Power from solar panel could earn £900, on top of £140 reduction on household energy bill
Blueprint published for world first incentive scheme for renewable heat
Tariff levels index linked
Micro combined heat and power piloted in the scheme to kickstart the industry in the UK
Energy and Climate Change Secretary Ed Miliband today announced the feed-in tariff (FITs) levels and also published a blueprint for a similar scheme to be introduced in April 2011 to incentivise low carbon heating technologies. The renewable heat incentive (RHI) will be a world first.
The schemes are designed to bring about a significant increase in the amount of locally produced green energy, as a contribution to the wider shift of the energy mix to low carbon.
Ed Miliband said:
“The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting 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.
“It will also change the outlook for a range of industries, in particular those in the business of producing and installing small scale low carbon technology.”
From 1 April householders and communities who install low carbon electricity technology such as solar photovoltaic (pv) panels and wind turbines up to 5 megawatts will be paid for the electricity they generate, even if they use it themselves. The level of payment depends on the technology and is linked to inflation.
They will get a further payment for any electricity they feed into the grid. These payments will be in addition to benefiting from reduced bills as they reduce the need to buy electricity. The scheme will also apply to installations commissioned since July 2009 when the policy was announced.
A typical 2.5kW well sited solar pv installation could offer a homeowner a reward of up to £900 and save them £140 a year on their electricity bill.
Mr Miliband was speaking as he visited low income homes in Dagenham being helped by eaga’s Clean Energy for Social Housing project to make the move to microgeneration. The scheme offers free clean energy technology to tenants in social housing which will lower their electricity bills and carbon emissions.
John Swinney, eaga Director of Strategy and Corporate Services, said:
“By utilising the feed-in tariff initiative and installing free solar technology this programme can cut energy bills for those most in need. We are also recruiting and training renewable energy engineers directly from the local communities where the green technology is being installed.
“This innovative development can be offered right across the UK. We expect thousands of households to benefit in the first few years and up to 300 additional green energy jobs could be created as part of this programme.”
The Department of Energy and Climate Change also published today plans for a scheme to incentivise renewable heat generation at all scales. This will come into effect in April 2011 and guarantee payments for those who install technologies such as ground source heat pumps, biomass boilers and air source heat pumps.
Under the proposed tariffs the installation of a ground source heat pump in an average semi-detached house with adequate insulation levels could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.
The heat incentive could help thousands of consumers who are off the gas network lower their fuel bills and gain a cash reward for greening their heating supply.
Details of funding for the scheme will be published in the Budget 2010.
|Cash Rewards for Low Carbon Electricity and Heating||Stuart - 2010-02-02 09:26:20|
|Re: Cash Rewards for Low Carbon Electricity and Heating||Peter Henderson - 2010-02-05 22:14:06|
Well, the FITS consultation is over and the Government has decided.
There are winners and losers.
Predictably, I am one of the losers, like many of us that use this site. I just didn't realise how bad though.
I get 9.2 pence per unit as a ROC payment at present, plus 5 pence per unit for those exported. The market sets the ROC price so can go up or down, just as the price for exported units goes up or down. This has worked OK for me, allowing the amount I make in cash terms to more or less cover the amount it costs in electricity to run my home relative to current energy prices.
As of April this year, this all changes. The Government have stepped in and decided that small and microgenerators' ROCS will become FITS, and that small and microgenerators that existed under the ROCS scheme before July 2009 will get 9 pence per unit generated, and 3 pence per unit exported. This will be linked to the Retail Price Index (RPI) and will apply until 2027.
This is a loss in real terms to me. Electricity prices will rise way beyond the RPI, so the gap between the price per imported unit and the fixed price per exported unit will increase rapidly.
I have the option to sell exported units on the free market, but that is realistically never going to happen as the amounts are too small.
So that is the first area in which I lose out under the new FITS.
Next, under the new FITS scheme, you are only eligible if your generation comes from a generator registered under the old ROCS scheme, which automatically transfers across, or if you have a new system registered under the FITS scheme since July 2009. Second hand or refurbished equipment is not eligible under the scheme. So, if I want to move house and take my turbine with me, I can't. If the new buyer doesn't want the turbine, then it is only fit for parts or scrap. This is despite it being identical in every way to a brand new one. One asset that cost £22,500 reduced to nothing
If the buyer of your home would like a turbine, however, the suggestion of the Government is that when you move, you can negotiate a fair market price for the system. The buyer has got you over a barrel though, as no matter what, you can't take it with you, so that £22,500 system can be got for next to nothing. The same will be true of new systems yet to be installed that qualify under the new FITS rates.
The winners are those who have installed since July 2009. The example I can give is for a wind turbine of between 1.5 and 15 Kw/h. For the first two years of FITS you will get 26.7 pence for every unit exported. I made 15000 units last year, which gives a figure of £4005. This will run at the same rate for 20 years giving a return of £80000.Tax Free. (If you are wondering whether to get a turbine, this figure should sway you). I bought my turbine too soon though so won't get that.
So, there you go. If you are one of the losers, my commiserations, one of the winners, my congratulations. It just seems insane that two identical systems, operating side by side can be so far apart financially.
I didn't buy a turbine to make money, as will be the case for many people now, and who can blame them? I bought a turbine based on calculations made using the figures available at the time regarding ROCS and exported energy prices. The idea was that the amount of money in would balance the amount out, including annual serviceing charges, plus a bit put aside for maintenance. I am not wealthy, neither is my wife. We have a combined income of about £35000 before tax, so our turbine was a hugely expensive investment, as I expect is the case for most of the rest of us with microgeneration systems. This investment is not so good now, thanks to flawed thinking by the government on what is good for us as a FITS rate.
Sorry for the length of this rant, and maybe I am wrong and things are not so bad as painted by me, but I don't think I am wrong on this one.
It's just depressing to be treated this way when you were encourages all the way by the Government to do your bit and cut carbon emissions, get involved and make a difference, only to now be told that what you signed up for has changed and it's now, "New customers Only!."
I didn't need much persuading I suppose as my main aim was to find a less polluting heating system than the oil system we have, which is now hardly ever needed and will go when we have saved enough for a heat pump. I am also an ex Met Office weather man so need no convincing that global warming is real. I probably wouldn't have got my turbine if I had known that I would have to get by on the rates being imposed on me now.
Any body know any loopholes that can get me on to the new FITS rates? If I scrapped my old turbine, wait a year and then buy a new one will that be allowed. Not very green, but still financially profitable.
It's not easy being Green.
Rant over for all of you on this site, but I intend to pursue this one through political channels.
|Re: Cash Rewards for Low Carbon Electricity and Heating||BigSkeff - 2010-02-06 04:44:52|
To the above
"NEW CUSTOMERS ONLY"
Now where've I heard that before ?
REWARDED FOR BEING ONE OF THE FIRST EXPONENTS OF MICROGENERATION, AND HOPEFULLY ENCOURAGING OTHERS TO FOLLOW. HOW WRONG COULD WE BE.
When contemplating our project I took on board the sentiment of the 'Rio Earth Summit's Agenda 21 which promoted sustainability at a local level.
This meant, in my book, that any microgeneration installation should be able to pay for it's own maintenance, repairs and eventual replacement.
|Re: Cash Rewards for Low Carbon Electricity and Heating||Peter Henderson - 2010-02-07 09:21:06|
Here's a thought.
Prior to the new FITS scheme rules being imposed on us we were independant power generators operating under free market rules. We were free to trade our generation to any company we chose, for whatever price we chose to accept. Also, we were able to sell our generating system to anyone who wanted it, or to relocate that system to any other site subject to the usual planning laws. We were in receipt of a government susbidy, but there were no terms attached to it to stop us doing so.
It would now seem, according to my interpretation of the FITS rules, that we can no longer do so. The price of exported power is now set by the new FITS system. There is an option to trade exports on the open market, but the price we will be offered will be suppressed by the 3 pence per unit export price being offered to power companies by generators who are now being subsidised by the more generous FITS rates. Further, our ability to relocate equipment, or sell our old equipment, which is identical to equipment now being installed, has been removed. In effect, our assets have been seized by the Government.
So the questions are:-
Have we been Nationalised?
Has our right to enjoy our own property been removed?
If Yes, which seems to be the case in the first question, then the Government is in breach of United Nations Resolution 1803.
If yes, which again seems to be the case, to the second question, then the Government is in breach of the Human Rights Act.
Anybody know a good lawyer?
Further thoughts anyone?
|Re: Cash Rewards for Low Carbon Electricity and Heating||Peter Henderson - 2010-02-07 10:48:32|
Amendment to my last, it is the 1962 United Nations Resolution 1803.
|Re: Cash Rewards for Low Carbon Electricity and Heating||Ted Marynicz - 2010-02-07 13:27:51|
I feel that there seems a case for judicial review at the very least. How best to organise it? Maybe via YouGen - http://www.yougen.co.uk/equal/
|Re: Cash Rewards for Low Carbon Electricity and Heating||Ted Marynicz - 2010-02-07 19:13:29|
There is also this:
|Re: Cash Rewards for Low Carbon Electricity and Heating||muymalestado - 2010-03-01 21:09:25|
Thanks - done
|Re: Cash Rewards for Low Carbon Electricity and Heating||Peter Henderson - 2010-02-08 22:42:13|
Any chance of you all letting me know your current price per unit for ROCs and exported power?
I am trying to gather evidence to send to my MP, MSP, Energy Minister, Environment Minister, the Press, anyone willing to listen, that the Tariffs being imposed on pre July 2009 microgenerators are considerably reducing the Pay back times on the equipment we installed. In my case I wasn't looking to make a profit as I was trying to move from oil to a cleaner way of heating my house, but the system had to be able to mostly pay its own way linked to fluctuating energy prices. If I had to install under the terms imposed on me now, I probably wouldn't.
SSE pay 9.2p per ROC, 5p per exported unit.
|Re: Cash Rewards for Low Carbon Electricity and Heating||Roger Vincent - 2010-02-09 14:43:10|
|I have a 6Kw Proven in Devon (average site for wind) Taking actual figures for year 2008/2009 my total generation was 10098Kw of which I exported 6802Kw and imported 2240Kw. Generation made and used on site was 3205Kw. Npower paid me 10p per Kw exported and I sold 11ROC's by auction at £572. Npower charged me on average 16p inc distribution costs per unit. Do the maths and you will see that I will be £140 less well off using the new feed in tariff. Not much you may say but a great thanks for taking a huge finincial risk and doing my bit for green power.I agree that we should all get together and put our case using exact figures before it is too late. The answer is the paltry price that we will get for our export, a figure based on false information caused mainly by small generators who did not install an export meter initially. I am sure that my figures for export are fairly typical. Three fifths which is far more than the 50% that the government used.in their calculations. We can opt out and sell our export totals to whomever we choose. Perhaps it would be a great idea for us all to pool all of our exported generation units and sell them by auction like ROC's. I am sure E-roc would be interested to help. We all know that our electricity suppliers will jump at this golden oportunity to hike up their prices once again in the following months and causing an even more uneven playing field between us that took a gamble and the new generators that will be getting nearly three times as much. It is just not right. Roger Vincent|
|Re: Cash Rewards for Low Carbon Electricity and Heating||Peter - 2010-02-09 18:36:11|
I have been receiving 7.6p per unit for all exported power by edf from Nov 2006 - Nov 2009, (when my contract expired; edf are now offering me a new contract, but on all generated power, at 9p per unit).
RoCs have been sold through Tradelink Solutions, who paid £45-£50 per MWh generated (from which they took their 20% cut). Double ROCs will be payable for the year April 2009 - 2010, so around £80 per MWh.
|Re: Cash Rewards for Low Carbon Electricity and Heating||Peter Henderson - 2010-02-09 21:05:58|
Another area of real concern in The Department of Energy and Climate Changes "Feed in Tariffs- Government's Response to the Summer 2009 Consultation" is in the following.
If you go to page 19, section 49, you will read that the new rules will only allow new equipment access to the Feed in tariffs. Section 50, same page says refurbished equipment is not allowed. On page 32, section 115 it deals with ownership of your generating equipment when you wish to move house. Basically, your equipment remains with the house, and it is up to you to get what you can for it subject to the market.
Now , I don't know about you, but my turbine cost £22,500 to install. It is my property. When I bought it, there were no rules that said I couldn't sell it if I wished, or couldn't move it to new property if I wished. There were no rules saying that it was to remain tied to the site it is now on.
There are now.
My fears are that my £22,500 wind turbine, an asset that I worked hard for and had a real value on the open market, is now rendered effectively worthless. It can't be moved, and the second hand market has gone as only new equipment qualifies for FITS. It is fixed to the lowest value FITS Tariff. This being the lowest return, it is hardly a selling point for the wind turbine, and will affect my property value also. If you were a buyer looking for a house, would you buy one with a low Tariff turbine/solar panel/hydro scheme?
Government Genius. I have been made worse off in more ways than I could have imagined was possible.
If you agree with me, spread the word, contact MPs, MEPs, the Energy Minister, Environment Minister, BBC, Newspapers, anyone really. What right has this Government got to dictate what we can do with our own property, and render it worthless, only a scrap or spares value? Can they really do this?
It makes the FITS scheme easier for the Government to monitor if everything remains where it is installed, this is why they have done what they have done. Have they really thought through the consequences for us?
|Re: Cash Rewards for Low Carbon Electricity and Heating||mark ferguson - 2010-02-12 01:39:54|
I agree totally with your concern regarding the new FITS tariff to be introduced in April. I think any rational person would think it unfair that all current pre July 2009 installations would be put at a disadvantage in this scheme.
Referring to the non eligibility of current systems the government response was ''Many consultees disagreed with this. However, we continue to believe that allowing all existing installations access to FITs would not only increase the overall costs of the scheme but would not encourage additional generation. We therefore confirm that we will not be allowing FITs for microgeneration installations completed before 15 July 2009 that had not applied for accreditation under the RO before this date."
Surely it's not the cost of the scheme that's at issue but the fairness of it.
Is any householder going to seriously consider installing a second generator etc at considerable expense just to take advantage of this scheme. Also the EST would not under current rules offer a second grant on a similar technology.
Existing installations have undoubtedly helped to foster interest in renewable technologies and therefore can be said to have encouraged additonal generation.
I am due to install a Eoltec 6kw turbine shortly so will be one of the 'lucky' ones but will be disadvantaged under the RHI ( Renewable Heat Incentive ) as my GSHP is 6 years old.
I intend to raise the issue of current installations with my local MP/MSP.
|Re: Cash Rewards for Low Carbon Electricity and Heating||BigSkeff - 2010-02-15 20:35:49|
Re: The government response.
Quote from Mark's post above:
2. They say "would not encourage additional generation."
Therefore, I think the criteria referred to in their response INCLUDES us and any other RO accredited installation fitted pre the cut off point. Anything less is short sighted and a betrayal of early adopters.
|Re: Cash Rewards for Low Carbon Electricity and Heating||Ted Marynicz - 2010-02-16 10:32:16|
I couldn't agree with you more.
The short-sightedness of DECC is that they simply do not recognise the role played by existing systems which act as an incentive for new owners to take the plunge.
They think that the simple financial impetus given by the FITs rates are enough to get people to invest in micro renewables.
The reality is that the documented track record of data logged by existing systems provides real-world (as opposed to database predictions) of probable generation figures for potential system owners and that when installers refer potential customers to existing reference sites we all act as unpaid advisers who are able to promote renewables directly.
If DECC do see this then they don't think we should be rewarded for it.
As far as FITs eligibility conditions are concerned then anyone with a system that was installed prior to 15th July 2009 who has not registered with OFGEM for ROCs by 31st March 2010 will get nothing from FITs - anyone who does will qualify for the 9p rate.
Systems installed on or after 15th July 2009 - that are MCS certified - will get the full FIT rate. Any non-MCS systems will get nothing.
|Breach of covenant, that may put other "would be" owners off||Stuart - 2010-02-17 11:43:25|
What the Government has done or is proposing here represents a breach of faith with all those who installed a wind turbine. We carry the capital costs of installation and we thought we had a guaranteed future return rate through ROCs etc. We now see that we are losing out, and are being penalised.
The longer term impact of this could be to make others reconsider installing their own capital intensive systems in the future. Who says the government might not change it’s mind again and disenfranchise those that install systems after us.
The new system is meant to encourage finically minded investment in renewables. How can someone though make a long-term financial decision when the Government has proved that it can change an investment framework and rate of expected return. As it is doing with us.
Big investments need to be backed up by some regulated rate of return, this by nature cannot be changeable, otherwise they in effect create uncertainty in the minds of potential adopters that make the projects unviable, because the rate of return on investment is unclear.
|Re: Breach of covenant, that may put other "would be" owners off||Ted Marynicz - 2010-02-19 12:59:50|
Here's a copy of an email I have sent to PRASEG (Parliamentary Renewable and Sustainable Energy Group) who have a discussion on FITs scheduled for next Tuesday evening. See http://www.praseg.org.uk/feed-in-tariffs-%E2%80%93-delivering-a-small-scale-electricity-revolution/
I would very much have liked to have attended the PRASEG meeting on the
I wondered if it might be possible to put forward to you some of the issues that
1. The metering requirements for off-grid systems have not yet been defined.
It is currently not possible to install an off-grid system that is known to
2. No MCS accreditation guidelines for hydro installers or manufacturers.
At present all PV, wind and hydro systems up to 50kW capacity need to be both
In consideration of the fact that a long time is needed for wind systems to
The whole aspect of MCS product certification for hydro also ignores the
These failings with hydro represent a major problem for our particular area. We
3. DIY systems are no longer eligible.
Again this is a major problem for our area. West Wales has a reputation for
4. Second-hand and refurbished systems not eligible for FITs.
If any second-hand or refurbished components are used in a system then the
It effectively wipes out probably 90% of the value of any second-hand system
5. Treatment of 15th July 2009 (the publication date of the FITs consultation)
6. There are many existing system owners who are so annoyed at the conditions
Thank you for your time and I would be greatly obliged if you could consider
|Re: Breach of covenant, that may put other "would be" owners off||BigSkeff - 2010-02-19 16:53:22|
Found this on: www.microgenerators.info
Dear Mr Truelove
Many thanks for your email which was passed to me by David Cameron.
I understand the frustration at the system which has been put in place for those of you who were early users of micro-generation. When we forced the Government to reluctantly accept the principle of the feed-in tariff in the Energy Bill 2008, we had anticipated that a fair and swift consultation would encourage the uptake of micro-generation on a large scale. We are therefore disappointed that the feed-in tariff is still to come into force.
It is also clearly unfair to you that you will remain on the current funding mechanism. You will be pleased therefore to hear that we have decided that if a Conservative Government is elected, we would ensure that micro-generation equipment installed before feed-in tariffs come into effect will nevertheless be entitled to the same terms as new installations.
I hope that this is good news for you, and once again thank you for taking the time to write.
Sounds encouraging, hope it's true and they stay with it.
|Re: Breach of covenant, that may put other "would be" owners off||BigSkeff - 2010-02-19 17:09:46|
Forgot to say well done on your letter to PRASEG, excellent job.
Hope you asked for a reply. Please post it if you get one.
|Channel 4 News||Website Administrator - 2010-02-25 09:45:46|
Last night's C4 News had an item on microgeneration, but it didn't touch on the impact that the changes the new FITs scheme will have on existing installations.
I've mailed them (news [at] channel4.com] pointing them at this thread, hoping that they may be interested enough to do a follow-up piece.
|Re: Channel 4 News||Peter Henderson - 2010-02-25 20:16:37|
I have e-mailed Radio 4's You and Yours programme with my concerns about the effect of FITS on existing microgenerators. I will e-mail Channel 4 News too.If enough of us contact the same programmes we may get noticed, if we act in isolation we will be ignored. It is worth a few minutes of your time to contact DECC, your MP, and the Energy and Shadow Energy Secretary, etc. Please do so and point out that we are worse off in real terms, as opposed to their opinion that we are just a bit miffed at being left out of the new scheme. Some microgeneration systems are no longer viable because of these changes,
|Re: Channel 4 News||Peter - 2010-02-26 17:32:25|
I have written to Milibrand in similar vein - text below.
Effect of Feed In Tariff (FIT) on existing micro generators.
While generally welcoming the introduction of the new FIT, I would like to draw your attention to one aspect.
Individuals who have pioneered the introduction of new renewable generating technology and have followed Government advice and exhortations to invest in renewables, will be disadvantaged by the FIT. This is because small generators (registered before last summer), are required to transfer to the FIT at the lower rate of 9p per unit generated, losing our current (double) RoCs etc. This is a substantially worse deal overall than I and other existing generators have had for the past 3 years. Worse, the new FIT destroys the market for second hand or refurbished equipment (including the sale of a property with an existing renewable system installed), as this renewable generating equipment is not eligible to be included under the scheme. Even if I want to move house and take my turbine with me, I can not do so under the rules of the FIT. If the new buyer doesn't want the turbine, then it is only fit for parts or scrap. This is despite it being identical in every way to a brand new turbine. Having invested £26,100, our 10kW wind turbine’s value has effectively been reduced to nothing by the FIT.
I understand from ‘Good Energy’, an independent renewable energy company in Wiltshire, that the estimated additional cost of including existing renewable suppliers in the full FIT scheme, would have been around 1½% additional to the cost of the scheme; a small price, I suggest, to keep faith with those of us who have supported Government policies to invest in Renewables - and have been pioneering evangelists for your policies. Most of us did not invest to make money – but neither did we expect to be severely disadvantaged in this way. Renewable web sites and other forums are ‘hot’ with indignation and comments from existing providers, stating how they will not fall into such a Government trap again. Hardly the way to get the support of a small but important section of the community, who could have been great disciples for Government policy.
|Re: Channel 4 News||BigSkeff - 2010-02-26 21:08:25|
Just a quick question.
On the premise that lots of people move house, and some quite often.
Am I correct in thinking that even new installations will not have a resale value if the property is sold and the new owner wants rid for some reason ?
Is it also true that the original owners of post July 2009 high rate F.I.T. eligible PV or Turbine are not allowed to claim the F.I.T. at all if they take it with them and install at a new house ? or is it that they aren't allowed to even move it ?
If true they would have to start from scratch by installing new kit. How would this effect the overall payback time ?
Would this crazy rule ( which, as I see it, was concocted to stop pre July 2009 Microgenerators from swapping our turbines and PV with each other ) dissuade people from taking up microgeneration in the first place if they were likely to move in the next 20 years or so ?
|Re: Channel 4 News||Ted Marynicz - 2010-02-26 22:31:35|
As I see it DECC are so busy trying to figure out how to stop people 'gaming' the system that they keep painting themselves into ridiculous corners with poorly thought through conditions.
Each condition creates another anomaly that needs more conditions to address.
In the end it is self defeating in that these all become serious disincentives for people to install renewables in the first place - which is the whole point of the exercise but a fact which DECC seem to have completely lost sight of.
I'm currently looking at the Renewable Heat Incentive (RHI) and, if anything, it is even worse than FITs.
|Re: You and Yours||Website Administrator - 2010-03-31 12:33:29|
Are about to do a piece on FITS. Wed 31st March, 12:30pm.
Hoping they'll cover the issues raised hereabouts.
|Re: You and Yours||Website Administrator - 2010-03-31 13:00:01|
Minister David Kidney(?) got off lightly - no mention made of 2nd hand/pre-installed equipment now having essentially no resale value and he seems to be happy to discriminate between early adopters and the rest.
|Re: You and Yours||Peter Henderson - 2010-04-01 12:01:19|
Disappointing from our point of view. Didn't get to hear the programme on the day, but just listened on the i-player.I have e-mailed them a response anyway.