Hot water boiler equipment - A guide to equipment eligible for Enhanced Capital Allowances
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Hot water boiler equipment A guide to equipment eligible for Enhanced Capital Allowances
Hot water boiler equipment 2 Contents Introduction 03 Background 03 Setting the scene 03 Benefits of purchasing ETL listed products 03 Hot water boiler equipment eligible under the ECA scheme 04 Hot water generators 05 Combustion control 06 Heat recovery 06 Boiler system control 07 Further information 08
Hot water boiler equipment 3 Introduction Benefits of purchasing ETL listed products ECAs are a straightforward way for a business to improve Many hot water boilers and their distribution systems have its cash flow through accelerated tax relief. The scheme been in place for years, even decades. Developments in encourages businesses to invest in energy saving plant modern hot water boiler technology means that efficiencies or machinery specified in the ETL to help reduce carbon of newer boilers have now advanced significantly. ETL emissions, which contribute to climate change. listed hot water boiler equipment offers a range of savings opportunities when compared to equipment not designated The Energy Technology List (ETL) is a register of products as energy saving. The degree of savings that can be that may be eligible for 100% tax relief under the achieved is dependent upon the nature of the current Enhanced Capital Allowance (ECA) scheme for energy installation as well as the new equipment that is installed. saving technologies1. The Carbon Trust manages the list and promotes the ECA scheme on behalf of government. When replacing equipment, businesses are often tempted to opt for that with the lowest capital cost; however, such This leaflet gives an overview of hot water boiler immediate cost savings can prove to be a false economy. equipment specified on the ETL and illustrates the Considering the life cycle cost before investing in equipment reductions in energy bills that can be realised by investing can help enhance the cash flow benefits still further. in qualifying ETL energy saving equipment over non- qualifying equipment. The ECA scheme provides businesses with 100% first year tax relief on their qualifying capital expenditure and the ETL specifies the energy saving technologies Background that are supported by the ECA scheme. This means that The ETL comprises two lists: the Energy Technology businesses can write off the whole cost of the equipment Criteria List (ETCL) and the Energy Technology Product List against taxable profits in the year of purchase. This can (ETPL). The ETCL defines the performance criteria that provide a cash flow boost and an incentive to invest in equipment must meet to qualify for ECA scheme support; energy saving equipment which normally carries a price the ETPL is the list of products that have been assessed premium when compared to less efficient alternatives. as being compliant with ETCL criteria. This leaflet illustrates the reductions in energy consumption, carbon emissions and energy bills that can Setting the scene be realised by investing in qualifying ETL energy saving equipment over non-qualifying equipment. In 2005, the UK commercial sector consumed around 350,000GWh of fossil fuel at a cost of £16,500 million. The generation of hot water accounts for around 15% of fossil Important energy use in buildings and about 3% in industry, totalling around 22,000GWh per year2. Business purchasing equipment must check the ETPL at the time of purchase in order to verify Hot water boilers and water heaters provide low or that the named product they intend to purchase is high-temperature hot water for uses such as industrial designated as energy saving equipment. Hot water processes, space heating and the direct use of hot water boiler equipment that meets the ETL eligibility for activities such as washing. criteria but is not listed on the Energy Technology The diagram on page 4 shows the typical structure of a Product List (ETPL) at the time of purchase is hot water boiler. Many of the component technologies are not eligible for an ECA, even if it meets the ETL included on the ETL, and their energy saving properties eligibility criteria. are described to the right. Eligibility 1 for ECAs is based on a number of factors. Visit http://etl.decc.gov.uk/etl to find out more. 2 Based on data reported in the DTI Digest of UK Energy Statistics published in 2006.
Hot water boiler equipment 4 Hot water boiler equipment eligible The following baseline scenario has been used for under the ECA scheme3 comparison unless otherwise indicated: The following sections describe the hot water boiler • Currently total installed capacity of 2MW from equipment specified as energy saving under the ECA two gas fired hot water boilers. scheme. The diagram below illustrates these ECA-eligible • Burner 2-stage control. components and their relationship to each other. • Annual boiler efficiency 84% net. Using the stated baseline scenario the potential financial (£), energy (kWh) and carbon savings (tonnes CO2) have • Average boiler load 75%. been calculated for replacing the component parts of • Annual utilisation 8,000h. the hot water boiler with ETL qualifying equipment to highlight the potential savings that can be achieved. • Fuel price 3p/kWh. • Carbon emissions for gas is 0.1836 kgCO2/kWh. Figure 1 Hot water boiler equipment potentially eligible under the ECA scheme The 3 descriptions of the hot water boiler equipment given in this leaflet are examples only. The formal criteria and details governing the ECA scheme can be found at http://etl.decc.gov.uk/etl
Hot water boiler equipment 5 Hot water generators Hot water boilers up to 400kW ECA listed condensing, gas and oil-fired hot water boilers, There are several types of hot water generators eligible at outputs up to and including 400kW, typically offer fuel under the ECA scheme, described below. Please note savings of around 3%5 when compared to boilers with that biomass boilers are covered by a separate technology efficiencies that meet the minimum standards specified in information leaflet. the Boiler Efficiency Directive. Hot water boilers The ECA scheme covers products that modulate their Potential annual savings shown are based on output to match heating demand, avoiding the heat losses installing an ETL 200kW boiler (compared to a associated with the purge cycles that occur when burners unit that only meets the minimum requirements are repeatedly switched on and off to provide the overall of the Boiler Efficiency Directive), which runs at an required output. average load of 75% for 3,000h/year on gas priced at 3p/kWh. Two main types of hot water boiler are included within the • £405. ECA scheme: • 13,500kWh. • High efficiency hot water boilers with rated outputs greater than 400kW. • 2.5 tonnes CO2. • Condensing hot water boilers (of all rated outputs). Gas-fired condensing water heaters High efficiency hot water boilers are listed under two Dedicated water heaters enable the separate provision categories depending on whether they are designed with of hot water and space heating. This avoids the energy high temperature (>105ºC)/high pressure (>6bar) outputs, wastage that arises from the cycling of boilers (repeatedly or as low temperature/low pressure boilers. turning them on and off) to maintain the temperature of water heating circuits and tanks when space heating is Hot water boilers over 400kW not required. Boilers covered by the ECA scheme with outputs over 400kW achieve net thermal efficiencies of at least 93%, Three different types of gas-fired condensing water heater and can provide fuel savings of around 8% compared4 to are included within the ECA scheme. Each of which must the average hot water boiler currently installed in the UK. be able to deliver maximum efficiencies of at least 102% on a fuel net calorific value basis: • Storage water heaters rated at up to 150kW. Potential annual savings from replacing the boilers in the baseline scenario with ETL boilers. • Non-storage – instantaneous circulator type • £28,800. water heaters. • 960,000 kWh. • Non-storage – non-instantaneous, circulator type water heaters which can generate larger volumes of hot water, • 176 tonnes CO2. either instantaneously or via a separate storage vessel. ETL listed condensing gas-fired water heaters typically use 9%-16% less fuel than the non-ETL products on the market6. Potential annual savings are based on installing an ETL 150kW storage water heater (compared with a lower efficiency alternative), which runs at an average load of 75% for 3,000h/year on gas priced at 3p/ kWh. • £1,013. • 33,750kWh. • 6.2 tonnes CO2. 4 Based on a simple comparison between minimum ETL efficiency of 93% net and estimated net thermal efficiency of 84% for boilers in the installed base. Based 5 on a comparison of UK seasonal efficiency (SEDBUK www.sedbuk.com) values for gas fired boilers that just meet the requirements of each of these criteria. Based on a simple comparison between the ETL requirement of 102% net and the range of efficiencies for alternative products estimated as 86% net 6 to 93% net.
Hot water boiler equipment 6 Combustion control Heat recovery It is crucial to ensure accurate control of the amounts of Fitting an economiser to a boiler increases the surface fuel and air passing through a burner, to ensure complete area across which heat can be transferred, enabling a combustion whilst minimising the energy used heating air. greater proportion of the heat to be recovered from the boiler flue gases. This heat can be recycled, and is typically Burners combust boiler fuel to generate heat. Burners used for preheating boiler inlet water or to fulfil low-grade and their control systems can have a major impact on heat demands. As a result, fuel consumption is decreased overall boiler efficiency. and boiler efficiency increased. Burners with controls Flue gas economisers The level of improvement that can be achieved by Flue gas economisers recover heat from the boiler flue upgrading burners depends on the age and design of the gases before they are released to the atmosphere. This boiler system. Fuel savings of 3%-5% may result7 from allows the heat to be recycled, and raises boiler system upgrading to burners whose heat output is modulated efficiency. Installing a specified energy saving ETL flue gas to ensure that it matches the heat demand. The benefits economiser can provide fuel savings of more than 3%. are greatest in applications where the output needs to be frequently adjusted to meet variations in demand. Potential annual savings from adding a flue gas economiser to the boiler system in the baseline Potential annual savings when replacing the scenario burners used in the baseline scenario with ETL listed burners. • £10,600. • £10,800. • 360,000 kWh. • 360,000 kWh. • 66 tonnes CO2. • 330 tonnes CO2. Condensing economisers Condensing economisers recover heat from boiler flue Retrofit burner control systems gases including the latent heat in the water vapour Microprocessor-based burner control systems offer produced from combustion. They are used mainly for precise and reproducible control of the fuel and air flows. boilers fired on natural gas. Installing a specified energy These can be retrofitted to existing burners to improve saving ETL condensing economiser can provide fuel fuel efficiency. Savings are achieved through reducing savings of 9%-15%8. the excess oxygen level in the flue gas, and depend on the quality of the controls replaced. For example, a 3.5% reduction in the flue gas oxygen level can improve Potential annual savings from adding a efficiency by around 2%. Although this is lower than the condensing economiser to the boiler system in improvements that may be available from complete burner the baseline scenario. replacement, the improvement in efficiency that can be • £43,200. achieved means that this is still an attractive option. • 1.44 million kWh. Potential annual savings from replacement of the • 264 tonnes CO2 burner controls used on both the burners in the baseline scenario. • £7,200. • 240,000 kWh. • 44 tonnes CO2. Steam 7 and High Temperature Hot Water Boilers (CTV052) the Carbon Trust. Estimate 8 based on adding to a boiler of 93% net thermal efficiency (ETL minimum) – leading to efficiencies from 102% net to 109% net depending on system constraints.
Hot water boiler equipment 7 Boiler system control Potential annual savings from adding a heat management controller to a 450kW (three 150kW Inadequate or incorrect application of boiler system boilers) heating system operating for 3,000 hours/ control can increase fuel consumption by 15%-30% year at an average of 50% load where a 20% fuel compared to a well-controlled system9. saving is achieved. Heating management controllers (for wet heating • £4,050. systems) • 135,000 kWh. Heat management controllers reduce fuel consumption • 24.8 tonnes CO2. by adapting boiler firing and heat distribution patterns to match variations in heat demand. They shut off boilers during pre-set periods of no demand, and respond to changing weather conditions by providing heat when needed to protect from frost, and by adjusting the starting Information for purchasers time to the minimum needed to reach the required For further information about the ECA scheme, temperature in time for use. the Energy Technology List (ETL) and other They are available either as standalone units for direct Technology Information Leaflets in the series control of boilers, burners and other wet heating system please visit http://etl.decc.gov.uk or contact components, or as add-ons for incorporation into other the Carbon Trust on +44 (0)300 330 0657 or control systems. The energy savings available depend on email ECAQuestions@carbontrust.co.uk. the functionality, configuration and set-up of any existing system. 9 Heating Control (CTG057), the Carbon Trust.
Hot Water water boiler Boiler equipment Equipment 8 Go online to get more The Carbon Trust provides a range of tools, services and information to help you implement energy and carbon saving measures, no matter what your level of experience. ↘ Empower Savings Calculator Calculate your organisation’s potential carbon savings with our online calculator. Empower has been configured entirely around the employee, to help them see that through simple behavioural changes, their individual efforts add up to make a bigger difference. www.carbontrust.com/resources/tools/empower-savings-calculator ↘ Events and Workshops The Carbon Trust offers a variety of events and workshops ranging from introductions to our services, to technical energy efficiency training. www.carbontrust.com/events www.carbontrust.com/about-us/events ↘ Publications We have a library of free publications detailing energy saving techniques for a range of sectors and technologies. www.carbontrust.com/resources ↘ SME Network An online community for SMEs with the aim of increasing the sharing of best practice between SMEs looking to reduce carbon emissions from their estate and operations. http://smenetwork.carbontrust.com
ECA758 The Carbon Trust is an independent, expert partner of leading organisations around the world, helping them contribute to and benefit from a more sustainable world. Advice • We advise businesses, governments and the public sector on their opportunities in a sustainable low carbon world Footprinting • We measure and certify the environmental footprint of organisations, products and services Technology • We help develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power www.carbontrust.com +44 (0)207 170 7000 The Enhanced Capital Allowance Scheme for energy saving equipment is run by the Carbon Trust on behalf of Government. Whilst reasonable steps have been taken to ensure that the information contained within this publication is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warranty and make no representation as to its accuracy and accept no liability for any errors or omissions. Any trademarks, service marks or logos used in this publication, and copyright in it, are the property of the Carbon Trust. Nothing in this publication shall be construed as granting any licence or right to use or reproduce any of the trademarks, service marks, logos, copyright or any proprietary information in any way without the Carbon Trust’s prior written permission. The Carbon Trust enforces infringements of its intellectual property rights to the full extent permitted by law The Carbon Trust is a company limited by guarantee and registered in England and Wales under Company Number 04190230 with its Registered Office at: 4th Floor, Dorset House, 27-45 Stamford Street, London SE1 9NT. Published in the UK: February 2014. © The Carbon Trust 2014. All rights reserved. ECA758
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