Lower ownership costs why electric is the least cost option for the managed housing sector and its t

1
Lower ownership costs why electric is the least
cost option for the managed housing sector and
its tenants Robin Wood Product Group
Manager Heatrae Sadia Heating
2
The myths

• Gas is still for many, the natural choice
• Cheap
• Limitless supply
• Controllable
• On the other hand, electricity is
• Expensive
• Less controllable
• Not as fashionable

3
The reality

• Gas-
• No longer cheap to run the differential is
  being eroded
• More expensive to install than electricity
• Addition of a gas supply
• Installation challenges flues condensate
• Corgi engineer required

4
Gas Prices

• Energywatch
• The independent gas and electricity consumer
  watchdog reported that over the last 3 years-
• Gas prices have risen as much as 92
• Electricity prices have risen by 54
• The gap is narrowing

5
Gas

• UK now net importer of gas supply continuity
• Gas not available to all properties
• Safety checks
• Landlords certificate

6
And for Electricity

• Electricity is available to all properties
• Installation-
• Fewer installation issues
• no flue or condensate drain
• No gas pipe
• Lower capital costs
• Increased build speed
• reduced installation costs
• Greater flexibility in design
• Not required to be mounted on outside walls

7
Electricity

• Single service provider
• potential saving on supply infrastructure
• Choice of heating systems
• Dry systems
• Storage
• Panel
• Fan
• Under-floor
• Wet systems
• Radiator
• Under-floor
• Flexible tariffs to suit all

8
Electricity

• Ideal for extensions
• where existing system has insufficient capacity
• Ideal for listed buildings
• where structural alterations are prohibitive
• No requirement for access to an outside wall
• Electric heating systems are 100 efficient

9
Electric System Design Flexibility

• Fully controllable
• Temperature control
• Time control
• Economy control
• Variety of controls

10
Safety and Reliability of Electricity

• Minimal maintenance
• No mandatory safety checks
• no Landlords Certificate required
• No carbon monoxide emissions
• No pluming or fumes
• Proven reliability
• minimal moving parts

11
Electric System Operational Costs

• With increased levels of insulation
• running costs are reduced
• Differential between gas and electricity
  continues to narrow
• Single service supply
• one standing charge
• Will benefit from use of renewable energy
• Wide selection of economy tariffs to choose from

12
Ownership cost comparisons

• Typical 2 bedroom flat (existing)
• Typical Terraced House (existing)

13
Typical 2 bedroom flat (existing)

• Where Electric REALLY wins

• Typical electric storage/panel heater
  installation vs Condensing gas boiler c/w 6
  radiators and controls. Excludes hot water
  cylinder.
• Annual fuel costs for heating and hot water, BRE
  GPG345 2006
• Source National Landlords Assn
• British Gas Central Heating Care, less cost of
  annual safety check
• Industry estimates
• Annual running cost installation cost / lifetime

14
Typical Terraced House (existing)

• Where Electric REALLY wins

• Typical electric storage/panel heater
  installation vs Condensing gas boiler c/w 6
  radiators and controls. Excludes hot water
  cylinder.
• Annual fuel costs for heating and hot water, BRE
  GPG345 2006
• Source National Landlords Assn
• British Gas Central Heating Care, less cost of
  annual safety check
• Industry estimates
• Annual running cost installation cost / lifetime

15
Over 10 years
Terraced house
2 Bed flat
16
10 Rule

• Local Authorities are targeted to achieve 10 of
  their energy from renewable energy
• The Governments aim is to increase electricity
  generated from renewable energy sources ensuring
  a vibrant future for Electric Heating

17
Part L SAP

• Specifiers can continue to recommend electric
  systems
• Building Regulations Part L
• Reduce CO2 emissions by 20
• Compliance is based on CO2 emissions
• SAP calculations are based on running costs, not
  cost of ownership

18
CO2

• The effect of using more renewable energy
  reduces-
• Fuel factor
• CO2 emissions
• Electricity generated from 100 renewable energy
  will achieve a Carbon Zero rating
• Carbon Neutral Tariff

19
Renewables

• Electric heating works hand in hand with
  renewable energy sources.
• Solar Thermal collectors
• Ground source heat-pumps
• Heat recovery systems
• Wind generators

20
Wind Generation

• Fuel Poverty Agenda
• Wind generator trials
• Integrated with domestic hot water cylinders

21
Electricity is the fuel of the future

• Installation costs are generally lower
• Running cost differentials narrowing
• Measurable savings in Service/Safety checks
• Product choice and sophistication increasing
• Greater choice of Tariffs
• Controllability and comfort levels equal to any
  other form of heating