"Feed-in Tariffs"
explained
FiT or “Feed-in Tariff” is a scheme to persuade private firms and individuals to generate electricity from renewable sources. A range of technologies are allowed under the scheme, but for most of us in southern England the two which apply are solar PV and wind. In both cases it’s “location, location, location”!
Let’s look at wind first. The general rule is: the bigger the better. A decent-sized turbine in an exposed location with a good, clean air flow in excess of 5 m/s will provide a reasonable return on investment, with a payback of about 8-10 years. A small one stuck on top of a building in an urban location may never pay for itself.
Solar photovoltaic (PV) is similar. A south-facing roof near England’s south coast, angled at about 35o and with no obstructions in the way of the sun is a pretty good place for solar PV panels. The further the orientation of the roof is from due south, the less efficient. 8m2 of solar panels should generate about 3kWp (peak production of electricity in kilowatts) and cost around £10,000.
You get paid for the electricity you generate, and a bit more if you export it to the grid, and of course you don’t have to buy the stuff. So for the first tariff below, you would get 41.3p for every kWh generated, plus 3p / kWh exported to the grid, plus the cost you save by not having to purchase from the grid, probably 10-12p / kWh. The tariffs have been calculated to give a Return on Investment of about 8%, which compares pretty well with just about any other legal investment opportunity, and they are income tax-free! But hurry: the word is that DECC is going to reduce these tariffs after April 2012.
|
|
Output |
Tariff p/kWh |
Duration (years) |
|
Solar PV |
≤4 kW retrofit |
41.3 |
25 |
|
Solar PV |
>10 - 100kW |
31.4 |
25 |
|
Solar PV |
>100kW - 5MW |
29.3 |
25 |
|
Wind |
>1.5 - 15kW |
26.7 |
20 |
|
Wind |
>15 - 100kW |
24.1 |
20 |
|
Wind |
>1.5MW - 5MW |
4.5 |
20 |
There are also schemes to rent your roof space or land, or share the costs and benefits with installer or energy companies: British Gas has such a scheme. At the moment, FiTs look like a very good investment. Just make sure that hour installer is certified under the Micro Generation Certification Scheme and all the equipment is eligible, or your investment won’t be worth very much!
Charnock Environmental can talk you through the scheme if you are unsure where to start – this is a genuine opportunity to make a profitable investment and improve your green credentials