Heat Auction – Prototype Payback Calculator

Simple payback using an Innovation Fund bid in €/tCO₂ (paid over 5 years), assuming abatement factor 0.17 tCO₂/MWh. Options: Electric Boiler, Heat Pump, Solar Thermal. Payback includes subsidy and avoided gas cost.

Inputs

General

Bid price (€/tCO₂) Fixed premium, paid per tonne abated (5 years).

Baseline emission factor (tCO₂/MWh) Gas replacement using 0.17.

Total process heat capacity (MW_th) Nameplate capacity supported.

Operating hours per year (Boiler / HP) Used for Boiler & HP annual production.

Electricity price (€/kWh) Energy + network + non-recoverable taxes if desired.

Gas price (€/MWh) Avoided fuel cost per MWh of heat delivered.

Electric Boiler

Electric boiler CAPEX (€/kW) Default updated to 150 €/kW.

Boiler O&M (% of CAPEX per year)

Heat Pump

Heat pump CAPEX (€/kW)

Heat pump COP (≥ 2.0) Outlet ≥ 100 °C for eligibility; COP affects OPEX.

HP O&M (% of CAPEX per year)

Solar Thermal

Solar specific yield (kWh/m²·yr)

Solar power density (kW_th per m²) Area needed = Power / Density.

Solar field CAPEX (€/m²)

Solar O&M (% of CAPEX per year)

Notes: Annual subsidy = Heat (MWh) × Emission factor × Bid (€/tCO₂). Electric boiler efficiency assumed 95%. Payback is simple payback = CAPEX / max(Annual net cash flow, 0). Annual net cash flow = Subsidy + Avoided gas cost − (Electricity + O&M).

Results

Annual Supported Heat—MWh/yr

Annual Subsidy—€/yr

5-Year Subsidy—€ (cap)

Technology	CAPEX (€)	Annual OPEX (elec + O&M) (€)	Avoided Gas Cost (€/yr)	Annual Subsidy (€)	Annual Net Cashflow (€)	Simple Payback (yrs)
Press “Calculate”.

Method & Assumptions

Annual heat (Boiler/HP): P(MW) × hours. Annual heat (Solar): Area × Yield, where Area = P(kW) / Density.
Subsidy (€/yr): Annual heat × Emission factor × Bid. (Bid paid for up to 5 years.)
Electric Boiler electricity: Heat(kWh) / 0.95. Heat Pump electricity: Heat(kWh) / COP.
Avoided gas cost (€/yr): Annual heat × Gas price.
O&M defaults: Boiler 2% CAPEX, HP 3%, Solar 1.5% — editable.
Simple payback ignores time value of money and tax; use for quick screening.