Archive for the ‘Feed-in Tariffs’ Category

Energy Secretary Resigns Over Speeding Offence

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Energy secretary Chris Huhne has tendered his resignation after learning that he is set to face criminal charges following a driving offence he allegedly attempted to cover up. 

The allegations relate to a 2003 speeding charge which saw Huhne’s former wife allegedly take the blame for an offence which he is said to have committed. His ex-wife Vicky Pryce will also face prosecution over her involvement which lead to her accepting penalty points for the speeding offence.

Although the energy secretary continues to protest his innocence, following the news this morning that the Crown Prosecution Service intends to lay charges for perverting the course of justice, Huhne made the decision to step down from his post. He has since issued a short statement, in which he described the decision to charge him as ”deeply regrettable.”

“Whatever the terms of his departure, few can deny that Chris Huhne has really shaken up the energy debate over the last 2 years. He has certainly been successful in driving that agenda forward,” commented Juliet Davenport, CEO and Founder of Good Energy.

While Friends of the Earth’s Executive Director, Andy Atkins commended the energy secretary for championing the environment despite being part of an administration that’s been less than enthusiastic about being the greenest ever Government.

However Atkins added that his the way his department has incompetently handled the solar cuts fiasco has put almost 30,000 jobs in jeopardy, not to mention leaving energy consumers to compare energy tariffs to fight the problem of soaring fuel bills cannot be overlooked.

“What we really need is decisive Government action to get us off the hook of expensive fossil fuels and invest in clean British energy instead,” said Atkins.

It remains to be seen what effect Huhne’s resignation will have on the renewable energy sector. The news has be received with mixed reaction from the renewables industry, but by and large most seem to welcome the news.

Liberal Democrat Ed Davey has been announced as the new Secretary of State for Energy and Climate Change.

The case against Mr Huhne and Ms Pryce is scheduled to be heard in court on 16 February.

Court Victory Blocks Solar Subsidy Cut But at What Cost?

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The British Government’s attempt to halve solar subsidies has been ruled unlawful by the High Court following a request by three organisations for leave of judicial review, which was granted by the same court earlier just weeks earlier.

The decision, which was reached on 21 December 2011, comes after Friends of the Earth, HomeSun and Solarcentury took the decision to reduce solar subsidies from 43.3p kWh to 21p kWh to court. Following an analysis of the decision, the High Court took the view that the Government’s proposals were legally flawed. Solicitors acting on behalf of the Department of Energy and Climate Change (DECC) immediately sought to appeal the ruling.

Although not against the proposal to reduce solar subsidies, Friends of the Earth is opposed to the way in which the matter has been handled by the Government, which chose to halve subsidies with very little notice and mid-way through a consultation on the subject.

Andy Atkins, Executive Director of Friends of the Earth, said: “These botched and illegal plans have cast a huge shadow over the solar industry, jeopardising thousands of jobs. Solar payments should fall in line with falling installation costs but the speed of the Government’s proposals threatened to devastate the entire industry”.

By ruling in favour of the solar industry challenge, anyone who registers for the feed-in tariff (FiTs) between now and and the end of March is legally entitled to receive the current 43.3 subsidy rate for the full 25 year length of the scheme. However, the Government is set to appeal the decision. The December deadline could be reinstated if their appeal is successful, meaning anyone registered after 12 December 2011 would only be entitled to the higher rate until 31 March 2012.

The Government has also been criticised for proposing a further change that would threaten community projects to install solar photovoltaic panels, which harness energy from the sun before converting it into electricity. According to reports, the UK’s “greenest ever” Government is planning to lower the new tariff of 21p by as much as 80 per cent for renewable generates who register more than one unit for FiTs.

Following a consultation, MPs said: “This could have a disproportionate impact on disadvantaged and poorer communities for whom such schemes are a good way of accessing the benefits of renewable energy and reducing electricity costs”.

Meanwhile, Tim Yeo, who chairs the energy and climate change committee, reiterated the need for a reduction in solar subsidies. Mr Yeo said: “There is no question that solar subsidies needed to be urgently reduced, but the Government has handled this clumsily. Ministers should have spotted the solar gold rush much earlier. That way, subsidy levels could have been reduced in a more orderly way”.

There’s no denying that the High Court blocking solar subsidy cuts is some much needed good news for the UK solar industry. But at what cost?

Renewables Guide Website Has Been Launched

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A leading resource for green and renewable energy installers and suppliers, Renewables Guide has just been launched.

From the team behind Boiler Guide and Solar Guide, the website is an ideal resource for homeowners who are looking to benefit from green sources of energy, by investing in renewable energy technologies like heat pumps, wind turbines and solar PV technology.

Renewables Guide features all the latest renewable energy news, and will keep you informed and updated about the latest Government grants and incentives, such as the feed in tariff (Fit) scheme and the Renewable Heat Incentive (RHI) which are designed to financially assist and encourage the uptake of green technologies.

As interest in renewable technologies continues to grow, Renewables Guide is the ideal place to go to for all your renewable energy needs. From advice and information, to providing free quotes to help you find a suitable Microgeneration Certification Scheme (MCS) certified installer, Renewables Guide is the leading resource for green energy installers and suppliers.

The website’s renewable energy calculators are an ideal place to start, and have been designed to help you determine how much you could save by installing solar and wind renewable energy solutions.

David Holmes, founder of Renewables Guide said: “For anyone considering investing in renewable energy solutions, be it wind turbines, solar energy or heat pump technology, Renewables Guide is the place to go to for all your renewable energy needs.

“Whether you’re looking for a heat pump installer or just seeking some more information about the type of technologies available, Renewables Guide is the leading resource when it comes to green and renewable energy installers and suppliers.”

For homeowners looking for quotes and advice about renewables – or if you’re a renewable energy installer and wish to register your details – there’s no better time to check out www.renewablesguide.co.uk

EST Revises Solar Panel Savings Estimate

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The Energy Saving Trust (EST) has revised its estimate for how much money a typical household can save by installing solar panels.

Previously, the EST claimed that as much as £120 a year could be saved on electricity bills by availing of solar energy. Following a review of the technology, however, the EST now claims that a typical solar panel installation will cost up to £16,000 and save just £70 per annum.

The EST had estimated that around half of the electricity generated by domestic solar panels would be used in the home, but the environmental group now believes this figure to be closer to a quarter because the panels only work during the day, during which time most people are at work and not, therefore, using a great deal of energy at home.

The revised estimates by the EST give weight to the accusation that many solar firms in the UK are exaggerating the benefits of the technology.

Jenny Driscoll, of Which?, said: “Consumers must really be on their guard when it comes to solar panels. There is a massive amount of exaggeration about the benefits from salesmen. Remember the households that will benefit the most from solar photovoltaic panels are those with sunny, south-facing gardens who are in all day”.

Responding to the accusation, Virginia Graham, Chief Executive of the REAL Assurance Scheme, a solar panel trade body, said: “We have always been clear that the people who will benefit most from panels are those who are in during the day. We are also working with charities to ensure that vulnerable consumers are protected from mis-selling. We would like to see doorstep mis-selling banned because it is an unsuitable way to promote this technology”.

Doubts remain over the true value of domestic solar panel installations. The EST estimates that £70 can be saved on annual electricity bills, with up to £800 a year being earned through the feed-in tariffs (Fits) scheme. Solar panel installations, however, can cost around £16,000, meaning that many households will have to wait around two decades before the solar panels generate a profit.

Britain’s Largest Solar Array Connects to Grid

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The largest array of solar panels in Britain has been connected to the National Grid, supplying ‘green’ energy to the Howbery Business Park in Oxfordshire.

Approximately one quarter of the business park’s energy needs will be provided by the array, which consists of 3,000 solar PV panels generating around 682 MWh per year. The equivalent carbon saving is estimated to be in the region of 350 tonnes of carbon dioxide per annum.

The business park should be able to benefit from the feed-in tariff scheme (FITs), which provides a fixed rate of pay for electricity supplied to the National Grid that has been derived from clean renewable sources.

Derry Newman, of Solarcentury, the firm that supplied Howbery Business Park with the solar panels, said: “Solar works on daylight, not necessarily [direct] sunlight and it gets light every day in Britain. Of course, it generates more on a very bright day than a dull day.

“If you average over the year, the amount of cumulative daylight, energy per square metre, is very well known and is very predictable. Over the life of the system, the amount of energy produced is very predictable”.

Mr Newman’s comments counter many of those raised by ‘green sceptics’, some of whom reason that solar technology is more or less useless in Britain, which is hardly renowned for its favourable climate. As an area’s average annual exposure to sunlight is calculable and, therefore, predictable, it is possible to estimate with reasonable accuracy the amount of energy that is likely to be generated over a year.

The Government’s recent review of feed-in tariffs meant that organisations generating more than 50kW of electricity would receive a lower rate for energy supplied to the Grid. Mr Newman believes the Howbery Business Park development will be one of the last of its kind unless the feed-in tariffs are revised again.

Mr Newman said: “[The change to FITs] means that virtually all investors have withdrawn from financing such developments. There were probably many hundreds lined up for development across the country. They’re pretty much all cancelled now because of the fast track review. This type of installation will be a relative rarity for a few years”.

UK Government to Cut Solar Panel Subsidies

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The UK’s Coalition Government – the same administration that promised to be the ‘greenest ever’ last year – has announced plans to introduce a 70 per cent cut to the Feed-In Tariff scheme (FIT) for large solar energy enterprises.

Due to come into effect on August 1, 2011, the move would reduce payments made to landowners, farmers and commercial property owners under FITs. The proposal affects any solar installation that produces 50kW of solar-generated electricity, whilst the full 70 per cent reduction would apply to installations producing 250kW to 5MW of power. Understandably, the solar industry has reacted with dismay and anger to the proposal, which remains subject to consultation.

Ben Warren, of Ernst and Young, said: “The whole investor market was totally disengaged as a result of the Feed-In Tariff being ripped up.” Meanwhile, Ray Noble, of the Renewable Energy Association, commented: “It’s an absolute disaster. No new projects will start after this comes into effect.”

Attempting to explain how the proposal would benefit the solar industry in the UK, Climate Change Minister Greg Baker said: “I want to make sure that we capture the benefits of fast-falling costs in solar technology to allow even more homes to benefit, rather than see that money go in bumper profits to a small number of big investors.”

Unfortunately, the proposal is more likely to dissuade large corporations from investing in solar technology than it will encourage new solar panel developments on a scale large enough to benefit a significant number of homes.

The Government did, however, make the point that the reduction would result in greater funds being made available for domestic solar panel projects. As funds are collected through consumer energy bills, it is perhaps only fitting that more money is reserved for domestic solar PV projects.

The Feed-In Tariff works by enabling homeowners and companies to generate electricity from solar photovoltaic panels, which are typically installed on rooftops, before exporting it to the National Grid. Under FITs, around 41p per kilowatt hour is paid for such electricity, making solar panels an important investment in the home. Whether solar technology remains a viable opportunity for larger companies after the Government’s proposal is implemented remains to be seen.

PM David Cameron Reneges on Solar Panel Promise

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Prior to the UK General Election in May, Tory hopeful David Cameron promised to make his government the “greenest ever”; after finding his feet in office, however, the Prime Minister sought to target public spending rather than invest heavily in the environmental sector. This week, reports have emerged that Mr Cameron has broken a pre-election promise to reward early adopters of solar photovoltaic panels and other domestic green energy initiatives with the higher Feed-in-Tariff (FIT) rates.

In a letter addressed to one of his Witney constituents in March, Mr Cameron wrote: “I agree with you that the [Labour] Government’s current proposals for feed-in-tariffs will unfairly penalise the very people who were the early investors in local energy. That is why under a Conservative Government, any micro-generation technologies that have already been installed… will be eligible for the new higher tariffs once they commence”.

Last month, the energy secretary, Chris Huhne, advised that the issue of rewarding early adopters of solar power as promised by Mr Cameron was considered on a “value-for-money basis” and ruled out accordingly.

The Feed-in Tariff was introduced under the previous Labour Government to encourage local investment and uptake in domestic green renewable energy, most notably in the form of solar panels. Under the Feed-in Tariff, homeowners who install solar panels on their properties are guaranteed a fixed tariff – 41.3p per unit of electricity – for energy supplied to the Grid, however, owners of solar panels installed before the 15th July 2009 would only be eligible to receive 9p per unit.

Julie Davenport, the Chief Executive of renewable energy firm, Good Energy, suggested that Mr Cameron and his Government are failing in their promise to create a “big society”.

Ms Davenport said: “Good Energy is extremely disappointed that the Government has not met its own pre-election promise to support early adopters of renewable technologies. We urge David Cameron to ensure that there is no further reduction to the feed-in tariffs in any way”.

Ms Davenport’s comments refer in part to speculation that the cost-cutting coalition Government is preparing to cut the 41.3p feed-in tariff rate on the 20th October.

Martin Lewis promotes solar PV but warns-off free “debt-based” panel offers

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The man behind the Money Saving Expert website, Martin Lewis, has featured on this afternoon’s Jeremy Vine show on BBC Radio2 as part of a discussion about the benefits of domestic solar PV (Photovoltaic) panel installations and the payments received through the Feed-in Tariff (FIT).

Lewis, who has backed solar power technology on his own website, talked about the financial rewards of making the switch to solar panels and highlighted the average annual electricity bill savings of £100 and the average annual Feed-in Tariff payment of £800 as the incentives to have solar PV installed.

However, despite the personal finance journalist recommending ‘free’ solar installations from green energy firms and energy suppliers where they cover the cost of the solar panels and installation and in return take the Feed-in Tariff payments for generating your own electricity for the next 25 years, he hit out at companies offering a similar scheme that works more like a loan when you have to pay the costs of the panels and installations back.

“You can’t really store electricity so what do you do when you produce excess capacity – you can feed it back into the national grid,” Lewis explained to Vine and Radio2 listeners.

“This is the shock moment. The amount they pay you for generating electricity for the national grid is about twice what they charge you for getting electricity from the national grid. So if you’ve got an excess capacity of electricity you are being paid a good rate.

“You’ll probably save around £100 a year on your electricity bill. But the excess capacity will probably generate you on average about £800. So you’ve got a £900 total gain.

“The government has guaranteed Feed-in Tariffs for 25 years. They’ve said it will rise with inflation but remember government is omnicompetent– they can change their mind at anytime – and there has been some discussion that in the cuts coming they might cut the Feed-in Tariff because it’s already been successful.

“But the idea is you pay £12,000 [for the panels and installation] and you get £900 a year generated over 25 years. Suddenly you’re £12,000 up.”

Lewis did reiterate that there are risks with fitting solar PV panels to your home, other than the government’s commitment to the 25-years of Feed-in Tariff payments.

“There are risks that you might have problems with your solar panels – they might need fixing – there are risks that the Feed-in Tariff will drop in the future so it isn’t an absolute bang certainty.”

And when pressed by Vine about the initial £12,000 cost of the technology and fitting it to the home, Lewis voiced his opinion on the two differing offers from green firms and energy suppliers that offer ‘free’ solar PV panels and installation.

He said: “What they say is, you get the electricity saving – circa £100 a year – but they will keep the Feed-in Tariff generation of £800 a year. So they will put these on the roof, give you a 25 year contract and they will say you keep the £100 a year saving but we get whatever you get from generation the electricity.

“There are other companies out there – this is a warning – who say we will fit the solar panels on your roof, you give us a grand or two and then out of your earnings from solar panels it will pay off the costs – in other words it is a debt-based system. I would not touch that with a barge pole.

“The companies that say we will give you these for free and we get all the Feed-in Tariff are fine because ultimately if something changed there is no risk to you. But if you’re borrowing and doing one of the debt-based solar panel companies, I wouldn’t do that.”

Another point Lewis also focussed on was the lack of feedback about the Tariff and domestic solar installations. Because despite solar panels dating back 40 years, only now are they being used as a real alternative to traditional electricity supplies. And with the Feed-in Tariff only launching four months ago, there has been little feedback on the technology and financial benefits.

Lewis added: “This is brand spanking new. And we’re talking something that last 25 years. It’s all very good on paper but the one thing i haven’t got is feedback of who is getting them, what its like and how it’s actually working because it is too early to tell. And that is why I go back to the investment type feeling – there is risk involved, it is not a dead cert.”

The discussion went on to talk about the weight issue with solar panels and how you may need to have extra structural support built into your roof, the importance of using an MCS certified company and installers and the small print of the Feed-in Tariff where you need to make you home energy efficient with different insulations and having an energy efficient boiler before being eligible for the tariff.

To work out how much money you could save/earn by having solar PV panels installed, check out Solar Guide’s solar PV Feed-in Tariff calculator by clicking here.

Martin Lewis to back solar PV on BBC Radio2 today

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Martin Lewis, the personal finance journalist and brains behind the Money Saving Expert website, is due to promote the benefits of solar PV electricity this afternoon when he features on the Jeremy Vine BBC Radio2 show.

Lewis will be appearing on Vine’s afternoon show today at around 13:00GMT to talk about the benefits of switching to solar PV.

An avid supporter of solar power, Lewis will discuss the financial benefits of installing solar PV panels to your home with the Feed-in Tariff (FIT) a key focus of the financial advantages along with reduced energy bills.

As part of his argument in support of solar PV, Lewis will also talk about the widely available offers from green energy firms and energy suppliers that offer to provide your solar panels and installation for no cost and you repay the fee using the money received from the Feed-in Tariff and saved through your energy bills.

On his website, Lewis says: “You can benefit in two ways. First there’re the electricity bill savings. The Energy Saving Trust estimates that typical solar panels can produce c.40% of a home’s leccy.

“This means a typical family could slash a dazzling £120-ish off their bills, depending on how much sun you get and your roof size. Of course, if electricity costs go up, you’ll save even more.

“The other bonus is that a new government scheme pays c. £800/year for all the solar energy you produce, even if you use it yourself. Bizarrely, the cash from this scheme massively eclipses the electricity bill savings.”

To listen to Martin Lewis, tune your radio to 88-91FM or listen live on the BBC Radio2 website by clicking here at 13:00. You can request quotes for Solar PV installations at Solar Guide or calculate feed-in profit with the Solar PV Calculator.

Baxi Ecogen boiler now available with British Gas

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British Gas has added the Baxi Ecogen Micro-CHP (Combined Heat and Power) to its range of boilers to maintain the UK’s leading gas and electricity supplier’s investment into new green technologies.

The energy supplier has recently added a solar pv and solar water heating panel package to its vast array of offers, and now it has partnered with boiler manufacturer Baxi to offer the highly regarded Ecogen to consumers.

The British Gas Baxi Ecogen micro-CHP is a revolutionary wall-hung combined heat and power appliance that can provide efficient gas central heating and hot water like any other boiler, but also generates electricity for use in your home.

With a micro-CHP system fitted you can provide your home with heating and hot water generated at a low cost as well as two thirds of your home’s electricity requirements according to field trials untaken by Baxi.

By using this electricity to power your household appliances it means you can buy less electricity from your energy supplier, potentially sell back any unused electricity, lower your electricity bills and reduce you carbon footprint.

It looks and works like any conventional boiler. However, the system uses a special Stirling engine that is heated by burning gas. The unit responds to a heat demand of up to 6kW by igniting the engine gas burner. The heat causes helium inside the engine to expand, pushing a piston up and down between a copper coil to generate up to 1kW of electricity – like an alternator in a car.

It looks like a standard boiler, so it can be easily mounted in a kitchen, garage or utility as a direct replacement for a previous unit.

The Baxi Ecogen offers its maximum cost efficiency when you use electricity as its being generated by the system, for example doing your washing in the evening when the heating is on.

The Ecogen comes with a built-in energy meter so you can see how much electricity is being produced and comes with a range of controls to control room and hot water temperature to further reduce the cost of your bills.

According to British Gas, 1.5 million boilers are replaced in the UK each year. And it’s estimated that by 2015, micro-CHP units will represent 30 per cent of these replacements, so it’s a viable technology for the future.

More information: British Gas Baxi Ecogen Boiler