Elmwood Golf Course Solar PV Prepared by: SAC Consulting Contact: Email: Fiona Salter fiona.salter@sac.co.uk Phone: 0131 603 7513 Date: 27 th August 2015
1 Contents 1 Contents... 1 2 Introduction... 1 3 Solar PV... 2 3.1 The Process... 2 3.2 Findings... 2 4 Further Considerations... 8 5 Conclusions... 10 SAC Consulting, Environment and Design Group
2 Introduction An initial feasibility study has been undertaken to establish the viability of a roof mounted Solar Photovoltaic (PV) system at Elmwood Golf Course, Cupar. This report will outline the viability of solar PV at this location, provide findings and make recommendations on the suitability of this renewable energy option. Two possible buildings have been identified as potentially suitable locations for roof mounted solar PV arrays; the Pro-shop, and the Greenkeeping facility. Options exist to either pursue the renewable energy development independently or to allow a developer to install and manage the array. Both of these options will be assessed in this report. PV systems generate maximum output during the summer months, during daylight hours. To ensure that full utilisation is met by PV systems, an energy demand during this time is ideal. For this site, the proximity of the roof based PV scheme to the existing golf course buildings would lead to the electricity generated on site being able to be used efficiently during these times. The panels can be installed onto existing structures and make use of vacant space. SAC Consulting, Environment and Design Group Page 1
3 Solar PV 3.1 The Process Solar PV systems convert the sun s energy into electricity, which can either be used on site or exported to the national grid. Generating electricity in this way qualifies for Feed in Tariff (FIT) payments, which can provide valuable additional income. Solar PV can also substantially lower reliance on grid electricity and help to lower energy bills. This can be beneficial, especially where there is a high electricity demand present that correlates to the suns energy e.g. cooling throughout the day. Solar PV can either be roof mounted or ground mounted. Roof mounted systems make use of existing vacant space and require south facing, structurally sound roof space. Ground mounted systems require relatively flat, open land, which is not protected/designated and not good quality agricultural land. However the land that ground mounted PV is built on is sterilised from several other uses for the lifetime of the project. For this feasibility study only roof mounted systems have been explored to utilise the space that is available at Elmwood Golf Course. 3.2 Findings Scale of Development This study looks at the possibility of roof mounted panels on buildings at Elmwood Golf Course. It has been determined that there are two buildings, which have relatively south facing roofs that may be suitable for solar PV at Elmwood. These are the Greenkeeping facility, with 348 m 2 of available roof space, and the Pro-shop, with 42.5 m 2 of available roof space. This is dependant on the structural suitability of the roof space to accommodate the panels, which will need to be determined. Given the available space and the average size of a typical PV panel, along with expected average output per panel, it is anticipated that the maximum scale of solar PV on each building could be; Greenkeeping facility 58 kw Pro-shop 7 kw Notes Average panel size taken as 1.5 m 2. Average output per panel is estimated to be between 170 to 300 watts. For this location an output of 250 W per panel has been used in the above calculations. SAC Consulting, Environment and Design Group Page 2
These figures are based on the values given for, and measurements of the total roof space available, however, in reality it is unlikely that the entire roof space will be covered in panels. Annual Output The PV potential for the site was calculated by determining the solar resource for this location using Photovoltaic GIS. The angle of the roof has been estimated as 35 degrees. From analysis of aerial photography and GIS, both roofs appeared to be facing South East, which has been taken into consideration. These presumptions can be altered and refined at a later date if required. Taking this and the scale of arrays mentioned above into consideration the expected outputs for each building per annum were estimated as; Green keeping facility 53,100 kwh Pro-shop 6,400 kwh Revenue from the proposed development could be derived from various sources: By offsetting the purchase of electricity from the existing supplier therefore, saving the retail price for each unit offset (calculations have used current rates provided by the client); By exporting electricity via the grid connection; By receiving FIT payments for all power produced; For this study a scheme limited to 50kW has been proposed with an annual output of 45,700 kwh. This corresponds best, based on the current tariff rates for FIT (Table 2-1), and is a more realistic scale based on the likelihood of not being able to utilise 100% of the roof space. FITS Under the FIT scheme, small scale generators are guaranteed a minimum tariff for the first 20 years of production from their installation provided they are approved by the regulator, OFGEM. This tariff consists of two parts, an export tariff and a generation tariff, both of which are index linked over the 20 year period. A better FIT tariff for PV is achieved by connecting the panels to a building s power circuits and then using the electricity to power an occupied building; this would make any proposed scheme more viable than a standalone system. The export tariff is currently set at 4.85 p/kwh (at the time of writing, and including inflationary increases applied up to, and including 1 April 2015). Generators can choose to opt out of the export tariff and sell surplus energy at market price, if a demand is available. SAC Consulting, Environment and Design Group Page 3
For this scale of Solar PV scheme the generation tariffs are:- Table 3-1 Current FIT rates for Solar PV Tariff Description Solar photovoltaic (other than stand-alone) with Total Installed Capacity greater than 4kW but not exceeding 10kW After 1 July 2015 and before 1 October 2015 (p/kwh) After 1 October 2015 and before 31 December 2015 (p/kwh) Higher Rate 11.71 Higher Rate 11.30 Middle Rate 10.54 Middle Rate 10.17 Lower Rate 5.94 Lower Rate 5.94 Solar photovoltaic (other than stand-alone) with Total Installed Capacity greater than 10kW but not exceeding 50kW Solar photovoltaic (other than stand-alone) with Total Installed Capacity greater than 50kW but not exceeding 100kW Higher Rate 11.71 Higher Rate 11.30 Middle Rate 10.54 Middle Rate 10.17 Lower Rate 5.94 Lower Rate 5.94 Higher Rate 9.63 Higher Rate 9.63 Middle Rate 8.67 Middle Rate 8.67 Lower Rate 5.94 Lower Rate 5.94 Stand-alone 4.44 4.28 Export Tariff 4.85 4.85 The FIT scheme for solar now includes a planned quarterly degression of tariff rates for new entrants, with the level of reduction varying depending on the uptake and increase of capacity of Solar PV technologies over the previous period. Table 2-1 gives the rate that applies currently (between July and October 2015) and the rate which will apply after this date; with a degression applied (between October and December). After this date, there is likely to be a further reduction in FIT rate, with the possibility of further degressions throughout 2016. The higher rate of FIT applies where energy efficiency requirements are met; the Energy Performance Certificate (EPC) for the building needs to be level D or above if heated. The middle rate is for multiple installations where there are 25 or more other eligible Solar PV installations (not relevant in this case), and the lower rate applies when energy efficiency requirements are not met. For our calculations in Table 2-3 it has been presumed that the higher rate is applicable and the scheme would be commissioned before 31 December 2015; giving a FIT rate of 11.30 p/kwh. As there are two separate PV arrays on two separate buildings involved, there is the possibility that they could both be treated as individual generators if both buildings have separate meters with separate MPAN numbers. However, if they have the same meter with the same supply point, and due to the fact that both buildings are likely to have the same SAC Consulting, Environment and Design Group Page 4
owner, then it is more likely that the two rates would be a combined tariff. For the likely scale of this development, and as the FIT rates for 4 kw to 10 kw and 10 kw to 50 kw are currently the same, it will not make any difference in terms of income as to whether they are treated individually or combined, however, this could change in the future. In the following calculations for revenue (Table 2-3) a tariff for a 50 kw system has been presumed, where panels could be installed entirely on the larger roof or split between the two buildings. The UK Government are currently reviewing the FIT scheme and it is likely that there will be some changes in the future. These changes are unlikely to affect schemes that have been commissioned or have been pre-registered. A consultation published by the Department of Energy and Climate Change (DECC) on Thursday 27th August 2015 indicates that FIT rates could be heavily cut from January 2016; however, as this is currently out for consultation, it cannot be confirmed at present. Onsite Usage The major electricity usages on site are detailed in Table 2-2: Table 3-2 Electricity use per building per year Building 2013-2014 (kwh) 2014-2015 (kwh) Clubhouse 84,008 81,444 Pro-shop 13,128 7,744 Pump House 94,622 92,413 Total 191,758 181,601 Average price for electricity paid per unit for 3 buildings 10.32 (p/kwh) Notes Data supplied by SRUC/Elmwood Golf Club. 2013-2014 usage from 01 April 2013 to 30 April 2014. 2014-2015 usage from 01 May 2014 to 01 May 2015. There are some uncertainties regarding the reliability of the data as some of the figures used were estimated readings as opposed to actual usage. There were also some unusual readings for the usage in the pro-shop for 2014-2015. Electricity usage across the various buildings is quite high and is greater than the electricity produced by the solar plant. However, it has been established that some of the major electricity demands, such as the irrigation pumps and lighting, will occur out with daylight SAC Consulting, Environment and Design Group Page 5
hours, therefore, could not be supplied by the solar array. However, the clubhouse has a high usage, which would correlate well with Solar PV as the clubhouse tends to be open mostly during daylight hours; as a result this provides an opportunity to use a large proportion of the electricity generated by the PV array on site. In the following calculations of potential revenue (Table 2-3) it has been presumed that 50% of the electricity will be used on site; this gives an average figure between the benefits you would get from export tariffs compared to energy savings. Potential Revenue The potential earnings from the proposed scheme are outline in Table 2-3. It is estimated that a roof mounted solar PV scheme at Elmwood would generate 5,164 from FIT income plus an additional 1,108 from export tariffs and 2,358 in energy savings if 50% of the electricity is used on site. Based on these predictions, the scheme would pay itself back within seven years and the costs for the development are estimates based on similar projects undertaken elsewhere. There would be an annual benefit to the business of 8,630. SAC Consulting, Environment and Design Group Page 6
Table 3-3 Solar PV 43.8 kw potential revenue and payback SAC Consulting, Environment and Design Group Page 7
4 Further Considerations Grid Enquiries will need to be made with SP Energy Networks (SPEN) to establish grid capability and constraints surrounding the golf course location. Through SPEN s Quote+ application procedure, initial enquiries could be made to determine costs and timeframes for grid connection. The Quote+ system is new and is aimed at providing more information over shorter timescales, allowing customers to request an indicative study for up to 3 different connection options at a particular location. This information would give an indication of the possibilities for development, along with appropriate timescales. Generally the more electricity generated that can be used on site, the more attractive the scheme becomes. This results in reduced energy bills and can also lower the grid capacity required, which can lower costs and help to ease constraints. Feedback from SPEN regarding connection costs, dates and capacities will help to guide the decision process and indicate what scales of renewable energy development are possible. This should be done in the first instance if the project is to proceed beyond this stage. Visual impact and planning Solar PV panels should be installed in such a way as to minimise any adverse visual impact to the area and minimise the impact to the appearance of the buildings. Due to the nature of the development planning permission will need to be sought, however, it is not thought that this will be difficult to obtain due to the scale of the project. Initial enquiries should be made to the local planning authority to confirm this. Adherence to building regulations is required when installing PV panels to a roof. Developers Allowing a PV developer to install panels on the roofs and then sell the electricity generated at a reduced rate back to the golf course is a potential option. This will help to lower energy bills as the rate being offered for purchasing the electricity from the developer is lower than the rate offered by the current electricity supplier. The developer will also take on the majority of the risks of the project and cover the upfront costs. However, the majority of the financial benefits in terms of FITs and export tariff will be going to the developer and not Elmwood. Likewise you are not getting the full benefit of the electricity savings as you would still be paying for the electricity generated by PV as opposed to utilising it for free when available if done independently. Developing and operating the scheme independently would SAC Consulting, Environment and Design Group Page 8
be the more financially beneficial option to Elmwood Golf Course as the full benefits outlined in Table 2-3, would be kept on site as opposed to the majority of these benefits going to an external developer. SAC Consulting, Environment and Design Group Page 9
5 Conclusions A roof mounted solar PV scheme appears viable at Elmwood Golf Course, with the opportunity to generate additional income and savings for the business. There is the potential to use a large proportion of the electricity on site when available, as well as gain income from FITs. Due to reductions in FITs and possible further changes in the future it is advantageous to proceed with the scheme as soon as possible to minimise the impact of FIT degression and achieve the best rate of FIT possible. Further study, including site visits to assess the suitability of the buildings and liaison with potential suppliers of the technology will be required to refine these findings and progress the project. Feedback regarding grid constraints and costs will help to determine the schemes economic viability, alongside timescales for development. The most financially beneficial option would be for SRUC to install the PV panels rather than to allow a developer to rent the roof space or offer a reduced electricity price, as the benefit of receiving an income from energy savings and FITs would result, as opposed to the majority of the benefits going to a developer. SAC Consulting, Environment and Design Group Page 10