Government Subsidies – Feed in Tarrifs and Renewable Heat Incentive

 

Anyone who installs a qualifying renewable electricity system after July 15th 2009 is eligible to claim Feed-In Tariffs

Renewable generation systems are eligible up to 5 megawatts capacity.

Five MW is a lot of power, so all households and the vast majority of businesses are therefore eligible. This includes schools, hospitals, landlords, farmers, care homes, churches, supermarkets, shopping centres and so on. In fact, virtually every property in England, Scotland and Wales is eligible. It should also be noted that communities can join together to built their own community renewable energy generation schemes which will also be eligible for the tariffs as long as the output is under 5MW. This should be enough to meet the power needs of entire villages.

Anyone who installs a renewable energy systems producing electricity after July 15th 2009 is eligible to claim the tariffs as long as they produce less than 5MW of power. Virtually every property in England, Scotland and Wales is eligible.

When can I claim the tariffs?

The good news is that the Feed in tariffs went live on April 1st 2010 and the Renewable Heat Incentive tariff goes live on April 1st 2011. This means that any system you start installing now will be going live almost exactly the same time as the tariffs are so you can start benefitting immediately. Existing systems already installed and registered under the Renewables Obligation will also qualify but at a reduced rate or 9p/kWh.

The easiest way to get a renewable energy system and benefit from the Feed-in Tariffs is to find a system provider who will handle all the red tape for you (in other words all the stuff described throughout this website - and a whole lot more). They will also be able to act as an agent to claim the tariffs on behalf of the beneficiaries.

There are several technology options to consider – the best one will depend on your particular circumstances. The size will also have to be selected depending on the space available and financial considerations.

The installation will need to comply with planning consents (if required), connection requirements and other regulatory and legal obligations.

They will also need to conform with the eligibility requirements described in this section of the web site.

The main tariff depend on the size and type of system as shown in this table

Tariff Levels Table. The major benefit of the Feed In Tariffs is the generation tariff paid for every kilowatt-hour of energy produced. The level varies depending on the technology and the system size.

The Feed-In Tariffs scheme also provides two further benefits: an additional payment for surplus energy exported to the grid detailed here and a saving on energy purchased from your electricity supplier as illustrated here.

The level of tariffs paid and from when has been made complex by governments' knee jerk reaction to the success of the FiT. If you are interested in investigating the feasibility of any renewable schemes, we can help. Currently we are seeing returns on investment for 50 kWp solar pv arrays at around 14% to 16%.

WORLD'S FIRST RENEWABLE HEAT INCENTIVE LAUNCHED TO REDUCE EMISSIONS - £860M GOVERNMENT SCHEME

  • £860m government scheme expected to increase green capital investment by £4.5 billion up to 2020, stimulating a new market in renewable heat;
  • Incentive to increase number of industrial, commercial and public sector installations by seven times to 2020
  • A full system of RHI payments will be available to households from October 2012
  • In the interim, more than a quarter of the first year’s budget to be guaranteed for up to 25,000 household installations through a “RHI Premium Payment” to encourage take-up;
  • 150,000 existing manufacturing, supply chain and installer jobs to be supported

The world’s first financial incentive of its kind to revolutionise the way heat is generated and used in buildings has been launched by Energy Secretary Chris Huhne.

The Renewable Heat Incentive (RHI) will support emerging technologies and businesses in the UK, strengthening security of supply by reducing dependence on fossil fuel heating and emissions.

Energy and Climate Change Secretary Chris Huhne said:

“Renewable heat is a largely untapped resource and an important new green industry of the future.

"This incentive is the first of its kind in the world. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”

You want to reduce your carbon footprint and your energy bills, become more self-sufficient in energy, and earn some extra income. The Renewable Heat Incentive is a new Government-backed measure being introduced in 2011 to make it worth your while to produce renewable heat.

The Renewable Heat Incentive is still being designed (see here), so all the details described in this website are provisional and may change.

You earn a fixed income for every kilowatt hour of heat you produce. This is likely to be used in your own property, but if you are lucky enough to be connected to a heat network you could get an additional payment for ‘exporting’ surplus heat.

Many renewable systems produce all the heat you need, so you can consign your old oil-fired, gas or coal boiler to the scrap heap and wave goodbye to fuel bills. Some renewable heat systems might leave your old boiler in as back-up. Even then your heating fuel bills should be greatly reduced.

The major benefit of the Renewable Heat Incentive is the generation tariff paid for every kilowatt-hour of energy produced. The level varies depending on the technology and the system size.

For the average household using 15,000kW of heat a year, the Renewable Heat Incentive

will provide the following benefits if solar thermal panels and an Air source heat pump were installed:

13,700kW of heat generated paying the homeowner £1,400 a year (the kW difference being made up through energy efficiency measures such as insulation).

Biomass fuel costs could be as much as £575 per year.

Therefore the total annual benefit is £825 per year.

Further information can be found on the following Links:

http://www.ofgem.gov.uk/Sustainability/Environment/fits/Pages/fits.aspx

http://www.ofgem.gov.uk/Sustainability/Environment/RHI/Pages/RHI.aspx

 

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