Feed In Tariff Closure 2019 & the Smart Export Guarantee (SEG)

Act now to secure as quick as 3 year payback on Renewable Power Installations


    If you, your friends or family want to install Solar or other renewable power system, we recommend you act swiftly. Following the removal of EU Tariffs on Solar panels recently. there has been a drop in installation costs. This coupled with the Feed In Tariff that remains means that Solar PV up to 4 year payback.

    This won’t last long as the Government will close the FIT scheme & Export Payments scheme to new entrants on March 31st 2019. Those who have registered before this date will be unaffected.

    This will affect all wind, hydro, solar, micro CHP and anaerobic digestion projects.

    Commercial or community installations can be preregistered and will have 6 to 12 months from the date of registration to install the systems.

    Following the closure of the FIT Scheme, paybacks will drop to 6-7 years.

    In review of the FIT scheme to date, the Government state,
    “To date, Government policies, together with global investment, have enabled
    substantial progress in building a successful renewables industry as part of our move to
    a low-carbon economy, and have driven down the costs of low-carbon generation
    technologies. The FIT scheme was instrumental in achieving this objective at both a
    domestic and small-scale commercial level for small-scale low-carbon generation. The
    FIT scheme gave the public a stake in the transition to a low-carbon economy and in
    turn fostered reductions in energy costs for households, businesses and communities
    that generate electricity. Since its introduction in 2010, the FIT scheme has supported
    the installation of 830,471 installations, a total of 6.09GW of generation capacity.”

    In light of the IPCC 1.5 Report back in October 2018 & the clear world scientist defined need for immediate & drastic action, we believe closure of the Feed in Tariff is an incredibly short sighted step. If you didn’t know, the early closure is justified by Government on the saving of only £1/ year/ household bill in contrast to £25-35/yr/household for Hinkley C Nuclear Power Station. We responded clearly & robustly as such to last year’s consultations on the FIT closure and the ‘Future for Small Scale Renewables’ consultations directly and in support of our trade bodies. In the response to the FIT closure, the Government Report acknowledges but flatly disregarded all consultation feedback.

    The Government consulted on the Future of Small Scale Renewables back in August 2018 but have yet to publish their findings i.e. the Feed In Tariff will end without a clear replacement or future plan! There is Government Proposal & consultation currently live on a scheme titled the Smart Export Guarantee (SEG).

    Having read this consultation, we can see no definite way forward or clear recommendation other than there will be an obligation for the larger energy suppliers to pay for export (i.e. they can’t have it for free & generators will be paid something), however it does not give any rule or baseline of the value of this exported energy (currently 5.24p/kWh). It does however recommend that, to be eligible, there are many eligibility criteria such as installations will have to be MCS Registered & smart metered for export. Both these requirements have a cost of installation & operation which we believe can only be offset by a minimum export value i.e. wouldn’t be offset by an export value less than 5p/kWh. Hence we will be feeding back that the export rate should be linked to the sale price of electricity e.g. average domestic electricity price – 10 pence.

    If you’re interested in the best future for small scale renewable energy, which puts green power in the hands of the energy users, we urge you to review and respond to this consultation, which ends on 5th March 2019.

    Get in touch with us if you’d like to find out more via info@zlcenergy.co.uk

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