· Feed-in tariff
for small scale low carbon electricity finalised for 1 April
introduction
· Power from solar panel could earn £900, on top
of £140 reduction on household energy bill
· Blueprint
published for world first incentive scheme for renewable
heat
· Tariff levels index linked
· Micro combined heat
and power piloted in the scheme to kickstart the industry in the UK
Households and communities who install generating technologies
such as small wind turbines and solar panels will from April be
entitled to claim payments for the low carbon electricity they
produce.
Energy and Climate Change Secretary Ed Miliband today announced
the feed-in tariff (FITs) levels and also published a blueprint
for a similar scheme to be introduced in April 2011 to incentivise
low carbon heating technologies. The renewable heat incentive
(RHI) will be a world first.
The schemes are designed to bring about a significant increase in
the amount of locally produced green energy, as a contribution to
the wider shift of the energy mix to low carbon.
Ed Miliband said:
"The guarantee of getting an income on top of saving on
energy bills will be an incentive to householders and communities
wanting to make the move to low carbon living.
"The feed-in tariff will change the way householders and
communities think about their future energy needs, making the
payback for investment far shorter than in the past.
"It will also change the outlook for a range of
industries, in particular those in the business of producing and
installing small scale low carbon technology."
From 1 April householders and communities who install low carbon
electricity technology such as solar photovoltaic (pv) panels and
wind turbines up to 5 megawatts will be paid for the electricity
they generate, even if they use it themselves. The level of
payment depends on the technology and is linked to inflation.
They will get a further payment for any electricity they feed
into the grid. These payments will be in addition to benefiting
from reduced bills as they reduce the need to buy electricity. The
scheme will also apply to installations commissioned since July
2008 when the policy was announced.
A typical 2.5kW well sited solar pv installation could offer a
homeowner a reward of up to £900 and save them £140 a year on
their electricity bill.
Mr Miliband was speaking as he visited low income homes in
Dagenham being helped by eaga’s Clean Energy for Social Housing
project to make the move to microgeneration. The scheme offers
free clean energy technology to tenants in social housing which
will lower their electricity bills and carbon emissions.
John Swinney, eaga Director of Strategy and Corporate Services,
said:
"By utilising the feed-in tariff initiative and
installing free solar technology this programme can cut energy
bills for those most in need. We are also recruiting and training
renewable energy engineers directly from the local communities
where the green technology is being installed.
"This innovative development can be offered right across
the UK. We expect thousands of households to benefit in the first
few years and up to 300 additional green energy jobs could be
created as part of this programme."
The Department of Energy and Climate Change also published today
plans for a scheme to incentivise renewable heat generation at all
scales. This will come into effect in April 2011 and guarantee
payments for those who install technologies such as ground source
heat pumps, biomass boilers and air source heat pumps.
Under the proposed tariffs the installation of a ground source
heat pump in an average semi-detached house with adequate
insulation levels could be rewarded with £1,000 a year and lead to
savings of £200 per year if used instead of heating oil.
The heat incentive could help thousands of consumers who are off
the gas network lower their fuel bills and gain a cash reward for
greening their heating supply.
Details of funding for the scheme will be published in the Budget
2010.
Ofgem will administer the feed-in tariff
scheme and suppliers will be responsible to paying the reward to
their customers.
The renewable heat incentive will start operating in April 2011.
Ofgem will be responsible for making payments direct to large heat
generators.
Householders and communities can apply for the feed-in tariff
from their electricity supplier from April 2010.
Current figures for renewables:
The UK currently gets around 5.5% of electricity from renewable
sources and that will need to increase to around 30% to meet the
15% 2020 target for all energy.
Modelling show that small scale renewable installations could
meet 2% of electricity demand in 2020.
The UK currently gets less than 1% of heat from renewable
sources. This will need to rise to around 12% in order to meet the
15% 2020 target for all energy.
The eaga project:
The eaga Clean Energy for Social Housing programme attracts
funding from private sector investors, who will receive a return
from the feed-in tariff element. There is no cost to the tenant
and no investment required from the social landlord.
Document links:
The response
to the consultation on renewable electricity financial incentives
can be found here: www.decc.gov.uk/en/content/cms/consultations/elec_financial/elec_financial.aspx
The consultation on the proposed renewable heat incentive
financial support scheme opens on 1 February 2010, will run for 12
weeks and can be found here:
www.decc.gov.uk/en/content/cms/consultations/rhi/rhi.aspx
Tariff levels for different technologies:
The tariff levels for the electricity financial incentives,
calculated to offer between 5-8% return on initial investment in
the technology are:
To view this table visit:
http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=410754&NewsAreaID=2&ClientID=416
| Technology
| Scale |
Tariff level for new installations in period
(p/kWh) [NB tariffs will be inflated annually]
| Tariff lifetime
(years) |
| |
| Year 1: 1/4/10 – 31/3/11
| Year 2: 1/4/11 –
31/3/12 |
Year 3: 1/4/12 – 31/3/12 |
|
Anaerobic
digestion |
≤500kW | 11.5 |
11.5 | 11.5 |
20 |
Anaerobic
digestion |
>500kW | 9.0 |
9.0 | 9.0 |
20 |
|
Hydro | ≤15 kW |
19.9 | 19.9 |
19.9 | 20 |
| Hydro |
>15-100 kW | 17.8 |
17.8 | 17.8 |
20 |
| Hydro | >100 kW-2 MW |
11.0 | 11.0 |
11.0 | 20 |
| Hydro |
>2 MW – 5 MW | 4.5 |
4.5 | 4.5 |
20 |
MicroCHP
pilot* | <2
kW* | 10* |
10* | 10* |
10* |
|
PV | ≤4 kW (new build) |
36.1 | 36.1 |
33.0 | 25 |
| PV | ≤4 kW
(retrofit) | 41.3 |
41.3 | 37.8 |
25 |
| PV | >4-10 kW |
36.1 | 36.1 |
33.0 | 25 |
| PV |
>10-100 kW | 31.4 |
31.4 | 28.7 |
25 |
| PV | >100kW-5MW |
29.3 | 29.3 |
26.8 | 25 |
| PV | Stand
alone
system | 29.3 |
29.3 | 26.8 |
25 |
| Wind | ≤1.5kW |
34.5 | 34.5 |
32.6 | 20 |
| Wind |
>1.5-15kW | 26.7 |
26.7 | 25.5 |
20 |
| Wind | >15-100kW |
24.1 | 24.1 |
23.0 | 20 |
| Wind |
>100-500kW | 18.8 |
18.8 | 18.8 |
20 |
| Wind | >500kW-1.5MW |
9.4 | 9.4 |
9.4 | 20 |
| Wind |
>1.5MW-5MW | 4.5 |
4.5 | 4.5 |
20 |
Existing microgenerators
transferred from the RO
| 9 | 9 |
9.0 | to 2027 |
*NB this tariff is available only for 40,000
microCHP installations. A review will take place when 16,000
microCHP units have been installed.
For RHI:
|
Technology | Scale
| Tariffs (pence/kWh)
| Tariff lifetime (years)
|
|
| Small installations
| | |
| Solid biomass |
Up to 45kW | 9
| 15 |
| Biodiesel | Up
to 45kW | 6.5
| 15 |
Biogas on-site
combustion |
Up to 45kW | 5.5
| 10 |
| Ground source heat pumps |
Up to 45kW | 7
| 23 |
| Air source heat pumps |
Up to 45kW | 7.5
| 18 |
| Solar thermal |
Up to 20kW | 18
| 20 |
| | Medium installations
| | |
| Solid biomass |
45kW-500kW |
6.5 | 15 |
| Biogas on-site
combustion | 45kW-200kW |
5.5
| 10 |
| Ground source heat pumps |
45-350kW | 5.5
| 20 |
| Air source heat pumps |
45-350kW |
2 | 20 |
| Solar thermal |
20-100kW |
17 | 20 |
| |
Large installations
| | |
| Solid biomass |
500kW and above | 1.6 - 2.5
| 15 |
| Ground source heat pumps |
350kW and above | 1.5
| 15 |
| Biomethane injection |
All scales |
5 | 20 |
Notes to Editors
customers.
The renewable heat incentive will start operating in April 2011.
Ofgem will be responsible for making payments direct to large heat
generators.
Householders and communities can apply for the feed-in tariff
from their electricity supplier from April 2010.
Current figures for renewables:
The UK currently gets around 5.5% of electricity from renewable
sources and that will need to increase to around 30% to meet the
15% 2020 target for all energy.
Modelling show that small scale renewable installations could
meet 2% of electricity demand in 2020.
The UK currently gets less than 1% of heat from renewable
sources. This will need to rise to around 12% in order to meet the
15% 2020 target for all energy.
The eaga project:
The eaga Clean Energy for Social Housing programme attracts
funding from private sector investors, who will receive a return
from the feed-in tariff element. There is no cost to the tenant
and no investment required from the social landlord.
Document links:
The response
to the consultation on renewable electricity financial incentives
(pence) can be found here: www.decc.gov.uk/en/content/cms/consultations/elec_financial/elec_financial.aspx
The consultation on the proposed renewable heat incentive (pence)
financial support scheme opens on 1 February 2010, will run for 12
weeks and can be found here:
www.decc.gov.uk/en/content/cms/consultations/rhi/rhi.aspx
Tariff levels for different technologies:
The tariff levels for the electricity financial incentives
(pence), calculated to offer between 5-8% return on initial
investment in the technology are:
To view this table visit:
http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=410754&NewsAreaID=2&ClientID=416
| Technology
| Scale |
Tariff level for new installations in period
(p/kWh) [NB tariffs will be inflated annually]
| Tariff lifetime
(years) |
| |
| Year 1: 1/4/10 – 31/3/11
| Year 2: 1/4/11 –
31/3/12 |
Year 3: 1/4/12 – 31/3/12 |
|
Anaerobic
digestion |
≤500kW | 11.5 |
11.5 | 11.5 |
20 |
Anaerobic
digestion |
>500kW | 9.0 |
9.0 | 9.0 |
20 |
|
Hydro | ≤15 kW |
19.9 | 19.9 |
19.9 | 20 |
| Hydro |
>15-100 kW | 17.8 |
17.8 | 17.8 |
20 |
| Hydro | >100 kW-2 MW |
11.0 | 11.0 |
11.0 | 20 |
| Hydro |
>2 MW – 5 MW | 4.5 |
4.5 | 4.5 |
20 |
MicroCHP
pilot* | <2
kW* | 10* |
10* | 10* |
10* |
|
PV | ≤4 kW (new build) |
36.1 | 36.1 |
33.0 | 25 |
| PV | ≤4 kW
(retrofit) | 41.3 |
41.3 | 37.8 |
25 |
| PV | >4-10 kW |
36.1 | 36.1 |
33.0 | 25 |
| PV |
>10-100 kW | 31.4 |
31.4 | 28.7 |
25 |
| PV | >100kW-5MW |
29.3 | 29.3 |
26.8 | 25 |
| PV | Stand
alone
system | 29.3 |
29.3 | 26.8 |
25 |
| Wind | ≤1.5kW |
34.5 | 34.5 |
32.6 | 20 |
| Wind |
>1.5-15kW | 26.7 |
26.7 | 25.5 |
20 |
| Wind | >15-100kW |
24.1 | 24.1 |
23.0 | 20 |
| Wind |
>100-500kW | 18.8 |
18.8 | 18.8 |
20 |
| Wind | >500kW-1.5MW |
9.4 | 9.4 |
9.4 | 20 |
| Wind |
>1.5MW-5MW | 4.5 |
4.5 | 4.5 |
20 |
Existing microgenerators
transferred from the RO
| 9 | 9 |
9.0 | to 2027 |
*NB this tariff is available only for 30,000
microCHP installations. A review will take place when 12,000
microCHP units have been installed.
For RHI:
|
Technology | Scale
| Tariffs (pence/kWh)
| Tariff lifetime (years)
|
|
| Small installations
| | |
| Solid biomass |
Up to 45kW | 9
| 15 |
| Biodiesel | Up
to 45kW | 6.5
| 15 |
Biogas on-site
combustion |
Up to 45kW | 5.5
| 10 |
| Ground source heat pumps |
Up to 45kW | 7
| 23 |
| Air source heat pumps |
Up to 45kW | 7.5
| 18 |
| Solar thermal |
Up to 20kW | 18
| 20 |
| | Medium installations
| | |
| Solid biomass |
45kW-500kW |
6.5 | 15 |
| Biogas on-site
combustion | 45kW-200kW |
5.5
| 10 |
| Ground source heat pumps |
45-350kW | 5.5
| 20 |
| Air source heat pumps |
45-350kW |
2 | 20 |
| Solar thermal |
20-100kW |
17 | 20 |
| |
Large installations
| | |
| Solid biomass |
500kW and above | 1.6 - 2.5
| 15 |
| Ground source heat pumps |
350kW and above | 1.5
| 15 |
| Biomethane injection |
All scales |
4 | 20 |
The Department of Energy and Climate Change is central to the UK
Government’s leadership on climate change. We are pushing hard
internationally for ambitious effective and fair action to avert
the most dangerous impacts. Through our UK Low Carbon Transition
Plan we are giving householders and businesses the incentives and
advice they need to cut their emissions, we are enabling the
energy sector’s shift to the trinity of renewables, new nuclear
and clean coal, and we are stepping up the fight against fuel poverty.
Contacts:
Department of Energy and Climate Change
Phone: 0300 068 5219
nds.decc@coi.gsi.gov.uk
Shruti Dudhia
Phone: 0300 068 6491
shruti.dudhia@decc.gsi.gov.uk