Economic incentives: Renewable Heat Incentive and the Feed-in-tariff - Philip Wolfe (Ownenergy Plc)
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02/12/09 1 Farming Futures Conference
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This presentation formed part of the Farming Futures workshop 'Profitable business in a changing climate: the case for on-farm renewable energy generation.' 2nd December 2009
Transcript of Economic incentives: Renewable Heat Incentive and the Feed-in-tariff - Philip Wolfe (Ownenergy Plc)
02/12/09
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Farming Futures Conference
What are the tariffs?
Where have we got to?
What will farmers make of it?
Will they work?
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Total benefit to customer =Generation tariff +Saving on reduced imports +Export bonus (5p/kWh)
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Feed-in TariffsRenewable Heat
Incentive
Levy raised on Licensed power suppliers
Fossil heating fuel suppliers
Eligible technologiesRenewables, micro-CHP
Renewables,biogas, micro-CHP
Eligible capacities > 5MW Unlimited
Tariffs 4.5 - 36.5p+ 5p export t.b.a
Period 20 years(PV 25 years) 20 years?
Start date April 2010 April 2011
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Feed-in TariffsRenewable Heat
Incentive
Primary Legislation Energy Act November 2008
Initial design July 2009 Dec 2009
Consultation October 2009 Spring 2010
Full design December 2009 Summer 2010
Secondary legislation February 2010 Late 2010?
Go-live April 2010 April 2011
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January 2010
January 2010
Energy users (as opposed to suppliers)
Businesses, including:
Retailers ● FarmersBuilders ● Property owners
Communities and public sectorSchools ● Housing associationsHospitals ● Public buildings
ConsumersHouseholdersTenants, especially fuel poor
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Which renewables suit me?
How much energy?
Do I need planning?
Who can supply and install?
What servicing is needed?
How long do they last?
Connection agreement?
Cost of energy imports?
Negotiate export price?
Which supplier?
What metering?
Who reads meters?
What if the sun doesn’t shine / wind doesn’t blow?Who makes sure it all works together?Load Management / Smart metering?
How to register for tariffs?What finance is available?
Not to have to be energy experts
A financial proposition that works
Not to have to
worry about it
We’ll do it all
… and give you a cheque each quarter
Which renewables suit me?
How much energy?
Do I need planning?
Who can supply and install?
What servicing is needed?
How long do they last?
Connection agreement?
Cost of energy imports?
Negotiate export price?
Which supplier?
What metering?
Who reads meters?
What if the sun doesn’t shine / wind doesn’t blow?Who makes sure it all works together?Load management / Smart metering?
How to register for tariffs?What finance is available?
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Retention of carbon benefit
Landlord/tenant issues
Who owns asset?
Who gets which benefits?
Minimising business interruption
Return rate for non-core activity
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Electricity kW Average cover
Hydro 150 2.5
Solar PV 620 1.9
Wind 110 1.7
Heat kW Average cover
Biomass 450 [2.5]
Heat pumps 1,080 [2.9]
Solar thermal 340 [2.4]
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Based on ~500 options proposed in the 16 weeks to end November 2009
CHP should also be popular (when FIT/FHI interface defined)
Returns increased to at least 10%Engage the commercial customers
Really need 12% (or 10% + carbon benefit?)
Treble the number of consumers
Existing systems eligibleFew thousand influential ambassadors
Other issues resolvedNo tax and rates ‘clawback’; no CRC ‘hit’Index-linked; degression suspendedCapacity thresholds clarified — DNC?
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More on the FITs: www.FITariffs.co.uk
More on the RHI: www.RHIncentive.co.uk
