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PaulS's picture

Feed-in tariffs for all

Further to the Government announcement, here are the details of the proposed feed-in tariff for microgeneration from systems like small wind turbines and solar photovoltaics. The new tariff will pay for all energy generated by your system, *irrespective of if you use it yourself or sell it back to the grid*. The amounts paid are *in addition to* any saving you will make by purchasing less electricity from your supplier and any income you earn from selling your surplus power to your electricity supplier.

The key points of the announcement are:

- 36.5p/kWh for small solar photovoltaic systems up to 4kW and 28p/kWh
for systems up to 10kW.
- 23.0p/kWh for small wind turbines between 1.5kW and 15kW.
- Replaces the current ROC system which pays 10p/kWh.
- Effective as of the 1st April 2010, but all systems commissioned from now on will qualify.
- Systems installed from now until April 2010 *will be eligible for both LCBP grants _AND_ the new tariff*.

A typical home solar photovoltaic system of 3kW, generating
approximately 2,300kWh per annum will therefore earn around £1,000 per annum, which is an additional £600, dramatically reducing payback times. (from about 20 years to about 12 years)

A typical small farm wind turbine rated at 5kW at a good location will generate estimated 13,000kWh per annum and will therefore earn about £3,000 per year, representing about 2-3 year payback, 5-7 year payback if you go with one of the majors and have everything installed by them. - That is in addition to saving you more of less your entire electricity bill!

Thanks to Howard for the tariff details.
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Here are some quotes from the paper:

Revenue from sales of electricity and ROCs from household microgeneration are exempt from income tax

We are working to have the FITs in place by April 2010

We will also allow eligible renewable installations, completed during the period between this Strategy’s publication date (15 July 2009) and the date FITs become operational, to benefit from the new support as if installation had been completed on the date the relevant scheme launches

Householders will not be required to pay back grants (already received)

We will consult on how the new support schemes
will affect installations already in place as of the date of this publication (i.e. lobby to get existing installations included!)

Government to produce National Policy
Statements (NPS), which will set out the Government’s policy on energy infrastructure to be used as the primary consideration when making decisions on proposed infrastructure (planning applications)

We expect regions (i.e. Cornwall)
to set targets for renewable energy capacity in line with national targets, or better where possible.

Reducing the number of small-scale developments • that require full
planning permission. i.e. extension of permitted
development rights (PDR) to business and public services. Some forms of distributed generation up to a certain size are already subject to PDR and we are currently assessing whether small-scale wind, air source heat pumps, and
other renewable technologies could be included.

We will support regions to review their targets for renewable energy and take a proactive, evidencebased
approach to identify appropriate opportunities for renewables as well as any genuine constraints to deployment

Scheme to provide pioneering motorists with help worth in
the region of £2,000 to £5,000 to buy electric and plug-in hybrid cars – when they hit the showrooms, which we expect from 2011 onwards

Algae Biofuels Challenge: a multi-million pound investment aimed at commercialising the use of microalgae biofuels by 2020. Algae can be grown in salt, brackish or waste water. Under favourable conditions some species double in
size every day and therefore algae could provide an oil yield per hectare 5-10 times that from any conventional energy crop.

Encouraging Adoption: Households, communities, businesses and organisations can play a part in tackling climate change and ensuring a secure energy supply by taking up microscale and community-scale renewables, from a local wind farm to a biomasspowered district heating network, solar panels or a heat pump in the house, or small-scale-wind to power a supermarket or school.

New Feed-In Tariffs will, from April 2010, provide guaranteed, long-term support payments to renewable electricity projects up to 5 MW in the form of a simple, hassle-free scheme.

From April 2011 a new Renewable Heat Incentive will provide similar incentives for individuals, community groups and businesses to install renewable heat technologies at all scales.

Encouraging community approaches: Individuals, groups and organisations can play a key role in encouraging others to
take up renewable solutions through exemplar deployments, community pressure (e.g. parents on schools) and more concerted action such as the Transition Towns and Greening Campaign movements

Transitions towns is a grassroots movement which aims to equip communities for the dual challenges of climate change and peak oil. The movement currently has member communities in a number of countries worldwide.

Case study: Westmill Wind Farm Coop155
Westmill Wind Farm Coop was the first
onshore wind farm to be built in the south
east of England, and is 100% community
owned. The Coop’s share offer, which
raised £4.6 million, has more than 2,300
members. It produces enough electricity to
power more than 2,500 homes.

Westmill was established to provide an
opportunity for all who are concerned with
the effects of climate change to become
involved in the ownership and operation
of a wind farm. It was especially aimed at groups and individuals local to the wind
farm.

In 2009, Westmill established the Westmill Sustainable Energy Trust, to encourage the
deployment of sustainable energy, in particular within 25 miles of the wind farm. Westmill is part of the Energy4All family of cooperatives, and has been supported by
a capital grant from the South East England Development Agency.