News analysis Feed-in tariffs
Fitting incentive?
A range of measures for boosting renewables
in the UK has emerged recently, but some
professionals question whether they are the
right policies. Carina Bailey reports
n
Government policies
aimed at encouraging the
use of renewable and low-carbon
technologies could lead to people
simply investing in more green bling,
according to some in the building
services sector.
Last summer the Department of
Energy and Climate Change (DECC)
consulted on whether residents,
communities and businesses should
receive an incentive for installing
small-scale renewable technology.
DECC has now announced that
feed-in tariffs (FiTs) will be launched
across England, Scotland and Wales
on 1 April 2010.
A consultation on a second
incentive scheme, the Renewable
Heat Incentive (RHI), was published
alongside this response and will
come into effect in April 2011.
The RHI is expected to guarantee
payments for those who install
technologies such as ground and
air-source heat pumps, and biomass
Shutterstock
boilers. The consultation ends on
26 April. receive £1,000 a year and attract headline figures being quoted for demand, otherwise it’s just green
It is hoped that FiTs alone will savings of £200 a year if used financial returns could encourage bling. The best business case for
save 7m tonnes of carbon dioxide instead of heating oil. people to make unwise investments. electricity generation from renewable
emissions by 2020 and financially But Doug King, of the Royal ‘Unlike the previous capital grants sources is at community level – local
support more than 750,000 small- Academy of Engineering, warns scheme, FiTs will pay according to wind turbines, for example – larger
scale renewable projects. that government payback figures the amount of renewable electricity than for individual households and
Under the proposed tariffs for for certain technologies could lead generated, and studies have shown therefore ineligible for the feed-in
the Renewable Heat Incentive, the to people making unwise choices: ‘I that small-scale renewable systems tariff scheme.’
installation of a ground-source heat believe that the introduction of feed- often generate far less in practice Alasdair Young, of engineering
pump in an average semi-detached in tariffs will provide a great stimulus than originally anticipated. consultancy Buro Happold, also
house with adequate insulation to the renewable energy sector. ‘A 2009 study of small-scale, welcomes the introduction of FiTs,
levels could see householders However, I am concerned that the domestic wind turbines by the but fears other factors may prevent
Energy Savings Trust found no a home energy revolution: ‘Is the
urban or suburban installation that FiT a sufficiently large incentive to
Renewables factfile
generated more than 200 units of overcome the up-front capital cost
electricity per year. Under the new and the ‘hassle factor’ of having
• The UK currently gets around two per cent of electricity demand
feed-in tariff, this level of generation work undertaken?
5.5 per cent of electricity from in 2020.
would pay a homeowner just £69 ‘Increasing the subsidy level may
renewable sources, but that will • The UK currently gets less
per year on top of the electricity bill not be the answer, but innovative
need to increase to around than one per cent of heat from
savings of £26.’ financing techniques that secure
30 per cent to meet the 15 per renewable sources. This will need
Rob Manning, president-elect of borrowing against future revenues
cent 2020 target for all energy to rise to around 12 per cent in
CIBSE, says: ‘We have a wonderful could help, as could making sure
(that is, in the electricity, heat and order to meet the 15 per cent
opportunity to kick-start local the UK has a sufficient number of
transport sectors). 2020 target for all energy (that
generation of electricity through FiTs, trained and accredited installers,
• Modelling shows that small-scale is, in the electricity, heat and
but it needs to work with improving making installation a less painful
renewable installations could meet transport sectors). Source: DECC
energy efficiency and reducing process for the householder.
14 CIBSE Journal March 2010 www.cibsejournal.com
CIBSEmar10 pp14-15 newsanalysis.indd 14 2/25/10 5:33:00 PM
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72