Page 2 - Nov11Flipbook

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from HDC
49 kW system
51 kW system
Installation costs
Average energy generated per year
37,415 kWh
38,943 kWh
Average annual income from FiT
Average annual income from power sold
Total income
8.00 years
13.04 years
25 year income minus installtion costs
Diference in 25 year revenue
Percentage diference
4 kW new build
4 kW retroft
4 - 10 kW
10 - 50 kW
50 - 150 kW
150 kW - 250 kW
250 kW - 5 MW
Generation tarif for new solar PV
installations as at 1st August 2011
FiTs favour small scale solar
The Department of Energy and
Climate Change has gone ahead with
plans to chop Feed-in Tarif (FiT) rates
for larger scale solar photovoltaic
(PV) installations in order to protect
funding for small scale solar PV
projects and other technologies. The
new, signifcantly lower, FiT rates for
projects over 50kW came into force
on 1st August 2011 and are set to stop
the scheme being overwhelmed by
developers building large scale solar
The changes make solar PV installations
below 50kW the most fnancially attractive
option. This can be clearly seen by
comparing the economics of a typical
49kW and 51kW system. Although there is
only a small diference in installation cost,
the FiT rates make a signifcant diference
to income and payback.
In summary
The Government is committed to encouraging the small scale generation of renewable electricity and will be acting to ensure that
the FiT scheme plays an efective role to incentivise take up. Growers with buildings suited to solar PV systems up to 50kW are well
placed to take advantage of the still generous rates. These may reduce from 1st April 2012 so it’s essential to act quickly.
It’s still important to plan properly though and make sure you understand all aspects of any proposed project – and seek the advice
of independent and professional advisors where necessary.
1. Installation costs of £2,200 per kW installed.
2. Assumes 9% generation efciency (average for the UK on south facing roof with 30 degree tilt).
3. 32.9p/kWh for 49 kW system and 19p/kWh for 51 kW system.
4. 100% export at 3.1p/kWh.
5. FIT plus export income.
6. Total install cost divided by annual income - no cost of borrowing or infation accounted for.
7. Assumes no infationary increases or O&M costs.
8. Diference in 25 year revenue divided by 49kW revenue.
So is now a good time to seriously consider
a small scale solar PV system?
FiT rates are fxed at the point of project
registration, indexed linked and paid over
a 25 year term – with no retrospective
adjustments. Whilst it may be tempting to
wait and see how much further the cost of
PV will fall and so get a cheaper installation
deal, it is certain that the Government will
keep a close eye on the FiT scheme. The
next comprehensive review is imminent
with any resulting changes scheduled to
take efect from 1st April 2012.
Given that a typical small scale solar
project needs at least a 3 month lead time,
the smart move would be to start now.