Planning for Zero Carbon Homes the policy context Neil Witney - DECC. 6 th May 2014

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1 Planning for Zero Carbon Homes the policy context Neil Witney - DECC 6 th May 2014

2 Policy context for Zero Carbon Homes How is this to be achieved? regulation, planning, incentives How do we know if new homes are on track and if existing homes are improving?

3 Energy Performance of Buildings Directive Article 9 requires that Member States shall ensure that by 31 December 2020 all new buildings are nearly zero-energy buildings; and after 31 December 2018, new buildings occupied and owned by public authorities are nearly zero-energy buildings. A nearly zero-energy building is defined as a building that has a very high energy performance. The nearly zero or very low amount of energy required should be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby.

4 Energy-Using Products improving Eco-design Eco-design of Energy-Using Products Framework Directive - European legislation aimed at setting minimum performance standards for a wide range of energy-using products. Products, including boilers, water heaters, micro-chp, heat pumps, etc are mapped onto an energy label based on primary energy consumption.

5 Zero Carbon Homes Budget 2013 The government committed to implement zero carbon homes from August 2013 Consultation on how to implement zero carbon homes Budget 2014 The government will shortly publish its response to last year s consultation

6 Zero carbon hierarchy for new build

7 UK Building regulations L1A new dwellings L1B- existing dwellings L2A new nondwellings L2B existing non-dwellings The Building Regulations cover key aspects of a building s construction or significant refurbishment of an existing building. The key part for energy for dwellings is Part L, on the conservation of fuel and power, which regulates the energy used to provide space heating, hot water, lighting and ventilation. Parts F (ventilation), G (hot water) & G (combustion Appliances) also influence energy consumption minima defined in Part L For new build, they are currently framed in terms of requiring performance standards to limit carbon emissions.

8 SAP and SBEM Standard Assessment Procedure (SAP) and Simplified Building Energy Model (SBEM) are energy assessment tools that underpin policy initiatives, including compliance against Part L of the Building Regulations Appendix Q of SAP is the route for informing performance data for new, and improved, technologies Increasingly modelling product performance based on Ecodesign of Energy Using Products Directive

9 What does SAP do?

10 What is SAP/RdSAP driving? DCLG Energy Performance of Buildings Directive Energy Performance Certificates DECC Building Regulations (Part L) Zero Carbon Homes New and refurbished buildings SAP/ RDSAP Heat Strategy & Policy Team Microgen Certification Scheme FITS Green Deal Energy Company Obligation Warm Homes Discount RHI HMT Assessment of performance of dwellings for stamp duty exemption for zero carbon homes Scotland, N Ireland Local Authorities across UK Fuel poverty revised metric

11 What is SAP modelling?

12 Meet the SAP family! How much hot water do they use? Table 1b Daily use (on average over the year) Litres = (25 xn)+36 (various factors then adjust this) How warm is the house? Table 9 How big is the family? Table 1b If Total Floor Area > 13.9 m 2 : N = * [1-exp ( * (TFA-13.9)² )] * (TFA-13.9) If Total Floor Area 13.9 m 2 : Number of Occupants = 1 The SAP family want the temperature in the living room during the winter to be 21 O C. SAP (Table 9) calculates how the average external temperature, the heating system, rate of heat loss and other gains (eg from cooking) contribute to let them meet and maintain this temperature.

13 What about the real world? Ad watchdog labels Audi MPG claims misleading The Advertising Standards Authority (ASA) has called for car manufacturers to publish disclaimers with official MPG figures after ruling that an advert for the Audi A3 1.6 TDI was 'misleading'. However, the ruling does not call in to question the 68.9mpg figure, but instead that the manufacturer did not explain that this was achieved under laboratory testing, and that this wasn t made clear to the average consumer. The ASA said that the manufacturer should have qualified this was the case and that the figure achieved may not reflect real life driving results.

14 Local strategy and planning March 2012 March 2012ch March 2013 March 2013ch The Future of Heating: A strategic framework for low carbon heat in the UK

15 Local strategy and planning - infrastructure NOW 2050? CH 4 H 2 0 H 2 CH 4 H 2 0 H 2 80% 10% 2% 8% 0%?????

16 Role of planning - NPPF To help increase the use and supply of renewable and low carbon energy, local planning authorities should recognise the responsibility on all communities to contribute to energy generation from renewable or low carbon sources. They should: have a positive strategy to promote energy from renewable and low carbon sources; design their policies to maximise renewable and low carbon energy development while ensuring that adverse impacts are addressed satisfactorily, including cumulative landscape and visual impacts; consider identifying suitable areas for renewable and low carbon energy sources, and supporting infrastructure, where this would help secure the development of such sources; support community-led initiatives for renewable and low carbon energy, including developments outside such areas being taken forward through neighbourhood planning; identify opportunities where development can draw its energy supply from decentralised, renewable or low carbon energy supply systems and for co-locating potential heat customers and suppliers. Guidance on renewables and low carbon energy from DCLG dated July 2013

17 Heat Network Delivery Unit The Heat Networks Delivery Unit has been set up to run initially until March It comprises technical and commercial experts with some administrative support. Funding is distributed through funding rounds open to all LAs in England and Wales There is 7m of DECC funding available to March At 1 April 2014 over 4m had been allocated across 50 LAs through two funding rounds. A third round will be held over the summer, opens 12 May closes 27 June. Round 4 dates tbc. Funding is for early design work including mapping heat sources in the area and identifying where the heat might be used; and undertaking feasibility studies of potential networks The HNDU experts spend time with the LAs face to face as well as by phone and . This support and guidance helps LAs to become more intelligent clients in working with third parties on their heat network projects 17 Induction slides Mar 2014

18 Heat Networks To overcome some of the barriers to heat networks, we have announced we are: Setting up a Heat Networks Delivery Unit Support the establishment of an industryled customer code of conduct Support technical innovation in design and installation Examine scope for extra financial support for heat networks through the RHI (as part of RHI review 2014) 18 Heat: Meeting the Challenge

19 The trajectory for low carbon heat for buildings mainly retro Further modelling confirms the importance of low carbon heat networks in areas of dense heat demand, and on-site renewable heating in rural off grid areas. Some forms of gas heating may still be helpful out to The role of biomass and biogas remains questionable

20 Building electricity generation Solar PV Strategy, published by DECC on 16 April 2014 DECC will work with DCLG on extending permitted development rights in England for building-mounted solar PV to rooftop systems up to 1 MW. DCLG expects to consult on this over the summer. Decisions on the granting of approval for large-scale solar PV installations (less than 50 MW) will continue to be taken through local planning processes in accordance with local plans and any relevant material considerations, including national planning policy and practice guidance. The capacity threshold for local authority approvals will shortly be the subject of consultation by the Department of Environment.

21 Incentives: Renewable Heat Incentive Eligibility Payment period Domestic Property must have domestic EPC - single domestic dwelling. Home owners, social and private landlords and self builders (not new build) Third party owners not yet eligible Payments made over 7 years (to compensate for 20 years of benefits) Non-domestic Commercial, industrial, public sector and not for profit Multiple homes (including District Heating) no exclusion for new build properties Payments made over 20 years Measuring usage Deemed renewable heat output (metered if back up system or second home) Eligible heat use is metered on actual generation or use 21 Renewable Heat Incentive

22 Incentives: Where it can get complicated Some property types thought of as domestic may not have a domestic EPC Temporary building (e.g. park home or caravan) Care home Bed & breakfast Mixed use site (e.g. - business run from home, flat within shop) Hall of residence 22 Renewable Heat Incentive

23 Conclusion Goal is Zero Carbon Homes and improvement in quality of build of housing stock Regulations, Planning and Incentives Building Regulations are key linked to improvement in SAP ratings. Improvements fabric first, then heating supply, then electricity Supporting local infrastructure development DECC is focussing on improving heat networks in densely populated areas; and on renewable heating systems New world-first domestic Renewable Heat Incentive

24 Payments per kwh Is the domestic RHI for me? Available for households on and off the gas grid those without mains gas have the most potential to save on fuel bills and decrease carbon emissions 12.2p Biomass only boilers Eligible solar thermal panels only provide hot water 12.2p Biomass pellet stoves with integrated boilers Only one space heating system per property 7.3p 18.8p Air source heat pumps Ground source heat pumps Can apply for solar thermal for hot water AND a space heating system 19.2p Solar thermal panels - flat plate / evacuated tube only* *Solar PV-T eligible for FiTs, but not domestic RHI at present Metering for second homes & homes retaining secondary heating options 24 Renewable Heat Incentive

25 Is the non-domestic RHI for me? New and increased tariffs for some technologies, from spring 2014 AWHP 2.5p 2.0p Biomass Large ( 1MW) Biogas Small (<200kW) 7.5p 7.5p Biomethane injection Biogas Medium ( kW) 5.9p 4.1p CHP Biogas Large ( 600kW) 2.2p 5.0p Deep geothermal Biomass Small (>200kW)* 7.2p 7.2p Ground/water source heat pumps* Biomass Medium ( kW)* 4.4p 10.0p Solar thermal (<200kW) *Figures provided are untiered this equate to tiered tariffs of: Small Biomass 8.8p/2.3p; Medium Biomass 5.1p/2.2p, G/WSHP 8.7p/2.6p 25 Renewable Heat Incentive

26 What to do before applying for domestic scheme Renewable heating systems work best in well insulated home. Talk to an installer about your options and check advice with Ofgem website What type of system might be right for your property To apply you must have a green deal assessment carried out for the property Only exemptions are for those who build their own homes incorporating renewable heating system You must install loft and cavity wall insulation if recommended in Green Deal Advice Report If it is not possible to do this, evidence must be submitted to Ofgem as part of application Get an updated EPC to verify loft and cavity wall insulation has been installed 26 Renewable Heat Incentive

27 Non-domestic application process Applications are subject to the detailed scheme rules: Prepare in advance check guidance material before starting application process be ready for technical questions and evidence that s required Owner decides to install renewable heating system Owner & installer understand RHI eligibility requirements Owner & installer plan for requirements as part of design / installation process Owner uses guides to prepare for application and gathers evidence Owner completes online application form on Ofgem website & provides necessary evidence Ofgem accredits installation (subject to rules) and owner becomes RHI scheme participant 27 Renewable Heat Incentive

28 Social Landlords in the Domestic RHI Registered Providers of Social Housing will be able to apply for a property / properties they own, and will receive the RHI payments We would expect them to get any necessary permissions from their tenant(s), both in relation to installation of the system and in order to enable compliance with ongoing scheme requirements such as maintenance and possible site visits For Local Authorities who use Arm s Length Managed Organisations (ALMOs) to manage their properties, the application must come from the owner of the heating system The same tariff levels apply as for household applications 28 Presentation title - edit in Header and Footer

29 Social Landlords in the non-dom RHI Installations supporting a number of domestic properties are eligible under the non-domestic RHI Could include district and community renewable heating Examples of such schemes include: A central biomass boiler for an apartment building A network of pipes delivering heat from central location to number of local households or businesses Setting up anaerobic digestion plants using local waste Establishing community-owned biomass cooperatives sourcing fuel from sustainable local woodlands 29 Presentation title - edit in Header and Footer