Feed in Tariff and Renewable Heat incentive – Question and Answer (The live session has now finished, so no more questions can be submitted to this page. However, all of the questions and answers are listed below)
The final details of the UK’s Feed In Tariff have now been released, and the report and consultation on the Renewable Heat Incentive has been launched. On Tuesday 2 February, from 2-4pm, the Regen SW team answered your questions ‘live’ on the two schemes.
Renewable Heat Incentive, DECC consultation event – 16 March 2010, Bristol
In addition, Regen SW, in partnership with the Department of Energy and Climate Change (DECC), is running a high-profile national conference on the Renewable Heat Incentive (RHI) on 16 March in Bristol. The event will bring together around 150 national businesses and decision makers to debate the issues raised by the RHI consultation. Senior representatives from DECC will be presenting the proposed scheme and seeking feedback from the audience. There is discount of on the cost of this event for Regen SW Members.
For further details and to book your place now, visit http://regensw.eventhq.co.uk/renewable_heat_incentive_-_warming_up_the_market
February 1, 2010 at 2:09 pm |
Feed-in Tariffs will allow for a revenue to be generated for domestic micro-generation systems.
Can a person or business benefit from FiTs as well as gain funding for the installation of their system?
At what size (kWh) will an installation no longer be eligable for FiTs?
February 2, 2010 at 2:33 pm |
Hi Alex,
There is no clarity on whether you can receive grants and the FiT at this stage. In the consultation document, government set out that householders would not have to pay back any central government grants, such as the Low Carbon Buildings Programme grants, in order to receive the FiT.
However, commercial and community customers might not be eligible for the FiT if they have received a central government grant and so they may be required to pay it back. The government’s response to the FIT consultation published yestereday does not clarify this issue. It states:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
So to answer your question directly, individuals should be able to obtain grant funding as well as receiving the FIT. The situation for businesses is as yet unclear.
Installations under 5MW in size will be eligible for the FIT. Installations between 50kW and 5MW will have the choice (depending on when they were installed) between support through the FIT or the Renewables Obligation. (See p.45/46 of the government’s response to the FIT consultation for details).
Hazel Williams, sustainable energy analyst
February 2, 2010 at 3:28 pm
On page 43 of the response ‘Interaction with other policies’, Para 168 it says:
“In addition to FITs, various other policies provide direct or indirect incentives for small scale renewable technologies. FITs will not make any special provisions for such schemes. However limitations may be imposed through the other schemes.”
This seems to suggest that FITs won’ t discrimate if you have received some local authority funding for example, but that in future some schemes may exclude those in receipt of FITs.
February 10, 2010 at 12:49 pm
Please note the following FAQ about the Low Carbon Buildings Programme and FIT has appeared on the Energy Saving Trust website:
“Will I be eligible if I have already received a grant?
Domestic installations which received a grant will still be eligible for the Clean Energy Cashback.
Non-domestic installations (charities, schools communities and other not-for-profit organisations) which received a grant under LCBP-2 after 15 July 2009, have the choice of either:
• retaining their grant and not being eligible for FITs;
• or repaying their grant and claiming FITs.
Those who received a LCBP-2 grant before 15th July cannot claim the Clean Energy Cashback. However, up to 31st march 2010 they may be able to apply to Ofgem for a ROC, to qualify for the lower tariff of 9p/kWh, as well as the 3p/kWh export tariff.”
February 1, 2010 at 3:28 pm |
Thanks for this opportunity.
A state secondary school I am involved with is awaiting planning permission to retrofit a 7.2kW PV scheme that will cost £ 41,000 to install, with the government guideline generation of 5,760 kWh per year. Assume that the feed-in tariff would provide £ 2,079 per annum for years 1 and 2 and £ 1,900 thereafter.
We currently have 50% funding offer under the Low Carbon Building Programme phase 2 which we would need to complete before 5 July 2010. Would the tariff drop to 9p/kw if we took up this offer?
Jerry Kent
February 2, 2010 at 2:47 pm |
Hi Jerry,
Firstly, leaving to onside the issue of the grant, your 7.2kW PV scheme would be eligible to receive 36.1p per kWh generated for 25 years. If it generated the expected 5,760 kWh per year, this would provide you with a generation payment (as you rightly say) of £2079 per year.
The rate you received would not decrease in year 3 – the decrease set out in the rates is for new projects registered in year 3. Projects continue to receive the generation tariff that was set in the year they registered for the full 25 years (in the case of PV) that they receive the FIT for.
You would also receive an export payment for all electricity that you export to the grid for the 25 years. The rate for this payment is currently set at 3p/kWh exported. This rate may be changed during the life of the scheme, which would affect the rate that you received.
Whether or not you can receive the Low Carbon Building Programme Phase 2 funding and still be eligible for receiving the FIT is not yet clear.
However, the 9p/kWh rate is not relevant to your project. What could happen is that if you receive the grant, you won’t be eligible for any FIT payments, unless you pay back the money that you have received.
The government’s response to the consultation published yesterday stated:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
The original consultation document also set out that householders grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid.
Sorry that we can’t be of more help in clarifying this issue – it looks like government has not yet decided. We will continue to lobby government for clarification.
Hazel Williams, sustainable energy analyst
February 1, 2010 at 3:33 pm |
Do the renewable elements of the installation have to accredited by BRE?
February 2, 2010 at 5:13 pm |
Hi Peter,
For technologies where there is a viable Microgeneration Certification
Scheme (MCS) process (wind, solar PV and hydro – up to 50 kW, and domestic scale microCHP), installations will need to be installed by MCS accredited installers and to be MCS accredited products (please see other responses on the issues surrounding micro-hydro).
BRE is just one of the certification bodies for the MCS scheme. Please see http://www.microgenerationcertification.org/Certification+Bodies for the full list.
For other technologies, generators will need to approach Ofgem and seek
accreditation under a similar process as exists currently for the RO.
Hazel Williams, sustainable energy analyst
February 1, 2010 at 3:34 pm |
Count me in
February 1, 2010 at 4:19 pm |
FiTs are to be “index linked”. How will that interact with annual degression? First uplift the FiT by inflation (which index?), then apply 7% degression?
February 2, 2010 at 2:55 pm |
This is not a reply – I just want to say this is an important question!
February 2, 2010 at 2:56 pm |
Hi Steve,
The FiTs are due to be index linked to the Retail Prices Index (RPI).
Degression for many of the technologies has not been included in the latest design of the scheme. In the current design of the scheme, only tariff rates for wind below 100kW in size and PV installations are degressed.
Rather than suggesting a percentage degression rate for these tariffs, the proposed tariffs for the first 11 years of the scheme are set out in the final page of the government’s response to the FiT consultation. Any inflationary uplift could therefore be applied directly to these proposed rates.
Please note that the degressed rate will only apply to new schemes registered in that year. Schemes registered in year 1 will continue to receive the same year 1 rate for the full 20 years (or 25 years in the case of PV).
Hazel Williams, sustainable energy analyst
February 2, 2010 at 3:18 pm |
Thanks Hazel for the clear explanation. I hadn’t spotted the 11 year run of FiT rates. Haven’t come across FiT index linking elsewhere; certainly not in Germany, which is my research focus (PhD student with EERU, OU), where the rate once set remains the same.
You’re right to spell out what ‘degression’ means, i.e. to the FiT rate which applies according to year of installation, thereafter constant – apart from that inde linking! – for 25 years. That’s the same in Germany.
February 1, 2010 at 4:57 pm |
Hi What criteria does a wind turbine & installer need in addition to CE for the feed in tarrif to be applied.
Plus are payments applicable to already installed turbines.
thanks
February 2, 2010 at 5:28 pm |
Hi,
For turbines less than 50kW they need to be on the MCS accredited list. See here:
http://www.microgenerationcertification.org/Home+and+Business+Owners/Microgeneration+Products/Wind+Turbines
For installations below 50kW, the installer also needs to be MCS accredited.
For larger scale technologies, the onus is on the customer to approach Ofgem and seek accreditation for their installation under a similar process as exists currently for the RO.
Payments are available for some currently installed turbines. It depends on the date that they were installed and the size of the installation.
Below 50kW, if the installation received ROCs and was installed before 15 July 2009, it will automatically be transfered to the FiT to a generation tariff of 9p/kWh. If this type of installation was not registered for ROCs, it will not be eligible for FIT payments.
Turbines below 50 kW and installed between 15 July 2009 and 1 April 2010 will be eligible for the FiT, subject to registering for the scheme.
Turbines above 50kW and below 5 MW and installed between 15 July 2009 and 1 April 2010 have the one off option of receiving the FiT or ROCs.
Turbines above 50kW and below 5MW installed before 15 July 2009 will remain in the RO and not be able to transfer to the FiT.
Hazel Williams, sustainable energy analyst
February 1, 2010 at 5:08 pm |
Is the accreditation process prohibitively expensive? Evidence would suggest it does not even guarantee an effective product.
Proven 15kW anyone?
Not only does the accreditation scheme prevent manufacturers from coming to the market, but it is clearly failing in its primary objectives.
February 2, 2010 at 2:46 pm |
Dear Shaun
The Government has been very clear that the MCS accreditation process will be mandatory in order to protect consumers. I can see no prospect of this changing.
Regen SW and EST have jointly recently appointed a Microgen coordinator who will be looking at any ways of improving quality and availability of accreditation/training in the south west and any ways we could help improve it.
February 1, 2010 at 5:19 pm |
I have a 2.88kW PV array on my house, erected about 6 years ago, on which I currently receive a payment of 12p per unit for exported units (about half the output) plus ROCs. I understand that under the new system I will receive a flat rate of 9p per unit for everything my system generates and that the ROC arrangement will automatically cease. Is that correct?
Crispin Aubrey (Nether Stowey, Somerset)
February 2, 2010 at 2:35 pm |
Hi Crispin,
You will have to transfer to the feed in tariff and so the ROC will automatically cease.
You will then receive 9p/kWh on everything that your system generates. You will also receive 3p/kWh on everything that your system exports to the grid. You will receive payments until 2027 under this arrangement. The 9p/kWh is a fixed rate that will remain constant until 2027; the 3p/kWh may be subject to review in the future.
Best wishes,
Hazel
February 1, 2010 at 9:14 pm |
Do the announcements mean that biomass CHP will not be eligible for the feed-in tariff but may be eligible for the renewable heat incentive?
February 2, 2010 at 2:08 pm |
Hi Alistair,
You’re right – Under the proposed schemes, the heat from biomass CHP will be eligible for the renewable heat incentive, but the electricity from biomass CHP will not be eligible for the FIT. However, the installation will still be eligible for the Renewables Obligation.
In addition, there are some rules regarding the RO “uplift” that has been offered since April 2009 to support renewable combined heat and power. Since the introduction of the uplift, in most cases the RO grants an additional 0.5 Renewable Obligation Certificates (ROCs) per MWh of electricity produced from a renewable CHP plant over that generated by an electricity-only system using the same technology. Please see the following text from page 67 of the Renewable Heat Incentive Consultation.
“For RO-eligible CHP stations installed after the publication of the Renewable Energy Strategy (15 July 2009), there will be a one-off choice to claim RO + uplift, or RO (without uplift) + RHI. Once a station has become accredited under the RHI as well, it will not be possible to reverse this decision.
• This transitional arrangement would be available for new installations completed before the implementation of the review of the Renewables Obligation in 2013.
• Operators of such CHP stations could decide between uplift and RHI at any point between the start of RHI in 2011, and 2013.
• Once the choice is made, stations will be “grandfathered” on this basis.
• After 2013 the RO uplift will no longer be available for new installations, and all new CHP stations will be able only to claim the basic RO tariff + RHI.”
Hazel Williams, Sustainable energy analyst
February 2, 2010 at 2:50 pm
Phew! Can someone put this more simply?
Biomass CHP will not get FITs?
New biomass will get RHI, but existing Biomass will not?
February 2, 2010 at 6:14 pm
Electricity from biomass CHP will not be eligible for FITs, but will continue to be eligible for ROCs. The heat generated will be eligible for RHI.
There is also some detail for projects installed between 15 July 2009 and 2013 about whether they choose to receive the ROCs plus the RHI, or to receive ROCs including an uplift for CHP and no RHI payment. See page 67 of the RHI consultation document to understand this in detail.
Hazel
February 2, 2010 at 3:51 pm |
The way I understand it:
Paragraph 35 of the response excludes biomass CHP and non-renewable microCHP.
Paragraph 39 says that biomass will to receive support through the
Renewables Obligation at all scales.
Because of wider issues (“fuel sustainability, diversion from more efficient end-point uses and air quality concerns”) it seems that support for biomass/renewable CHP will be expected to come through the RHI (see p12 RHI consultation document.)
All will be looked at again when the scheme is reviewed.
February 2, 2010 at 4:43 pm
Hazel says: “Under the proposed schemes, the heat from biomass CHP will be eligible for the renewable heat incentive, but the electricity from biomass CHP will not be eligible for the FIT. However, the installation will still be eligible for the Renewables Obligation.
Simon asks: “Imagine a new build biomass CHP with a CAPACITY of 500kW and with heat sales of x kWHrs.
Would it get RHI of 6p on each kWHr it SELLS or PRODUCES? Imagine the purchaser of the heat installs ORC technology to generate electricity.
Would they get ROCs but not FiTs?
February 1, 2010 at 10:24 pm |
Will new installations of wind/AD/PV be eligible for FIT’s if they receive grant support towards the new installation.
Eg say an AD plant or wind turbine receives a 25% grant could the owner still receive FIT’s.
Do FIT’s affect eligibility for interest free loans from the carbon trust?
thanks
Mike Rowe
February 2, 2010 at 2:10 pm |
Hi Mike,
Whether grants will need to be paid back before the feed in tariff can be claimed is not clear from government’s response to the consultation.
The issue is not clarified in the document published yesterday which states:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
The original consultation document also set out that householders grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid. However, grants other than central government grants will not affect eligibility for the FIT (e.g. European or local grants).
Sorry that we can’t be of more help in clarifying this issue – it looks like government has not yet decided. We will continue to lobby them for clarification.
There is nothing to suggest that interest free loans from the Carbon Trust would be affected by the state aid rules – as they are loans rather than grants.
Hazel Williams, Sustainable energy analyst
February 10, 2010 at 12:51 pm
Please note the following FAQ about the Low Carbon Buildings Programme and FIT has appeared on the Energy Saving Trust website:
“Will I be eligible if I have already received a grant?
Domestic installations which received a grant will still be eligible for the Clean Energy Cashback.
Non-domestic installations (charities, schools communities and other not-for-profit organisations) which received a grant under LCBP-2 after 15 July 2009, have the choice of either:
• retaining their grant and not being eligible for FITs;
• or repaying their grant and claiming FITs.
Those who received a LCBP-2 grant before 15th July cannot claim the Clean Energy Cashback. However, up to 31st march 2010 they may be able to apply to Ofgem for a ROC, to qualify for the lower tariff of 9p/kWh, as well as the 3p/kWh export tariff.”
February 2, 2010 at 8:21 am |
Will installations of PV fitted and commissioned between 15th July 09 and 1st April 2010, which haven’t applied for accreditation for the RO, be able to access the FIT? The Government Response document suggests that microgenerators that apply for accreditation under RO in this period are eligible, but haven’t mentioned microgenerators who haven’t. Are all installations in this period automatically eligible for FIT, or could a microgenerator miss out if not accredited under RO.
To coincide with this, if a microgenerator receives payments from an electricity company, when the electricity company receives the ROC’s instead, would this still count as accredited under the RO?
February 2, 2010 at 3:17 pm |
Hi Jackson,
The diagram on page 18 of the government’s response to the FIT consultation should help clear this up for you. http://www.decc.gov.uk/en/content/cms/consultations/elec_financial/elec_financial.aspx
This diagrame shows that all microgeneration installations commissioned between 15th July 09 and 1st April 2010 will be eligible for the FIT, but need to go through a different process if they have not registered for the RO in this period.
If the installation is MCS “compliant” – I assume this means installed by an MCS accredited installer – then the microgenerator needs to contact their installer to register for the FIT (more details on this process are not included in this document).
If the installation is not MCS compliant, the microgenerator needs to go through a registration process (similar to the RO process). Again details of this process are not included in this document.
The second part of your question is not answered by the government’s document, but I would assume that a microgenerator who receives payments from an electricity company, when the electrcity company receives the ROC’s instead, would count as accredited under the RO as you suggest.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 9:23 am |
Can you provide an example of how the net value to the producer of electricity produced from an anaerobic digester with a rated output of 300kW would be made up.
Would the following be the value of the electricity going to the grid?
Feed in Tariff 11.5p
Export Tariff 3p
Wholesale p/kW 5p(?)
Would the cost to the producer for domestic use be the wholesale price?
What about carbon levy etc?
February 2, 2010 at 3:30 pm |
Hi Peter,
As I understand it, the wholesale price would no longer be applicable. This is not clarified in the document published by DECC yesterday and we will seek further confirmation.
Under the new scheme, the 300kW anaerobic digester would receive 11.5p per kWh of electricity generated (regardless of whether it is exported to the grid or used on site) (the generation tariff).
It would also receive 3p/kWh of electricity that is exported to the grid.
The owner would not pay for electricity that they used that was generated onsite (from the anaerobic digester).
I’m not quite sure what you mean by the carbon levy. Renewable energy (which includes anaerobic digestion) is exempt from the climate change levy.
Hazel Williams, sustainable energy analyst
February 3, 2010 at 9:37 am
Hi Hazel,
Sorry – forget the carbon levy………
If the wholsale price is no longer applicable it would seem that there is no incentive to move from ROCs to FiT whatever the output of the anaerobic digester.
Currently the receipts for electricity generated by a 300kW anerobic digester would be about 14.5p/kWh and the supplier would be able to buy back the electricity at best price.
Unless I am missing something?
Peter
February 2, 2010 at 9:34 am |
Dear Regen SW
Please advise the situation with existing PV installations who already claim ROC’s and sell their green energy to a Utility. What is the conversion process to the FIT system for 1) Domestic PV 2) Commercial PV, 3) Public Sector PV, 4) PV used in ESCO’s
Best Regards, Michael Pitcher MD
February 2, 2010 at 2:13 pm |
Thanks Michael,
It is the date that the installations were commissioned (and their size) that are the critical issues , not the ownership of the installation.
The following rules apply to PV, hydro and wind microgeneration installations (installations of less than 50kW – realistically this will cover all the PV options you set out). Different rules apply to small scale installations (over 50kW and under 5MW) depending on the date they were commissioned.
• As of 1 April 2010, PV, hydro and wind microgenerators will not be eligible for support under the RO.
• Microgenerators who have applied for accreditation under the RO on or before 31 March 2010 will have this accreditation transferred to the FITs scheme. In the case of wind, hydro and solar PV microgenerators transferring from the RO, they will not be required to meet the MCS accreditation requirements for new microgenerators in these technologies. However, all microgenerators transferring from the RO will still need to find a supplier in order to access FITs. Generators will need to find a supplier within 6 months of the start of the FITs scheme (i.e. before 1 October 2010) in order to avoid any interruption to their support.
• Microgenerators that had applied for accreditation under the RO before 15 July 2009 (the publication date of the Renewable Energy Strategy and the Consultation on Renewable Electricity Financial Incentives 2009) will transfer to FITs at a generation tariff of 9p/kWh and will receive support until 2027. They will also receive the export tariff.
• Microgenerators that commissioned and applied for accreditation under the RO on or after 15 July 2009 and before 1 April 2010 will transfer to FITs at the appropriate tariff level for their scale and technology, and will receive support for 20 years (25 years for solar PV). For example, if the PV panels were commissioned on or after 15 July 2009 and were less than 4kW in size and retrofitted, they would receive 25 years of support at a generation tariff of 41.3 p per kWh, as well as the export tariff.
Hazel Williams, Sustainable energy analyst
February 2, 2010 at 9:38 am |
Hi – this may already have been asked – but if a local authority has recently recieved a grant under the LCBP Phase II for a civic building – do we have to pay back the grant before we recieve feed-in tariff?
Are there any restrictions for LAs claiming the feed-in tariff which we need to be aware of? c
kind regards
Paul McIntosh
Sustainability Officer
NDDC
February 2, 2010 at 2:15 pm |
Hi Paul,
Whether grants will need to be paid back before the feed in tariff can be claimed is not clear from government’s response to the consultation. The issue is not clarified in the document published yesterday which states:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
The original consultation document also set out that householders grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid. However, grants other than central government grants will not affect eligibility for the FIT (e.g. European or local grants).
Sorry that we can’t be of more help in clarifying this issue – it looks like government has not yet decided. We will continue to lobby them for clarification.
In terms of other restrictions on local authorities claiming the FIT, there aren’t any that are immediately obvious and in general government appears to be trying to support local authorities to install renewables:
“Local authorities will be able to access the FITs to support investments in renewable electricity generation, for example on their own buildings, and announced in the Pre Budget Report that they would consider the scope for local authorities to borrow against the income streams from FITs (and the Renewable Heat Incentive). We are also keen for local authorities to work with other partners on community scale renewable electricity schemes which can be supported by FITs.”
However, as you may be aware, the Carbon Reduction Commitment was renamed the CRC Energy Efficiency Scheme late last year, as companies will have to buy carbon allowances to cover energy used from onsite renewable sources. Disappointingly this means that while you can claim the FIT (or RHI) for local authority installations, you won’t also get the benefit of reducing the carbon that you have to buy allowances for through the CRC.
Hazel Williams, Sustainable energy analyst
February 2, 2010 at 10:02 am |
I installed solar PV in October 2008. Why am I being penalised by being paid 9p/unit compared with installers after July 2009? My neighbour with an identical system will be paid 41.3p. I get less than 22% of his payment. Why? The tariff I am on now with my current provider pays me per unit exported (28p) through ROCs which I am very happy with. Now I will lose £100 a year by transferring to FITs. The change is mandatory. Why. Why am I being forced to be paid £100 less than I am being paid now when new installers will get nearly 5 times more than me?
February 2, 2010 at 2:11 pm |
Dear Alan
Regen SW, along with many others, made vigorous representations on this point – the Government has chosed to stick with its position not to reward early adopters.
If you want to continue the campaign I would suggest writing to your MP.
February 2, 2010 at 10:15 am |
Are you able to give clarification on the double funding issue with regard to capital investments in renewable heat technology, and what are the implications for the FiT re renewable energy with regard to double funding?
Thanks
February 2, 2010 at 11:32 am |
I would like to know more about the definition of installation. I don’t think the definition is very clear. How distant the plants should be? Address, map reference and electricity meter identification is not enough to define a site. Can I have 2 5MW plants on 2 different land registry tiles , with 2 different meters, with 2 different owners but one next to each others?
Thank you
February 2, 2010 at 2:54 pm |
Paola,
I think the best we can do is give the extract from the Government’s FIT response on this issue (see p15). If you have an example where this gives insufficient clarity we suggest you contact DECC.
Tony Norton
Definition of and installation / site
Given that the Energy Act 2008 places a total capacity limit on individual FITs installations, and that the tariffs will be banded by technology and total installed capacity, we recognise the need to establish how an individual installation is defined in order to verify capacity limits per installation. We aim to avoid creating perverse incentives such as under-sizing plants or registering two installations by splitting one installation artificially into two in order to benefit from FITs or a higher tariff within FITs (e.g. a 6MW wind farm made up of four 1.5MW turbines “split” into two 3MW wind farms made up of two 1.5MW turbines). However, we believe that the structure and levels of FITs and their interaction with the RO are such that the risks of this behaviour will be small. The draft licence modifications and the FITs order will set out provisions to minimise these risks. The key provisions are:
• if a generator installs two different technologies on a single site (e.g. a PV panel and a wind turbine) they will be classed as two different installations;
• if the generator has multiple installations of the same technology, they will be classed as a single installation site when determining the tariff;
• site is defined in relation to a number of factors including address, map reference and electricity meter identification;.
• any expansion of an installation within 12 months (of the same
technology) will be treated as an increase in the capacity of the
installation; if an expansion takes place more than one year after
confirmation in the Central FITs Register, the expansion will be treated as a separate station – the original installation will be treated as having continued in the same class, while the new installation will be rated at the capacity of the aggregate of the two stations
February 2, 2010 at 12:38 pm |
As i understand it, Micro hydro installers will have to be MCS accredited to deliver a FiT capable installation but there does not appear to be a promulgated MCS standard for hydro installers or products – at least as far as the MCS website is concerned. What is actually going on to resolve this and what qualifications should any installer have in the meantime??
February 2, 2010 at 3:07 pm |
Hi Francis,
According to BRE the requirements for micro hydro are still under discussion. A working group is due to meet this Thursday. If the meeting goes to plan, this group should be agreeing final arrangements for micro hydro.
Difficulties in agreeing standards appear to have included the bespoke nature of micro hydro and the difference in the range of skills required for the smaller and larger projects.
Keep checking the MCS website http://www.microgenerationcertification.org/ for more information.
BRE should also notify installers through the greenbooklive. This should be in the next 3 – 4 weeks.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 1:12 pm |
WE have a number of customers who have boilers and who will need the RHI to keep them from switching off biomass and trunging back on to the gas grid to which they are already connected. How do these people stand.
February 2, 2010 at 2:35 pm |
John,
The consultation suggests that projects which meet the RHI eligibility criteria that were completed after 15 July 2009 will be eligible to receive RHI payments but not those before this date. Para 2 on p64 recognises the problem you highlight here but DECC says it lacks evidence … so its important for you to participate in the consultation and provide any evidence you have.
Tony Norton
February 2, 2010 at 1:20 pm |
FIT:
I can’t find any reference to eligiblity for schemes receiving a national government grant (Biocaptial or Low Carbon Buildings). There was reference in the consultation documentation to householders being able to claim a LCBP grant and the feed-in tariff whilst LCBP Phase 2 applications were deemed to be only able to claim one or the other. However, the final decision report doesn’t seem to mention any of this?
RHI:
The press release indicates that the RHI will make low carbon heat systems cost effective for householders currently off gas grid. However, the rates look to have been set pretty high (over 5p/kWh) and much higher than the 1-3p/kWh that was previously rumoured. Am I missing something? Surely at these high rates even on-gas-grid sites would be able to get a return on a low carbon heating installation?
February 2, 2010 at 5:49 pm |
Hi Digby,
FIT
Whether government grants will need to be paid back before the feed in tariff can be claimed is not clear from government’s response to the consultation. You are right to say that the issue is not clarified in the document published yesterday. It states:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
As you mentioned, the original consultation document also set out that householders’ grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid. However, grants other than central government grants will not affect eligibility for the FIT (e.g. European or local grants).
Sorry that we can’t be of more help in clarifying this issue – it looks like government has not yet decided. We will continue to lobby them for clarification.
RHI
These are of course provisional rates. They are designed to offer a return on investment of up to 12% (6% for solar thermal) on the additional capital cost of installing a renewable installation beyond a fossil fuel powered installation.
There is some allowance in these figures for the inconvenience or “hassle factor” of installing a renewable system (e.g. digging up the garden to put in a ground source heat pump). The incentive levels are designed to stimulate the much needed investment in renewable heat that the UK needs if it is to meet its 2020 15% generation target.
Hazel Williams, sustainable energy analyst
February 3, 2010 at 9:34 am
Thanks Hazel,
Your reply (to me) implies that the situation is still undecided for BOTH householders and non-domestic buildings in terms of LCBP grants.
However, your response to Bill Jackson below is clear that householders will be able to receive a LCBP and the FIT.
Where in the latest report does it confirm that?
Digby
February 3, 2010 at 10:38 am
Hi Digby,
You’re right that the latest document does not confirm the situation for householders. However, it was set out on page 66 of the UK Renewable Energy Strategy:
“These arrangements [payment of the FIT/RHI] will also apply for householders if the heat or electricity installation in question receives a grant. Householders will not be required to pay back grants.71 However, for recipients other than householders we may require such grants to be paid back in order to receive RHI or FIT support.”
We will be pushing government to confirm the situation for all types of potential grant recipients as soon as possible.
Hazel
February 2, 2010 at 1:28 pm |
Will all those who have fitted heat pumps be able to claim if they have been installed prior to the RHI coming into effect?
February 2, 2010 at 2:37 pm |
Peter,
The consultation (p64) suggests that projects that meet the RHI eligibility criteria that were completed after 15 July 2009 will be eligible to receive RHI payments from the proposed start date of the scheme (April 2011) as if their installation had been completed on that date. It is proposed that installations completed before this will not be entitled to support.
Tony Norton
February 2, 2010 at 1:38 pm |
Hi,
Which grants will be excepted and what will the criteria be?
cheers
February 2, 2010 at 5:58 pm |
Hi Bill,
For both the FIT and the RHI, the issue of whether installations can receive central government grants and the FIT/RHI is as yet undecided for non-domestic projects. For domestic projects, government has stated that they can receive central government grants (such as Low Carbon Building Programme Phase 1) and the FIT/RHI.
For non-domestic projects (community and commercial) there might be a requirement to pay back any central government grant in order to receive the FIT/RHI. However, this is as yet undecided.
We will continue to lobby government for clarification on this significant issue.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 1:51 pm |
I understand that log stoves are outside the scope of the RHI. Is there any way in which they could be brought within its ambit, for example i they are the principal means of heating and hot water in the house feeding a wet heating system through a back boiler?
I understand there might be problems with deeming as they are often used as a ‘lifestyle’ product but if a remotely readable heat meter were fitted this could overcome the problem of occassional use.
February 2, 2010 at 4:23 pm |
I think that the Stove Industry Alliance and possibly other manufacturers associations have been campaigning on this. Metering is certainly an issue but there is also the question of the extent to which stoves displace other forms of heating or are additional to them.
It may well be possible to generate sufficient energy for space and water heating but you may be aware that stoves with back boilers are less able to heat space.
In an over specified system it is also possible to lower the temperature to a point where combustion is incomplete resulting in an inefficient burn and additional emissions. The efficiency of non-integrated back boilers is also relatively low compared to biomass boilers which can be up to 90% efficient.
I think DECC will require a lot of evidence before they consider wood stoves for the RHI.
February 2, 2010 at 4:29 pm |
Andrew
You are correct that log stoves wont apply. Its not clear whether the back boiler element could qualify – this is an issue we will raise in the consultation and i would encourage you to do so directly as well.
February 2, 2010 at 1:53 pm |
We would like some clarification on recipients of Low Carbon Buildings Programme Phase 2 funding. Can they claim FITS? Do they have to pay back the LCBP grant in order to qualify?
February 2, 2010 at 3:41 pm |
Hi Tim,
Whether LCBP phase 2 grants will need to be paid back before the feed in tariff can be claimed is not clear from government’s response to the consultation.
The issue is not clarified in the document published yesterday which states:
This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.
The original consultation document set out that householders grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid (such as LCBP Phase 2). However, grants other than central government grants will not affect eligibility for the FIT (e.g. European or local grants).
Sorry that we can’t be of more help in clarifying this issue at this stage – it looks like government has not yet decided and in part the decision depends on state aid rules.
We will continue to lobby government on this issue.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 3:58 pm
Hazel
Thanks for this – I had picked up from earlier responses that this was the case. It does feel that DECC have rushed this response (although it is well past the original published date for a response) and left a number of unanswered/vague issues that they need to provide clarity.
Are DECC going to see the questions being asked today and encouraged to issue a FAQ?
February 2, 2010 at 6:03 pm
Thanks Tim,
We will certainly be lobbying DECC in some format using the views gathered here today. In particular it is vital that they provide clarification on the issue of grants as soon as possible!
Hazel
February 2, 2010 at 1:58 pm |
It is proposed that RHI payments are to be made based on the heat load of the property. If the customer requires underfloor heating, the heat load will reduce compared to using radiators. Therefore will the RHI payments be less to those customers who choose underfloor heating rather than a coventional radiator based system?
February 2, 2010 at 3:11 pm |
Andy,
As you say, RHI payments for small and medium installations will be “deemed” rather than metered based on the “reasonable heat requirement” that the installation is intended to serve (see p42). SAP and SBEM are mentioned as methodologies for calculating heat requirement. The methodology should calculate the building’s heat requirement which is a function of the building fabric rather than the energy delivery system (i.e. radiators or under floor heating).
Tony Norton
February 2, 2010 at 2:00 pm |
Can you please publish everyones questions and your answers. This would undoubtedly cover the entire range of likely Q & A.s and would help most of us not familiar with the report to quickly assimilate the likely issues.
February 2, 2010 at 2:02 pm |
If grants have been received for a project, will it still qualify for the renewable heat incentive/feed in tariff
February 2, 2010 at 4:06 pm |
Hi Mike,
For both the FIT and the RHI, the issue of whether installations can receive central government grants and the FIT/RHI is as yet undecided for non-domestic projects. For domestic projects, government has stated that they can receive central government grants and the FIT/RHI.
For non-domestic projects (community and commercial) there might be a requirement to pay back any central government grant in order to receive the FIT/RHI. However, this is as yet undecided.
We will continue to lobby government for clarification on this significant issue.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 2:03 pm |
What is the position for community projects that may receive a LCBP or other Govt grant and eligibility for FIT?
Also interested in the banding that a 100kw installation would fit into.
February 2, 2010 at 3:45 pm |
Hi Mike,
Whether LCBP phase 2 grants and other central government grants will need to be paid back before the feed in tariff can be claimed is not clear from government’s response to the consultation.
The issue is not clarified in the document published yesterday which states:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
The original consultation document set out that householders grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid (such as LCBP Phase 2). However, grants other than central government grants will not affect eligibility for the FIT (e.g. European or local grants).
Sorry that we can’t be of more help in clarifying this issue – it looks like government has not yet decided and in part the decision depends on state aid rules.
We will continue to lobby them on this issue.
The generation tariffs are dependent both on the size of the installation and the type of technology. See the final page of the government’s response to the FiT consultation for full details of the proposed tariff rates:
http://www.decc.gov.uk/en/content/cms/consultations/elec_financial/elec_financial.aspx
Hazel Williams, sustainable energy analyst
February 2, 2010 at 2:04 pm |
I do not have a specific question but am interested in ‘listening’ to this debate. I hope by this submission, I will be linked in.
February 2, 2010 at 2:06 pm |
Will biomass CHP be eligible for both the RHI and the FIT and would a 6th round bioenergy capital grant need to be paid back if the owner decided to claim either RHI, FIT or both?
February 2, 2010 at 5:12 pm |
Gillian,
Biomass CHP is not among the technologies listed as eligible for the FIT so biomass CHP will need to go with the RO and the RHI. Grants may need to be returned if you take the RHI but if your project works with the grant our advice would be to take it and consider the RHI option as things become clearer (assuming your scheme is >500kW there is a range from 1.6 -2.5p/kWh in the consultation) . Both topics are covered on p 66 & 67 of the RHI consultation document.
Tony Norton
February 2, 2010 at 2:08 pm |
Hello
I would like to know:
1) I have encountered alot of complaints from companies working in the biomass energy industry regarding the Microgeneration Certification Scheme (MCS) which is viewed as both expensive, onerous and also bordering on being protectionistic and not encouraging trade or renewable energy. Are the government aware of this feeling being felt within the industry?
2) Are the government likely to review part J of the UK Building Regs to allow tried and tested fellow European biomass heating products enabled to be installed and used in UK homes?
best regards
Stephen Irving
February 2, 2010 at 4:35 pm |
Stephen
The Government has been very clear that the MCS accreditation process will be mandatory in order to protect consumers. The fact that trade associations such as REA have backed that line has, no doubt, also contributed to their thinking. I can see no prospect of this changing.
I am afraid we dont have any insight into Government thinking on review of Part J. Apologies we cant help on this.
February 2, 2010 at 4:48 pm |
With respect to your first point I would not underestimate the effort involved in MCS accreditation for products and installers however I have spoken to installers, not necessarily the larger ones, who are pleased with the system and proud to have achieved accredited status.
Even at this stage (i.e. pre FITs, RHI) some have reported increases in enquiries and sales because of the assurances the scheme may offer consumers.
February 2, 2010 at 2:10 pm |
Will any grants received under Stream 2 funding (public and charitable organisations) have to be repaid in order to be eligible for the RHI?
February 2, 2010 at 4:02 pm |
Hi Andy,
As with the FIT, whether installations can receive central government grants and the RHI is as yet undecided. There might be a requirement for non-domestic (community and commercial) customers to pay back grants in order to receive the RHI.
The consultation document simply says:
“Where a project is otherwise eligible for RHI support but has received or receives a central Government grant, we may require that such grant monies be paid back in order for the project to be eligible for RHI support. As stated in the RES, we will not require this for grants received at the domestic level before the start of the RHI.
RHI eligibility will also not be limited where grants other than
those funded by central Government (i.e. European or local grants) are taken up. However, in all these situations, State Aid limitations may nevertheless restrict the extent to which generators would be able to combine RHI support with grant support.”
We will continue to lobby government for clarification on this significant issue.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 2:10 pm |
Hello,
1. With regard to hydro generation less than 100 kW, am I correct in the assumption that the new tariffs are being offered whether there is a connection to the grid or not?
2. With regard to the proposed heat incentives, it will include ‘water source heat-pumps’ won’t it? (I only ask because a previous scheme didn’t appreciate that ‘ground source heat-pumps’ get most of their input via the ground water and I was told that my ‘water source heat-pumps would only qualify if I filled the evaporator tank with soil!)
3. Again with reference to the heat incentive, will it be measured on heat output (including mechanically driven compressors) and with electrically driven compressors will the actual output or the ‘uplift’ over the input that will qualify? This has a considerable bearing on the way a plant is put together. Typically the turbine can generate electricity that operates an electrically driven compressor or the turbine drives the compressor and the heat is transfered to the end user, which is significantly more efficient.
February 2, 2010 at 3:52 pm |
Rupert,
1. Off grid generators are to be eligible for the FIT (see pages 19 & 20 of the FIT consultation response).
2. Yes, it is proposed that WSHPs are included in the RHI.
3. The consultation suggests that RHI payments will be made on either a deemed or metered basis. Small and medium installations are deemed on the basis of the “reasonable heat requirement” they are intended to serve. This demand is independent of the supply technology. Large installations will receive the RHI on the basis of metered heat output.
Tony Norton
February 2, 2010 at 2:10 pm |
Hi,
The new FIT scheme obviously aims for small- scale, microgeneration installations thereby trying to attract communities and (non professional) investors such as residents etc.
To attract this sort of investors it will need finance schemes such as low interest – loans from banks. Do you know about any (future) finance mechanisms that will be set up apart from the FITs, e.g. like the low- interest loans offered by the German Kfw bank?
Many thanks,
DA
February 2, 2010 at 3:14 pm |
Dear Damian
It is possible that banks and other financing organisations will offer finance based on the FIT but we are not aware of any who have decided to do so yet and there is no Government backed scheme.
The other possibility is that local authorities decide to provide low interest loans. We are working with a number to look at how this might work.
February 2, 2010 at 2:12 pm |
Will an install receiving lcbp 50 percent grant being installed next week be eligible for the full feed in tarrif
February 2, 2010 at 3:49 pm |
Hi Andy,
Whether LCBP phase 2 grants will need to be paid back before the feed in tariff can be claimed is not clear from government’s response to the consultation.
The issue is not clarified in the document published yesterday which states:
“This [state aid rules] may affect the interaction between FITs and grant programmes. In some cases eligibility for FITs may be affected by the receipt of other public body grants. This will be monitored on a case-by-case basis.”
The original consultation document set out that householders grants would not need to be paid back but that any other non-domestic grants from central government might have to be repaid (such as LCBP Phase 2). However, grants other than central government grants will not affect eligibility for the FIT (e.g. European or local grants).
Sorry that we can’t be of more help in clarifying this issue – it looks like government has not yet decided and in part the decision depends on state aid rules.
We will continue to lobby government on this issue.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 2:12 pm |
Just here to listen to Q&A
February 2, 2010 at 2:16 pm |
Haven’t seen the detail of biomass systems and how the feed in tariff is calculated – can someone point me in the right direction please ?
February 2, 2010 at 6:07 pm |
Hi Alan,
Biomass will not be eligible for the FiT. If it your installation is biomass CHP, the heat produced will be eligible for payments under the Renewable Heat Incentive.
The electricity will continue to be eligible for ROCs payments.
The relationship between the RHI and ROCs is explained on page 66 of the RHI consultation document.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 2:27 pm |
I intend to install a 1MWe, 1.5MWth wood chiop gasifier (2 ROCs or microCHP FIT?).
What is the most I can earn for the (a)electricity and the (b) the heat, assuming that it is all used?
February 2, 2010 at 3:31 pm |
Ian,
You may have spotted that biomass CHP is not in the list of FIT technologies so the FIT can be discounted. The interactions of the RO and the RHI are described on page 66 of the RHI consultation. As you installation seems to be in the future the endpoint after 2013 is the RO (no uplift) and the RHI. See page 67 for the interim period.
Tony Norton
February 2, 2010 at 2:29 pm |
Hi,
I cannot find reference within the RHI consultation document about if the incentive and bio-energy capital grant (rounds 1 to 6) are mutually exclusive; or if you can still draw the RHI whilst still being in receipt of grant. I would be grateful if you could let me know if I missed this anywhere. Thanks, Jon
February 2, 2010 at 5:16 pm |
John
No you haven’t missed anything. DECC have suggested that those who receive a bio energy capital grant MAY have to pay it back if they receive the renewable heat inventive, but this has not been decided yet.
James Reddy
February 2, 2010 at 2:41 pm |
Hello All
(1) How will the idea of multiple sub-500kW wind installations in different ownership on a single geographically contiguous site be handled?
Clearly the consenting process will need to evaluate the entire project, and the spirit of FIT legislation is to avoid paying higher tarriff rates on large multi-turbine wind farms – but if each turbine is <500kW and each turbine was owned by a different company (or individuals) then the FIT band that has to be applied will, surely, relate to the installed capacity of that company.
(2) Will RHI be paid on existing heat only biomass installations?
(Assuming the installation has not received state aid in the past)
February 2, 2010 at 4:01 pm |
Hi Simon,
1. This subject is addressed on p15 of the Government’s FIT response but I note that more details will be available in the draft licence modifications and FITs order.
2. The RHI consultation (p64) suggests that projects that meet the RHI eligibility criteria that were completed after 15 July 2009 will be eligible to receive RHI payments from the proposed start date of the scheme (April 2011) as if their installation had been completed on that date. It is proposed that installations completed before this will not be entitled to support.
Tony Norton
February 2, 2010 at 2:44 pm |
Hi,
I am a student of renewable energy – writing an essay on the merits of promoting anaerobic digestion to meet 2020 targets.
Is there now a consesus on the RHI for biomethane gas grid injection, and will there be start up capital grants for AD processing plants?
Also, is there a plan for local authroies to colleect food waste for AD in the southwest?
Many Thanks,
Tom Darwen
REBE MSc student
Centre for Alternative Technology
February 2, 2010 at 4:29 pm |
Tom,
1. The inclusion of a 4p/kWh RHI tariff for biomethane injection represents support at this stage of the consultation process.
2. The FIT and the RHI are designed to supersede capital grants for renewable energy.
3. Curb side segregated food waste collection is not one of today’s topics but I do know that several local authorities in the South West include a separate food waste collection. I suggest you consult the DEFRA and/or EA web sites for national statistics.
Tony Norton
February 2, 2010 at 4:39 pm
Tony – thanks.
February 2, 2010 at 2:45 pm |
We need some clarification of the RHI paper if you could help. Chapter 5, transitional arrangments states the following:
“We therefore intend to apply the following transitional arrangements to installations
completed between the date of this consultation document (1 February 2010) and the
start date of the RHI.
In case of eligible renewable heat projects in existing buildings, the applicant will need
to submit statements to Ofgem from at least two installers certifi ed under the
Microgeneration Certifi cation Scheme (MCS) (or equivalent), stating:
• the installer’s estimate of the annual useful space heating and hot water
requirement in kWh (the “heat load”);
• where the project in question includes solar thermal: the installer’s estimate of the
proportion of this heat load to be served by the solar thermal installation; and
• that the estimate of the heat load (and, where applicable, the estimate of the
contribution of solar thermal) has been produced using SAP or, as appropriate,
SBEM.
Ofgem will apply the lowest estimate(s) as the basis for the project’s RHI entitlement.”
Am I right in thinking that the quote I must inform the customer to whom I am just about to send a quote, that he must seek out another quotation from an MCS Installer to allow him to qualify for the Tariffs… and also what are the channels through which this scheme is immediately being dealt with by OFGEM and do I have to wait for some kind of approval from them prior to commencement of an Installation.
Many thanks for any help you can give.
Richard
February 2, 2010 at 4:34 pm |
Hi Richard,
The document does seem to suggest that your customer needs to get a quote from another MCS Installer to allow them to qualify for the tariffs.
I can understand that you might not be too happy about having to do this! You might like to attend the consultation event that we are holding in Bristol on 23rd March 2010 with DECC to make your views known. Senior DECC officials will be presenting the RHI in detail and seeking feedback from the audience. To book please visit: http://www.regensw.co.uk/eventhq
DECC claims that the idea of setting out interim arrangements for the RHI is to ensure that installations can go ahead as planned in this interim period without delaying. You don’t need approval from OFGEM before going ahead, but you do need to be MCS certificated and to install MCS certificated products.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 2:55 pm |
Francis Macnaughton suggests above that hydro plant manufacturers will require a MCS approval (whatever that is!). I just design, build and install plants as I have for over 30 years and each one is designed for the site. Please tell me that there isn’t a new ‘catch’ in these proposals that says that every new design has to be approved by some BF at enormous cost, if so, I won’t be building anything for the UK market. It’s what the plant generates that’s important, not a CE mark (which for reference isn’t a quality assurance mark)
February 2, 2010 at 3:04 pm |
PV question: I’d like to know how to apply the inflation to any calculations. Should I add say 2% inflation to both FIT starting at 41.4 p/kWh say, and the 0.03 p/kWh export tariff year by year before multiplying by the amount being generated? And the other point is the export tariff really only 0.015 since it is 50% of whatever is being generated? Perhaps someone can clarify these matters for me?
February 2, 2010 at 4:53 pm |
Hi John,
The idea of linking the tariffs to inflation is that they won’t devalue over time due to inflation. In real terms, this doesn’t make any difference to the real value of the payments that a customer would receive.
Therefore I would suggest that for any calculations you do, you don’t try to include the impact of inflation.
The export tariff will be 3p/kWh (not 0.03p/kWh). Rather than assuming that 50% of the generation is exported to the grid, you will need to look at the amount of energy that the installations is due to generate against the amount that is typically consumed onsite.
The difference between these figures will give you the amount of energy in kWh that could be exported to the grid and so the amount that could earn an addition 3p/kWh.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 3:05 pm |
We are looking to install a biomass plant in the very near future, the plant would produce about 14,000 kg/hr of steam only for our process.
Would this plant qualify for RHI ?
Has the goverment set a value of the RHI’s and is this per kw/hr ?
February 2, 2010 at 4:53 pm |
Paul,
The RHI is being designed to be reward all scales of renewable heat installations including larger scale installations that provide process heat. The consultation gives a tariff range for biomass above 500kW from 1.6 to 2.5p/kWh. The consultation (p64) suggests that projects that meet the RHI eligibility criteria that were completed after 15 July 2009 will be eligible to receive RHI payments from the proposed start date of the scheme (April 2011) as if their installation had been completed on that date. However, if your installation is receiving a grant you may need to return the grant if you take up the RHI (see wording on p 66 of the consultation) but this is a decision you will be able to take at a later point – so if your project works with the grant take it and review your options as the RHI becomes clearer.
Tony Norton
February 2, 2010 at 3:12 pm |
We installed solar panels and GSHP last year (2009) in our new home for which we applied for and received maximum grant aid under the Low Carbon Building Programme. We now wish to extend our sustainable principles by adding PV panels this year. Are we still eligible to take advantage of the new feed-in tarrif scheme and if so is there a mimimum/maximum threshold?
February 2, 2010 at 5:02 pm |
Hi Nick,
You are certainly eligible to receive the feed-in tariff for any PV panels that you add this year – provided you use an installer that is MCS accredited. As a domestic customer, you can receive grant funding from central government as well as the feed in tariff.
The maximum threshold for the feed in tariff is 5MW (5,000 kW) and there is no minimum. A typical domestic PV panel would be around 2 kw in size. The tariff is banded depending on the size of the panel. Those below 4kW in size receive the highest level of support.
If installed before 15 July 2009, your solar panels and GSHP may also be eligible to receive payments through the Renewable Heat Incentive. Contact your installer if this is the case. This was the date that the Renewable Heat Incentive was announced and so if your installation was completed before 15 July 2009 it would not be eligible.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 5:36 pm
Hazel,
Many thanks for your full and informative reply – much appreciated!
Nick
February 2, 2010 at 3:18 pm |
For Rupert Armstrong Evans – I fully sympathise with your point about the bespoke nature of hydro and suggest you note Hazel Evans’s reply to my question re working group. I believe Chris Elliot of Western Renewable Energy has been involved with the working group so you may get more details from him!
February 2, 2010 at 3:31 pm |
I have 1.5KWp pv installed
I want to add a further 1.5KWp
Can I still opt to stay with the ROC system or will I end up with 2 systems Or will I have to go to FITs for the old and new PV system and how will this work with the differnet FIT rates
1) ROC for existing
2) FITs for new
I havbe worked out I would be better off with ROC’s particulatly with double ROCs this year
based on 09 generation and export figurers with the ROC system
1 ROC £45
Export at 15.91p/KWh £77.48 giving total £122.48
With Fits generation at 9p/KWh £111.96
Export at 3p/KWh giving £14.61 giving a total of £126.57 a slight benifit moving to FITS but worse off by £40.91 if I got double ROCs
February 2, 2010 at 4:20 pm |
Hi Mick,
You will have to move to the FIT for both installations. From 1 April 2010, microgeneration Solar PV installations will no longer be eligible for ROCs.
If the extension panel is installed more than 12 months after the original panel, they will be treated as two separate installations.
It depends when your original panel was installed, but if this prior to 15 July 09 then you would receive 9p/kWh for generation and 3p/kWh for export for energy generated by the original panel.
Energy generated by the new installation would receive 41.3p/kWh for generation (for a retrofitted panel under 4kW in size) and 3p/kWh for export.
Hazel Williams, sustainable energy analyst
February 2, 2010 at 3:48 pm |
Growth Constraints
For domestic biomass boilers one of the constraints are the hidden costs of installation. For instance the building regulations approach towards applications has been to suggest flues suitable for logs rather than pellet boilers.
In order to get round this you can hire a building surveyor to make a case for you, but the danger is that you get asked to put up a flue that is more expensive and may not work for the boiler.
The regulations will vary in each local authority and particularly in smoke free zones. Having an MCS accredited stove or boiler and an MCS accredited installer may not remove all the barriers.
Is there going to be a policy or a way forward on this?
February 2, 2010 at 4:58 pm |
Roger,
Sounds like and issue for HETAS?
Tony Norton
February 2, 2010 at 4:07 pm |
Many thanks Hazel for your reply,
Jerry
February 2, 2010 at 5:17 pm |
Hazel
Thank you for the reply,
As my existing system was installed pre 2009
It poses one problem as the old and new installation will feed into the house supply with any export going out to the network via only 1 import export meter
it will be impossible to say where the electricity generated that is exported comes from, the existing or new installation. ??
February 2, 2010 at 5:55 pm |
Mick,
It’s not clear from the document what the plan is to deal with cases such as yours.
I imagine it would be to simply attribute half of the generation to each installation (as they will have the same installed capacity), meaning that you would receive 50% of the generation payment at the lower rate and 50% at the higher. However, this is only an assumption that you will need to be confirmed.
Hazel
February 3, 2010 at 12:31 pm |
If the price recieved is
Feed in Tariff 11.5p
Export Tariff 3p
and the wholesale price is no longer applicable to FiT it would seem that there is no incentive to move from ROCs to FiT whatever the output of the anaerobic digester.
Currently the receipts for electricity generated by a 300kW anerobic digester would be about 14.5p/kWh and the supplier would be able to buy back the electricity at best price.
Am I missing something?
I have seen it mentioned that FIT payments would not be taxed. This seems a little extraordinary but is it correct?
Peter