GCEC.pdf

GCEC.pdf - page 1/3 - Next Generation case study: Gloucestersh…

Next Generation case study: Gloucestershire Community Energy Co-op May 2021

GCEC.pdf - page 2/3 - Key points for Community Energy groups:

Key points for Community Energy groups:

GCEC.pdf - page 3/3 - The scheme has been through a number of …

The scheme has been through a number of iterations. � Our initial proposal, as submitted in the Next Generation application, was to install PVs and batteries in council-owned sheltered housing. � Once we started doing more detailed research, we found that this would not be economically viable. However, by adding in a shared-loop ground-source heat pump, we could create a financially attractive proposition. This would utilise the non-domestic RHI which generates income for 20 years. � However, Covid has diverted a lot of the councils resources and this scheme has subsequently slipped down their priority list. Moreover, installing anything in sheltered housing during the pandemic is challenging as their residents are extremely vulnerable. As a result, time has passed without any firm decision to proceed. Unfortunately, the non-domestic RHI in its current form ceased from March 2021. There was no longer sufficient time to install these heat pumps within that timeframe. � So instead, we have redesigned the scheme to install air source heat pumps in the sheltered housing making use of the domestic RHI (which will continue until March 2022). Air source heat pumps have lower install costs, but the domestic RHI tariff is paid over seven years, rather than 20 years which was the timeframe for the non-domestic RHI. This makes it more challenging to make the business model stackup. However, we believe we have managed to design a financially viable scheme and have put a proposition to the council on this basis. This is based on: o Around 25% of the heat pump installation cost being funded by the Next Generation grant; o The council putting forward about 25% of the heat pump installation cost; o GCEC engaging with the households to obtain their consent for the air source heat pump solar panel, and battery systems; o GCEC launching a share offer to secure the balance of the installation costs; o GCEC project managing the install and paying back the share offer through RHI payments, export electricity income, balancing market income from the batteries, and payments from the council for the energy services to tenants; o GCEC and the council providing ongoing support to the households as needed.