“Feed in Tariff” or “Clean Energy Cash Back”
This is a retrospective grant. instead of paying you a portion of the upfront cost it pays you for the electricity generated every year for the life time of the scheme. The tariff is fixed at the start but is linked to the Retail Price Index so is inflation proofed. You also get to use the electricity generated so save the money you would otherwise spend. In addition, the energy you don’t use is exported to the grid so your neighbour can use it.. The tariff for systems up to 4kW is currently 43.3p per kWh after the increase in April. This is likely to reduce in April next year to 21p for all systems registered after 12 December 2011.
The export tariff minimum is 3.1p or you can sell it on the open market. We have published the returns for popular sizes on the PV page but the annual rate is generally around 10% depending on individual installations. This is income tax exempt for private individuals but is treated as revenue for businesses. Almost anyone is eligible for the Feed in Tariff including local authorities now that they are to be allowed to generate and sell electricity.
The funds do not come from central government but are met by a levy on the price of electricity so this scheme is safe from cuts. The Coalition have stated that they are committed to the Feed in Tariff and are considering strengthening it.
Grants
The UK has a legally binding commitment to generate 15% of its energy from renewable sources by 2020. The three sectors required to contribute to this target are electricity, transport and heat. This is not the same as the commitment to reduce CO2 by 20% but very much related. Recently our new government proposed to the EU that we reduce it still further to 30% by 2020. Chris Huhne has also stated his and the governments commitment to existing incentives and have just launched a consultation on their energy strategy. Look on the DECC web site for more and up to date information.
The Carbon Trust has stopped all new applications for the Low Carbon Buildings Programme; Stream one and Phase 2. This was difficult to claim in many cases and was intermittent which did not effectively incentivise the market in England and Wales.
Note that all PV grants had already stopped with the introduction of the Feed in Tariff.
Carbon Emissions Reduction Target (CERT)
CERT funding comes from the large utility companies. As a condition of trading in the energy supply market these large companies (British Gas, EDF, Scottish Power, NPower, Southern Electric, and EON) are required to reduce their carbon emissions by a target set by the government. The total over 3 years is set at 4.2 million tonnes by the end of the Programme.
Further commitment to CERT has been made in the form of grants for home insulation which has been increased from 60% to 68%.
Other Organisations
Grants are also available from local authorities and charitable trusts. Here are a few that may have funds for community projects;
Landfill Communities Fund; this is available from your local Landfill Operator for community projects within 10 miles of a land fill site. The money comes from the Land Fill Tax paid on all waste dumped and not recycled. Contact your local Land Fill Operator for details or go to the Entrust web site who are the regulators for the scheme.
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The Enviroshop Ltd Bristol Road, Bridgwater, Somerset, TA6 4AR