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/
Showing posts with label offsetting. Show all posts
Showing posts with label offsetting. Show all posts
Wednesday, 12 May 2010
Tuesday, 2 March 2010
Ed Miliband unveils 'green loan' energy plan for homes!
Pay As You Save green finance, with repayments linked to the property, will require primary legislation and we'd expect them to be in available by 2012.
Plans to encourage householders to make their homes much warmer and cheaper to run have been announced by ministers.
Consumers will be offered long-term loans to install insulation, solar panels or other green technology, which they can repay through energy bills.
The government wants to save 29% of carbon emissions from UK homes by 2020.
Ed Miliband, energy and climate secretary, said: “The Warm Homes, Green Homes Strategy will remove the deterrent of upfront costs and reduce the hassle of the move to greener living.”
The government says its plans will allow seven million British households to benefit from upgrades and create up to 65,000 jobs in the green homes industry.
Mr Miliband told the BBC: "If you're potentially buying the house, what will you find? "You'll find that the energy bills are significantly lower so, say, you'll be having a few hundred pounds off your energy bills and offsetting that you'll have a couple of hundred pounds in payments. "So you'll think, well I'm better off, actually, because this house has significantly lower energy bills, although it's got this repayment built into it."
The whole house energy makeovers, which the Government wants to roll out to improve the energy efficiency of the UK's 22 million existing homes, will provide a range of technologies including insulation and small-scale renewables such as solar panels or ground source heat pumps to provide energy.
Mr Miliband said: "Helping people save energy at home can make it easier and cheaper to keep homes warm and appliances running. It is also the best way to cut our carbon emissions.
"This new approach will allow people to pay for home improvements after they have had them installed rather than before," he said. "More people will be able to get the work they want done. That means less energy used, which is good for the environment, and lower bills, which is good for families, particularly when we have cold weather like we did this winter."
The Department of Energy and Climate Change (DECC) has already been in discussions with a number of sectors including retail and banking over how the loans can be delivered, while the Government will introduce legislation to allow for the loans to be attached to homes.
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.
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.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
Plans to encourage householders to make their homes much warmer and cheaper to run have been announced by ministers.
Consumers will be offered long-term loans to install insulation, solar panels or other green technology, which they can repay through energy bills.
The government wants to save 29% of carbon emissions from UK homes by 2020.
Ed Miliband, energy and climate secretary, said: “The Warm Homes, Green Homes Strategy will remove the deterrent of upfront costs and reduce the hassle of the move to greener living.”
The government says its plans will allow seven million British households to benefit from upgrades and create up to 65,000 jobs in the green homes industry.
Mr Miliband told the BBC: "If you're potentially buying the house, what will you find? "You'll find that the energy bills are significantly lower so, say, you'll be having a few hundred pounds off your energy bills and offsetting that you'll have a couple of hundred pounds in payments. "So you'll think, well I'm better off, actually, because this house has significantly lower energy bills, although it's got this repayment built into it."
The whole house energy makeovers, which the Government wants to roll out to improve the energy efficiency of the UK's 22 million existing homes, will provide a range of technologies including insulation and small-scale renewables such as solar panels or ground source heat pumps to provide energy.
Mr Miliband said: "Helping people save energy at home can make it easier and cheaper to keep homes warm and appliances running. It is also the best way to cut our carbon emissions.
"This new approach will allow people to pay for home improvements after they have had them installed rather than before," he said. "More people will be able to get the work they want done. That means less energy used, which is good for the environment, and lower bills, which is good for families, particularly when we have cold weather like we did this winter."
The Department of Energy and Climate Change (DECC) has already been in discussions with a number of sectors including retail and banking over how the loans can be delivered, while the Government will introduce legislation to allow for the loans to be attached to homes.
URBAN ENERGY
Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care”.
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.
For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/
Subscribe to:
Posts (Atom)
