Sunday 10 October 2010

Feed-in tariff scheme proves to be a success

The government's feed-in tariff scheme has already got thousands of people generating their own green electricity.

When the government launched the feed-in tariff scheme in April it was one of a range of policies aimed at inducing people to improve the eco-credentials of their homes.

Now, just five months later, an Ofgem report has revealed that almost 10,000 people have signed up to the scheme, including those that were already using microgeneration technology to power their homes before it started.

Explained simply, the feed-in tariff scheme pays those who generate their own green electricity, even if they don't sell it back to the National Grid. If households do choose to export their electricity then they will be awarded with extra payments.

Energy suppliers pay a certain amount per kilowatt hour (kw/h) of power generated, which remains at a constant level for 20 years, or 25 years if the power is generated from solar power. A further 3p per kw/h will also be paid for any electricity which is sold back to the grid.

This has the two-fold benefit of bringing in added income and reducing household energy bills.

The aim of the scheme was to encourage more people to install microgeneration technology, which is capable of producing small amounts of green electricity. This will in turn increase the amount of energy in the UK being produced by renewable energy sources and reduce the country's carbon emissions.

Figures from the Ofgem report show that in total, £182,059 has been paid out to UK households through the feed-in tariffs. Overall, 9,350 people are now signed up to the scheme.

Nick Medic, head of communications at RenewableUK, said earlier this year that the feed-in tariffs are "revolutionary".

"What the feed-in tariff does is it really simplifies the way in which people can benefit from renewable energy," he explained.

Looking at the electricity generation in terms of installed capacity, photovoltaic (PV) solar panels are leading the way with 44 per cent of the share. Solar panels also account for a huge 97 per cent of all installations.

Solar PV technology uses cells to convert the sun's rays into electricity, without requiring direct sunlight, which means it continues to generate power even on a cloudy day. According to the National Home Improvement Show, a typical system can add five per cent to a property's value and generate £700 a year under the feed-in tariff scheme.

Wind turbines provide the next highest proportion of installed power at 35 per cent, followed by hydro at 21 per cent.

It's not just homeowners that are looking to benefit from the feed-in tariff scheme either. Domestic dwellings make up the highest single proportion of installed capacity at 46 per cent, but there are also high numbers of commercial and community projects registered with the scheme.

Stuart Pocock, technical director at the Renewable Energy Association, said that more commercial enterprises are showing interest.

"Obviously it's slightly different for the commercial sector because there is still planning permission needed and there are more hoops to jump through, but the feedback we're getting is that yes, it is appearing to be of interest for certain parts of the market," he explained.

If you're thinking about joining in with the feed-in tariff scheme then there are a number of steps that should be followed.

Firstly, you should make sure that your home complies with all basic existing energy-efficiency measures. You should then decide which technology is best suited for your home and select an installer that is registered with the Microgeneration Certification Scheme.

Once the technology is installed, give your certificate of eligibility to your energy supplier, which will cross reference your details with a central database, and install a new meter to read how much power the technology is generating.

The feed-in tariff is, of course, still in its infancy, but if the success of the similar scheme in Germany is anything to go by, the initiative is only likely to grow in popularity.

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