Is there economic rationale to move to renewable heat solutions from traditional fossil-fuel based heat? Heat market is a peculiar one. It is large. Average household in the UK, for example, consumes 4x more gas (to generate heat) than electricity (measured in comparable units). Heat is local (cannot be transported far from the origin). Heat is often unwanted being a byproduct of some other activity (fossil fuel combustion to generate electricity). This note is an attempt to quantify the costs of renewable heat, and is a finalization of discussion started here.
Incumbent and contenders
Meet the incumbent. Traditional way to generate heat in many places in the world is to burn gas in an in-house gas boiler. Modern gas boilers take 100 units of energy (gas) and convert them into 90+ units of heat.
Here is your traditional gas boiler:
Here is contender #1. Micro-CHP (Combined Heat and Power) boiler…
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