The Hub has published a report providing recommendations for setting an energy offset price in £/MWh to meet a shortfall in on-site renewable generation for new-build residential development in Bath and North East Somerset (B&NES).
B&NES Council asked the Hub to provide recommendations for setting an energy offset price (in £/MWh) that would be sufficient to meet a shortfall in on-site renewable generation for new build residential development.
Net zero housing plays an important role as part of the transition to a more sustainable future. A net zero home is one where building energy use is less or equal to the building energy generation, in this case over one year.
Offsetting should without exception be a last resort. It is therefore assumed that offsetting is only acceptable to an onsite renewable energy shortfall where energy efficiency is prioritised, renewable generation maximised, and the Local Planning Authority considers that there are sufficient site constraints to deem offsetting necessary.
Our report focusses on retrofitting solar PV onto existing B&NES social housing stock as a suitable method on which to establish an offset price that will truly provide an equivalent and deliverable route to offsetting. We considered the full 30-year lifetime costs of developing such a scheme together with its potential generation over the same period. It was established that an energy offset price of £130/MWh (2024 prices) will incentivise developers to maximise renewable generation on site before considering offsetting.
The example provided suggests that the developer of atypical home with building energy use of 3,800kWh/yr and 3.2kW (8-modules) PV would be required to pay £3,400 offset. If PV was increased by just 3 modules to 4.4kW then no offset charge would apply.
B&NES is using the report as evidence to inform Policy SCR6 (Sustainable Construction for New Build Residential Development) as part of their Local Plan Partial Update. This builds on previously work the Hub completed for Cornwall Council.
