UK - Renewable energy feed-in tariffs set to transform rural estate incomes

Some key facts:

- Rural estates and farms can generate significant extra income from renewable energy feed-in tariffs (FiTs)
- FiT payments are index linked and guaranteed for up to 25 years
- You can still claim FiTs even if you use the electricity yourself
- Most rural estates can benefit from some sort of renewable energy scheme

Rural estates and farms could use the new renewable energy feed-in tariff scheme to increase their annual income by tens of thousands of pounds each year.

A hypothetical “renewable energy” estate is described below utilising all the main forms of renewable energy – solar, wind, hydro and anaerobic digestion. also shown is how much income could be derived annually from each using feed-in tariffs:

• Two wind turbines (two 250kW** turbines wind speed of 7m/s) create an annual income* of £300,000 assuming all electricity produced is exported to the national grid.
• An anaerobic digester (350kW system 200 cows & 600 acres of maize) creates an extra £460,000 per year
• A modest hydroelectric scheme (100kW water turbine) adds £190,000.
• The contribution from photovoltaic solar panels (900 sq/m - 450 panels - on dairy roof) is £26,300

The total annual income came to £916,000 with a lifetime potential of £18,500,000!

*Income figures will vary based on local conditions and equipment performance. They do not include tax.

** A 250kw turbine produces an equivalent amount of energy to that consumed by 125 three-bed houses for a year.

If the electricity produced is used on the estate the annual benefit increases to £1.1m. This is because the estate will still receive the FiT payments, but will be saving on its current electricity expenditure.

Feed-in tariffs were introduced in the dying days of the Labour government and were designed to encourage people to create their own renewable electricity. An index-linked payment guaranteed for up to 25 years is made for each unit of electricity produced even if it used by the generator for their own consumption. The tariff varies depending on how the energy is being generated and the scale of the scheme. The smaller the scheme and the longer its potential payback, the larger the payment.

FIT rates:

• Anaerobic digestion 9.0 -11.5 pence/kWh over 20 years 
• Hydro 4.5– 19.9 p/kWh over 20 years
• Solar photovoltaic 29.3 – 41.3 p/kWh over 25 years
• Wind 4.5 – 34.5 p/kWh over 20 year

Add 3p/kWh for all electricity supplied to the national grid (large schemes can negotiate a higher supplement)

We have already seen a huge surge in enquiries from landowners looking to take advantage of feed-in tariffs. One of the most attractive things about them is that the payments are guaranteed for up to 25 years, which means it is now easier to get bank funding to set up renewable energy projects.

Reassuringly in the current fiscal environment, there is also no danger that FiTs will be hit by government cuts because they are funded by electricity generators (via our bills) not the exchequer.

Although it would be unusual for a typical rural estate to be able to utilise renewable energy to the same extent as our idealised estate, there are very few rural properties that cannot benefit from FiTs in one form or another. The estate shows the extent of the potential income available, even from relatively modest schemes. The wind turbines we are using, for example, are much smaller than those used in large-scale wind farms.

At a time when the income streams on many rural estates are under threat from poor agricultural commodity prices and falling farm subsidy payments, renewable energy will play an increasingly important role in securing a viable future for landowners and farmers.

Next year we should see even greater opportunities when details of the Renewable Heat Incentive are finalised. This will pay a tariff for heat produced by renewable sources and could be of real benefit to rural landowners who use a lot of heat themselves or who can supply heat to other users.

URBAN ENERGY
 
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care."

Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.

Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.

For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/

Feed in Tariffs

Feed-in tariffs (FiTs), have been available since April 1 2010, and are designed to incentivise businesses and individuals to install small scale electricity generating technologies by guaranteeing a minimum payment for the electricity generated as well as the electricity exported to grid.
The scheme is designed to incentivise everything from a one kilowatt (kW) system fitted to a single home to a five megawatt (MW) wind turbine powering a whole community.

Either way, the incentive comes in three parts:

- The generation tariff, which takes the form of a fixed payment from the business’s or individual’s electricity supplier for every unit of energy or kilowatt hour (kWh) generated

- An export tariff, which will pay an extra 3p/kWh, in addition to the generation tariff, for any electricity not used on-site and ‘exported’ to the grid

- Offsetting of on-site use of electricity – where the business or individual uses the electricity on-site, this can be offset against electricity that would otherwise have been bought elsewhere.

At the moment, the FiT scheme only applies in England, Wales and Scotland. Northern Ireland has not yet taken a decision on implementing the scheme.

What technologies are supported by the scheme?

Small scale, low carbon electricity technologies initially eligible for the scheme include: wind; solar photovoltaics (PV); hydro; anaerobic digestion; and, as a pilot, domestic scale microCHP (with a capacity of 2kW or less).

The pilot for domestic scale microCHP (micro combined heat and power) is initially designed to support up to 30,000 installations, with a review to start once the 12,000th installation is completed.

Solid or liquid biomass technologies are not currently covered by the FiT scheme, although they will continue to receive support under the Renewables Obligation (RO). The decision to exclude biomass from the FiT scheme when it is already covered by the RO, has been described as “confusing” by campaign group Friends of the Earth.

The idea is that FiT should only support tried and tested technologies that can be effectively deployed in the short term. Wave, tidal and pyrolysis technologies are not currently covered.

New technologies will be considered for inclusion under FiT at the first of the scheme’s reviews, due in 2013.

Is accreditation needed?

To qualify for a FiT payment, it will be necessary to use a product and installer certified under the Microgeneration Certification Scheme (MCS).

According to Ofgem, MSC approved products and installers must be used for any installation after April 1 2010 if it is is wind, PV or hydro at or below 50kw capacity, or fossil fuel CHP at or below 2kw.

Wind, PV and hydro above 50kw and anaerobic digestion systems of any size do not require MSC approval – indeed, the MCS does not certify these yet – instead, they must seek accreditation from Ofgem.

Microgenerators transferring to FiT, that have already gained accreditation under the RO, do not need MSC certification.

How much do you get?

Tariff levels vary depending on the type and scale of installation, ranging from 4.5p kWh for some hydro to 41.3p for retrofit PV (though will generally be in the ballpark of 20-35p/kWh) for installations completed between July 15 2009 and March 31 2012.

The tariff is fixed for the lifetime of the installation (usually 20 years, but 25 years for PV) and linked to the Retail Price Index (RPI) to ensure it holds its value in real terms.

Payments for some technologies will be fixed at a lower rate after the FiT scheme has been running for two or three years, reflecting the fact that the cost of these technologies is expected to fall over time.

More information?

DECC The Government Response to the Consultation on Feed-in Tariffs
Ofgem
Carbon Trust
Energy Saving Trust
Renewable Energy Association
British Wind Energy Association

URBAN ENERGY

Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care."

Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.

Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.

For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/

Get a loan of up to £15,000 to green your house!

If you want to install solar panels on your roof and take advantage of lucrative new feed-in tariffs but have been put off by a lack of funds, you could soon get a loan to cover the whole cost.

This week the government unveiled plans to offer homeowners 20 year loans of up to £15,000 to allow families to invest in green technologies, safe in the knowledge that their loan would be taken over by the purchaser if they move before it's paid off.

This follows an announcement by the Department of Energy and Climate Change (DECC) that it will start paying feed-in tariffs (FiT's) to households installing green technologies such as electricity generating photovoltaic (PV) systems, which will set you back around £8,000 per kWp installed.

Households with south-facing roofs able to install a 4 kWp solar PV system will receive payments and savings totalling over £1,600 a year (Import savings £218.11 + FiT income £1390.16 + Export income £50.49 = £1658.76) from 1 April 2010.

Until now households wanting to introduce these carbon-reducing measures had to pay the upfront installation costs, or borrow the money, leading to accusations that they were only affordable for the well-off. Equally, spending thousands on solar power made little sense to anyone planning to move home a few years later.

The government has tried to answer both criticisms this week by introducing a pay-as-you-save (PAYS) scheme, which follows a pilot run in a number of cities.

- Although details of how the scheme will work are yet to be finalised we now have a rough idea:
The loans, typically between £10,000 and £15,000, are expected to come from commercial organisations rather than government funds. As well as the big six energy companies, Sainsbury's, B&Q, Co-op Bank and HSBC are among those expressing an interest.

- Once taken out, the loans would effectively become a charge against the house in the same way as a mortgage. They are expected to be paid back over 20-25 years, but, unlike a mortgage, if you move house before the loan is paid off, the new buyer would take over the payments. Of course, they also take over the savings, and any feed-in tariffs payable, which DECC says would always be greater than the repayments. It should make the home more attractive to any purchaser.

- The interest is yet to be determined – 6% has been mentioned, but as the loans will be coming from the private sector rates will reflect the market at the time. It is likely the rate would be similar to a long-term fixed-rate mortgage, typically 5%-6%. If you have lots of equity in your home, and you are remortgaging, you might find it cheaper to add the cost to your mortgage.

Households would be able to spend the money on a variety of technologies. Solar PV and Solar Thermal water heaters will be favourites, but so will solid-wall insulation which is aimed at homes that were built without cavity walls. It is much more expensive than cavity wall insulation, but can bring down energy bills significantly. Ground and air source heat pumps and wind turbines will qualify.

DECC says it is aiming for 7m households – owner-occupier and rented – to benefit by 2020. It wants to make the loans available to the widest possible group rather than just the well-off. It aims to have a single point of contact for those hoping to get a loan, pushing applicants to the most appropriate commercial supplier.

One option could see the power firms, which already have responsibility for paying the feed-in tariffs, also overseeing the loans and simply paying the customer the surplus at the end of each month. This would enable those with less-than-perfect credit histories to install carbon-reducing measures.

URBAN ENERGY

Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.

Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.

Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.

0% interest instalment payment program available for domestic solar thermal and photovoltaic systems.

For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/

Is it time to generate your own domestic power?

Will the government's feed in tariff scheme which guarantees a rate of payment for renewable energy sold back to the grid tempt you to install your own solar panels or wind turbine? Here are some thoughts from members of the public:

It would appear that now is possibly the best time ever to consider installing some form of domestic microgeneration, be it solar photovoltaic panels for electricity, solar thermal energy for hot water or even wind turbines in some circumstances.

Economically speaking? Yes. There has never been a better time, and there will probably never be a better time in the next couple of decades, to make a profit from domestic micro-renewables in the UK.

We believe microgeneration has the potential to deliver significant amounts of energy, helping increase the UK's energy security, reduce its carbon emissions and, importantly, to influence consumer behaviour surrounding energy use. We've found that if you are generating your own power you tend to be far more careful about how you use it.

So far the uptake of microgeneration technology has been low in the UK compared with, say, Germany. Our research shows that this is due to several barriers: economics, planning, access to good information and consumer confidence. The introduction of feed in tariffs 'FiTs' certainly make the economics of microgeneration far more attractive, particularly with interest rates currently so low in the UK.

However we'd always recommend that before you invest in microgeneration technology you first address the energy efficiency of your property. It's also important to make sure you choose the right technology for it to be effective - there's no point installing a wind turbine unless you live somewhere windy (which rules out most urban locations) and the best results for solar pv are south-facing roofs.

Micro-generation isn't silver bullet to fight climate change, but it is a step in the right direction. More importantly, it is about taking responsibility for your own actions.

It is all to easy to flick a switch, and power arrives. If you generate your own, it is amazing how frugal you can be in your energy use. Even if it is renewable.

However, I work on a more important principle. The Government admits that power cuts are coming, and fuel prices are set to rocket. Given the winter we have just had, I think it could actually be about having a modicum of heat whilst the rest of the country shivers.

Currently around 100,000 people in the UK generate their own power - around 90% through solar thermal. If the government's target of 750,000 is to be reached, however, we think it'll take more than feed-in tariff, they'll also need to look at removing some of the other obstacles, especially planning.

URBAN ENERGY

Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.

Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.

Urban Energy employ the very best engineers in this field, all of which are fully qualified, certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.

0% interest instalment payment program available for domestic solar thermal and photovoltaic systems.

For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/

What is a Feed in Tariff (FiT)?

WHAT’S ALL THE FUSS ABOUT GETTING FiTs IN THE NEW YEAR?:

The UK Government is to support a new era of small-scale renewable electricity with the announcement on Monday 01.02.2010 of the final structure of Feed-in Tariffs (FiTs) for small-scale generators.

FiTs are a per-unit support payment (p/kWh) for electricity generation and are already widely in operation in other EU Member States to support renewables.

The Government claims the introduction of FiTs on April 1 2010 will signify a major departure from how small low-carbon generators in the UK are currently rewarded.

The new FiT scheme, to be unveiled on Monday morning by Energy Minister Ed Miliband is designed to “provide the right level of simplicity” to encourage non-energy professionals to invest in small-scale generation.

It will provide non-taxable, cash-linked incentives to encourage those generators to consume the electricity they generate and become more energy efficient while they do so.

The scheme will operate on two levels and allows fixed payment from the electricity supplier for every kilowatt hour (kWh) generated, known as the “generation tariff”.

Another payment will be made additional to the generation tariff for every kWh exported to the wider energy market, to be called the “export tariff”.

The renewable technologies that will qualify for FITs payments are anaerobic digestion, biomass, hydro, Photovoltaic (PV) solar panels and wind.

Only small-scale generators with a capacity of up to 5 megawatt can be considered for inclusion and both the installer and the equipment must be accredited by the Microgeneration Certification Scheme (MCS).

According to the proposals, generators will be guaranteed a market for their exports at a long-term guaranteed price. The generator may choose whether to sell exported electricity to the supplier at this guaranteed export tariff, or negotiate a price for exported electricity in the open market.

In addition, generators will benefit because they will have the opportunity to use that electricity on-site to offset some or all of the electricity they would otherwise have had to buy.

He will also reveal details of a renewable heat scheme (RHI), which will be launched following a similar FiT-style consultation next year. Reference 'Click Green' 31.01.2010

URBAN ENERGY:

“To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.

Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Their expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.

Urban Energy employ the very best engineers in this field, all of which are fully qualified, certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.

URBAN ENERGY SOLAR HEATING:

Solar panels are typically located on the roof of your house or commercial property. These panels are able to convert everyday sunlight into heat energy stored within a cylinder, where it can be used to provide hot water for your home or business.

URBAN ENERGY SOLAR ELECTRICAL POWER:

Photovoltaic (PV) panels can be installed ‘on’ or ‘within’ the roof of your commercial property or home and are designed to convert day light into useable solar electricity. The solar electricity generated will be able to power any electrical device within the building without compromising quality of delivery. Their Photovoltaic panels have been designed to work within a grid system to permit the sale of redundant electricity to power suppliers, eradicating the need for unnecessary and costly battery systems found on other types of installations.

Please visit our website for more information: http://www.urbanenergy.org.uk/