Decarbonisation dilemmas: evaluating costs, benefits, and realities 

The word on everyone’s lips in our industry, particularly anyone working across the public sector, is decarbonisation. But what does it really mean to those working on the coalface of the industry attempting to deliver successful decarbonisation projects? How does it affect clients seeking energy savings during the current energy cost crisis?

As an engineer, I’ve been attending webinars and reading press releases and manufacturers’ marketing materials – all focused on the challenges and benefits of decarbonisation.

How to decarbonise

Can we afford to decarbonise? Energy-saving project costs have reduced, with Solar PV project costs becoming affordable, especially where payback is concerned as energy costs rocket upwards! Payback cycles are reported to be as little as 3 years on some technologies in the current energy climate. There is ample financing available, both through the government’s Public Sector Decarbonisation Scheme and private funders.

To decarbonise effectively, we must engage in each project and understand what the drivers are. Whether it’s carbon efficiency, energy cost savings, or a combination of both. Once these drivers have been identified it can then lead to understanding the engineering aspects and calculating the resulting savings for the project on its completion.

Heat pump versus hydrogen debate

One of the key items on the agenda has been: do we continue to install heat pumps to replace existing fossil fuel heat sources, or do we wait for the inevitable hydrogen rollout? I wish I had the answer, but it’s quite clear that the government wants everyone to decarbonise in whatever way we can, using the funding they are currently providing, at least until there’s more clarity on hydrogen’s role.

Key challenges and successes

Retrofitting commercial heat pumps presents several challenges. The capital cost and installation challenges alone are enough to put off end users who already have limited knowledge and can be skeptical of these installations.

Before retrofitting heat pumps its essential to understand the site’s current demand, design parameters, and consideration of electrical supply, as heat pumps demands are sizeable. This can be a ‘showstopper’ before you even get going with the scheme.

It also must be noted when discussing with clients, that it isn’t simply a case of disconnecting the current heat source and bolting on a heat pump. Are the current heat emitters, pipework and mechanical infrastructure up to the job? And are they sized to suit a lower operating flow temperature?

Even though it can be a complex job to understand the above, we have had some real successes in this market. Most recently we have completed retrofit heat pump installations in large schools where the site has been re-piped and new heat emitters installed. In other projects, we have achieved whole site savings with LED lighting installations.

It should also be considered that there is a large benefit in some cases to some quite simple changes. Swapping existing heating systems to more modern condensing appliances and/or heat recovery systems. This creates some easy wins where energy savings are concerned, especially if there is a limited budget.

What are the goals?

As with every project, what is the end game? And the government’s net-zero goals can generate enough conversation for a lifetime.

Some of the key policies and commitments which affect our industry specifically are:

• An ambition that by 2035, no new gas boilers will be sold.
• A new £450 million three-year Boiler Upgrade Scheme will see households offered grants of up to £5,000 for low-carbon heating systems so they cost the same as a gas boiler now.
• A new £60 million Heat Pump Ready programme that will provide funding for pioneering heat pump technologies and will support the government’s target of 600,000 installations a year by 2028.
• Further funding for the Social Housing Decarbonisation Scheme and Home Upgrade Grants, investing £1.75 billion.
• Additional funding of £1.425 billion for Public Sector Decarbonisation, with the aim of reducing emissions from public sector buildings by 75% by 2037.
• Launching a Hydrogen Village trial to inform a decision on the role of hydrogen in the heating system by 2026.
• Setting a minimum energy efficiency standard of EPC Band B by 2030 for privately rented commercial buildings in England and Wales

For those of us who have the appetite, you can find the government’s latest strategy on their website.

My biggest question along the journey through surveying and delivering decarbonisation / energy-saving schemes has been this…

‘Do you want to be carbon efficient, cost-efficient, or both?’

As we navigate the complexities of decarbonisation, let’s continue learning from one another to make informed decisions for a greener future.