So we are now coming towards the end of April and this has seen the introduction of feed in tariffs for renewable generation in the UK. As always we seem to be somewhat behind our European counterparts as countries such as France and Germany have already introduced such schemes to great affect. Spain and Germany are leading the way with 9% and 5%, respectively, of their countries power being generated by renewable energies. The Danish have managed to go even further with 20% of their nations power being produced, in no small part through the mass of wind farms they have spread through out their borders. It may also surprise you to know that America, that far sighted nation (take this as you will), have had a FIT scheme in operation since 1978. It was introduced by the much maligned and underrated president Jimmy Carter, as a response to the energy crisis of the time. Although it is still in existence, the scheme has been fought vigorously by large utility companies who have always perceived it as a threat to their monopoly of energy provision.
The German FIT Scheme is hailed as the blueprint for others to follow. They have put considerable thought in their policy. The tariffs offered for generation are based on the different cost associated with the various technologies. This leads to different prices for wind power, solar power, biomass and biogas sources, and geothermal energy, as well as different prices for projects of different sizes, to account for economies of scale. Prices are also guaranteed for 20 years to reassure consumers and utility companies have been excluded from these rates. So far the German model has been the most successful and the take up of renewable energies is greater there than anywhere else in the world.
So what will a FIT scheme mean to you the consumer and your renewable energy project. Well, if you have already had the good sense to install such a system on your property then unfortunately the FIT scheme will not apply to you. The government took the decision to not retrospectively apply this policy, something that seems to be a feature of current government ‘Green Policy’. It is not completely desolate though, you will be eligible for 9p per kWh, but this is somewhat galling when considering new systems will recieve 36p per kWh generated. Everyday we speak to people who have been championing these types of technologies for years. Often derided by others in society who have been happy to label such people as ‘Hippies’, it is the values of these folk that forms the backbone of the vast majority of government environmental policy. It is incredibly disheartening as a renewable energy company to inform people that they won’t be supported for having the foresight to take the initiative upon themselves to start making a difference. It seems to be a depressing inevitability of human existence that those who are able to see beyond their time and to take a proactive course of action, never receive the acknowledgment and praise that they deserve.
However, for those considering a renewable system for their property, the news is of a better nature. The new tariffs mean, as mentioned before, you will receive 36.1p per kWh generated. This refers to Solar Photo Voltaic panels. The prices for other technologies varies, with hydro receiving 19.9p/kWh, going down to 4.5p/kWh for large scale installations. Wind generated energy will receive up to 34.5p/kWh for smaller turbines, going down to 4.5p/kWh for the large installations that are so despised by Fight the Ban touting, Landrover driving, middle class numpties.
In real terms these FITs will have a definitive, positive effect on the renewables market. The payback of things such as Solar PV and wind turbines are now drastically reduced. The scheme will hopefully make generating your own electricity not only a more accessible option, but a viable commercial opportunity. This may sound awful, as obviously whether something is commercially viable or not should not be a prerequisite for taking the decision to reduce your consumption and effect on the environment. But unfortunately that is the reality for the vast majority of people. They need incentives to come on board and hopefully this is exactly what the FITs scheme will provide.
ReGen Power 