Worcester Renewables Ltd

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Category: For Business (page 1 of 5)

Solar PV comes of age – Grid parity for solar photovoltaics in Spain today

With the drop in the supply price of solar panels, the cost of installations, a LOT more sun (than England) and the much higher electricity prices now means that an economic investment can be made in Solar PV without the need for Feed-in-Tariff or Renewable Energy Obligation support . Of course that is at the industrial scale! – In just one province – Murcia in South East Spain – they plan to install 2.5GW of solar PV – that’s 10 times more than they did in the last two years alone.

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Feed-in Tariff tables from 1st August 2012 (until 1st November 2012)

 

Band (kW) Prior to August 1st
(Single Installation)
Standard generation tariff
(p/kWh)
Multi-installation tariff
(p/kWh)
Lower tariff
(if energy efficiency requirement not met)
(p/kWh)
Period of Tariff
(Years)
•4kW (new build)
21.0
16.0
14.4
7.1
20
•4kW (retrofit)
21.0
16.0
14.4
7.1
20
>4-10kW
16.8
14.5
13.05
7.1
20
>10-50kW
15.2
13.5
12.15
7.1
20
>50-100kW
12.9
11.5
10.35
7.1
20
>100-150kW
12.9
11.5
10.35
7.1
20
>150-250kW
12.9
11.0
9.9
7.1
20
>250kW-5MW
8.9
7.1
N/A
N/A
20
stand-alone
8.9
7.1
N/A
N/A
20
Export
3.2
4.5
4.5
4.5
20

So what does this mean to business and commercial installations?

It depends upon who you do business with.

Worcester Renewables buys direct from the manufacturers, and with 4 – 6 week lead times between purchase and delivery our prices are already determined for post 1st August, and whether your purchase before or after 1st August you will still see an ROI, index linked of 10% year on year.  However if you can install before the  1st August you will benefit from those payments for 25 years, as opposed to a reduced 20 years.

We also have funding available for a number of sites, so if you believe that you have a property that may be suitable for the installation of Solar PV, then just fill in the form below and we’ll get straight back to you:

 




DECC confirms FIT (Feed-in Tariff) changes to be 1st August

At the Ministerial announcement in the House of Commons today, Greg Barker laid out plans for the changes to the Feed-in Tariff to apply from the 1st August 2012

Changes to solar Feed-in Tariffs

Tariffs for solar pv installations to be reduced from 1 August:

  • 16p/kWh for household scale solar pv installations to reflect fall in cost of the technology, delivering a return of about 6% for a typical installation.
  • Tariffs for larger installations also to be reduced to reflect cost reductions but with most tariff cuts lower than proposed in February.
  • Reductions to apply to new installations from 1 August, instead of 1 July as proposed, in recognition of low uptake from 1 April and providing time for industry to adapt.

Multi installation tariff increased to 90% of standard tariff

  • Organisations with more than 25 solar pv installations will get 90% of the standard applicable tariff, increased from 80%, reflecting new evidence on costs involved for these projects.

Reduction in tariffs over time in line with uptake of FITs scheme

  • Ensuring solar PV is not over subsidised.
  • Average tariff reductions of 3.5% every 3 months, reductions will be bigger (up to 28%) if there is rapid uptake.
  • Tariff cuts will be skipped (for up to 2 quarters) if uptake is low.
  • Uptake in 3 different bands (domestic (size 0-10kW), small commercial (10-50kW) and large commercial (above 50kW and standalone installations) will determine the quarterly reductions within those bands.

Increase export tariff from 3.2p to 4.5p/kWh

  • To better reflect the real value of electricity exported to the grid.

RPI index-linking of generation tariffs to be retained

  • Reflecting the high value investors place on this element of the FITs scheme.

Scheme lifetime reduced from 25 to 20 years for new solar installations

  • Reducing the lifetime costs of the scheme and bring solar in line with most other technologies supported under FITs.

Tariffs for installations which do not meet the energy efficiency requirements will mirror the tariffs for standalone installations

  • Ensuring energy efficiency is still encouraged as tariffs are reduced.

Window opens for Businesses to benefit from Solar PV Feed-In Tariff as DECC delays cuts to FITs

In a bizarre move by DECC last night, Greg Barker, Minister for Climate Change tweeted “Having listened carefully to industry, we are looking at scope for pushing back a little the next proposed reduction in the #solar tariffs” he then followed that up this morning with another tweet “we are listening carefully to industry & full details of new much improved FITs regime will be published v shortly”

So what does it mean?

In simple terms DECC should have announced the details of the originally proposed cut to the Feed-In Tariff by Monday of this week in order to meet the regulatory timescales, they didn’t.  That means that the earliest any change to the Feed-In Tariff could be brought in is mid-July. In practice one of two things will happen, either it will simply be put back month, or more likely, they will keep it as it is and then introduce a slightly lower cut than planned in October, so missing out completely this interim cut.

i.e – You have another month to get your business approval to get the Solar PV installed, or maybe even another 3 months.

So what should you do NOW?

Simple get on with it, if you had plans for just one installation – do it NOW, we are already seeing pressures on some materials supplies as other parts of Europe also see FIT changes at the same time.  If you had been considering multiple schemes, get the finance put in place, and get the DNO applications in!

The Sweet Spot!

Right now, the way the Feed-In Tariff is structured, the best returns are for systems of 10kWp, 50kWp and 250kWp, that will change with the next review of FITs so don’t delay. To find out if you have premises suitable for installing a Solar PV system, it’s potential size and ROI, just give us a call on 01386 871490, and we’ll be able to quickly assess the potential for you with no obligation. – Speak Soon.

Government to Slash Feed-in Tariff for Solar PV

Energy Saving Trust FIT review fact sheet

Fact Sheet on the proposed changes to Solar PV Feed-in-Tariff rates

Last updated 26 October 2011

Introduction

The UK Government is proposing to reduce Feed-in Tariffs (FITs) for new solar photovoltaic (PV) installations as part of their comprehensive review consultation. See  www.decc.gov.uk/fits

If you install solar PV and your FITs application is received by your FIT supplier (also known as FIT Licensee) on or after 8 December 2011, you could be affected by the proposals.

Please note that these proposals are currently under consultation and are therefore not final.

However, we recommend customers should use the figures in the consultation if they are planning to install after 8 December 2011.

Only PV systems are covered by the UK Government’s current FITs consultation. Other FIT-eligible technologies will be considered as part of the second phase of the comprehensive review due to be published shortly.

Summary of proposals

The UK Government proposals which affect householders most are:

  • A reduced rate of 21p/kWh for solar PV installations <4kW – tariffs will be introduced from 1 April 2012 and will affect all installations with an eligibility date on or after 8 December 2011. See definition of eligibility date below. This tariff rate is designed to provide householders with a rate of return of around 4%.
  • New domestic energy efficiency requirements – from 1 April 2012, domestic installations must be accompanied by an Energy Performance Certificate (EPC) with a level C or above/which has completed all „Green Deal. measures. Where a domestic property does not meet these energy efficiency requirements, the Solar PV installation may receive a lower tariff.

The table below compares typical income and savings made for an average sized solar PV system in the UK along with simple payback period (cost divided by combined income and savings)

FIT Rates Total annual earnings and savings with a 2.9kW system Simple payback (years)
Current 43.3p/kWh £1,190 10
Proposed 21p/kWh £    640 18
  • 2.9kWp system, install cost of £11,500
  • Total earnings and savings include income from the generation tariff, export tariff on 50% of total generation and up to 25% of generation used on site.
  • Simple payback will depend on capital cost so the simple payback periods may vary depending on quotes received. Cost of solar PV has come down significantly over the years so we would expect the simple payback period to come down gradually.
  • Annual generation has been calculated as 853kWh/kWp using the Energy Saving Trust Solar Energy Calculator (see below) using the postcode SW1A 0AA (Westminster Palace)
 

To find out more about how this will be implemented, please download the full fact sheet:

 

Don’t delay – contact us for a quote NOW

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