DECC publish Renewable Energy Strategy

[fje-iptelenet]

Attached is the relevant part of the contract.

[fje-iptelenet]

Ted said:

I'm much less pleased about how non-MCS systems and existing installations will get treated and I think DECC need to seriously rethink their approach to this, as well as how incremental installs get treated too.

Ted said:

I've started discussions with the other Mods as to how best to manage this.

Thanks Ted, appreciate your comments. Have a double applaud!

Regards,
Franz.

[fje-iptelenet]

Off Topic - can not resist to reply.

Richard Owen said:

In which case Franz, I think you need to start lobbying other political parties who might have a chance of forming the next administration, Not sure their plans for FITs etc are particularly marvellous.

FIT's is only a tiny issue compared to........   Thinking of running a Bank in my next life etc. I agree however with what you are saying, about the opposition whatever color.

Regards,
Franz.

[wookey]

Wookey, sorry if I sound too negative.

You have been nothing but highly informative (as ever - I am continually amazed at your detailed grasp of the regs), and balanced.

[wookey]

ORED are currently looking to recruit an 'expert' to lead them. They are also advised by RAB - http://www.renewables-advisory-board.org.uk/

Ted, what are you doing currently? Want a new job?

[Moxi]

Hi everyone,

I received the following from a respected installer which seemed to clear up a couple of issues that arose earlier in the thread for those contemplating new install.
"The Government has announced yesterday the details of the proposed feed-in tariff for microgeneration from systems like small wind turbines and solar photovoltaics. The new tariff will pay for all energy generated by your system, irrespective of if you use it yourself or sell it back to the grid. The amounts paid are in addition to any saving you will make by purchasing less electricity from your supplier and any income you earn from selling your surplus power to your electricity supplier. The key points of the announcement are:
- 36.5p/kWh for small solar photovoltaic systems up to 4kW and 28p/kWh for systems up to 10kW.
- 23.0p/kWh for small wind turbines between 1.5kW and 15kW.
- Replaces the current ROC system which pays 10p/kWh.
- Effective as of the 1st April 2010, but all systems commissioned from now on will qualify.
- Systems installed from now until April 2010 will be eligible for both LCBP grants AND the new tariff. "

Unfortunately it doesn't help the DIY and previously installed members although I have contacted my MP to ask for clarification on this as well as the subject of system extension  - when (if?) I get an answer I'll post in the forum. Moxi

[CeeBee]

I received the following from a respected installer which seemed to clear up a couple of issues that arose earlier in the thread for those contemplating new install...

Some of the figures in that seemed different to those in the actual document, for instance PV from 4-10kWp is 31p and not 28p. And if anyone's ever received 10p/kWh for their "double ROCs" then I'd be surprised - the document says that existing installations will be transferred to an "equivalent" FIT of 9p.

And the proposal does say what's intended with existing micro-generators, though of course is extremely vague about incremental additions to systems.

But remember, it's just a consultation document at present, so let's get on with responding to it. I seem to recall that the consultation for allowing solar panels as "permitted development" resulted in a considerably larger offset from the roof being allowed than was originally proposed, so things _do_ change during these consultations.

[Paulh_Boats]

CeeBee, list

I have moved my post to a new topic in the new forum "Feed In Tariffs" so that we can organise this rapidly growing area.

The new topic is "Consultation Feedback on Government Proposals - by Oct 15th"

http://www.navitron.org.uk/forum/index.php/topic,8137.0.html

Due to a slight hiccup I did not copy CeeBee's reply so can you reply again in the new topic, thanks.

-Paul

[cornishben]

Apologies if I missed someone mentioning this in the thread as I've only skimmed through the posts.. but aside from the issue of existing installs not being eligible for the 36.5p FIT rate, from what I can make out from the consultation document this 36.5p is going to reduce at 7%/annum.  This means that payback times for new installs going forward are not so good and even people with new installs who take full advantage of the FIT may be worse off than if the current system continued

[CeeBee]

Apologies if I missed someone mentioning this in the thread as I've only skimmed through the posts.. but aside from the issue of existing installs not being eligible for the 36.5p FIT rate, from what I can make out from the consultation document this 36.5p is going to reduce at 7%/annum.  This means that payback times for new installs going forward are not so good and even people with new installs who take full advantage of the FIT may be worse off than if the current system continued

No - what it means is that people who install in the first year would get 36.5p/kWh for 20 years, people who install in the 2nd year get 7% less, and so on (unless of course I've got it completely wrong). So once you start, your rate is 'fixed' (though you might suppose that inflation might have to be dealt with somehow - don't see any mention of it).

[Paulh_Boats]

7% per annum decline on the FIT rate is a bit brutal:

Year  kWh rate (pence)
0   36.6
1   34.04
2   31.66
3   29.44
4   27.38
5   25.46
6   23.68
7   22.02
8   20.48
9   19.05
10   17.71

After 4 years its below the current Ebico rate of 28p

[cornishben]

No - what it means is that people who install in the first year would get 36.5p/kWh for 20 years, people who install in the 2nd year get 7% less, and so on

Thanks Ceebee, that seems much more sensible.  Is there somewhere in docs where it states that?

[Ted]

I agree with CeeBee's interpretation. This is the accepted method of managing FITs internationally.

On page 12 of the consultation doc it says:

In line with international best practice, the proposed tariff levels for new projects will
decrease by predetermined rates each year (“degression”).

And the next para talks about reviews:

Outside of the outlined degression rates, we will periodically review the FITs scheme
and will aim to do so in line with the Renewables Obligation reviews. These reviews
will take into account developments of other policies, and would adopt the following
principles:
 • Existing projects will receive the same level of support throughout their participation
in FITs; and
 • As costs of technologies fall, we expect that levels of support for new projects will
reflect that. Project costs will be considered as part of reviews.

and

Tariff lifetimes
3.94 We propose that tariffs will be paid for 20 years for new projects. We recognise
though that some technologies may have lifetimes that are shorter than this
period, and that there may be advantages to providing shorter tariff lifetimes.

Apart from the fact that "same level of support" sets off my 'weasel words' alarm what happens if the costs do not fall?

PV may be expected to reduce in price but I see the opposite happening for wind turbines; e.g. just check the Proven price list over the past few years. Prices have gone up faster than the rate of inflation.

[Ted]

7% per annum decline on the FIT rate is a bit brutal:

After 4 years its below the current Ebico rate of 28p

Don't forget that Ebico pay that for export only while the FITs payments are for total generation, so it's not quite so straight-forwards.

[Richard Owen]

So, if I expect the cost of the technology to decrease by less than 7%/annum, I should be looking to install in year one, right?