Viridis Press Release: “Making Money From Thin Air!”
PRESS RELEASE
MAKING MONEY FROM THIN AIR
Sustainability experts highlight the financial benefits for renewable energy
Kent 23rd December: With Parliament’s Energy Bill given Royal Ascent at the end of 2008 and less than 5 months to go until the Government’s promise to introduce renewable energy Feed-In Tariff’s, Kent sustainability experts Viridis Energie Consultants asks if South East businesses and communities really understand the long term financial benefits of sourcing renewable energy?
With Independent and impartial advice on this complex subject, Viridis Energie Partner Barry Nutley stated, “ A ‘feed-in tariff’ is a way for major energy suppliers to pay back businesses, communities, public sector bodies, and domestic users for generating electricity through technologies including wind, solar and hydro power sources.”
Details of the proposal are due to be confirmed in January, but it is suggested that the UK’s feed-in-tariff could look like this:
The new tariff will pay for all the energy generated by your system, irrespective of if you use it yourself or sell it back to the grid.
Just to clarify, these amounts paid are in addition to any saving you will make by purchasing less electricity from your supplier, and any income you earn from selling your surplus power to your energy supplier.
The key points of the announcement are:
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36.5p/kwh for small solar photovotaic systems up to 4kw, and 28p/kwh for systems up to 10kw.
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23p/kwh for small wind turbines between 1.5kw and 15kw.
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It replaces the current ROC system which pays 10p/kwh
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It’s effective as of 1st April 2010, but all systems commissioned from now on will qualify.
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Domestic systems installed from now until 2010 will be eligible for both LCBP grants of up to £2500 AND the new tariff.
This is fantastic news for all, as it significantly reduces “pay back”, and can give a tremendous return on your investment, in some cases over 20%! What’s more the payments will be exempt from tax!
It is widely known by experts that the UK is way behind other European countries like Germany and Spain and a lot more needs to be done in educating businesses and the public on how they can cut bills and create additional income for themselves dependent on the scale of their renewable systems.
Erica Russell, Sustainable Business Advisor for Business Link commented “through the launch of ‘feed-in-tarrifs’ in April next year in the UK, Government is ensuring that everyone who generates electricity using small-scale low carbon technologies will be able to feed back to the grid and get a guaranteed price. This will be for a fixed time and should reduce the pay back period. Linked to the pressures of future energy prices and long term over supply, renewable technologies are well worth considering. And of course for larger installation there may be the opportunities for businesses to take advantage of Interest Free Loans from the Carbon Trust.”
Viridis Energie warns that there is a negative aspect to ‘feed-in tariff’s’ as well. Those that do not opt for a renewable system in the future may well be affected as any payback fees from energy companies are likely to be passed on via higher consumer electricity bills, almost creating a ‘catch-22’ situation.
Concluding, Barry added, “At present, ‘feed-in tariff’s’ are a great opportunity for commercial business, public sector bodies/institutions and the domestic sector to reduce carbon emissions and generate new revenue streams. In fact, for charities and community projects the benefits are even greater, as there are, currently, additional grants available. My view is that people should act quickly, as demand for any form of funding is likely to be high, and the “pot” isn’t bottomless!”