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STA - Maximising Government Incentives for solar - ecobuild 2013

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					Maximising Government
  Incentives for Solar
       6th March 2013

          Paul Barwell
              CEO
    Solar Trade Association
                              1
              Levy Control Framework (LCF)             General Taxation


       Feed in                     Renewable
                                                       Renewable Heat Incentive
    Tariffs (FIT’s)                Obligation

Consists of :                 - Any installs above      - Commercial 8.9p/kWh
- Mechanism in place            50kWp can apply         - 20 years
  until 2015                  - Large Scale &           - Only 35 installs to
- Paid each quarter from        Investors - wind,         date!
  electricity provider          Biomass                 - Domestic RHI due
- Any installs up to 5MWp     - solar now huge            summer/autumn 2013
- ‘degression’ mechanism        growth 2 ROC’s until    - Proposed 17.6p over 7
  based on volume of            end March 2013            years
  installs                    - 1.6 ROC’s from April
                              - New ‘band’ for large
                                roof mounts
                              - Until 2017 then
                                EMR
                                                                                  2
   Generation tariff - 15.4p (based on size of install)
   Export tariff – 50% deemed @ 4.5p
   20 Years, inflation linked, tax free !!!!!
   Typical 4kWp system yields 3500 kWh/year
   How to maximise incentives:
        Install PV! EPC D is a requirement
        Fill up your roof (4kWp) – but not North facing, watch for shading
        South generates higher yields
        Change the way you use your electricity
        Use excess generation to heat your HW cylinder
 Tips:
        Don’t wait for prices to fall
        Be informed, buy quality
        MCS registered installers and equipment
        Get at least 3 quotes
                                                                              3
What haveMarkets
         we achieved recently?




   Domestic      Social Housing & Community




LA &Commercial       Small Solar Parks   4
         Weekly Installsignored
Solar can no longer be


         5.9MW / 1,549 installs last week

                            We need a steady
                            market of 20MW/week (6,000
                            installs) to be 800MW/year
                          April 2011 v
                          Nov 2012
  PV 4kWp|3400kWh/year|25y        PV 4kWp|3400kWh/year|20y
  FIT|25y usage|14p electricity   FIT|25y usage|15p electricity
         April 2011 – 41p FIT        November 2012 – 15.44p FIT

 -£14,000 Installation             -£7,000 Installation
  -£2,800 Inverter/maint           -£1,400 Inverter/maint
  £34,850 FIT                      £10,880 FIT
   £1,318 Export (50%)              £1,530 Export (50%)
   £8,450 Own usage (50%)           £9,053 Own usage (50%)
  £27,817 Net benefit              £13,063 Net benefit
   10.8% IRR                        11.1% IRR
Smaller outlay for same returns
Customers can now afford larger systems                           6
        Increased generation
Solar works – New MCS Guide
        figures MCS Design    kWh/kWp
                Zone
                Zone 1       985 kWh/kWp
                Zone 2       1132
                Zone 3       1023
                Zone 4       1093
                Zone 5W      950
                Zone 5E      972
                Zone 6       937
                Zone 7W      933
                Zone 7E      866
                Zone 8S      868
                Zone 8E      880
                Zone 9S      906
                Zone 9E      907
                Zone 10      918
                Zone 11      893
                Zone 12      963
                Zone 13      922
                Zone 14      835
                Zone 15      944
                Zone 16      877
                Zone 17      837
                Zone 18      768
                Zone 19      735
                Zone 20      714           7
                Zone 21      847
          Watch for
What have we achieved recently?
           Shading




                                  8
 Designed for large scale electricity generators
 Solar PV=2 ROC’s ~ 8/8.5p equivalent per kwh
 Plus sell electricity via power purchase agreement (PPA)
 Huge solar farm growth in UK ~ 750MW by end March
 How to maximise incentives:
    Try and get on-site electricity use
    Roof mounted growth market, higher banding
    Prices will fall to 1.6 ROC’s in April, but still works
 Tips:
    Don’t wait for prices to fall
    No guarantee of ROC price, but ~ inflation
    Get advice before proceeding
    Buy bankable equipment; quality
                                                               9
1)We now have all the tools:
  I.     Stable FIT’s with acceptable degression
  II.    Electricity price increases 6-8% per year
  III.   Lowest install prices (~ £6,500 by spring/summer)
  IV.    New PV guide with updated kWh/kWp averaging >10% higher yields
  V.     No degression on <10kWp installs until August 2013
  VI.    ROI’s might peak in spring/summer (12-15%)
2) But we don’t have customer confidence
3) Installer margins are very low; companies
   running on limited cash
4) Issues: 8% reduction in £; anti-dumping

                                                                          10
Flat Roof or Ground or Wall Mounted
   Space heating and hot water
   Technologies – Heat pumps, biomass and solar thermal
   Commercial – 8.9p/kWh, 20y but only 35 installed (£4,000)
   Domestic – under government consultation:
        17.3p/kWh generated over 7 years
        Deemed energy based on property size
        Legacy back to 15th July 2009
        Efficiency measures = Green deal ticks
 How to maximise incentives:
      RHPP = £300
      Insulate your cylinder and associated piping (MCS)
      Solar Thermal has historically been ‘undersold’
Tips:
        Install now?
        Size your system appropriately
        Use MCS installer and panels
        Buy bankable equipment; quality
                                                                12
           Report card - RHPP
2011- 12


RHPP               FIT




            £300                                 £22,000
                   (Generation Tariff Only 2.5kWp, S Facing, 41p/kWh 25 years)
                        Report card - RHPP
2011- 12


RHPP                            FIT




                         £300            £22,000
(EST figures 2011-12)
Solar heating stats
DECC impact assessment
PV 4kWp|3400kWh/year|20y        ST 1280kWh generated/saved| 4
FIT|25y usage|15p electricity   people|7y RHI|20y usage|oil 8p
      BEST CASE – 16p/kWh        DECC’s BEST CASE – 17.3p/kWh

  -£7,000 Installation             -£4,500 Installation
  -£1,400 Inverter/maint             -£907 Maintenance
  £10,880 FIT                       £1,548 RHI (7 years)
   £1,530 Export (50%)                  £0 Cylinder energy
   £9,053 Own usage (50%)           £2,708 Own usage
  £13,063 Net benefit              -£1,151 Net benefit
   11.1% IRR                        -3.5% IRR


                                                                 17
                          Draft MIS 3001 Iss. 3.0

                          Area of
Occupancy                  Solar                  Energy          Solar
                         Collector                Saving        Energy Qs
     (people)                  (m2)               (kWh/year)     (kWh/year)
         1                    2.0                       769        590
         2                    2.0                       979        752
         3                    4.0                     1,431      1,099
         4                    4.0                     1,665      1,279
         5                    6.0                     2,092      1,607




                                                                                    Bill Saving
         6                    6.0                     2,312      1,776




                                                                              RHI
High performance flat plate panel, S Facing, no shade,
30 degrees roof pitch, condensing boiler, no cylinder savings
Cylinder Upgrade
       Average 750kWh/yr saving possible




                                           Bill Saving
                             RHI
ST 1280kWh generated/saved| 4    1280kWh generated|1665kWh
people|7y RHI|20y usage|oil 8p   saved|4 people|7y RHI|25y
                                 usage|20y cylinder|oil 8p
 DECC’s BEST CASE – 17.3p/kWh        STA proposal – 27p/kWh

  -£4,500 Installation             -£4,500 Installation
    -£907 Maintenance                -£970 Maintenance
   £1,548 RHI (7 years)             £2,416 RHI (7 years)
       £0 Cylinder energy           £1,765 Cylinder energy
   £2,708 Own usage                 £4,728 Own usage
  -£1,151 Net benefit               £3,439 Net benefit
   -3.5% IRR                         6.5% IRR

                                                              20
               Separate the cylinder?
                           RHI + “Scrappage”
                                    Grant




Copyright Viridian Solar
                           Solar Alongside




                                    HEAT
                                    PUMP


Copyright Viridian Solar
Your Roof




            23
Paul Barwell
Chief Executive Officer
Solar Trade Association



pbarwell@solar-trade.org.uk
Solar Trade Association
www.solar-trade.org.uk

Visit our Stand S2830 + drinks reception Wednesday 5-7pm

				
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posted:5/6/2013
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