feed-in-tariffs explained

Feed-in-Tariffs Explained

What is it all about?

23rd February 2011

Edward Leddy-Owen

Regional Microgeneration Coordinator

Energy Saving Trust advice centre West Midlands

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Background to FiTs•Helping to delivering national CO2 reduction targets of 80% by 2050 set out by EU/UN treaties

• Potentially play a vital role in the Household Energy Management strategy (HEM) set out by DECC, to reduce CO2 29% by 2020

• It is extimated that the scheme should encourage 750,000 installs by 2020.

• FiTs are tied into the national Renewable Energy Strategy set out by DECC.

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How it is Managed • Managed by the energy supplier

• Monitored and quality controlled by Ofgem on behalf of DECC

• Responsibility of the homeowner to register to the supplier

• Responsibility of the MCS installer to ensure quality reporting to Gemserv

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Introduction to Feed In Tariffs

• Consumer name is Feed in Tariff (used to be Clean Energy Cashback)

• Introduced on 1st April 2010,

• Will provide financial incentives for people and businesses to install electricity-generating technologies such as solar electricity panels and wind turbines.

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Technologies availableThe scheme will support the following up to the 5MW limit

MicroCHP*Microhydro Microwind Solar PV

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Worked example

Total electricity demand of house = 4000kwhr/year

Solar PV

2kWp solar PV

Generating unit

Total generation (1,600kWh)

Income £666

Onsite use (800kWhr)

£103 saved

Export (800kWh)

Income £24

Total saving £793/year

Remember they still have to import

3200kWhr

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The Tariff on Paper• A load of numbers?

• What is in it for the customer?

• How can it be used to maximum effect?

• Is it better than a grant?

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How to Get on Board

You receivethe Clean Energy

Cashback aka FITs

Decide which technology is suitable

for your home.

You installthe system through an

MCS certified installer

Once the system is installed

you notify yourenergy supplier

The Energy supplier checks to

confirm that you are eligible

for the tariff

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Who Can Benefit from FiTs

• The FiT range is between 1kW to 5MW

• A single macro wind turbine is 2.5 – 3MW

• As long as the technologies are within the generation range

• Microgeneration Certification Scheme (MCS) Certified for micro (less than 50kW)

• ROO-FIT if over 50kW (macro system)

• ANYONE who meets the above criteria

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How Can They Benefit?• Simple saving and income for a private household

• Interest free loan scheme for a local authority

• Community cooperative investment project for a ‘large’ microgen system such as hydro

• Development options for large construction firms

• Large building owners can ‘rent’ roof space etc…

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Efficient Use is King

• Use your energy whilst being generated

• Have an energy efficient home

• Savings will have a big impact on what you generate

• The export tariff is the ‘cherry on top’

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Renewable Heat Incentive

Energy Saving Trust advice centre West Midlands

Our role in the microgeneration industry

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Regional Microgeneration Coordinator

• To work with government, industry, supply chain and homeowner.

• To bridge the gap (central targets to personal installs)

• Promote the Microgeneration Certification Scheme

• To get installs using local installers

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Supply Chain:

• To work in line with local manufacturers, installers and government.

• To assist in the overall development of the supply chain by coordinating projects and advising partners.

• Having the ability to channel efforts from central government down to installs.

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Advice Centre:

• City and Guild Trained in Energy Awareness and Domestic Microgeneration Technologies.

• Regularly attend practical hands-on microgen training to enhance advice provision.

• Will advise on the best technology for the individual situation through careful consideration of the household’s situation.

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Why MCS?

• A demonstration of high standards

• Services and products

• Aftercare

• Consumer trust

• Confidence

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Installer Network

• West Midlands referral network

• Based on a postcode search

• Keep the work within the region

• Develop consumer confidence

• Case studies

• Workshops

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Any Questions:

?

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Further Information

Thank you for listening

Call us on: 0800 512 012

Visit: www.energysavingtrust.org.uk

E-mail: enquiries@est.org.uk