Green
We’ve all heard about the forthcoming Green Deal, but where do we stand on other green energy policy? The ECA’s Business Policy and Practice department outlines the current state of play for key components of the UK’s other green energy policies, including the latest on incentive schemes and regulations
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CA Today readers will recall the ditty about the Grand Old Duke of York, and it’s fair to say that government policy on energy in the built environment has certainly ‘marched us up to the top of the hill and marched us down again’. Whether we point to Feed-in Tariffs (FITs), Display Energy Certificates (DECs), the Carbon Reduction Commitment (CRC) or elsewhere, the self-proclaimed ‘greenest government ever‘ has presided over a panoply of policy and legal U-turns and missed opportunities. Even so, several important energy and carbon saving measures still present commercial opportunities for the building services sector. Here, we take a look at some of the key policy measures, and speculate how much of an opportunity they may be for building services contractors overall. In each of the areas we focus on, we’ve given a rating out of five (5 being the most, 1 the least) under two categories – ‘Commercial opportunity?’ and ‘Rising star for 2013?’ – to reflect the level of opportunity they may offer to electrical contractors in general, in the near future.
ECA Today July 2012
It’s vital for electrical
contractors to keep up to date with current policies and be aware of any changes that can affect their business
Generation tariffs for new solar PV Band (kW) installations from 1 August 2012 Band (kW)
•4kW (new build) •4kW (retrofit) >4-10kW >10-50kW >50-100kW >100-150kW >150-250kW >250kW-5MW stand-alone
16.0 16.0 14.5 13.5 11.5 11.5 11.0 7.1 7.1
What’s the deal on energy policy?
Feed-In Tariffs Commercial opportunity? ● ● ● ● ● Rising star for 2013? ● ● ● ● ● The Feed-in Tariffs for solar photovoltaics (PV) have successfully created an industry in the UK – some say too successfully, in that the number and capacity of PV installations vastly exceeded government predictions. The government tried to limit the number by reducing the level of tariffs for installations but got tangled up in a consultation process and implementation that was legally challenged. This created a ‘stop-start’ scenario that did neither the solar PV industry nor the government’s credibility any good. Finally, the Department of Energy and Climate Change (DECC) seems to have got the tariff levels under control, and they have recently issued tariffs starting from the 1 August 2012. The higher levels depend on the efficiency level of the building being above an Energy Performance Certificate (EPC) rating of D. Degression will then be applied every three months, where the tariff levels are reduced depending on installation deployment. However, it is intended that the Return on Investment (ROI) will be maintained at between five to eight per cent, which will depend on the price of PV systems falling.
Table 1 shows the revised level of FITs
Standard generation tariff (p/kWh) Standard generation tariff (p/kWh)
Multi-installation tariff (p/kWh)
Lower tariff (if the energy efficiency requirement is not met) (p/kWh)
14.4 14.4
13.05 12.15 10.35 10.35 9.9 N/A N/A
7.1 7.1 7.1
7.1 7.1 7.1 7.1 N/A N/A
SHUTTERSTOCK
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