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the economics of PV panels
Transition Eynsham Area (GreenTEA) is offering encouragement for community Photovoltaics (PV) in the Eynsham Area and we are looking for buildings to host installations.
From April 2010 the government will pay a ‘Feed-in Tariff’ (FiT) to encourage renewable generation. The FiT will be the generous rate of up to 41.3p/Kw*, depending on the size of the installation. Details have just been confirmed by the Department of Energy and Climate Change. This rate will be available for 25 years for installations up to 31st March 2012 and will be adjusted for inflation; for installations after March 2012 the rate decreases. The output of panels is guaranteed at 90% for 10 years, and 80% for 20 years.
In addition, the generated electricity can be used by the building and/or sold to the grid.
Examples:
a) 3.7KW 16 module installation (3.8 KW is maximum size on single-phase supply) would cost about £15,000 plus VAT (total cost inc VAT @17.5% + £17,625.00) and could generate 2,876 Kw hours pa. Roof area required: approx 25m2
The Feed in Tariff (FiT) would be 2,876@41.3p/KwH £ 1, 188.00 pa
Value of electricity @ 12p/Kw (for use on site) £ 345.00 pa
Total annual return, up to £ 1,533.00
This represents a pay-back period of only 11 years, possibly less if electricity prices continue to rise, or an interest rate of 8.7% pa. The figures are even better if VAT can be reclaimed.
b) 10 KW 44 module installation would cost about £35,000 plus VAT (total cost inc VAT @17.5% £40,500.00) and could generate 7,900 Kw hours pa.
Roof area required: approx 72m2
The Feed in Tariff (FiT) would be 7,900 @36.1p/KwH £ 2,855.00 pa
Value of electricity @ 12p/Kw (for use on site) £ 949.00 pa
Total annual return, up to £ 3,804.00
This represents a pay back period of 11 years, possibly less if electricity prices continue to rise, or an interest rate of 9.4% pa.
c)1.8 KW 8 or 10 module installation would cost about £9,000 plus VAT (total cost inc VAT @17.5% £11,300.00) and could generate 1,500 Kw hours pa.
Roof area required: approx 15m2
The Feed in Tariff (FiT) would be 1,500 @41.3p/KwH £619.50 pa
Value of electricity @ 12p/Kw (for use on site) £180.00 pa
Total annual return, up to £799.50
This represents a pay back period of about 14 years, possibly less if electricity prices continue to rise, or an interest rate of 7% pa.
Electricity sold to the grid would be paid at about 5p/Kw, depending on the supplier.
Roofs may be pitched or flat, although the highest generation is achieved from a south-facing roof at an angle of 30-40 degrees. A flat installation would generate 90% of the maximum output.
The project could be organised in one of two ways:
Scenario 1: independently owned
The host building funds the capital cost, claims the feed in tariff and receives all the power to use or export to the grid.
Scenario 2 : community-owned
GreenTEA leases roofspace from the host building, funds the installation (through grants and selling shares). Host building buys the power generated from GreenTEA; surplus is exported to the grid. GreenTEA claims feed-in tariff and reinvests income in community sustainability projects and longer term, may pay interest on shares.
*Feed in Tariff rates are confirmed as:
installation under 4 KW 41.3p, 4-10kW 36.1p, 10-100kW 31.4p
Business Loans
0% interest business loans are available from the Carbon Trust for energy saving measures. They can give £1,000 of loan for every 1.5 tons of C02 saved per annum; (CO2 saving calculated over a maximum of 4 years).
call 01865 885 850 (in Eynsham!) for more information
Loans could fund solar pv, as well as solar thermal systems and other energy saving measures, such as insulation, boilers and heating controls, heat recovery, lighting, refrigeration, industrial process technologies, materials handling equipment, or materials handling equipment.
Further information
Grants from the Low Carbon Buildings Programme
The relevant bit of the Government is the Department of Energy and Climate Change (DECC)
GreenTea (Ensham Area in Transition)
Green TEA members are happy to talk through options with you. We have other examples and have contacts with other organisations, such as Low Carbon West Oxford, who have successfully installed community Photovoltaics on host roofs and have contacts with installers.
Please contact Sarah Couch on 464 056 or e-mail if you are interested in discussing the options.
This leaflet is based on the best information available to us, but details may change and should be checked with relevant organisations.
Green TEA 10 February 2010
This leaflet is based on the best information available to us, but details may change and should be checked with relevant organisations.
Green TEA 10 February 2010