UK-assembled PV-heat batteries set out to ‘prove real impact on fuel poverty’

Sunamp, a Scottish manufacturer of heat batteries for domestic energy storage, including models designed to link with PV systems, has started serial production of its units from a base in the UK.

Company boss Andrew Bissell and his team revealed at the Solar Energy UK show yesterday that Sunamp’s assembly partner, Bay Solutions, is putting together Sunamp products at a rate of 100 cells a week, equating to 50 units.

While the company undoubtedly wants to go for the wider commercial market long term, the initial focus of this output will be for a community-run and privately-invested programme to assess the long-term impact on fuel poverty of using the heat storage in combination with PV on the roofs of at least 1,000 social housing developments.

After initial production began about a month ago, Bissell said, the output from Bay Solutions is at 250kWh weekly, with each heat cell holding 2.5kWh of thermal energy and each battery unit of two cells holding 5kWh. Bay Solutions had until now been making electronics boards for the batteries’ control systems but now taken on the role of producing the finished “white box” product.

The initial line of batteries will be the Sunamp PV model. As might be expected from the name, these are intended for self-consumption of PV by households. The cells use Phase Change Materials that melt and release heat when needed – melting at around 58 degrees centigrade. Sunamp claims that in contrast to a normal domestic PV system, which exports a large portion of its generated power, the heat battery allows the system user to consume as much as 80% of the PV power as converted heat energy.

Bissell has long been vocal in pointing out that in Britain, more energy is expended “in the thermal domain” as in the electrical, and claims the devices, which also work to make already installed combi boilers more efficient, can save a household up to £271 a year over the 20 year life of the PV system.

While some companies are keeping their cards close to their chests and reluctant to reveal prices ahead of full-scale launch in the UK, Sunamp has quoted prices of around £1,700 per 5kWh system – although prices exclude VAT, due to the variable rate of the tax according to whether the property it is going into is new build (0% rate), an energy efficient property (5% rate) or otherwise (20% full VAT rate). As a benchmark, Tesla’s Powerwall electrical storage battery will be sold to installers at US$3,500 (£2,270) for a 10kWh system.

Chinese investor-backed social housing trial

The first units to roll off the production line will be used in the Eastheat, programme to “prove the real impact on fuel poverty” of combining PV and energy storage in the Edinburgh region. It will be part funded by the Scottish government through the Local Energy Challenge Fund, put together by Scottish community renewable energy advisory group Local Energy Scotland.

Sunamp has partnered with two housing associations, East Lothian Housing Association and Castle Rock Edinvar. There are four other consortia in the Eastheat programme, with Sunamp and the others winning the projects through a competitive process against over 100 other candidates.

Interestingly, the project was developed before the proposal of drastic feed-in tariff (FiT) cuts in the UK. As a result of the announced cuts, the plan has been revised to maximise the number of installations from an initially planned 1,000 rooftop PV systems and 650 Sunamp heat batteries. An estimated 3,000 PV installations will be carried out instead by Eastheat’s installation partner Edison Energy. “…Due to the planned changes to the feed-in tariff the challenge was accepted to maximise the installations within the housing association properties wherever it was feasible,” Bissell told Solar Power Portal.

As the programme was enlarged, Bissell said, a Chinese investor – which Edison Energy preferred not to name at this stage – stepped in with a £10 million contribution to the project’s costs. This could also mean a ramping up of the expected 650 Sunamp system deployments.

Bissell said he personally did not know any further details of the Chinese investor.

However, he said that it was "obviously...a big investment and obviously the feed-in tariff for PV is key to it happening".

source by: http://www.solarpowerportal.co.uk/news/uk_assembled_pv_heat_batteries_in_project_to_prove_real_impact_on_fuel_pove

Solar panels on a garage near a house in Marshfield.

By Lorne Bell

Across the state, solar company sales representatives are marching door to door, offering installation contracts that seem hard to refuse: solar panels for no money down, with no maintenance, and electricity at prices significantly below those of utilities.

So, is it a good deal?

These contracts are known as power purchase agreements and they are largely responsible for the boom in residential solar panels here and across the country. Of the 189,000 residential solar units installed in the United States last year, more than 70 percent were power purchase agreements, according to Cory Honeyman, senior analyst with Boston-based GTM Research, which provides data and consulting for the green tech industry.

Power purchase agreements offer an alternative to buying and installing residential solar panels, which cost about $21,000 for a typical 6,000-killowatt-hour system, according to GTM. Instead, solar companies purchase, install, and maintain panels on customers’ homes at no cost for a contractual period of 20 to 25 years.

In return, homeowners pay the solar company for the energy produced by the panels, usually at discounts up to 25 percent lower than utility rates. The contracts also fix annual rate increases to offer predictability in the erratic energy market.

Residential solar systems can produce anywhere from 40 to 95 percent of a home’s electricity, and they can lower overall electric costs by 10 to 20 percent, says Jonathan Bass, spokesman for SolarCity Corp. of San Mateo, Calif., the nation’s biggest residential solar company. SolarCity has about 15,000 customers in Massachusetts.

For homeowners who cannot afford or do not want to pay the upfront costs of solar panels, power purchase agreements offer immediate savings and cleaner energy. Still, said Honeyman, consumers should carefully weigh their options.

“There is a lot of fine print in those contracts,” he said, “and there are important risks and considerations to keep in mind.”

The first consideration is the 20- to 25-year contract. That commitment means that if a homeowner sells his home, he must buy out the remaining years or transfer the contract to the new owner.

The balance owed when a contract ends early is based on projected solar electricity rates, average usage, and remaining time on the contract. In a typical contract charging 13 cents per kilowatt hour, for a typical home consumer 6,000 kilowatt hours a year, buying out the last 10 years could cost more than $8,000.

Solar companies say that in nearly all cases — SolarCity estimates 98 percent — homeowners transfer their contracts to the buyers.

Another consideration: the falling price of solar panels could make buying a solar power system more attractive than a power purchase agreement. The average cost to install residential solar power has plunged 73 percent since 2006, according to the Solar Energy Industries Association, a Washington trade group, and those costs are expected to decline further.

For those who can afford to buy or finance solar panels outright, owning a system can provide additional financial benefits. For one, instead of paying a solar company for the electricity produced on the homeowner’s roof, that energy is free.

Owning the panels also allows residents to reap state and federal tax credits and other incentives, which under purchase agreements, go to the solar companies. A typical $20,000, 6,000-kilowatt-hour system could generate $1,200 to $1,800 annually through the incentives — enough to cover the cost of loan payments, said Josh Mailloux, sales manager at Boston Solar of Woburn, which installed nearly 800 residential systems in Massachusetts last year. Most were purchased by homeowners.

“It’d be nice if people had some idea of what they’re giving up” with power purchase agreements, Mailloux said.

As panel prices slide, analysts expect the market share of power purchase agreements to shrink and more homeowners buy systems outright. SolarCity, which has relied almost exclusively on these agreements, recently added a loan program, called MyPower, to finance residential purchases.

Whether homeowners buy panels or enter a power purchase agreement, residential solar could face a challenge in 2017, when the 30 percent federal investment tax credit is set to expire for homeowners and fall to 10 percent for solar companies. Analysts expect residential solar installations to accelerate over the next two years as homeowners and solar companies seek to take advantage of the program before it expires.

Congress could extend the tax credits. But if lawmakers don’t, the pace of solar installations will slow, analysts said. For the time being, said Honeyman, power purchase agreements still offer a good deal for many low- and middle-income homeowners who can’t afford the upfront costs or don’t want the maintenance and other hassles of ownership.

“The case for [power purchase agreements] is still viable,” he said. “In the end, there are meaningful savings opportunities.”