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Micropower Council Launch Building Regulations Fact Sheet 

Please click here to find a factsheet associated with our parliamentary campaign on the forthcoming 2013 Building Regulations decision. The document has now been circulated to the Ministers, Shadow Ministers, the Communities and Local Government & Energy and Climate Change Committees, and other MPs with a notable interest in the Environment.

Industry confidence is dealt a further blow as key Renewable Heat policy is severely delayed

Industry today reacted with disappointment as the Government announced a delay to April 2014 of the domestic Renewable Heat Incentive (RHI), a policy originally due to be implemented three years earlier.

The blow was slightly softened by the Government confirming it would continue in the interim with the current system of so-called "Renewable Heat Premium Payments", with similar funding levels in 2013/14 to that available in 2012/13 to provide householders who install renewable heating systems with modest grants, but this is contrary to the industry's wish to see the final scheme implemented as quickly as possible.

The Government has also disappointingly confirmed it does not intend to fast-track the integration of air to water heat pumps technologies despite a shorter, fast-track consultation on their inclusion in September 2012. Today's announcements also confirm this will not now happen until April 2014 as well.

Despite the disappointments in today's announcements, we remain fully committed to making this scheme a success, and will continue working with DECC to this end.

Dave Sowden, Chief Executive to the Micropower Council, commented:
"The early feedback is that the market is bitterly disappointed with this delay. Taken with the delay in confirming the next steps of the "zero carbon homes" policy, today's announcement is forcing industry to question whether the Coalition is serious about promoting domestic Renewable Heat during this Parliament.
"Despite there being some snippets of good news buried in the detail, this is a further setback for investor confidence. It is becoming increasingly difficult to give positive messages about whether the Coalition as a whole remains committed to domestic renewable heat, despite the seemingly good intentions of those within DECC.

"Following on from an absence of any mention in last week's Budget, a Cabinet-level unequivocal cross-Government commitment to an ambitious renewable heat policy is urgently needed to restore investor confidence."

View the PR in full by clicking here

 

'Chancellor commits to zero carbon homes in 2016'

Immediate Release: 20 March 2013

The Micropower Council and its members are strongly encouraged by the Chancellors budget announcement today in support of the 2016 Zero Carbon Homes target.

The microgeneration sector's business and supply chain have been gearing up to address the 230,000 projected new households a year, through investing in manufacturing facilities, creating jobs and upskilling the workforce. Investor confidence will continue to build on this showing the UK continues to be a stable, investable economy for low carbon solutions.

But at the same time, the lack of progress by Government on implementing the changes to the building regulations in part L may seriously undermine investor confidence. We welcome the announcement that DCLG will publish a detailed plan on the energy efficiency requirements in building regulations, by May 2013, but the result must be for the halfway approach.

If Government favours the FEES plus efficient services approach at the expense of consumers, it will undermine Government's own commitment to the 2016 zero carbon target, by sending a wrong signal to investors. Any further delay or watering down of the interim period to 2016 would result in a loss of confidence by industry resulting in less investment and an uncertain job market.

Not only is this affecting industry but also that of UK households which account for nearly 30% of the UK's CO2 emissions: householders (and the microgeneration industry) are already missing out on improving the energy efficiency of their homes and reducing their energy bills through the Government's decision to withdraw the proposal for consequential improvements.

Analysis by the Micropower Council shows that consumer bills will be nearly £100 less a year with the Halfway approach and Government's own analysis show an aggregate carbon reduction of 26% as opposed to only 8% under the FEES plus efficient services approach.

The MPC therefore urges Government to take into account consumer benefits in their forthcoming decision on building regulations. Furthermore should more recent cost assumptions be used, and these household savings taken into account, the Halfway approach would in fact provide a net benefit to the economy of £58m. This contrasts to the cost of £453m as assumed in the building regulations consultation.

Emma Piercy, Head of Policy for the Micropower Council, commented:

"The budget has provided a welcome boost for the microgeneration industry in confirming Government's commitment to the 2016 zero carbon homes target. To help make this a reality, we urge the Government to adopt the Halfway approach for the 2013 building regulations, benefiting consumers, industry and the wider economy in job creation."

RHI Consultation on Budget Management: MPC Response vs. Government Outcomes

On the 27th February 2012 the Government announced the final outcomes of a Consultation on the Non-Domestic RHI which they conducted in July 2012. The Consultation concerned the establishment of budget management controls, and introduced criteria for reviewing the tariffs. In addition, suggestions were put forward on biomass sustainability, air quality, and metering.

The MPC submitted a response to this consultation, which in general supported the Government's proposals. The document link below includes any amendments to the proposals or additional policy positions which we suggested, and an indication of whether these were integrated into the Government's final outcomes

Please click here to see the full document

Commercial RHI Budget Controls: Safeguarding a Renewable Heating Revolution

Immediate Release: 27 February 2013

Industry welcomes the announcement from DECC today from the RHI consultation on "Providing Certainty, Improving Performance". It indicates some movement towards certainty and clarity for the RHI scheme and industry will welcome many of the proposals. In particular the slight tweaks to the budget management mechanism mean degression will only be triggered once the deployment of a particular technology hits 150% of its estimated levels and individual trigger levels will not apply if the scheme's overall deployment is under 50% of its estimated target.

The proposed Early Review of the existing tariff levels will hopefully lead to an upward revision of the tariff levels this Spring, and consequently higher deployment rates. The need for revised tariffs follows changes to calculation assumptions from the Sweett Group review of existing DECC data.

Many of the changes to biomass sustainability and metering reflect a desire to make the RHI simple to implement. For example, the decision to make biomass sustainability reporting voluntary in its first year could give industry time to develop a mechanism for doing this effectively.

It is disappointing that the Government has not come to a decision on Enhanced Preliminary Accreditation for the non-domestic scheme. Many planned large-scale installations, particularly in the Biomass sector, will be unable to secure investment if they cannot be certain of the RHI tariff level they could expect after installation. However the Government intends to do some more work on this issue in May 2013.

This announcement is undoubtedly a positive step forward for the RHI. The decision to conduct an Early Review on tariff levels is also a sign that DECC is listening to industry concerns. We hope that this announcement will be followed by others on the September 2012 consultations. Industry looks forward to seeing a clear policy framework for the RHI across residential and commercial sectors to be ready for implementation in summer 2013.

Dave Sowden, Chief Executive to the Micropower Council, commented:

"Overall this is a step in the right direction for the RHI. We are pleased to see proposals for budget management and an early review of existing tariff levels which industry view as vital to increasing deployment of renewable heating in the commercial sector. The delay to the introduction of Enhanced Preliminary Accreditation is disappointing, and industry will look to work with DECC to resolve this issue as soon as possible to ensure that large scale commercial installations have a place in the commercial renewable heating market".

"Industry hopes that today prefigures further announcements on the September 2012 RHI Consultations, which together with today's proposals will give the clear policy framework and government support necessary to drive the uptake of renewable heat in the UK."

‘Back-pedalling of Zero Carbon Homes policy risks undermining UK microgeneration sector'

Immediate Release: 27 February 2013

In support of the 2016 Zero Carbon Homes target and beyond, the microgeneration sector's business and supply chain have been gearing up to address the 230,000 projected new households a year.

Substantial business investment in manufacturing facilities and jobs has occurred, yet the lack of progress by Government on implementing the changes to the building regulations in part L is seriously undermining investor confidence.

Not only is this affecting industry but also that of UK households which account for nearly 30% of the UK's CO2 emissions: householders (and the microgeneration industry) are already missing out on improving the energy efficiency of their homes and reducing their energy bills through the Government's decision to withdraw the proposal for consequential improvements.

And in new homes, Government is looking like it will favour the FEES plus efficient services approach at the expense of consumers.

Analysis by the Micropower Council shows that consumer bills will be nearly £100 less a year with the Halfway approach and Government's own analysis show an aggregate carbon reduction of 26% as opposed to only 8% under the FEES plus efficient services approach.

The MPC therefore urges Government to take into account consumer benefits in their forthcoming decision on building regulations. Furthermore should more recent cost assumptions be used, and these household savings taken into account, the Halfway approach would in fact provide a net benefit to the economy of £58m. This contrasts to the cost of £453m as assumed in the building regulations consultation.

Emma Piercy, Head of Policy for the Micropower Council, commented:

"The current uncertainty facing the microgeneration industry is only increasing as the delay to the Part L announcements continue. We urge the Government to adopt the Halfway approach for the 2013 building regulations, benefiting consumers, industry and jobs whilst also setting a signal that it will keep to it's 2016 Zero Carbon Homes target."

Notes to editors:

The Micropower Council is a cross-industry body whose membership comprises of electricity and gas companies, manufacturers, installers, trade associations, professional bodies, nongovernmental organisations and charities in the microgeneration sector. We provide the microgeneration industry's main focal point for Government, regulators, Parliament, opinion formers and the general public on regulation and public policy issues. For more information, see: www.micropower.co.uk 

MPC's Written Evidence Submission on the Renewable Heat Incentive

The Micropower Council has today (21st February 2013) submitted our response to the Energy and Climate Change Committee Enquiry on the RHI Scheme. The executive summary has been included below and the full Written Evidence Submission on the Renewable Heat Incentive for the Select Committee can be seen online by clicking here.

Executive Summary: 4 Key Points for Consideration

The Renewable Heat Incentive is a long anticipated intervention scheme. We join with industry in calling for the final details to be announced on time and in a simple format, to drive uptake rates and restore investor confidence. However, in this submission we want to discuss 4 other key issues with the RHI:

I. The Renewable Heat Incentive budget will not be threatened, even if optimistic deployment levels are realised. The RHI targets the limited off-gas grid market and heating replacements are fundamentally intrusive; there are less than 100,000 replacements a year made in this sector and consumers will not upgrade "early" for the RHI. The budget management mechanism of the scheme is also robust. This scheme is very different to the runaway FiTs subsidy, and it will offer taxpayers value for money.

II. The principle of awarding a subsidy based on the additional cost of a renewable system over a fossil fuel equivalent is sound. But the on-going Sweett Group review of the DECC dataset has changed cost assumptions and The Addendum to the RHI has changed calculation methodology. However, the rate of return that consumers need as an incentive is a constant. Therefore the proposed tariff levels are now irrelevant and final tariffs will need to be recalculated that sufficiently reward consumers.

III. The RHI should principally be applied to retrofit as the regulatory drive towards Zero Carbon Homes should deliver renewable heating to New Build without subsidy. However DCLG have delayed the update to Part L of the Building Regs. There is also concern that the update will not recommend the "Halfway to Zero Carbon" pathway but a watered down option. Subsidy would then have to "pick up the slack" for New Build. This is not cost-effective for Government and may put the RHI budget under threat.

IV. If the Green Deal and the RHI integrate together, then the consumer offering for a renewable heating technology becomes more attractive than a replacement oil or LPG boiler for off-gas grid properties. A holistic approach to policy is needed in order to get consumers the best value for money.

You can access this submission in full by clicking here

How much ‘interest' is there in the Green Deal?

Immediate Release: 1 February 2013

Industry welcomed the launch of the Green Deal scheme, the UK Government's flagship energy policy, this January. However, the announcement by the Green Deal Finance Company of their proposed interest rates for the scheme has served to increase industry apprehension about the scheme. It is now feared that the financial frameworks underpinning the Green Deal will not guarantee value for money to consumers.

The low carbon sector acknowledges the Green Deal's objective to enable consumers to finance energy efficiency solutions in their home but in practice, once costs of administering the finance scheme are incorporated, the loans will have an interest rate of over 7.5% .

It is feared that these high interest rate levels could prove a barrier to uptake for consumers who will in many cases be able to secure private financing packages at lower rates than those outlined.

Industry and consumers will await with interest for more details on the proposed Green Deal financing mechanism to be released by the Green Deal Finance Company. With more information yet to come about other government policy schemes- like the RHI domestic tariff paid to consumers who install renewable heating technologies into their homes- the complete picture for consumers looking to invest in making their homes more sustainable remains unclear.

Dave Sowden, Chief Executive of the Micropower Council, commented:

"We are pleased to welcome the launch of a world first policy initiative from the Coalition Government but also recognise there is still work to be done to ensure interest rates are competitive enough to incentivise consumer uptake. The recently announced figures from TGDFC present questions about just how competitive these loans are. The Micropower Council feel that it is therefore important that more information about the finance package is released as soon as possible, and in particular what the interest rate looks like for a consumer borrowing a smaller amount: could interest be as high as 10% for a £1000 loan?"

To view this press release in full, please click here

Micropower Christmas Reception 2012

The MPC Christmas reception took place on the eve of 17 December 2012 on the terrace pavilion at the Houses of Parliament. The well attended event, kindly sponsored by Carillion entertained a plethora of poignant keynote speeches from the Rt Hon Greg Barker MP, Minister of State for Energy and Climate Change, Dave Sowden (Micropower Council), Phil Shepley (Carillion), Baroness Maddock and Dr Alan Whitehead MP.

The speeches set the tone for the evening by touching upon a number of the key developments for the microgeneration industry. This set the backdrop for some great networking opportunities and some festive drinks too for key stakeholders from Government, Industry, NGOs and Trade Associations involved in the microgeneration industry.

Dave Sowden, Chief Executive of the Micropower Council covered off many of the industries thoughts and feelings about the past year in his keynote address which can be seen in full by clicking here.

Domestic RHI Consultation Response

The Micropower Council warmly welcomes the announcement of proposals to introduce the domestic RHI from 2013. The introduction of this policy is a critical step in the pathway towards a mass market for microgeneration technologies, and will start the journey towards the key strategic role that residential renewable heat will play in meeting the third and fourth carbon budgets.

The overriding message from our members to government is for the domestic scheme to be implemented in a simple and transparent format and as fast as is possible - without compromising the scheme's effectiveness. This will encourage consumer and industry confidence in the scheme which has so far suffered from a perceived lack of government support after delays to the initial timelines. In particular, Phase 2 of the RHI must be in place before the summer of 2013 in order for industry to prepare deployment for the busy autumn period - traditionally the main season for retrofitting of heating systems.

To view the MPC's submitted response, please click here

Electricity Demand Reduction Consultation - Briefing Note

Introduction

A consultation on reducing electricity demand across the UK economy (covering the domestic and non-domestic/industrial sectors) was published by Government today - with responses due in by 31st January 2013. Government are looking for a 10% reduction in electricity demand which could produce savings of around £4 billion in 2030, which would more than compensate for the cost of making efficiency investments upfront.

The MPC's initial commentary on the consultation gives an overview as to DECCs views on the potential for new measures in the sectors and what areas DECC are seeking consultation on.
Whilst Government focus is on the non-domestic sector, they do raise the possibility of financial incentives for behaviour change programmes and product efficiency. Alongside this summary document, is the press release MPC sent out in response to these proposals and the wider consultation.

To view the full briefing note, please click here

‘UK households - the largest group of electricity users set to miss out on DECC's electricity demand reduction proposals'

Immediate Release: 29 November 2012

UK households, which account for 30% of UK electricity demand, and constitute the largest group of electricity users, are at risk of missing out on electricity demand reduction proposals as announced by DECC today.

The focus of the consultation on non-domestic and industrial electricity use risks sidelining the initiatives of incentivising demand reduction in the home. Measures for behaviour change programmes and product efficiency (which must go hand-in-hand) are essential to facilitating the involvement of microgeneration technologies and the domestic sector in the Capacity Market. Introduced in the Energy Bill, incorporating demand side response from the domestic sector will be key both in demand reduction and the development of smart grids and system balancing.

With the advent of smart meters, householders need to be encouraged to purchase products which can interface and respond to ‘time-of-use' tariffs. These are essential to maximising consumer engagement and behavioural change - both in reducing energy consumption and shifting time of usage - an important contribution in the UK's move to a smarter grid.

‘Unintended consequences' must also be avoided in relation to focusing on electricity demand reduction at the potential expense of overall energy reduction. Over three quarters of energy use in our homes is for space and hot water heating, so the potential for thermal storage of electricity to assist in grid balancing must not be overlooked. As transport moves towards greater electrification, electricity use in the home will further increase, which could also have grid balancing uses.

Onsite power production should also be included under measures to stimulate permanent demand reduction. Onsite and embedded generation reduce transmission and distribution losses which currently amount to nearly 8% of UK generation. At low voltage customer losses go above 12%. The total primary energy savings of technologies such as combined heat and power (CHP) should also be recognised in a permanent demand reduction incentive.

To view the full press release, please click here

 

Micropower Christmas Reception - 17 December 2012 

Keynote Address: Greg Barker MP, Minister of State for Energy and Climate Change

We are pleased to announce that the 2012 Christmas Reception will take place on Monday 17 December 2012 from 7pm onwards.

This free to attend reception is an ideal networking opportunity for key stakeholders from government, industry, NGOs, trade associations involved in the microgeneration industry.

Greg Barker MP, Minister of State for Energy and Climate Change has kindly confirmed his attendance and will be speaking about key developments for microgeneration at this event. A full invitation will be sent nearer the event with registration information and specific timings.

Don't forget to register for free by contacting Sandra Morris at sandra.morris@micropower.co.uk or calling 01564 771 554

Micropower Council Awards winners announced at nextgen

11 October, 2012 - London: The winners in the Micropower Council Awards were announced last night (10 October) at a special black-tie gala dinner. Sponsored by the UK's largest provider of low carbon electricity, EDF Energy, the awards highlight the achievements of the microgeneration industry made in the past year.

The awards ceremony took place during, nextgen, the UK's fastest growing event showcasing emerging renewable energy technologies being held at Stoneleigh Park, Warwickshire. The two-day event encompasses microgen, a show serving small-scale (sub-50kW) power suppliers including wind, hydro and photovoltaic solar installations, and ebec, the UK's largest bioenergy show.

"The calibre of all of the finalists and winners serves to remind us about the level of excellence delivered by individuals, businesses and local authorities working in the UK and reminds us that innovation continues to be a key driver in the microgeneration industry," said Dave Sowden, Chief Executive of the Micropower Council.

Lucy Pitt, group marketing manager of Nextgen Media, said: "This is the first year the Micropower Council Awards have been hosted at nextgen and specifically at the microgen show. Given the awards' success and positive response from those who attended the ceremony, we are excited about hosting this in the future."

Freya Phillips, Programme Manager, at EDF Energy, said: "We're delighted to support the Micropower Council Awards and congratulate all the winners.

"Microgeneration is an increasingly important area for suppliers and is just one of the ways we're helping our customers reduce their CO2 emissions from energy use by 15 per cent by 2020."


Awards results

Connecting Communities Award
• Winner: Daikin
• Highly Commended: Southern Solar
• Finalist: Caplor Energy

Consumer awareness campaign of the year
• Winner: NEA
• Finalist: Nibe

Innovation of the year
• Winner: British Gas
• Highly Commended: Area Energy Ltd
• Finalist: 4eco Ltd

Installer of the year
• Winner: EcoLiving
• Finalists: Norfolk Solar and Solarsense

Manufacturer of the year
• Winner: Mitsubishi Electric
• Finalists: Kensa and Vaillant


Microgen Champion of the year (individuals)
• Winner: Howard Johns - Southern Solar
• Finalists: Martin Fahey - Mitsubishi Electric and Tim Pollard - Wolesely

Residential Project of the year
• Winner: Windhager - Warwick District Council
• Finalists: Daikin - Hadleigh Court and Kingspan - Nottingham Trent University

Political Leadership Award
• Winner: Alan Whitehead

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Warm welcome for new renewable heat proposals

Immediate Release: 20th September 2012

Industry has given a warm initial welcome to Climate Change Minister Greg Barker's latest package of consultation proposals around support for domestic renewable heat installations and expansion of the non-domestic scheme to include air source heat pumps.

To View the full press release with notes to editors, please click here

Minister To End Distorted Commercial Renewable Heating Market

Immediate Release: 7th September 2012

Industry has welcomed Climate Change Minister, Greg Barker's clear signal that he would explore ways to change the Renewable Heat Incentive quickly to allow air to water heat pumps to compete fairly in the market for commercial renewable heating systems.

To see the press release in full, please click here

Industry Calls On Minister To End Distorted Renewable Heating Market

Immediate Release: 15th August 2012

Industry today called publicly for the Government to end distortions in the Commercial market for Renewable Heating, by allowing air to water heat pumps to compete fairly with other sources of renewable heat.

To see the full press release, please click here

ASHP Call for Evidence: Summary of Responses

This document summarises the responses we received to a recent Call for Evidence on Air Source Heat Pumps, issued on the 14/04/2011. The Call for Evidence was developed by the Micropower Council, DECC and BEAMA with thanks to HHIC, REA and HPA for their support for this exercise and assistance in attracting respondents.

The full summary can be accessed by clicking here