FiT tariff to kick-start solar boom!

Last week, huge auditing firm PricewaterhouseCoopers (PwC) released an analysis of the Solar PV markets across Europe and particularly the UK. The report claims that the solar panel industry in the UK is on the brink of a bright future with the Feed-in Tariff (FiT) promising a new dawn for Photovoltaic systems.

PwC say that the conditions are such that there could be a tenfold increase in Solar PV installed capacity in ten years, but only if a number of obstacles are overcome. In order to ‘capture' this potential growth, individuals, government and firms must focus on the five big barriers: Consumer awareness, upfront funding, consistency of policy, access to capital and a UK skills shortage.

Once everyone has adapted to the changes, the FiT and other incentives will drive significant future growth while Solar PV will cease to be a ‘cottage industry' in Britain. The encouraging growth forecasts are tempered, however, by the realisation that current installed capacity of Solar PV is miniscule. Only 0.1% of the country's renewable energy is supplied by PV and after ten years of a FiT, the UK is only likely to reach the levels that Germany is at today.

Many people in the UK do not understand that, especially under a feed-in tariff, the UK can provide more than enough sun to justify a solar panel set-up. The payback achievable on solar PV installations in the UK compares favourably with levels known to have stimulated markets in other countries. Gus Schellekens, the sustainability & climate change director at PricewaterhouseCoopers LLP said, "The focus on PV is timely with recently published roadmap documents outlining the future global potential for PV technologies. While its use in the UK is small today, PV has a promising future if supported by strong government policy that sustains early deployments and supports the technology's transition to cost competitiveness."

One of the main points of the PwC analysis is that incentives and policy must be maintained to ensure consistency and confidence in future returns. Regularly changing incentives and uncertainty could lead to investors holding back causing lower growth. Currently, the UK government is considering a change to the Feed-in Tariff system, promising to establish a full system of feed-in tariffs for electricity. No greater detail has been released at a time when increased clarity would promote economic growth in this area.

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/

Emergency Budget: Coalition Government sets June 22nd date.

The coalition government will hold its emergency Budget on 22 June.

The Tories pledged before the election to hold a Budget within 50 days of coming to power to show their intention to get to grips with the deficit.

Mr Osborne confirmed the date at a briefing with Lib Dem David Laws, who is the Treasury Chief Secretary.

As part of their coalition deal, the two parties agreed to make £6 billion in spending cuts in the current year.

Labour's last Budget was held at the end of March, weeks before the start of the general election. When they came to office in 1997, Labour also held a Budget within three months of being elected.

Mr Osborne refused to be drawn on the details of next month's statement - which is expected to start at the later time of 1530 BST - but said the "bulk" of his deficit-reduction measures would take the form of spending cuts rather than tax rises.

"A new, strong coalition government is going to do what the Labour government failed to do and let Britain live within its means," he said.

New Coalition British Govt. agrees on More Feed-in Tariffs:

Less than two months after Britain's Labour Party launched its highly regarded feed-in tariff (FiT) program, the newly elected conservative/lib-dem government has announced the program will be expanded. The announcement is included in the coalition government's agreement published as the new government took office.

The coalition government of the Conservative Party, and the Liberal Democrats have issued statements in the past supporting the principle of feed-in tariffs for developing Britain's renewable energy potential.

In his first press conference since becoming chancellor, Mr Osborne announced an audit of all government spending over the past year - to be carried out by the new Office for Budget Responsibility.

He said the government will announce next week how it plans to make £6 billion in spending cuts this year, focusing on reducing the size of quangos and cutting IT, consultancy and advertising expenditure.

New Coalition British Govt. pledges to increase targets for renewables:

A document outlining the basis of the Conservative-Liberal Democrat administration states: “We are agreed that we would seek to increase the target for energy from renewable sources, subject to the advice of the climate change committee."

Both the Tory Prime Minister David Cameron and his deputy, Lib Dem Nick Clegg, expressed support for a low carbon economy in their first press conference.

Cameron promised the new government would be "passionate about building a green economy", with Clegg outlining plans to ensure "fine words on the environment are finally translated into action".

There has been considerable unease in the wind sector about Conservative plans to abolish the Renewable Obligations (RO) scheme and replace it with a feed in tariff (FiT) for large scale renewables.

The Lib Dem position has been to maintain RO, although a party environment adviser says that "positions will be worked out jointly from now on" adding that "nothing has been decided yet".

In a pledge yet to be clarified by the new government, the document promises "the full establishment of feed-in tariff systems in electricity – as well as the maintenance of banded ROCs".

The Renewable Heat Incentive (RHI) coming April 2011:

Next April, the new Renewable Heat Incentive begins. As currently proposed, it will expand twelvefold during the decade the amount of heat generated from renewable sources.

The Renewable Heat Incentive (RHI) scheme will guarantee payments for up to 23 years for those who install technologies such as solar thermal, ground or air source heat pumps, biomass boilers or bio-methane or bio-diesel projects.

It is envisaged that you will earn a fixed income for every kilowatt hour (kWh) of heat you produce. Solar thermal is expected to receive the following tariff:

Up to a 45 kW system will attract an RHI of 18 pence per kWh for 20 years*
45 kW to 500 kW will attract an RHI of 17 pence per kWh for 20 years*

The sums involved are huge. According to the published cost benefit analysis, the cumulative gross resource costs of all these payments may reach £26.7 billion. Officials are quoting publicly an even higher figure of £36 billion.

It is hoped that the scheme will help deliver 17 million tonnes of carbon dioxide savings by 2020, though two million of these are already accounted for by the European Emissions Trading Scheme. Around 85 per cent of the 73 terawatt hours of savings anticipated will be from non-residential buildings. Conversely, of the 1.87 million installations, some 1.72 million – or one in 14 – households will participate; just 144,000 installations will be made in the commercial and public sectors.

So, one in 14 households – predominantly those with spare cash to invest – will get a 12 per cent tax free return on investment. While the remaining 13 out of 14 will just see their fuel bills rise that much more.

*TBC out for consultation

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/

Solar Thermal (Hot Water) Systems

Solar thermal (hot water) systems can be extremely efficient, reducing costs and energy consumption. For a solar system to work, all they need is daylight as they can collect both direct radiation, direct sunlight on clear days, and diffused radiation, light which is present on cloudy days.

Both flat plate collectors and evacuated tube collectors have selective and non selective surfaces. In terms of which collector has best efficiency, it is dependant on your domestic use. At low temperatures the efficiency for all the collectors is very similar, but as temperatures increase all the collectors show a slight reduction in efficiency. For lowest temperatures an unglazed non-selective surface flat plate collector can be seen as most effective, hence they are commonly used to heat swimming pools, however for highest temperatures there is a very marginal difference between selective surface evacuated tubes and selective surfaces flat plate collectors, with the former being the most efficient.

In terms of costs you would expect to save between 50 -70% on your annual heating costs, as the more hot water used the greater the saving. For a family of four, a well designed solar water heating system should contribute around 1,500 kW-h and 2,000 kW-h, which will be equivalent to 50 to 65% of the household’s water heating energy needs.

Reference: The Solar Trade Association

Urban Energy

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.

We can provide systems eligible for grants of between 50% up to 100% through arrangements in place with our partners.

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 solar power a bright investment?

If you install a typical £12,500 photovoltaic (PV) system on your roof, the new feed in tariff should give you a return of at least £25,000. So what's the catch? There isn't one!

If the government offered to pay you £1,000 a year for the next 25 years, in return for an up-front investment of £12,500, you'd snap it up in a second. Well, that's pretty much the deal on offer this week after the government finally revealed what it will pay those who install electricity generating solar panels – in and around their homes – through the new "Feed-in Tariffs" (FITs).

After years of campaigning by environmental groups – helped in small part by this newspaper – the government has finally agreed to reward households and businesses installing electricity-generating measures with enough of a return to make it a serious financial, as well as an environmental, investment. If you've got the money and, crucially, a sunny, south-facing roof, you can earn a 7%-10% tax-free return, an income that will rise in line with inflation. At the same time, you get to do more than your fair share in reducing the UK's carbon­ emissions.

In the week that the energy regulator,­ Ofgem, warned the nation to expect 20% electricity price hikes by 2020, and warned future supplies were in jeopardy, investors in solar panels will have the added benefit of being a net provider of electricity, and largely insulated from future price hikes that could see household bills top £2,000 a year by 2020.

Announcing the new tariffs' introduction this week, the energy and climate change secretary Ed Miliband said the guaranteed income would be a big incentive for householders "to make the move to low carbon­ living".

"The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past."

Although Milliband announced a number of tariffs – including what the government will pay those installing wind turbines – the one that will appeal most to the average UK householder will be for installing photovoltaic (PV) solar panels – at a typical cost of £12,500.

From 1 April, households with approved­ schemes will be paid for the electricity they generate, even if they use all of it themselves.

The level of payment depends on the technology and whether it is being fitted to an existing­ home, or installed as part of newbuild. Importantly, future payments are guaranteed for the next 25 years and have been, unexpectedly, linked to inflation.

Anyone fitting a typical £12,500, 2.5kW PV system to their existing home will initially be paid 41.3p per kilowatt hour (kWh) generated. Enough, according to Miliband, to reward them with up to £900 in the first year on top of a £140-a-year saving on their bills.

The measure, which is inevitably quite complicated, is designed to reward those who reduce their own electricity consumption by installing low-energy lighting and A-rated white goods, and to ultimately export excess electricity generated back to the grid.

Households get an extra 3p for each kWh they export on top of the 41.3p they get paid for all units generated. Those building PV roof panels into a new-build home get a slightly lower tariff (36.1p per kWh). The fact that the payments are not taxed make it a particularly rewarding investment for higher-rate taxpayers – those earning more than just over £43,000.

The feed-in rates change depending on which year you install the technology. They will also apply to installations commissioned since July 2009 when the policy was announced. Early adopters, who have installed grant-assisted PV and registered­ for the ROC scheme, will also receive payments, but at just 9p/kWh. The payments will physically come from your existing electricity supplier, but will be overseen by the regulator Ofgem.

Reference: The Guardian

URBAN ENERGY

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

Homeowners with flat roofs may well find they can install a system, as will those with conventional roofs that face a few degrees either side of south, east or west. Panels perform best in unshaded sites angled towards the sun at a pitch of 30-40 degrees.

Prior to this week's announcement, grants of up to £2,500 had been available to those installing PV panels under the terms of the government's Low Carbon Buildings Programme. There are still grants available for other green technologies. FITs now provide the entire financial incentive for PV installers.

These new tariffs will allow people to turn their homes into mini-power stations. For householders who have a south-facing roof, PV panels are really worth looking at. Not only are they a sound financial investment, they will also allow you to do your part in tackling climate change.

Our homes are responsible for over a fifth of UK emissions, but by fitting renewable electricity systems and wind turbines, we can be part of a greener, safer future.

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/