SlideShare a Scribd company logo
Solar energy for home and
        community
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.
What is involved
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.
Orientation and Pitch
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
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
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
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
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
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.
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%
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
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?
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
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
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
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
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
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
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
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.
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
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
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?)
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?)
Questions and discussion….

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Gpg solar

  • 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.
  • 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.
  • 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?)