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Solar Thermal - Staring Into the Sun

Chris Roberts, BRE

 

Like many renewable energy technologies, Solar Thermal has languished in the realms of 'alternative energy' systems for many decades entertained often only by the enthusiast or 'early adopter'. However it appears that, at long last, times could be changing. For this technology in particular, a time of acceptance as a mainstream technology which is a viable and important contributor to our need for heat, is upon us.

 

A clear signal of government support for this technology was seen with the launch of the grant scheme Clear Skies in January 2003, which resulted from the Performance and Innovation Review's report published in November 2001. Many people, we would hope, take the view that this scheme has been a success in terms of the number of installations that have been grant funded. As at the 31st March 2004, the total number of grants offered to householders stood at 4896 (4416 for solar) and grants paid, i.e. systems installed, 4116 (3844 for solar) against an initial target of 2800. However, what is often not understood is that, in addition to grants, the scheme has had additional valuable outcomes which can be used (and to some extent already have) to inform future government strategy and policy.

 

The scheme has been able to collect invaluable data about the UK market, set standards for product and workmanship, and provide the general public easy access to an independently collated and quality controlled list of installers and products. All of this adds up to a particularly effective 'finger on the pulse'. Previously, data was only available from the Solar Trade Association which, in turn, could only easily access data from members. This data is therefore limited by the fact that significant sections of the industry are not members of the trade association.

 

The Clear Skies grant for solar thermal systems is the smallest of all of the technologies covered under the scheme at £400 for a householder. This equates to a little over 8% of the scheme average cost of all system types. Nevertheless, grant applications for solar thermal have accounted for around 90% of the applications received. Although more detailed research is intended, initial feedback received from grant recipients suggests that, although an incentive, the grant is often not the deciding factor in isolation. Many grant recipients were already receptive to the idea of solar, but the idea of quality controlled products and installers is seen as a government endorsement giving the final reassurance necessary to commit.

 

If this early assessment is indeed accurate, this would mean that the technology of solar thermal systems is, of all the small-scale renewable energy technologies nearest to mass market acceptance. However, there are still obstacles to be overcome, and none less then the current price of a typical domestic sized small system which is around £3200 where flat plate collectors are employed and £4000 for evacuated tubes. Although grants can and do help to offset this capital cost, unless very carefully designed and targeted, they also risk maintaining demand at a high level which creates an upward pressure on prices. Clear Skies currently registers 135 installation companies, and the feedback being received suggests a high proportion of them are working at or near capacity.

 

The challenge therefore is to maintain demand in such a way that installed prices reduce because capacity is increasing, at the same time as maintaining quality of product and workmanship. The additional drivers coming to play could well be complimentary with this need. These are the implementation of the European Energy Performance of Buildings Directive, which will be integrated into UK law through the revision of Part L of the Building Regulations due to take effect from January 2006 and Planning Policy Statement 22.

 

The language employed, particularly in PPS 22 is clear in its intent, for example:

 

'Small scale renewable energy schemes can be incorporated both into new developments and some existing buildings. Local planning authorities should specifically encourage such schemes through positively expressed policies in local development documents.'

 

PPS 22 was only published in August 2004, and is now just beginning to filter down to regional and local development plans. For example, the London Borough of Croydon currently states in its draft development plan:

 

'The Council will expect all development (either new build or conversion) with a floor space of 1000m2 or more, or ten or more residential units, to incorporate renewable energy production equipment to provide at least 10% of the predicted energy requirements.'

 

The consultation document for the reviewed Part L of the Building Regulations discussed plans for the carbon emissions of new buildings and major refurbishments to be calculated which must then fall within a pre-defined target. Although the approaches for buildings that are dwellings and buildings other than dwellings is slightly different, the clear intent throughout is to achieve a 25% improvement in carbon emissions over the 2002 standard. In certain circumstances, this will only be achievable through the incorporation of renewable energy technologies and, as one of the lowest cost measures (Clear Skies has seen multiple installation projects costed as low as £1600 per system), solar thermal will be high on the list of likely technologies employed. Indeed it is specifically mentioned as a technology to contribute towards meeting the target carbon emissions.

 

The principal impacts of both PPS 22 and the revised Part L of the Building Regulations will be felt by the new-build sector (although refurbishment sectors will also be affected). That sector is unlikely to have much room for manoeuvre in the next few years as, if not forced to install some form of renewable energy by the building regulations, may be by local planning policy and/or vice versa. It is also likely that developers will often chose to have their own contractors trained to install these systems. In so doing, there is unlikely to be much additional demand on those currently in the industry who specialise in the retrofit market. However, this increased demand will lead to an increase in component supply. As economies of scale are achieved, the reduced component prices could benefit both the new build and retrofit sectors which, in turn, should lead to an accelerated expansion of the industry.

 

As the above scenario unfolds, it will be necessary to maintain control of both installations and product quality. Fortunately, the first nationally available and fully accredited training course for installers of solar thermal systems is due to be available for candidates later this year. Accredited by the British Plumbing Employer's Council (BPEC) details will be available by calling BPEC on 0845 644 6558. This will hopefully fulfil the glaring need to extend the numbers of capable installers that will be required as the market develops.

 

In addition to this, the consultation document for the review of Part L of the building regulations suggested the requirement that, in order to comply, only solar collectors that have been tested in accordance with BS EN 12975 and subsequently passed should be installed. This is important as Clear Skies has already seen a rise in imported equipment some of which is of very high quality, some of which is not, and some collectors that have passed the requirements of the standard have done so with very poor thermal performances (as the standard does not lay down a minimum level of thermal performance). There is therefore a risk that, unless some impartial guidance exists, customers' expectations of this excellent technology could be undermined.

 

It is therefore believed that there would be significant value from continuing some form of independently managed and impartial product and installer accreditation scheme. Such a scheme can therefore continue to monitor quality and, if necessary, raise the required standards above the legal minima. This would underpin the developing market and protect against quality issues that could undermine that development. Fortunately the Department of Trade and Industry are developing their strategy for micro-generation and a consultation document is planned to be published June of this year. It is hoped that this strategy will include the requirement for an accreditation scheme.

 

In summary, it can be seen that the political and legislative drivers are gaining momentum. Building professionals should therefore be giving serious thought about their response to these drivers as there is likely to be little room for them to ignore renewable energy, and particularly solar thermal, in the near future. More importantly, there may well be mechanisms in place that could support their efforts. For the Solar Thermal industry, the future could be rosy indeed.

 

Integrating renewable energy and low carbon technologies into buildings will be the focus of  resource05, a three day conference and exhibition be held at BRE's Watford Headquarters, September 13 - 15 this year.  Leading industry figures will discuss advances in low carbon technologies and how they are being applied to projects across the UK.  Indoor and outdoor exhibition areas will showcase a wide range of products and materials including solar thermal, advanced insulation, innovative cooling, biomass boilers, lighting, photovoltaics, and ground source heat pumps.

 

For details about resource05 visit www.resource05.com .  For information on renewable energy,  energy efficiency and sustainable design, please contact BRE Environment on 01923 664500, or e-mail environment@bre.co.uk.

 

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