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Details have just been confirmed for the UK Feed in Tariff scheme (FiTs) being launched in April. Known also as “Clean Energy Cashback”, the FiTs are designed to promote low and zero carbon electricity generation beyond traditional energy companies, making it more attractive for householders, businesses and community groups to realise renewable energy projects in their own backyard. Support is available to all generators (commercial and non-commercial) for new solar photovoltaic, wind, hydro and anaerobic digestion projects up to a 5MW limit. Community-scale project support is reinforced with specific bands for hydro and wind.
The introduction of the scheme is particularly good news for commercial organisations who were not eligible to receive grant funding towards an installation previously. With the generous tariff levels on offer in the scheme’s early years there has never been a better time to investigate the opportunities that lie in renewables.
We are ideally placed to help you select a technology type that makes the best use of resource on your site and a system size that maximises your return. For example, in wind projects, there are similar development costs to obtain approval for a 100kW turbine as for a 2MW turbine. Maximising the use of generated electricity onsite will also improve the financial return. SgurrEnergy also offer independent, expert advice on technical feasibility, planning guidance and financial modelling to clients who may be weighing up options from various equipment suppliers.
Tariffs will be paid at the rate applicable in the first year of installation and indexed by Retail Price Index (RPI) to give investors more certainty about financial returns. For example, in year 2, an installation made in year 1 will be paid the updated “year 1 tariff.” Those considering PV and small-scale wind energy should start development as soon as possible to obtain the best possible tariffs. The graphs below show that for certain capacity wind and all solar PV energy projects, the best available tariff is for installations in the next 2 years. If you are considering development of renewable energy resources, the key to maximising return on investment is to seek out independent, expert advice at an early stage.
Get in touch with the Low Carbon team on 0141 227 1700 or email info@sgurrenergy.com for more information.
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