Katerina Swanson
Home fuel cells are an increasingly popular way to generate primary or backup power. They are similar to larger industrial stationary fuel cells but are built on a smaller scale for residential use. Home fuel cells are usually based on combined heat and power (CHP) or micro-combined heat and power (m-CHP) technology, generating electricity and heated water or air. While the cost of fuel cells is not widely known due to commercial secrecy and low production volumes, they are becoming more affordable as production increases. In this article, we will explore the costs of residential fuel cells in the UK and discuss the potential benefits of adopting this technology.
| Characteristics | Values |
|---|---|
| Cost of manufacturing fuel cell systems | Not widely known due to commercial secrecy and low production volumes |
| PEMF Fuel Cell price | $60 |
| H-12 fuel cell stack price | $450 |
| H-100 fuel cell stack price | $2100 |
| 1000W fuel cell stack price | $9,000 to $20,000 |
| 2.5kW T-Series fuel cell stack price | Not specified |
| Vitovalor 300-P fuel cell price | Not specified |
| PACE funding incentive | £6500 toward the cost of the unit |
| VAT rate for unit and installation | 5% |
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What You'll Learn
Vitovalor 300-P fuel cell cost and benefits
The Viessmann Vitovalor 300-P is a fuel cell boiler that has been crafted to suit the majority of the UK market. It is one of the few heat-led fuel cell products developed to date. The Vitovalor 300-P takes the natural gas available in most homes and turns it into hydrogen, which powers the fuel cell. The waste heat is stored in a buffer for heating and hot water usage. It is an all-in-one unit, meaning there is no longer any need for a hot water cylinder, cold water storage tanks in the loft, or any other heating appliances.
The Vitovalor 300-P is an A++ energy-efficient heating system, thanks to its use of hydrogen as a fuel source and energy store. It generates as much power as 30 square meters of photovoltaic cells. Unlike solar panels, it works around the clock and in all weather conditions. Generating up to 15 kWh of electricity per day, it offers higher electrical efficiency (37%) than other CHP solutions, making the Vitovalor particularly suitable for new builds and renovations. The electricity generated is enough to power an electric car, and its 1-26 kWh thermal output meets the heat demand of modern one- and two-family homes.
The cost of the Vitovalor 300-P has been reduced, largely due to Viessmann's participation in the new European PACE project, which aims to bring fuel cell micro-cogeneration technology closer to mass-market affordability. The 45% price reduction makes the mass-produced fuel cell boiler as affordable as a heat pump, but with the added benefit of producing electricity as well as domestic heat. The purchase price of the system has been almost halved, and the Vitovalor saves users up to 36% on household energy consumption compared to separate heat and power generation, offering a return on investment of under five years.
The Vitovalor 300-P also has MCS certification, entitling owners to claim approximately £6,000 over 10 years from the UK Government's feed-in tariff. Under the feed-in tariff, users can claim 13.6 pence for every kWh of power they generate. The unit also benefits from PACE funding, a European incentive that gives £6,500 toward the cost of the unit in return for monitoring your usage. Additionally, the unit and its installation are only subject to 5% VAT.
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PEMFC prices
Information on the historical and current prices of fuel cells is not widely available due to commercial secrecy and low production volumes. However, according to a paper that analysed price data from Europe, Japan, and South Korea, PEMFC prices tend to converge on $33,000 once 10,000 systems have been built. Over the past eight years, these prices have decreased at an average rate of 16% per doubling of capacity.
Another source suggests that the cost of future mass-produced small stationary fuel cell systems is estimated to be around $1000 per kW. However, this price target may not be feasible, as even with significant industry efforts, the price of small domestic-scale systems is unlikely to decrease to the $1000/kW mark. Instead, a more realistic long-term target for 1–2 kW systems is $3000–5000, which could have been achieved by 2020 at the rate of progress at the time of writing.
The cost of manufacturing fuel cell systems may not be indicative of the final price once they are fully commercialised and mass-produced. The transition to automated mass production lines is expected to significantly reduce labour intensity and manufacturing costs.
In 2017, experts assessed the median automotive PEMFC cost to be $75/kW, with estimates ranging from $40 to $500/kW.
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Cost of manufacturing
The cost of manufacturing fuel cell systems is not widely known due to commercial secrecy and low production volumes. However, it is important to note that the cost of producing these systems at high volumes is expected to decrease significantly as the industry transitions from low-volume, specialised assembly to automated mass production. This shift will result in reduced labour intensity and more efficient plant utilisation, driving down manufacturing costs.
The current price of a PEM Fuel Cell, which is suitable for classroom applications, is as low as $60. More powerful fuel cells with a rated power output of 12W, suitable for basic domestic appliances, start at around $450. The H-100 fuel cell stack, with a rated power of 100W, can be used for various personal and research applications and has a starting price of approximately $2,100.
For more specialised applications, fuel cells can be custom-configured to the buyer's unique specifications, with prices starting at just under $200,000. The price depends on the specific model and system requirements requested by the buyer.
In the UK, the Viessmann Vitovalor 300-P is the only hydrogen fuel cell/domestic Combined Heat and Power (CHP) product currently available on the market. This product takes the natural gas available in most homes and converts it into hydrogen to power the fuel cell, with the waste heat stored for heating and hot water usage. While the exact price of the Vitovalor 300-P is not mentioned, there are financial incentives to encourage the adoption of this technology, such as the Smart Export Guarantee (SEG) and PACE funding, which provides £6,500 towards the cost of the unit.
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Cost of production at high volume
The cost of producing fuel cell systems at high volume is difficult to determine due to commercial secrecy and low production volumes. However, it is estimated that PEMFC prices tend to converge on $33,000 once 10,000 systems have been built. Over the past eight years, these prices have decreased at a rate of 16% per doubling of capacity.
The transition from low-volume, specialised assembly to automated mass production will significantly reduce labour costs and plant utilisation, resulting in lower manufacturing costs. This means that the cost of producing fuel cell systems at high volume is likely to be lower than the current prices offered by manufacturers.
The Vitovalor 300-P, developed by Viessmann in partnership with Panasonic, is currently the only hydrogen fuel cell/domestic CHP product available on the market in the UK. This product takes the natural gas available in most homes and turns it into hydrogen to power the fuel cell, with the waste heat stored for heating and hot water. While the price of the product is not publicly available, there are financial incentives to encourage the adoption of this technology, such as the Smart Export Guarantee (SEG), which provides a half-hourly rate for exported electricity, and PACE funding, which offers £6,500 towards the cost of the unit in return for monitoring usage.
The cost of producing fuel cell systems at high volume is likely to be influenced by various factors, including the price of raw materials, the efficiency of manufacturing processes, and the level of competition in the market. As the technology matures and production volumes increase, it is expected that the cost of fuel cell systems will become more competitive with traditional energy sources.
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Cost of installation
The cost of installing a residential fuel cell in the UK varies depending on the specific model and system requirements. For example, the price of a PEM Fuel Cell, which is perfect for teaching kids about how hydrogen works, can be as low as $60. On the other hand, the price of a more sophisticated H-100 fuel cell stack, which can be used to power small motorboats, can start at around $2,100. The price of a fuel cell with a rated power output of 1000W can range from $9,000 to well over $20,000, depending on the specific model and system requirements.
The Vitovalor 300-P, a hydrogen fuel cell/domestic CHP product, is the only one currently available on the market in the UK. While the price of the unit is not stated, there are financial incentives to purchase one, such as PACE funding, which provides £6,500 toward the cost of the unit in return for monitoring your usage. Additionally, the unit and its installation are subject to only 5% VAT.
It is worth noting that the cost of manufacturing fuel cell systems is not widely known due to commercial secrecy and low production volumes. The cost of producing systems at high volume is estimated to be lower than the current cost of manufacturing, as the transition to automated mass-production lines will bring about reductions in labour intensity and plant utilisation.
In terms of tax credits, the maximum credit for a residential fuel cell in the US is $500 per half-kilowatt (kW) of power capacity, with a minimum nameplate capacity of 0.5 kW of electricity and an electricity-only generation efficiency greater than 30%.
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Frequently asked questions
A residential fuel cell, or a home fuel cell, is an electrochemical cell used for primary or backup power generation. They are built on a smaller scale for residential use and are usually based on combined heat and power (CHP) or micro-combined heat and power (m-CHP) technology, generating electricity and heated water or air.
The cost of residential fuel cells in the UK is not publicly available due to commercial secrecy and low production volumes. However, prices are expected to decrease significantly once they are produced en-masse.
Residential fuel cells can lessen reliance on public utilities, increase energy efficiency, and reduce dependence on foreign energy imports. They can also provide substantial cost savings, with home fuel cells in California, for example, saving homeowners up to 45% in annual energy costs.
The cost of residential fuel cells is higher than traditional electricity production methods due to the specialised assembly and low production volumes. However, prices are expected to decrease with higher production volumes and automation in the future.
Information regarding incentives or rebates specifically in the UK is currently unavailable. However, in the USA, home fuel cells are eligible for incentives and rebates at both the state and federal levels to promote renewable energy.
