By pairing Kensa’s Shoebox heat pumps with Shared Ground Loop Arrays, developments featuring as few as two dwellings, including flats, can attract 20 years of quarterly payments through the Non Domestic Renewable Heat Incentive (RHI), creating a 6-13% IRR for the developer or attracting external funders to own and operate the ground source heat pump infrastructure, removing the cost of the shared ground loop array from the house builder.
What Are Shared Ground Loop Arrays?
Mimicking a traditional gas framework, Kensa’s innovative Shared Ground Loop Arrays link a series of boreholes to multiple properties via an ambient temperature distribution system.
Each property then has an individual Kensa Shoebox heat pump wired to their own electricity supply, which upgrades the low temperature heat for heating and hot water within their dwelling.
The advantages of this system configuration:
- Qualify for 20 years of income via the Non Domestic RHI;
- Split-ownership of ground arrays provides a funded option;
- Exempt from Heat Network Metering & Billing Regulations;
- Extremely low CO2 emissions enabling easy carbon and building regulations compliance;
- No NOx, SOx or particulates emissions;
- Lowest energy bills; slightly lower than mains gas, significantly lower than air source heat pumps, LPG & oil;
- Householders able to switch energy suppliers, unlike other district heating;
- No district heat losses;
- Potential for free summer cooling;
- Scalable and flexible district size can be deployed in sections as the development progresses;
- Ultra-efficient and reliable.
Why Choose Shared Ground Loop Arrays?
Funded Ground Arrays
Whilst Shared Ground Loop Arrays are eligible for 20 years of guaranteed quarterly payments via the Non Domestic RHI, offering a 6-13% IRR, finding the capital to finance the ground array - the most expensive aspect of a ground source heat pump installation - is for many developers a barrier, regardless of the generous return on investment.
This prompted Government’s May 2018 changes to the Renewable Heat Incentive (RHI) to enable external funders to own and operate the infrastructure for ground source heat pumps. At the same time Government also announced Non Domestic RHI payments for residential properties linked to shared ground loops are paid on the deemed heat consumption taken from the property’s Energy Performance Certificate, providing certainty to the owner of the ground array and recipient of the RHI income.
By allowing 'split ownership' and introducing deemed payments for the Non Domestic RHI, Government has created a significant catalyst for energy efficient new build developments featuring Shared Ground Loop Arrays, with costs no longer borne by the house builder.
Financial illustration (new build site of 85 mixed properties):
|Typical ground array cost (Paid by developer)||£369,750|
|Ground array buy-back (On property completion)||£403,028|
|Cost of ground source heat pumps & cylinders||£287,342*|
*Avoided costs should be subtracted from this figure. The deduction or counterfactual will depend on what system is being avoided but will include items such as boilers, cylinders, oil/gas tanks & pipework. It could also include savings in the fabric build cost as heat pumps improve emissions.
Kensa's Funding Mechanism
The below outlines the mechanism for developers and property owners wishing to utilise Kensa's fully-funded Shared Ground Loop Arrays:
End User Benefits
Property's featuring Kensa's Shared Ground Loop Arrays will provide end users with numerous unique benefits over traditional Heat Networks:
Lower fuel bills
GSHP’s produce 3-4kWh of heat energy for every 1kWh of electrical energy used, making them 300-400% efficient. Compare this to a typical boiler, which is just 90% efficient.
Because a GSHP extracts so much “free” energy from the environment, this enables CO2 emissions to be lower than any other type of heating system.
GSHP’s don’t require annual servicing or maintenance, and have an expected lifetime of 20 years.
With an individual ground source heat pump in each property, homeowners are in complete control of their own heating and energy bills, enabling easy energy tariff switching and payment only for their own heat consumption.Download Purchaser's Guide
Free cooling & no overheating
With heat being generated at the point of use (inside each dwelling) the 'heat' circulating the property is low temperature, therefore there are no heat losses from the system to contribute to overheating in risers and corridors. The low temperature system also allows for free passive cooling to be introduced, creating a comfortable living environment all year round.
Year round supply
1m below the surface the ground temperature remains a fairly constant 8-10°C all year round, ensuring your heat supply is constant and reliable; unlike air source heat pumps, which are impacted by external fluctuating air temperatures causing higher bills when heat is most needed.
With Kensa's Shared Ground Loop Array suiting as few as two connected properties, small luxury developments are increasingly turning to this cost-effective and energy efficient heating and hot water system.
Click the below link to view a typical costed example for four properties.
View Costed Examples
For projects with larger numbers of properties, be these flats, apartments or houses, Kensa's Shared Ground Loop Array offers an infinitely scalable solution.
Click the below link to view a typical costed example for a large scale housing development and moderate apartment block.
View Costed Examples
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Download Kensa’s two-page guide to funded Shared Ground Loop Arrays in new build developments, including funded project examples and details of the funding mechanism.
Download a short guide to ground source heat pumps for purchasers of new build developments, including benefits and costed examples.