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Date: April 6, 2010
The Government will be providing ‘Feed-in Tariffs’ for selected installed ‘renewable’ energy technologies from April 2010. Selections of the tariffs are shown in Table ‘A’. Feed-in tariffs have been allocated for 25 years for PV technology and 20 years for wind turbines. While present experience suggests that PV cells may have a life of up to or even 40 years plus, small-scale wind turbines may have (possibly much) less lifetime than the 20 year duration of the tariff. Even so, there may be a significant increase in demand for the mid-range (‘community’) wind turbines in the 100kw - 500kw range.
Table 'A' - Selected FIT Generation Tariffs (1 April 2021-31 March 2013)
(first year*, inflated annually)
| Renewable Technology | Size (in kW) | Tariff (pence/kWh) | Tariff Duration of FIT (years) |
| PV | ~4 kW (new build) | 36.1 | 25 |
| PV | ~4 kW (retrofit) | 41.3 | 25 |
| PV | >4-10 kW | 36.1 | 25 |
| PV | >10-100 kW | 31.1 | 25 |
| Wind | ~1.5 kW | 34.5 | 20 |
| Wind | >1.5-15 kW | 26.7 | 20 |
| Wind | >15-100 kW | 24.1 | 20 |
| Wind | >100-500 kW | 18.8 | 20 |
*Note, to find the exact tariffs and any conditions placed upon them, go to the Department of Energy & Climate Change website.
The tariffs suggest that the return on investment (ROI) will initially be between 5-8%, depending on the technology used. However tariffs increase in line with the RPI which may bring the rate of return to between 7-10% in some cases. According to the Renewable Energy association the cost of PV energy halved in Germany since the start of the German FIT scheme in 2000.
The tariffs provide further opportunity for ECA Registered Members that have the necessary competence to install renewable energy technology and associated metering. However, the specification for ‘smart meters’ – required for the implementation of the scheme - may not be available until after April 2010.
Key role for the Microgeneration Certification Scheme
Wind, solar PV and supported microCHP will have to use the Microgeneration Certification Scheme (MCS) in order to confirm their eligibility for FITs.
For more on the Elecsa ‘Microgeneration Certification Scheme’ go to the Elecsa website.
There has also been an announcement that the Renewable Heat Incentive (RHI) will be introduced from April 2011. This will provide tariffs for heat technologies such as solar thermal and ground source heat pumps.
For more information on FITs, visit the ‘M&E Sustainability’ website (‘M&E Sustainability’ is a joint ECA/HVCA initiative).