How the current programme to encourage solar power installation works, and how a solar co-operative could work here in Penarth.

1. Solar energy for home and
community

2. What we aim to cover
This meeting is about Solar Electricity (also known
as photovoltaics or PV) with two main topics:
• Things you should know if considering putting PV
panels on your own roof.
• The idea of a Solar Co-op which could enable
people to share ownership of a PV system on
(for example) a school roof and get a good return
on their investment.

3. What is involved

4. Is your roof suitable?
• Ideally it faces due south (between south west
and south east worth considering)
• Ideally the pitch (slope) of the roof is 300- 400
(200 - 500 might be OK)
• The roof needs to be free of shading by
buildings, trees etc.

5. Orientation and Pitch

6. Planning Permission
• A PV system for a house will not in general
need planning permission
• In a conservation area planning permission
may be needed – check with planning
authority
• On a listed building planning permission will
be needed and may not be given
• For these last 2 cases PV tiles which look like
slates might be acceptable

7. What maintenance is needed
Almost none
• The panels should last at least 30 years
– and may last 50 years or more
• Output from the panels gradually falls over
time but should be still at least 80% of original
output after 25 years
• The inverter is likely to need replacement
after maybe 15 years

8. What it might cost
For a house - roughly £8,000 to £14,000
depending on:
• Size of system
• Type of panels used
• Scaffolding needed
• How competitive a quote you get

9. Money you can make back from free
electricity
• A 3kWp system can generate about 2,700 kWh
(units of electricity) per year
• Each unit could be used in the house or exported
• Electricity that you use from the PV system saves
you having to buy it from the grid
• You will still buy from the grid when you want to
use more than the panels are producing (most
obviously, when it is dark)
• Electricity prices are likely to go on rising

10. Money you can make from
Feed in Tariff (FIT) payments
43.3p for every kWh generated *
• whether you use the electricity yourself or export
it to the grid
• Payable for 25 years from installation date
• Index linked, so will rise with inflation
• Income tax free
* for systems installed up to April 2012

11. What money you can make from
selling electricity to the grid
• At times when the panels are making more
electricity than is being used in the house the
surplus is exported to the grid
• For each kWh exported you get 43.3p FIT
+ 3.1p for exporting
Although output from panels is metered,
mostly exports are not metered, but “deemed”
to be half of all that is generated.

12. Finance summary – example system
• 3 kWp system
• Installation £11,000
• 2,725 kWh/year (maybe half your electricity)
• £1,180 FIT + £41 export = £1,221/year
• 9.01 years payback time
• Total received over 25 years = £20,521
(ignoring saving on electricity and index-link)
• ROI/year 7.10%

13. Issues with insurance
• Some house insurers have not come to terms
with PV installations and will be a problem
• Others are perfectly happy with them
You will need to check

14. Selling your house
• It is too early to know what PV panels will do
to house prices
• The new house owner gets long term benefits
• How much extra will they be prepared to pay?

15. Picking an installer
and what panels to install
• To get the FIT your installer and the panels
used must be MCS registered.
• MCS is the Government Microgeneration
Certification Scheme
• This is a minimum standard
• Panels vary in quality of build, efficiency and
price
• As with any building work get quotes

16. It may not make sense or even be
possible for you
• Don’t own a roof
• Roof faces East and West
• Roof is shaded by other buildings
• Expect to move in the next few years and
might not recoup the investment
• Have not got £10,000 to spare

17. Free systems
• There are companies who will install a PV
system at little or no cost to the roof owner
• The roof owner gets electricity in return for
leasing the use of their roof for 25 years
• The installer gets the FIT
• Too early to know what this will do to house
sales
• The new house owner would get electricity
but would have to accept the lease

18. Examples of working
Wind Energy Co-ops
• Baywind
- was set up in 1996 based on similar long
established examples in Denmark and Sweden.
- Over 1,300 members and more than 2.5 MW of
wind turbines funded by community shares.
• Energy4all
- a spin-off from Baywind, has helped set up 7 more
community wind power co-operatives in England and
Scotland

19. Examples of working
Solar Energy Co-ops
• Ovesco (Lewes, Sussex)
98 kWp system running, funded by £300,000 share issue.
• Green Energy Nayland (Suffolk)
15.5 kWp system on running on a Village School
• Bath Community Energy
50 kWp + 28 kWp systems waiting for planning permission
• BrightonEnergy.org.uk
50 kWp system has planning permission, 35 kWp and 10 kWp systems being planned
• Community Energy Warwickshire
Planning systems on Stratford and Warwick hospitals
• Thesolar.coop (Berkshire)
Planning £1M share issue for multiple 50 kWp and 10 kWp systems

20. What a Solar Co-op could mean for
Penarth
• The Co-op leases roof space for 25 years
• The Co-op pays for PV installation
• The Co-op collects the FIT to pay back its
investment plus a reasonable return
• The building gets free electricity
• If the building is council owned (like a school)
council tax is freed up to be spent on services

21. Legal structure
• Energy Co-ops are in general legally Industrial
and Provident Society Co-operatives
• They have one member one vote
(not one share one vote)
• Their only shareholders are their members
• They are run day-to-day by a management
group which reports back to the membership

22. Community shares issues
and dividend payments
• Energy Co-ops can raise money from their members
with community share issues
• The shares have a fixed value and are not tradable
• Shares can be sold only back to the Co-op
• An annual dividend is paid on each share
• No returns are guaranteed
(even the money invested) but…
• On current projections a 4% dividend is reasonable
• Investment of at least £500 kept in for at least 3 years
should allow 30% of the invested amount to be taken
off your income tax liability.

23. Choice of roof
• A larger installation gives economies of scale
(a single 40 kWp system will cost less than 10
systems of 4kWp each)
• A large flat roof can have PV panels mounted
on frames, facing due south and angled at 300
• On community buildings the free electricity
would be benefit the community

24. How larger scale systems compare
with smaller ones
The rate of FIT changes with size of installation
• Up to 4kWp (retrofit) 43.3p/kWp
• 4kWp - 10kWp 37.8p/kWp
• 10 kWp – 50 kWp 32.9p/kWp
• 50kWp – 150kWp 19.0p/kWp

25. Where we are now
• Talking with Vale of Glamorgan council and
Cardiff and Vale University Health Board about
potential sites
• Firming-up our plans
• Collecting email addresses of potential
members
• Registering Co-op (within 2 weeks?)

26. What next
• Accept Co-op members (start in 3 weeks time?)
• Agree a site (by Christmas?)
• Select installer (by Christmas?)
• Get planning permission (January?)
• Get lease signed (January?)
• Community share issue (February?)
• Install system (by April 2012?)
• Collect FIT (and start working on the next site?)

27. Questions and discussion….