costs.

By optimising steam systems, we can unlock a myriad of benefits:

Improved efficiency; Fine-tuning steam systems through measures such as insulation upgrades, steam trap maintenance, and boiler tuning can substantially enhance overall system efficiency. This translates into lower energy consumption and reduced greenhouse gas emissions.

Cost reduction; Enhanced efficiency directly translates into cost savings for businesses. By minimising energy waste and maximising output, companies can slash their operational expenses and boost their bottom line.

Enhanced Reliability; Optimal steam systems operate more reliably, reducing downtime and enhancing productivity. This ensures smoother operations and minimises disruptions to production schedules.

Environmental Impact; By reducing energy consumption and emissions associated with steam production, optimised steam systems contribute to broader sustainability goals, aligning with clean energy transition objectives.

In conclusion, optimising steam systems represents a tangible and impactful way to drive energy efficiency improvements and advance clean energy transitions. By harnessing the potential of these systems, we can not only benefit from energy savings, and reduced costs but also make significant strides towards achieving a sustainable, low-carbon future. Let’s seize this opportunity to propel our journey towards a cleaner, greener tomorrow.

Supporting article – Energy Efficiency 2023 – Analysis – IEA

www.spiraxsarco.com/uk

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

Leading the Way to a Clean Energy Future: Hydrogen Solutions by ngm

Hydrogen solutions by ngm are at the forefront of the UK’s transition to a clean, sustainable energy future with their innovative hydrogen solutions.

By developing and deploying cutting-edge hydrogen technology, hydrogen solutions by ngm is expected to play a pivotal role in the nation’s journey towards net-zero emissions.

A ground-breaking achievement is the pioneering of an industrial kitchen prototype powered solely by hydrogen. This state-of-the-art kitchen produces zero harmful CO2 emissions at the point of combustion and eliminates the risk of deadly carbon monoxide leaks.

Its key features include:

1. Test Facility: A real-world environment that supports the development, installation, and operation of domestic and commercial hydrogen-related appliances.

2. Showcase: Demonstrations for industry and government stakeholders to understand the safe use of hydrogen and inform decarbonization strategies.

3. Community Project: A partnership with a charity to provide facilities for cooking food on low-carbon hydrogen, supporting local community needs. This kitchen is a world first and marks a significant step forward in hydrogen fuel use.

This allows hydrogen solutions by ngm to engage in critical conversations with policymakers about hydrogen’s future.

Renowned chefs have tested the kitchen, cooking various dishes and confirming the ease of use and consistent food quality. Some chefs even noted that the food cooks faster!

Falcon Food Services, a partner, is already planning pop-up hydrogen kitchens for festivals and other large-scale projects.

Completed in 2024, the model has yet to be replicated industrywide. However, with a high-profile launch on the horizon, hydrogen solutions by ngm is poised to lead the hydrogen revolution.

Part of National Gas Metering, a leading meter asset manager that manages over six million gas assets across the UK. The company is ideally placed to lead the hydrogen revolution and work with business to provide a turn-key solution to enable the smooth and cost effective transition to hydrogen.

Head of Commercial Simon Jamieson remarked, “This is an exciting moment on our hydrogen journey and a testament to how multi-partner collaboration can come together to develop solutions that support energy futures.”

For more information, visit  https://metering.nationalgas.com/services/hydrogen-services or follow National Gas Metering on LinkedIn https://www.linkedin.com/company/national-gas-metering

This article appeared in the July/August 2024 issue of Energy Manager magazine. Subscribe here.

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