This scheme was introduced by the Government and commenced in April 2010, to reward owners of renewable energy technologies with a tax free payment based upon energy production of their generator. The most popular system to be installed since this scheme commenced is Solar PV, with many homeowners and businesses being in the position of claiming the Feed in Tariff, commonly known as FITs. The unforseen demand on this tariff, particuarly from large generation sites has drained the scheme and has made the Govenment and DECC review the feed in tariff for systems over 50 Kw for solar PV, and this is currently being processed.
There has been over 15,000 PV installations of 4Kw and less since FITs began, and all of these sites have just seen an increase of 4.8% in their payments, in line with ROI. All installations that take place from April 1st 2011 will automaticaly benefit from this increased tariff too.
The alternative for the larger generating sites is under urgent review, and will place particular emphasis on Anaerobic Digestion (AD) plants. This technology is more complex than PV, but the long term rewards for the owner are greater. These systems will run for 24 hours per day, compared to PV which will only operate during daylight hours, meaning greater opportunity to generate Kwh and providing the owner a greater income from the feed in tariff, giving less payback time for the outlay of your system. The system will require maintenance, a supply of feedstock and a procedure for dealing with the digestate (that can be used as a fertilizer), but is still a viable project, not only for farmers but for anyone who has waste product that can be converted into feedstock to power the source, such as papermills, factories, skip companies, waste water treatment plants etc to provide sustainable waste management. This could benefit every council refuse centre, providing there is constant feedstock to power the plant.
| Feed in Tariff 3rd March 2012 | Tariff Received |
|---|---|
| Solar PV, retrofit, installed capacity 4Kw or less | 21p per Kwh |
| Solar PV, New build, installed capacity 4Kw or less | 21p per Kwh |
| Solar PV, Installed capacity 4Kw to 10 Kw | 16.8p per Kwh |
| Solar PV, installed capacity 10kw to 50Kw | 15.2p per Kwh |
| Solar PV, installed capacity 50Kw to 250kw | 12.9p per Kwh |
| Stand alone off grid PV system | 8.5p per Kwh |
| Anaerobic Digestion, installed capacity 250kw or less | 14p per Kwh |
| Anaerobic Digestion, installed capacity 250kw to 500Kw | 13p per Kwh |
| Anaerobic Digestion, installed capacity 500Kw or more | 9.4p per Kwh |
| Export tariff | 3.1p per Kwh |
| Systems entitled to ROC payments | 9.4p per Kwh |
The Renewable Heat Incentive (RHI)
The Government announced today its new £15 million ‘Renewable Heat Premium Payment’ scheme – which will open for applications on 1st August this year until March next year which they anticipate will support up to 25,000 installations. £3m of the £15m will be set aside for registered social landlords to improve their housing stock. Details of how to apply for these funds will be announced at a later date.
Eligible technologies
· Solar thermal hot water panels - £300 grant (available to all households regardless of the type of heating system used)
· Ground Source Heat Pump - £1250 grant (for homes without mains gas heating)
· Biomass boiler - £950 grant (for homes without mains gas heating)
· Air source heat pump - £850 grant (for homes without mains gas heating)