The Renewables Obligation (RO) places a mandatory requirement for UK electricity suppliers to source a percentage of electricity that they supply from eligible renewable sources. As a result of this there are many opportunities for landowners, farmers and home owners to enhance the various scheme and developments that are occurring in this technology at present. Not only will the installation of renewable technologies contribute to the RO target, but there is potential to diversify and increase the income stream of rural businesses and also reduce energy costs.
Introduced in 2010 the Feed in Tariff (FITs) is a Government backed initiative which was created to encourage the generation and use of energy from renewable sources, such as Wind, Solar Photovoltaic, Hydro and Anaerobic Digestion.
Feed-in tariffs for both the generation of electricity (a generation tariff) are available even if you use some or all of the electricity yourself and for giving unused generated electricity back to the National Grid (an export tariff). The level of payment depends on the technology and whether it is being fitted to an existing building, or installed on a new building. In the UK, future payments are guaranteed for the next 25 years for solar and 20 years for wind power and are linked to inflation. The payment will be made for the energy produced on a pence per KWH produced. The introduction of the FITâ€™s means that investment in a renewable energy project is now commercially viable with payback periods of between 5 to 10 years, depending on the system installed.
The benefits of generating your own electricity are:
- A payment for all the electricity you produce, even if you use it yourself
- Additional bonus payments for electricity you export into the grid
- A reduction on your standard electricity bill, from using energy you produce yourself
The Government introduced a scheme similar to FIT call the Renewable Heat Incentive (RHI). The RHI is a Government initiative which is being created to encourage the generation and use of heat from renewable sources, such as Air-source Heat Pump, Ground Source Heat Pump, Biomass Boiler, Solar Thermal, to claim a fixed amount for the estimated heat that you generate. Small scale commercial properties are eligible at present, but 2012 brings new rules relating to domestic premises. Further details on the RHI will be published in due course.
Madeleys Chartered Surveyors are constantly keeping abreast of renewable technology developments, are involved in various large and smaller developments and can advise on the following types of projects, whether it be an individual, group, co-operative or community owned:
- Wind Energy
- Anaerobic Digestion
- Solar Photovoltaic Energy
- Solar Thermal
- Air Source Heat Pumps
- Ground Source Heat Pumps
- Biomass Boilers and Systems
- Hydro Schemes
- Combined Heat and Power
- Energy from Waste Management Facilities
We provide reasoned and practical advice on the above renewable proposals, in terms of:
- Exclusivity Agreements
- Option Agreements
- Compound Leases
- Feasibility Studies
- Pre-Application Enquiries and Research
- Planning Consent
- Project Management
- Applications for Grant Aid
If you are considering the possibility of installing renewable energy in your home you may be entitled to grant aid. Contact us for advice.