"Not only can we move to dominant use of renewable electricity, but we can do so utilizing many technological and efficiency improvements, with consumers benefiting from clean electricity at acceptable cost "

Professor John Twidell General Editor  Wind Engineering

 

 

Ofgen, the UK energy regulator, warned that average household gas and electricity bills in UK could reach nearly £2,000 a year without drastic action to shore up supply

Ofgen's Project Discovery report, February 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Is generating your own energy still right for you?  FiTs can make it make sense, money-wise..

Microgeneration technologies are not ‘off the shelf’ products. The suitability and size of a system for your home will depend on the type, age and location of your property, the fuel you currently use and your average energy consumption – amongst many other variables.

 

 

 

 

 

The right technology, properly installed in the right location can provide a low-carbon, low-cost means of powering your home that pays for itself and provides you with an income stream at the same time

 

 

But, given the complexities involved, and considering that setting up an installation to generate your own electricity needs a capital outlay, you should think long and hard before deciding which – if any – is suitable for you and ensure that the conditions are right

Seeking professional advice from an impartial body such as the Energy Saving Trust is a useful first step, but that may not always be straightforward to understand. The EST will quite correctly say that before you do anything else, you should make sure that you’ve explored energy efficiency options, such as insulation, that will reduce the quantity of electricity you need to consume

A reliable source of information to help YOU understand what these ‘right’ conditions look like – applied on a home-by-home basis – isn’t easy to come by - and you need to be certain you have the correct facts to fill the information gap before investing your thousands..the Home Energy Centre will provide you with the unbiased information you need..

Below you will find details of the subsidy, the Feed-In Tariff..also known as the Clean Energy Cash-Back, set up in UK by the government, that will make the concept of generating your own electricity worth having a look at..

Energy Minister Greg Barker claimed the reforms to payments for small-scale solar would mean a bigger scheme that could deliver an "extraordinarily ambitious" 22GW of panels - the equivalent of 3.3 million installations for homes and businesses.


Mr Barker said the changes were about creating a scheme "for the many", which would deliver better value for consumers who pay for the subsidies on their bills and put solar on course to be a competitive alternative to fossil fuels.


DECC estimated that the new subsidy system would deliver 620,000 new installations up until 2015 for £500 million, far less than the £1.7 billion cost of the 250,000 solar projects already installed.

At early 2015 the number of solar pv installations on UK's domestic rooftops numbered some 550,000 ..


Mr Barker said: "Our new plans will see almost two-and-a-half times more installations than originally projected by 2015 which is good news for the sustainable growth of the industry.


"We are proposing a more predictable and transparent scheme as the costs of technologies fall, ensuring a long-term, predictable rate of return that will closely track changes in prices and deployment."


Green MP Caroline Lucas said the new Lib Dem Energy Secretary Ed Davey should have delayed recent  solar policy changes warning that the proposals to implement stepped reductions, digression, could see tariffs reduced as often as every two months, depending on the rate of take-up


Extracted from The Independent 9 February 2012 Full article


How feed-in tariffs  (FITs) work

The UK 'feed-in tariff' (also at one time known as the Clean Energy Cash Back) is a government-backed policy that was introduced to encourage householders to install solar PV systems to generate electricity

The feed-in tariff scheme rewards you for the amount of energy your PV system generates, regardless of whether you consume the electricity or not. You are also paid for any electricity exported

Benefits of feed-in tariffs

Info adjustment: Tariffs have beed reduced in 2016 to the lower rate, see here

As a householder, you will be paid the generation tariff of 13.88p  for every single kWh of electricity that is generated by your solar PV system.  Even if you use the electricity to power your home, you will still be paid the 13.88p/kWh

If you use your generated electricity to power the lights and appliances in your home, you will also save around 13p for each kWh since you will not have to buy at that price the electricity from your energy supplier. Altogether, the  total benefit to you is some 34p.

Any electricity that is not used in the home will be Exported to the National Grid (where your mains electricity comes from), for which you will be paid the Export tariff of an additional 4.77p/kWh on half the kWh generated

The feed-in tariff (both generation and export tariff) is guaranteed for 20 years

In addition, each year the feed-in tariff will increase by the Retail price Index (RPI)

For systems installed after April 2012, the tariffs are reduced by 8.5% for each year that you delay. So there is a real incentive to install your solar PV system now

Any income generated will be completely tax free


Notes

Energy output is assumed at a UK average of 850 kWh/year per kWp of installed PV, with panels orientated south on a 30 degree pitch roof, with little or no overshading, but the logged actual on some installations is coming in at some 950kWh/year

A current average UK electricity rate of 13p/kWh is assumed and energy inflation is set at 6% a year over the 25 years, which is consistent with the last 10 years (BERR, June 2009)

Annual average household electricity demand is set at 3,400 kWh and 50% of electricity generated by the system is exported (rural Somerset average is 4400 kWh/year)

RPI is set at 3% and raises the feed in tariffs only


Summary

The householder benefits in 3 separate ways:

Generation tariff: A fixed price (Jan 2015 13.88p/kWh..reduced in 2016) for each unit of electricity generated by the system, whether used in the home, or exported. This price is guaranteed (by Act of Parliament) for 20 years and will rise with the rate of inflation each year. A fullsize standard installation of 4kWp (generating 3,600-3,850 kWh/year) would provide an income from the subsidy payment of some £535 a year (2015 figures) for each of 20 years, adjusted each year for  inflation)

Export tariff: A fixed price, (4.77p/kWh Jan 2015..reduced in 2016) for each unit of electricity generated by the system that is exported to the National Grid, paid based on a deemed amount of 50% of units actually generated. This price is guaranteed for 20 years and again will rise with the rate of inflation each year. In this example, this provides an additional income of some £145 a year, 2015 figures

Avoided costs: These are the savings from reducing the amount  of electricity you need to buy from the Grid by using the electricity generated by the solar PV system. This provides lower bills and the additional benefit of being partially protected from future price rises in electricity, estimated/projected to average 6%/year. The amount you can save will depend on your Usage Profile - ie are you at home all day.. these avoided costs may provide, in a standard household,  a saving of £139 a year

 

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