Feed-in-tariff
Feed in Tariff blueprint published - Small scale renewables could earn up to 50p p...
Consultation on Renewable Electricity Financial Incentives - DECC recently issued a consultation pape...
FIT's for Small Wind and Photovoltaics - The Government has announced today the d...
Consultation on Renewable Electricity Financial Incentives - DECC recently issued a consultation pape...
FIT's for Small Wind and Photovoltaics - The Government has announced today the d...
FIT's for Small Wind and Photovoltaics
The Government has announced today the details of the proposed feed-in tariff for Microgeneration from systems like small wind turbines and solar photovoltaics. The new tariff will pay for all energy generated by your system, irrespective of if you use it yourself or sell it back to the grid.
The amounts paid are in addition to any saving you will make by purchasing less electricity from your supplier and any income you earn from selling your surplus power to your electricity supplier.
The amounts paid are in addition to any saving you will make by purchasing less electricity from your supplier and any income you earn from selling your surplus power to your electricity supplier.
The key points of the announcement are:
- 36.5p/kWh for small solar photovoltaic systems up to 4kW and 28p/kWh for systems up to 10kW.
- 23.0p/kWh for small wind turbines between 1.5kW and 15kW.
- Replaces the current ROC system which pays 10p/kWh.
- Effective as of the 1st April 2010, but all systems commissioned from now on will qualify.
- Systems installed from now until April 2010 will be eligible for both LCBP grants AND the new tariff.
- 23.0p/kWh for small wind turbines between 1.5kW and 15kW.
- Replaces the current ROC system which pays 10p/kWh.
- Effective as of the 1st April 2010, but all systems commissioned from now on will qualify.
- Systems installed from now until April 2010 will be eligible for both LCBP grants AND the new tariff.
A typical home solar photovoltaic system of 3kW, generating approximately 2,300kWh per annum will therefore earn around £1,000 per annum, which is an additional £600, dramatically reducing payback times.
An Evance Iskra R9000 small wind turbine will typically earn £2,000 - £3,000 per annum which is an additional £1,000.
A Gaia 133 small wind turbine installed at a modestly windy site will earn £6,000 - £9,000 per annum which is an additional £3,000, making it a very economic proposition with likely payback times of less than 5 years on a typical site.
All of Segen's solar photovoltaic and small wind turbines installed from today onwards will qualify for the feed-in tariff and Segen is a fully accredited Microgeneration Certification Scheme installer for small wind and solar photovoltaics as required by the new tariff.
To find out how you may progress getting a solar photovoltaic or small wind system from Segen, please respond to this email as soon as possible, as the one thing which is certain is that demand will be high.
If you would like any further information on small wind turbines, micro-hydro systems or solar PV systems then please do not hesitate to contact myself, Mike Reynolds on 07818 424598 or by email at mike.reynolds@segen.co.uk
If you would like any further information on small wind turbines, micro-hydro systems or solar PV systems then please do not hesitate to contact myself, Mike Reynolds on 07818 424598 or by email at mike.reynolds@segen.co.uk
Consultation on Renewable Electricity Financial Incentives
DECC recently issued a consultation paper on the Feed-in-Tariffs for Renewable Electricity http://www.decc.gov.uk/en/content/cms/consultations/
elec_financial/elec_financial.aspx . To each of the FIT’s, you should add the Govt guaranteed minimum wholesale price of 5p/kWh for electricity that is exported to the Grid. Electricity that is used by the micogenerator (5 MW or less) will substitute the cost of having to buy retail electricity at about 12p/kWh - so add 12p to the FIT for whatever you use directly generated by your turbine or solar PV system etc.
elec_financial/elec_financial.aspx . To each of the FIT’s, you should add the Govt guaranteed minimum wholesale price of 5p/kWh for electricity that is exported to the Grid. Electricity that is used by the micogenerator (5 MW or less) will substitute the cost of having to buy retail electricity at about 12p/kWh - so add 12p to the FIT for whatever you use directly generated by your turbine or solar PV system etc.
A hydro-turbine that generating at a millhouse, an average of 60 MWh per year, with 50% used by the millhouse, the annual income, assuming that the turbine is in the <10kW range is:
Value of 30 MWh exported to the Grid = 30,000 x (0.17 + 0.05) = £6,600
Value of 30 MWh used by the Millhouse (replacing retail electricity) = 30,000 x (0.17 + 0.12) = £8,700 pa
The total value of the 60 MWh is therefore £15,300 pa Tax Free.
If you are a higher rate taxpayer paying 40% tax, this is worth a grossed up £15,300/0.6 = £25,500 pa.
When you sell your millhouse, it will come with a grossed up income of £25,500 pa which, at 5% interest, adds £510,000 to the value of the property!
Caveat: The DECC paper is a consultation paper setting out the FIT’s it intends to pay from next April. The Renewable Energy industry will doubtless press for higher rates as recommended in the Renewable Energy Association's paper given to Ed Miliband in late March.
Note: DECC has announced that it will issue later this year a consultation paper for giving FIT’s for renewable heat, known as the Renewable Heat Incentive, to be implemented in April 2011. This should have a dramatic effect on the financial viability of air, ground and water source heat pumps and solar thermal. One of the best beneficiaries will be biomass CHP which will get FIT’s for electricity and heat.
Note: DECC has announced that it will issue later this year a consultation paper for giving FIT’s for renewable heat, known as the Renewable Heat Incentive, to be implemented in April 2011. This should have a dramatic effect on the financial viability of air, ground and water source heat pumps and solar thermal. One of the best beneficiaries will be biomass CHP which will get FIT’s for electricity and heat.
The solar PV and solar thermal FIT’s have been (will be) set to ensure that solar is viable for the UK as a whole. While it may surprise you after three wet summers, Cornwall has the best 'insolation' (solar energy) in the UK.
Click Here to view the Green Company press Release
Click Here to view the Green Company press Release
Feed in Tariff blueprint published
Small scale renewables could earn up to 50p per unit of energy they generate under proposals published by the Renewable Energy Association.In a blueprint for renewable energy tariffs presented to energy minister Mike O'Brien, the Renewable Energy Association laid out the rates at which both renewable heat and small scale electricity projects should be incentivised.
It suggested that households, businesses or organisations that have building-integrated photovoltaic solar panels should earn 50p per kilowatt hour (KWh) of electricity they produce.
The recommendations followed the government's announcement that next year it will introduce feed-in tariffs, which offer above market payments for renewable electricity generated by installations with a maximum capacity of five megawatts.
Under the plans, the government will also implement renewable heat incentives, which will apply to renewable heat projects of all scales including domestic, community, commercial and industrial.
It recommended solar thermal receive the highest incentive, receiving 16p per KWh.
The REA also proposed that tariffs be "terraced" to ease the investment burden. This would mean tariffs start off at a high "initial rate", followed by a "transitional tariff" and ultimately a long term "standard tariff".
Incentives for small scale renewable electric generation as well as for renewable heat were included in the Energy Act 2008.
Under the Low Carbon Buildings Programme, households can apply for grants to install microgeneration devices.
http://www.r-e-a.net/document-library/policy/policy-brief...