Business Case. Hawick Golf Club. Created for: Hawick Golf Club Prepared by: Richard Witney of On Site Generation Ltd

Transcription

1 Business Case Hawick Golf Club Created for: Hawick Golf Club Prepared by: Richard Witney of On Site Generation Ltd

2 Business Case 2 Contents Customer and Adviser Details 3 Executive Summary 4 Resource Efficiency Action Table 4 1 Introduction 5 2 Detailed Opportunities Cavity Wall Insulation Loft insulation Solar Photovoltaics Lighting Improvements Chiller Room Improvements Boiler Room Improvements Energy Awareness Raising 12 3 Conclusion 13 4 Funding 14 Disclaimer 15 State Aid 15 Appendix 1 16

3 Business Case 3 Customer and Adviser Details Contact Name Douglas Tait Contact Job Title Vice Captain Telephone / Mobile Dougie457@googl .com Date of Visit 24 th April 2014 Resource Efficient Scotland Adviser James Cameron Telephone / Mobile james.cameron@resourceefficientscotland.com Approved by Nia Owen Date approved 16 July 2014 RES MDR V16

4 Business Case 4 Executive Summary Hawick Golf Club owns its club house which is for the use of members and their guests. The club spends around 12,000 per year on electricity and gas. This report focuses on measures which will reduce electricity and gas consumption including insulation, lighting and some low cost recommendations such as energy awareness campaigns. The key actions and next steps are: Investigate the potential for cavity wall insulation for the dining room extension; Installing loft insulation throughout the building; Installation of solar photovoltaics on the green keepers shed; Investigate lighting improvements; and Make improvements to the chiller and boiler rooms. If all the recommendations are actioned, the club could save approximately 2,900 per year and 10 tonnes of CO 2. Resource Efficiency Action Table QUANTIFIED OPPORTUNITIES Item Description Financial savings Cost Saving Investment Required Environmental savings Payback Energy CO 2 /yr Years kwh/yr tco 2/yr 1 Cavity wall insulation 330 2, , Loft insulation 330 2, , Solar Photovoltaics 1,400 15, , Lighting improvements 200 1, , Chiller room improvements , Boiler room improvements 170 1, , Total 2,860 22,000 37,550 10

5 Business Case 5 1 Introduction Hawick Golf Club is the oldest club in the Borders and has been in existence since It is located on the Vertish Hill on the outskirts of Hawick. The main building is pre 1900 solid brick with harling. Attached to the main building is a modern timber framed extension and a 1970s brick cavity dining room extension. Figure 1.1 Hawick Golf Club The clubhouse comprises: ladies and gents locker rooms, office, bar area, dining room, kitchen and stewards flat. There is mains gas which heats the building. There is also the green keepers shed which has an independent electricity supply. At present, Hawick Golf Club spend approximately 12,000 on gas and electricity per year as outlined below. Figure 1.2 Current Annual Energy Use Energy source Unit cost p/kwh Annual usage kwh Annual cost Annual CO 2 e tonnes Electricity ,000 8, Gas ,000 3, Total 168,000 12, The key actions and next steps are: Investigate cavity wall insulation for the extension Investigate loft insulation for the whole building Installation of solar photovoltaics on green keepers shed

6 Business Case 6 Lighting improvements Chiller room improvements Boiler room improvements Energy awareness raising for members and staff If all the recommendations are actioned, the club could save approximately 2,900 per year and 10 tonnes of CO 2. 2 Detailed Opportunities 2.1 Cavity Wall Insulation Project Description and Recommended Solution Whilst part of the building dates to 1870, there is a modern extension to the front which is timber framed. The dining room extension to the rear appears to be a brick cavity. It is often relatively straightforward to improve the thermal performance of cavity walls as insulation can be pumped into the cavity, requiring no changes to the internal decoration or major works to the external surface of the wall. Brick cavity Figure 2.1 Dining room extension cavity wall.

7 Business Case Costs, Benefits and Finance Figure 2.2 Cavity wall insulation filling technique Insulating the cavity walls could reduce heat loss through the wall by up to 20%, which would reduce heating demand and therefore cost. It is estimated that cavity wall insulation could save 10,000 kwh of energy and reduce heating costs by 330 a year. The installation cost would be approximately 2,000. This would provide a reasonable payback of 6 years and save 1.8 tonnes of CO 2. Please refer to Appendix 1 for calculations Risks and Solution Alternatives The installation of cavity wall insulation takes place externally and should cause minimal disruption to the running of the business. Alternative solutions include external cladding of the walls, which would be significantly more expensive, or internal wall insulation which would require redecoration and the closing of the business whilst the work takes place. In some cases, cavity wall insulation can cause dampness issues especially in an area of high levels of wind driven rain. Expert advice should be sought prior to installing cavity wall insulation Conclusions A specialist cavity wall insulation contractor should be contacted to confirm that the walls are suitable and to establish costs. Please call your Local Energy Scotland Advice Centre for information about local cavity wall installers in your area. Tel Loft insulation Project Description and Recommended Solution Insulation in the loft above the main building, including the suspended ceiling in dining room, the main ceiling in bar area and above the steward s flat, is approximately only 50mm of mineral wool. This is well below the current building standard and therefore it is recommended that insulation is increased to a minimum of mm Costs, Benefits and Finance If loft insulation is increased, it is estimated that this would save 10,000 kwh of energy and reduce heating costs by 330 a year. The installation cost would be approximately 2,000. This would provide a reasonable payback of 6 years and save 1.8 tonnes of CO 2 Please refer to Appendix 1 for calculations.

8 Business Case Risks and Solution Alternatives It is assumed that a simple additional layer of mineral wool quilt will be laid over the existing. Therefore, there are no perceived risks associated with this option in the main building. A specialist contractor may be required to add insulation above the suspended ceiling in the dining room. This could be coordinated with a light replacement programme Conclusions The addition of loft insulation is a straightforward and relatively low cost measure. 2.3 Solar Photovoltaics Project Description and Recommended Solution Photovoltaic (PV) systems use semiconducting material, usually silicon cells, to convert solar radiation into electricity. When light shines on the cell it creates an electric field across the layers, causing electricity to flow; the greater the intensity of the light, the greater the flow of electricity. The green keepers shed has a good south orientated metal roof, which is suitable for PV. There are numerous PV mounting systems available that fix into the roof structure and a number have been designed specifically for mounting panels on metal roofs. Prior to the commencement of any work, the suitability of a mounting system should be confirmed by a qualified structural engineer, taking into account the location, roof covering, roof makeup and structural design of the building. An un-shaded south facing PV system installed in Hawick would be expected to generate approximately 800 kwh/yr per kw of installed PV. The roof could accommodate a PV system of up to 10 kw on the south facing roofs (approx 40 Watts each). A system of 10 kw in size would be expected to generate around 8,000 kwh per year and the electricity would be used in the green keepers shed first and then exported if no demand. Figure 2.3 Solar PV panels and a metal roof fixing system Costs, Benefits and Finance The UK Government Feed in Tariff (FiT) provides revenue based on a payment for electricity generated from renewable resources. The current FiT rate (from 1 st July 2014) is 13.03p per

9 Business Case 9 kwh for PV systems of up to 10 kw grid-connected to properties with energy efficiency (EPC) ratings of D or better and 6.61p per kwh for all other installations (paid for 20 years index linked). 10kW of south facing PV will generate approximately 8,000 kwh of clean, green electricity and save 3.6 tonnes of CO 2. The PV system would cost approximately 15,000 to install providing a payback of just over 10 years. As the building is open during daylight hours, more of the PV generated electricity will be used in the building. PV would also be a good option to offset some of the electricity used to charge the electric golf buggies. There may be community grant funding available for a renewable energy project from the Community & Renewable Energy Scheme (CARES). Please visit: for more information Risks and Solution Alternatives The building will be required to attain an Energy Performance Certificate rating of level D or better to receive the higher rate of FiT. If it is possible to connect the green keepers shed to the clubhouse, this would improve the self consumption of electricity from the PV system, improving the cost saving from 1,400 to 2,000 per year. The EST interest free loan is not available if the club applies for FiTs for the PV. A loan would still be available from EST but it would be interest bearing at a rate of 5% pa. See Section 4 Funding for more information Conclusions Solar PV is a good option for the club. PV is straightforward to install on the roof and will be low maintenance. The building will need to achieve a level D EPC, which should be checked, as it will affect the level of FiT payment. 2.4 Lighting Improvements Project Description and Recommended Solution There is various lighting around the clubhouse approximately 3.3kW in total. The 50W halogens in the dining room should be replaced with LEDs as part of the maintenance programme. Some have already been successfully replaced in part of the dining room. The kitchen lighting 3 x 100 W should be assessed and T8 equivalents should be fitted or change the fitting to LED. A cheaper alternative is to install a T12 T8 converter which will reduce the size of the fluorescent tube 1. This will have a significant saving for the club as these lights will be on for many hours of the day. The Steward s flat should also be assessed for low energy lighting. At present, there are standard shape halogen lights fitted throughout. There are some motion sensors fitted in the gents changing room. These could be fitted throughout the ground floor to ensure lighting turns off automatically. 1

10 Business Case Costs, Benefits and Finance It is estimated that new LED lighting and motion sensors could save 1,400 kwh of energy and reduce running costs by 200 a year. The installation cost would be approximately 1,500. This would provide a reasonable payback of 7.5 years and save 0.6 tonnes of CO 2. Please refer to Appendix 1 for calculations Risks and Solution Alternatives There are no perceived risks with this option. The club may want to run a small trial of LEDs, especially in the Stewards flat, before making a large investment in new lighting Conclusions LED lighting and motion sensors is a good option for the club and can be programmed with suspended ceiling work in the dining room to reduce installation costs. 2.5 Chiller Room Improvements Project Description and Recommended Solution The chiller room is used for the bar pumps and barrels etc. This is also a store for beer and other bottles. Figure 2.5 The chiller room There is a large hole in the ceiling open to the floor above which will significantly increase the work load of the chiller. This should be repaired as part of the maintenance programme. As part of this maintenance, insulation could be fitted to ceiling or accessed from the floor above. The boiler room is directly next to chiller room and both rooms are connected to the access corridor. A plastic curtain should be fitted to the chiller room door to prevent the ingress of warm air. Adding wall insulation to the boiler room brick wall would reduce the heat transfer from the boiler room through the wall to the chiller room.

11 Business Case 11 Figure 2.6 Boiler room wall adjacent to chiller room Heating and cooling pipes which run through the chiller room to the outside fan unit should be very well insulated Costs, Benefits and Finance It is estimated that implementing the chiller room improvements would save 3,150 kwh and reduce energy costs by 430 a year. This would cost approximately 500 providing a good payback of 1 year and save 1.4 tonnes of CO 2. Please refer to Appendix 1 for calculations Risks and Solution Alternatives There are no perceived risks with this option Conclusions The chiller room and pipe work will benefit from better insulation from the boiler room and upper floor which are effectively introducing warm air which the chiller plant works harder to reduce the air temperature. 2.6 Boiler Room Improvements Project Description and Recommended Solution The club has recently installed 2 x Vaillant ecotec plus 428 gas boilers. The hot water stat in the tank is set above 70 C and this could be reduced to 60 C. There is some poor pipe insulation in the boiler room which would benefit from being upgraded. This will have the added effect of reducing heatloss to the boiler room and adversely effecting the chiller room.

12 Business Case Costs, Benefits and Finance Figure 2.7 Hot water tank stat and pipe insulation It is estimated that making these improvements to the boiler room could save 5,000 kwh of energy and reduce heating costs by 170 a year. This would cost approximately 1,000 providing a reasonable payback of 6 years and save 0.9 tonnes of CO 2. Please refer to Appendix 1 for calculations Risks and Solution Alternatives There are no perceived risks with this option Conclusions The hot water tank should be reduced to 60 C. The pipe insulation should be completed as part of the maintenance programme and will significantly reduce the heatloss from the pipework and the adverse effects on the chiller room adjacent. 2.7 Energy Awareness Raising Energy Policy Many organisations have produced a statement which sets out the policy towards saving energy. It should be simple, easy to read and cover all major potential initiatives to be taken by the business to improve energy efficiency. Once produced it should be made available to all staff/members and a copy posted on the main notice board. Checking your energy use Throughout UK organisations there are significant errors introduced through faulty meter reading, unmonitored energy use and inaccurate billing. Organisations can save significant energy costs through carefully comparing meter readings with bills. Also by noting these readings against site usage it may be possible to identify anomalies in energy usage. It is recommended that monthly meter readings be taken, and comparisons made to energy bills. This may indicate areas where improvements can be made and may also highlight inefficiencies.

13 Business Case 13 The current gas billing should be investigated with EOn as it appears the club is being charged VAT at 20% and Climate Change Levy (CCL) on the gas bill. The electricity rate appears to be charged at 5% VAT and no Climate Change Levy. It may be possible for the club to gain full exemption from the Climate Change Levy and pay VAT on energy at 5%. For further information visit: or contact your club accountant. A simple chart of usage plotted against months can be used to assess progress against targets that the centre could set as part of an energy awareness campaign. Various staff members should be involved in this task to spread the understanding of energy management. Staff awareness and good housekeeping Very simple practices such as switching off unnecessary equipment and lighting, turning heating off instead of opening windows and general communication about the comfortable heating and lighting requirements can produce significant results. Also staff walkrounds and checklists are important. Some means of raising awareness are: Making staff aware of the cost of energy and potential savings. Raising energy use during staff meetings. The use of a suggestion box, and giving token awards for good ideas. Poster campaign to encourage good practice. Clear labelling of switches and controls. Giving feedback to staff to encourage further participation. Staff training courses Costs, Benefits and Finance It is recommended that an energy awareness scheme be introduced for the staff and members. There will always be benefits to an organisation which places a focus on energy awareness Risks and Solution Alternatives There are no risks to the club continuing with basic energy management and awareness raising Conclusions Energy management & staff awareness is a no cost method of encouraging members/staff to do their bit for the environment and make a real contribution to the success of the centre. 3 Conclusion The recommendations have focussed mainly on improving the building with insulation measures, lighting and low costs measures to improve the boiler and chiller rooms. The installation of solar PV panels may be a good option for the club if they can secure some funding. This will reduce the expenditure on electricity and provide an educational element for the local community. If all the recommendations are actioned, Hawick Golf Club could save approximately 2,900 per year and 10 tonnes of CO 2.

14 Business Case 14 4 Funding There may be community grant funding available for a PV renewable energy project from the Community & Renewable Energy Scheme (CARES). Please visit: for more information. Resource Efficient Scotland offer fixed rate SME loans of 1,000 to 100,000 help businesses to reduce their carbon emissions, save money and increase their competitiveness. Funded by the Scottish Government, the scheme aims to support businesses that are looking to reduce costs through improved energy, material resource and water efficiency. The scheme is aimed at Scottish businesses that fall within the EC definition of Small and Medium-sized Enterprise (SME), private sector landlords, not-for-profit organisations and charities. Private sector landlords will be eligible to apply for loans if they are registered as a private landlord with their local authority or if they are able to demonstrate that they are exempt from registration. Loans are interest free (0%) unless you are applying for a renewable technology. For loans concerning renewable technologies and you are intending to receive the Feed in Tariff (FIT) or Renewable Heat Incentive (RHI) the interest rate is 5% If you are not intending to claim the FIT or RHI then the interest rate is 0%.

15 Business Case 15 Disclaimer Every effort is made to ensure that the information given herein is accurate, but no responsibility is accepted for any errors, omissions or misleading statements, and no responsibility is accepted in regard to the standing of any firms, companies or individuals mentioned. It should be noted that any company or individuals details contained within listings of products and services should not be regarded as an endorsement by Resource Efficient Scotland. Any guidance given in relation to legislation is based on the information currently available to Resource Efficient Scotland. It cannot be regarded as legally binding and should only be seen as advisory. The legislation itself should always be read and understood, as that constitutes the law. As more information surrounding the legislation becomes available, advisers will be able to provide information on the latest developments. State Aid In order to maintain a free and fair market, EU rules exist to ensure organisations (whether private or not-for-profit) providing goods or services are not given unfair advantages through being in receipt of State Aid from a public or publicly-funded body. The on-site support provided by Resource Efficient Scotland qualifies as a benefit under EC regulation 1996/2006 (de minimis aid regulation). Any de minimis aid awarded to you as a result of this support will be relevant if you wish to apply, or have applied, for any other de minimis aid. There is a ceiling of 200,000 for all de minimis aid provided to any one organisation over a 3-year fiscal period (the current fiscal year and the previous 2 fiscal years). Different thresholds apply to organisations within specific economic sectors, most particularly agriculture and fisheries. It is the responsibility of organisations receiving assistance from Resource Efficient Scotland to ensure that they do not breach regulations relating to State Aid. The amount of de minimis aid awarded to your organisation as a result of the on-site support you have received is a sum not exceeding 2,500, which equates to approximately 3,200 (as at 26th August 2013). For the purposes of the de minimis regulation, you must retain this report for 3 years from the date of its issue and produce it on any request by the UK public authorities or the European Commission. You may need to keep this report for longer than three years for other purposes. Resource Efficient Scotland is unable to provide guidance on State Aid beyond that provided here. If you require further information on State Aid and how it may apply your organisation, please visit

16 Business Case 16 Appendix 1 Supporting calculations Cavity wall p/kwh T/kWh CO 2 kwh saved Cost saving ( ) CO 2 saving Electric % 10, Gas Based on 50% of the building's heating demand = approx kwh Loft insulation kwh saved Cost saving ( ) CO 2 saving 10% 10, Based on 100% of building heating demand = approx 105,000 kwh PV kw kwh/yr Total FIT income Total export income (Export at 4.77p) Saved electricity based on 13p/kWh Total PV ,400 Notes: Total FiT 8000 x 13.03p Total export 8000 x 0.7 x 4.77p Saved electricity 8000 x 0.3 x 13p Total Total FiT + Total Export + Saved electricity 30% used in house 70% exported Total Total FiT + Total Export + Saved electricity If PV connected to clubhouse, 90% would be used on site ie saving 2000 per year.

17 Business Case 17 Lighting Lighting kw Running hrs Total energy (kwh) kwh saving Elec p/kwh Total running cost Cost saving Current % saving Chiller room kwh saved Cost saving ( ) CO 2 saving 5% saving Based on 100% of the building's electricity useage = approx kwh Boiler room kwh saved Cost saving ( ) CO 2 saving 5% saving Based on 100% of building heating demand = approx 105,000 kwh

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