Ground source heat pumps offer a safe, efficient, rewarding and reliable means to deliver heat and hot water to all forms of commercial accommodation, be these holiday parks and lodges, hotels, student housing, or care homes, and all associated heat demanding buildings and facilities.
By pairing Kensa heat pumps with Shared Ground Loop Arrays, commercial accommodation featuring as few as two dwellings can attract 20 years of quarterly payments through the Non Domestic Renewable Heat Incentive (RHI), creating a significant return on investment or attracting external funders to own and operate the ground source heat pump infrastructure, alleviating the costs of the shared ground loop array.
Mimicking a traditional gas framework, Kensa’s innovative Shared Ground Loop Arrays use ambient-temperature pipework to link a series of ground arrays to heat pumps inside individual dwellings.
Each property’s heat pump then upgrades the low temperature heat from the ground (or water source) for independent heating and hot water, all year round.
Attracting a generous quarterly income for 20 years through the Non Domestic RHI, commercial accommodation owners have the freedom to fully fund their Shared Ground Loop Array system and reap the significant return on investment, or attract external funders who are permitted to own and operate the ground array infrastructure; this split-ownership allows site owners to bypass the most expensive aspect of a ground source heat pump installation, providing huge opportunity for wide-scale adoption of ground source heat pumps in commercial accommodation.
The advantages of Shared Ground Loop Arrays:
- As few as two buildings qualify;
- Receive 20 years of income via the Non Domestic RHI;
- Income certainty – RHI payments based on deemed heat consumption from ECPs;
- Split-ownership of ground arrays provides a funded finance option;
- Exempt from Heat Network Metering & Billing Regulations;
- Extremely low CO2 emissions enabling easy carbon and building regulations compliance;
- No combustion – no NOx, SOx, or particulates emissions;
- Lowest energy bills; slightly lower than mains gas, significantly lower than air source heat pumps, LPG & oil;
- No district heat losses;
- Potential for free summer cooling;
- Scalable and flexible district size can be deployed in sections;
- Ultra-efficient and reliable.
Renewable Heat Incentive (RHI)
Shared Ground Loop Arrays are eligible for 20 years of guaranteed quarterly payments via the Non Domestic RHI.
The 2018 RHI Regulations included an important refinement; for the first time, Non Domestic RHI quarterly payments for residential properties linked to Shared Ground Loop Arrays are now based upon the deemed heat consumption taken from the Energy Performance Certificate.
By introducing deemed payments for the Non Domestic RHI and allowing ‘split ownership’, Government has created a significant catalyst for energy efficient commercial accommodation developments of all sizes featuring Shared Ground Loop Arrays, with costs no longer borne by the site owner.
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This key change:
- Reduces capital costs (as meters are no longer needed) and eliminates all the administration burden linked to quarterly readings and submissions. More importantly, it has prompted funders to back Kensa Utilities’ offer of ground arrays at no charge to the site owner.
- Eliminates the key barrier to deployment – the expense of the ground array – and allows Kensa to mimic long-standing ‘split ownership’ arrangements in the gas sector with the underground infrastructure owned and maintained separately from the heat pump installed inside the properties. Kensa’s model sees the site owner fund the heat pump (which is sold with the property and maintained by the purchaser) whilst the ground array is fully funded.
Typical Project Costs
Based on 100 holiday lodges utilising Kensa’s fully funded ground arrays option.
|Total Cost of Installation (Paid by Client)||£933,381
|Kensa Utilities Capital Contribution (RHI-linked)||£374,351
|Net Cost of Ground Source Heat Pumps & Cylinders*||£559,030
*Avoided costs should be subtracted from this figure. The deduction or counterfactual should include the costs of replacing the existing heating with night storage heaters or a boiler.
The below outlines the mechanism for commercial accommodation site owners wishing to utilise Kensa’s fully-funded Shared Ground Loop Arrays:
Having a ground source heat pump is a unique selling point for the properties; lots of customers appreciate the fact that we have a sustainable heating system installed. We won our local Sustainable Tourism Awards in 2014, and obviously the ground source heat pump system played a big part in this victory.
Mrs Robinson, owner of Broadgate Farm
- 5 year warranty for the heat pump unit.
- 2 year warranty for the controller and water pumps.
- 2 year internals warranty.
Extended warranties are available on request.
In addition to reduced energy bills and a guaranteed non domestic RHI income for 20 years, commercial accommodation owners will also appreciate low service, minimal maintenance and low whole life ownership costs of ground source heat pump systems.
Protected from the outdoor elements by being housed inside the property itself, Kensa’s unique Shoebox heat pump or the new Evo heat pump can be expected to provide a service life of at least 20 years, while once installed, the ground array will provide a renewable energy source for four to five times that, servicing replacement heat pumps long into the future.
Ground source heat pumps make use of standard refrigeration technology, and just like a domestic refrigerator, are fully factory sealed meaning they have no regular servicing or ongoing preventative maintenance requirements.
Unlike an LPG boiler, there is no fuel combustion, meaning heat pumps do not require an annual safety inspection and there is no risk of carbon monoxide poisoning.
No bulk fuel
There is no longer any need for bulk fuel purchases or fuel storage areas – the electricity needed to run the heat pumps is simply provided by each property’s electricity supply, while the rest comes free from your sites natural resources. As such, lifetime ownership costs are far lower than any other technology.
Find out more about Kensa’s ground source heat pump solutions for commercial accommodation by clicking the links below:
Living where we do, surrounded by rolling Welsh hills, we are very conscious that our luxury holiday accommodation should strive towards being eco-friendly. To do this we decided we wanted a heating system that paired technological innovation with natural resources. It is also very important for our guests to be comfortable during their stay with access to a constant supply of heating and hot water.
Mr Phillips, owner of Secret Yurts
Kensa’s Ambient Shared Ground Loop Arrays (SGLAs) are an award-winning and pioneering approach to Fifth Generation District Heating and Cooling (5GDHC). The unique SGLA design allows property owners and developers of two or more dwellings to realise the full potential of ground source heat pumps whilst achieving easier and cheaper carbon compliance, and qualifying for…
Download Kensa’s guide to ground source heat pumps for holiday accommodation.
Watch Kensa’s video guide to ground source heat pumps in holiday parks, lodges and chalets.