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Feed-In Tariffs<br />Making sunlight a cash crop<br />Philip Wolfe<br />
Feed-In Tariffs - how to benefit<br />Feed-In Tariffs (FITs) - the fundamentals<br />Tariff levels for PV<br />Who gets th...
The UK’s Feed-In Tariffs<br />The three main value streams<br />Generation tariff<br />Savings on imported energy<br />Exp...
The 3 main value streams<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />4<br /...
The Generation Tariff<br />Paid for every kWh generated;<br />whether used by the system owner<br />or exported back to th...
FIT Eligible technologies<br />Biogas from anaerobic digestion<br />Hydro-power<br />Solar photovoltaics<br />Retrofit in ...
Eligible capacities<br />The FITs cover installations up to 5MW<br />Except Micro-CHP only up to 2kW<br />The tariff level...
Ineligible installations<br />Other RES-E technologies:<br />Biomass, geothermal, tidal, wave, biofuel<br />Hopefully to b...
FIT tariff levels<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />9<br />PV<br />
The Export Tariff<br />For every kWh exported to the grid<br />The beneficiary gets the generation tariff<br />Plus a prem...
Duration of tariffs<br />Tariffs are fixed for 20-25 years<br />Except micro-CHP for 10 years<br />PV is 25 years all othe...
Tax treatment<br />Householders don’t pay Income Tax on<br />The generation nor the export tariffs<br />... provided that ...
How the tariffs were set<br />To achieve an “average 5-8%” return<br />Would equate to roughly 12-year ‘payback’<br />We f...
Where the money comes from<br />The scheme is set in law, but<br />The government doesn’t pay for it<br />It comes from a ...
Who the money goes to<br />The beneficiary is the system owner<br />He can specify a ‘nominated recipient’<br />to whom is...
Scheme administration<br />Scheme is administered by Ofgem, who<br />Maintain the register of FITs installations<br />Over...
Issues with the FITs<br />Public awareness<br />Little government promotion<br />Consenting<br />Small systems ‘permitted ...
Project-specific issues<br />Maximum capacity 5MW<br />Accreditation required<br />Pre-accreditation under ROO-FIT?<br />M...
Ownergy Plc<br />Your renewable energy and tariffs expert<br />Advise you in selecting the appropriate options<br />Design...
Government growth forecast<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />20<b...
PV FITs installations to date<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />2...
One of UK’s first solar parks<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />2...
One of UK’s first solar farms<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />2...
All this assumes ...<br />... that the Government doesn’t tinker with the tariffs in the present Spending Review<br />They...
Any questions?<br />Websites<br />About the Feed-In Tariffs:<br />www.fitariffs.co.uk<br />About the Renewable Heat Incent...
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Feed-In Tariffs - Making sunlight a cash crop - Philip Wolfe (Ownenergy)

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presentation on the feed-in tariff, solar pv and suitability for farm buidlings

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Transcript of "Feed-In Tariffs - Making sunlight a cash crop - Philip Wolfe (Ownenergy)"

  1. 1. Feed-In Tariffs<br />Making sunlight a cash crop<br />Philip Wolfe<br />
  2. 2. Feed-In Tariffs - how to benefit<br />Feed-In Tariffs (FITs) - the fundamentals<br />Tariff levels for PV<br />Who gets the cash & where it comes from<br />How to ensure FITs work for your farm<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />2<br />
  3. 3. The UK’s Feed-In Tariffs<br />The three main value streams<br />Generation tariff<br />Savings on imported energy<br />Export bonus<br />Eligible technologies and tariffs<br />Administration<br />Renewable Heat<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />3<br />
  4. 4. The 3 main value streams<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />4<br />3<br />2<br />1<br />Total benefit to owner =<br /> Generation tariff +<br /> Saving on reduced imports +<br /> Export bonus<br />1<br />2<br />3<br />
  5. 5. The Generation Tariff<br />Paid for every kWh generated;<br />whether used by the system owner<br />or exported back to the grid<br />Level depends on:<br />The renewable energy technology<br />The capacity of the system<br />The date of installation<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />5<br />
  6. 6. FIT Eligible technologies<br />Biogas from anaerobic digestion<br />Hydro-power<br />Solar photovoltaics<br />Retrofit in existing property<br />New-build (properties not yet occupied)<br />Stand-alone (systems for pure grid-feed)<br />Wind power<br />Micro-CHP (non renewable)<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />6<br />
  7. 7. Eligible capacities<br />The FITs cover installations up to 5MW<br />Except Micro-CHP only up to 2kW<br />The tariff level depends on:<br />So-called ‘Total Installed Capacity’<br />The capacity is per ‘site’<br />Additions based on cumulative capacity<br />Installations must be accredited<br />Systems under 50kW – MCS <br />Systems over 50kW – ‘ROO-FIT’<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />7<br />
  8. 8. Ineligible installations<br />Other RES-E technologies:<br />Biomass, geothermal, tidal, wave, biofuel<br />Hopefully to be reconsidered on review<br />Systems over 5MW<br />Second-hand and refurbished systems<br />Pre 15th July ‘09 installations<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />8<br />
  9. 9. FIT tariff levels<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />9<br />PV<br />
  10. 10. The Export Tariff<br />For every kWh exported to the grid<br />The beneficiary gets the generation tariff<br />Plus a premium for export, as follows<br />A fixed rate of 3p/kWh has been set<br />But you can opt out and negotiate<br />a better price from an electricity supplier<br />Opt-out decisions can be made each year<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />10<br />
  11. 11. Duration of tariffs<br />Tariffs are fixed for 20-25 years<br />Except micro-CHP for 10 years<br />PV is 25 years all others are 20<br />Tariffs are index-linked to the RPI<br />Both generation and fixed export tariffs<br />New rates will be announced annually<br />For new installations tariffs change:<br />Subject to degression<br />Maybe at reviews (5-yearly from 2013)<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />11<br />
  12. 12. Tax treatment<br />Householders don’t pay Income Tax on<br />The generation nor the export tariffs<br />... provided that it is for<br />“households who use renewable technology to generate electricity mainly for their own use” <br />Business has no special tax exemption<br />but can offset costs against profit as usual<br />No Enhanced Capital Allowances for PV (yet)<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />12<br />
  13. 13. How the tariffs were set<br />To achieve an “average 5-8%” return<br />Would equate to roughly 12-year ‘payback’<br />We find that typical systems:<br />Recover their costs ~ twice over the period<br />That is equivalent to a 12-year payback<br />We find that the best systems:<br />Recover their costs 2½ to 3 times<br />Equivalent to less than 10-year payback<br />Index-link & tax break improves all this<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />13<br />
  14. 14. Where the money comes from<br />The scheme is set in law, but<br />The government doesn’t pay for it<br />It comes from a levy on electricity bills<br />It’s collected and paid out by suppliers<br />Who have a ‘levelisation’ system to share the costs fairly between them<br />It is now part of their licence conditions<br />Only small suppliers can opt out<br />Others are called ‘FITs licensees’<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />14<br />
  15. 15. Who the money goes to<br />The beneficiary is the system owner<br />He can specify a ‘nominated recipient’<br />to whom is tariff payments can be made<br />He nominates (and can change)<br />which FITS licensee will pay over the tariff<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />15<br />
  16. 16. Scheme administration<br />Scheme is administered by Ofgem, who<br />Maintain the register of FITs installations<br />Oversee the levelisation process<br />Accredit systems over 50kW<br />Have issued guidelines on how it works<br />For more details:<br />www.FITariffs.co.uk<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />16<br />
  17. 17. Issues with the FITs<br />Public awareness<br />Little government promotion<br />Consenting<br />Small systems ‘permitted development’<br />Larger developments less certain<br />Tariff levels<br />Financing<br />No official finance available<br />Finance providers’ knowledge; conditions<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />17<br />
  18. 18. Project-specific issues<br />Maximum capacity 5MW<br />Accreditation required<br />Pre-accreditation under ROO-FIT?<br />Must use conforming meter<br />Selection of ‘FITs Licensee’<br />Use of nominated recipient<br />Timing: Degression; seasonality<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />18<br />
  19. 19. Ownergy Plc<br />Your renewable energy and tariffs expert<br />Advise you in selecting the appropriate options<br />Design and procure suitable systems<br />Structure projects for financing<br />Supervise installation & commissioning<br />Register and manage the tariffs<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />19<br />
  20. 20. Government growth forecast<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />20<br />kW<br /> kW<br />kW<br />Expected numbers of installations by size Source: DECC<br />
  21. 21. PV FITs installations to date<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />21<br />Gross installed capacity to 2009 = 32 MW!<br />
  22. 22. One of UK’s first solar parks<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />22<br />AD<br />
  23. 23. One of UK’s first solar farms<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />23<br />
  24. 24. All this assumes ...<br />... that the Government doesn’t tinker with the tariffs in the present Spending Review<br />They shouldn’t (it isn’t public spending)<br />But just to be sure; sign up at:<br />wesupportsolar.net<br />13th October 2010<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />24<br />
  25. 25. Any questions?<br />Websites<br />About the Feed-In Tariffs:<br />www.fitariffs.co.uk<br />About the Renewable Heat Incentive:<br />www.rhincentive.co.uk<br />About Ownergy:<br />www.ownergy.co.uk<br />Feed-In Tariffs<br />Philip Wolfe<br />13th October 2010<br />25<br />Sunlight cash crop through Feed-In Tariffs - Philip Wolfe<br />
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