The Feed in Tariff Fiasco: A Timeline

Confusion, thy name is Feed-in-Tariff.  For anyone who's been blissfully unaware of the feed-in-tariff and the fiasco that currently surrounds it; I envy you.  For those that know of it but need clarity; read on.  For those that are unaware but intrigued; also read on.  For those that are sick to death of it, comment below.

The feed-in-tariff is a scheme designed to encourage people in the UK to generate electricity via their own means, through Solar Photovoltaics, Wind Turbines, Hydro-turbines or even Anaerobic Digestion (look it up).  In short, payments are made to micro-generators of electricity for each unit they produce.  There is a tariff of rates set by the Department of Environment and Climate Change (DECC), pricing the units according to the type and size of installation.

In the UK the baseline tariff for Solar PV was set at 43.3p per unit, almost 4 times the market rate for electricity.  This high subsidy, along with falling material and installation costs caused a boom in installations that the UK Government tried to dampen by reducing the baseline tariff rate to 21p/unit after making an announcement at the end of October 2011.

Below is a timeline showing what happened next.

The FiT Fiasco: A Timeline on Prezi

All this means that as we stand Solar PV installers are able to sell and install PV systems before  3rd March 2012  based on the promise of at least 21p per unit for a fixed period of 25 years.  However, should the government lose their supreme court appeal (as is very likely) then this will be increased to 43.3p per unit once more for those systems installed, certified and registered with an FiT provider before 3rd March 2012.

Those commentators with a touch of cynicism in their blood may argue that the government know only too well that they will lose the appeal and are using the confusion caused by it to protect their budget in the short run, or even that the whole thing has been orchestrated from the start to reduce demand in PV until April 2012.

In the meantime the livelihoods of over 20,000 people are under threat as suppliers, installers and potential customers have no idea what level of subsidy will be paid for systems installed between 12/12/11 and 03/03/12.

Are you interested in Solar PV but off-put by the market uncertainty?  Perhaps you agree with the government's tactics, or beleive they have a genuine case. Whatever your thoughts, please feel free to tap them through your keyboard and into the box below.

4 ways we saved 40% on our client's utility bills

Last year we blogged to report the work we had carried out for our clients CCC in Bristol, there have been some significant results since that time showing that their investment has been a real success. The work undertaken can be split into 4 main areas.

1. Reduced heat loss and stresses on the heating system by;

• Insulating the front facing void beneath the ground floor, and,
• Draft proofing the timber doors

    2.   Improved gas efficiency with;

• A replacement, highly efficient, Viessman gas boiler,
• A new external weather compensation unit, and,
• Thermostatic radiator valves installed to each of the building's radiators.

    3.   Reduced solar gain via;

• The installation of window film to the South facing windows and and roof lights.

    4.   Reduced electricity consumption by;

• Replacing a number of the high energy light fittings and lamps with low energy alternatives, and,
• Installing a V-Phase unit to optimise voltage.

The below table shows how in the 4th quarter of 2011, these services had a huge affect on the money spent by CCC on gas and electricity in comparison to the same period in 2010.

So looking back at our predictions for CCC in the original blogpost:

"We estimate that the result of our installations will be an annual saving of 30% on CCC's electricity bills and 40% on their gas bills. With energy bills set to rise significantly in the near future, these savings will be further exaggerated - allowing CCC to benefit from a annually rising return on the investment they have made in their property.  We expect to see a reduction in the company's annual carbon output of over 4 tonnes."

Whilst the electricity savings have not been as pronounced as we would have liked, the quarter represents a period where lighting would be used more extensively than in other parts of the year, similarly the gas savings are somewhat enhanced by the milder weather of December 2011 - but that only accounts for one part of the quarterly saving.  Most staggeringly we have reduced the annual CO2 footprint of the building by nearly 5 tonnes, smashing our yearly estimate.

All in all it is a fantastic result for Norman Envrionmental and CCC who have written to us to tell us what a "a very worthwhile exercise both environmentally and economically" the project has been for them.  We will continue to monitor and report on the results in this blog.

So if you think that your home or business premises could benefit from an energy survey, then get in touch via email, visit our website, or just comment below.

Don't let your boiler freeze over

As we approach December thermometers across the land are going only one way, and it ain't up!  This means that many homes and properties across the country will be relying on their gas condensing boilers to keep their occupants comfortable in the wintry months.  Sadly, this is when they are most likely to fail.


Last year was the year of the frozen condensate pipes, and whilst things don't look so perilous this winter and installers have been careful to try and protect their customers from suffering the same fate, some installations may still do so.


A condensate pipe carries condensation from your boiler to the the outside drain.  More often than not the condensation barely registers as a trickle, but it can freeze layer upon layer over-time in prolonged frozen conditions, eventually backing up into the boiler and preventing it from operating.


So if your boiler cuts out unexpectedly in very cold weather, before you call a plumber or heating engineer make sure you check the condensate pipe.  The video below shows how you can perform a DIY fix.  Don't worry, it's not dangerous and could save you a pretty penny as well as giving you the heat and hot water you deserve this winter.

Paying the price for 'Free Electricity'

There's no such thing as a free lunch. Anyone heard that one before? It's a terrible cliche we know, but it's so applicable to the 'free solar' companies working on domestic premises that it's use can't be avoided.

Let us be clear, we do not question the integrity of the companies offering these installations - far from it. In order to succeed in that market the installations have to be high grade quality, surveys have to be very accurate and installers very speedy.

What we do question is that the installations, and subsequent electricity, are 'free'.  Just because those whose roof's are used do not fork out payment at installation, does not make it 'free'.  Allow us to explain.

The overall cost of supplying and installing the type of 'free' systems being installed is approximately £4,000 - this is due to bulk buying discounts and low labour rates.  This 2kW system on a South Facing roof will generate three potential revenue streams;  two in cash - in terms of generation and export tariffs for the system provider and owner - and one in energy savings for the roof owner.  The values of which are summarised below.

Assuming RPI @ 2.5% and energy inflation @ 4.5%

 
So far so good.  You have rented the roof to your solar supplier, or their financial backer/partner and they have effectively allowed you to gain £3,500 worth of electricity over 25 years.  This represents about 10% of your electricity bills, without any up front costs. You even get the solar energy generated after the 25 year agreement is complete - not bad eh?

As with so many deals however, the true costs are in the small print.

Opportunity Cost
Having your roof filled with somebody else's solar panels mean that you cannot fill your own roof with solar panels, and neither can anyone else.  This would cost a little more to procure, say £5,600 for a decent kit, so immediately you've lost out to the tune of £20,500.

Maintenance and Home Improvements
Should you wish to undertake any maintenance to your property, perhaps the electrical system or the roof, and you have to turn off the solar system, then you must pay the supplier for his lost income and seek his permission.  What if you want a loft extension?  Good luck.  Written permission from the solar system owner will have to be sought and the final choice will always be theirs whilst the 'rent-a-roof' agreement is in place.

Selling Your Home and Redemption Penalties
Picture this; you are about to sell your home, your potential buyer likes the thought of solar panels on his new roof but he wants to own them himself and later he wants to realise the property's best value with a loft extension.  It is 20 years since the solar system was installed.  You refer to the system owner's contract to see what the penalty is for leaving the agreement five years early, it can't be much can it?  Wrong. It's £10,000 please, and that's one of the better contracts - they might not even grant you permission to sell.  Suddenly the potential buyer wants that value straight off the asking price, and who can blame him?

So like any transaction you have to weigh the real benefits against the true costs, and in most circumstances we don't think this stacks up in the home-owner's favour.

This is how we do it

There a plenty of impressive photo's online of completed Solar PV systems, glistening in the sunlight. Some of them are genuine (like those on our site) and some of them are pilfered from various corners of the world wide web, but we're not judging (needs must and all that). We've noticed a real dearth of information about the act of installation itself, and so took the opportunity to take a series of photos of a recent job in Bristol.



The slideshow above is a montage of those photos, hopefully showing our readers the various stages of installation of a 12 panel, 2.7kW Viessman. The system required two days work for 3 men on a detached house in Kingswood, Bristol. The basic stages of installation are;

1. Measuring and affixing the brackets
2. Installing the rail system
3. Laying out, affixing and connecting the panels in a series circuit
4. Siting the inverter
5. Making all necessary connections
6. Commissioning the system

Our happy customers Mr and Mrs O'Brien can expect yearly energy returns of 2,300kW/h, and a first year financial benefit (including energy savings) of £1,177. Over the 25 year FiT period they should receive an overall financial benefit of more than £29,000 - plus any inflationary increases in the generation tariff. That's about 13% per year.

Does that seem like a good return to you? Perhaps you have a comment or question on the logistics of installation or have an idea about improvements that could be made. Don't be shy, let us know your thoughts below.

- Posted using BlogPress from my iPad, what a brilliant App!

Backing the Underdog

Tesco are without doubt one of the UK's most impressive companies. Since the late 90's they have grown massively, starting with their implementation of 'extra' stores which seem to sell almost everything, then moving into local market with their 'metro' stores and more recently they are challenging the likes of Argos with their own catalogue offering.

Near Cardiff in South Wales is a village called Dinas Powys and about 3 miles away from Dinas is a large Tesco superstore in Penarth. It is the main supermarket serving the area and as far as we are aware, is always very busy - in fairness it is a very good store in a handy location for the Vale and even Cardiff Bay.

Dinas Powys has a population of around 9,000 but has a definite village 'feel' to it, mostly because it is served mostly by amenities in the surrounding towns of Penarth and Barry, with access to the city of Cardiff - but also due to the village green, or Twyn as it is locally known.

Valey View Fruit Stores, serving Dinas Powys with distinction

Within Dinas Powys is a local grocers' shop, Valley View Fruit Stores, owned by Tony and Janice Mapstone. The Mapstones have owned the shop for over 15 years and happily serve the local people with fresh fruit and vegetables, tinned goods and other groceries - as well as flowers, plants, pet food and accessories.  Only two doors down is a small Spar convenience store which trades symbiotically with the Mapstones' grocery offerings, but at the other end of the block is a large dilapidated public house of which Tesco are now the proud owners.

There is little or nothing that a local Tesco store has to offer that is not already available at Valley View Fruit Stores or the local Spar, both of which are within 100 yards of the proposed store. It begs the question, why were Tesco given permission to open such a store on this street? And what are Tesco trying to achieve by moving into the area? It's not like they don't already have a local presence, or even that they need the business. It seems that their presence will impact negatively on two businesses, owned by local people, that have served the local area successfully for years; without even bringing a discernible benefit to the local people.

Norman Environmental are not against company expansion or growth, far from it. On the other hand we firmly believe that to help the country out of recession small businesses need to be protected from the might of supermarket giants. There will be follow up blogs as the story unfolds, but we're rooting for the 'little guy'.

What do you think of the common practice of large supermarkets moving in on the territory of traditional 'local' shops? Is it the cut and thrust of fair business competition? Or should local council and government protect their constituents from big business? Let us know what you think.

- Posted using BlogPress from my iPad, what a brilliant App!

Solar Tower Technology

Enviromission are an Australian company determined to make the biggest impact possible in renewable energy. The announcement that they want to build a solar tower twice the height of the Empire State Building shows just how far their ambition reaches.

A Solar Tower acts as a huge heat chimney enabling the flow of hot air to pass through turbines to generate electricity. Beneath the tower is a large solar canopy that traps solar heat, much like a green house. Then the lighter, expanded, heated air is drawn toward the central tower where it can rise to be exhausted into the atmosphere. The placement of the proposed 800 metre high tower in the Arizona desert would provide enough electricity for 150,000 homes.




How a Solar Tower Works (according to EnviroMission's description)

-The Tower

The Tower is the thermal engine of the Solar Tower technology. In it, heat is transformed into mechanical energy. The updraft inside the tower, produced by the rising lighter, hot air, is essential for this. The greater the velocity of the Tower, the higher the column of air is and the stronger the updraft. Therefore, a high-capacity power plant should have the highest Tower possible.

-The Canopy

The canopy converts a large percentage of the insulation into heat, which in turn, heats the air trapped under the canopy roof or is stored in the ground soil thermal storage system. One of the main objectives of the canopy is to lose as little heat as possible into the ambient.

-The Turbines

The Turbines transform the energy from the heat and pressure of the air into mechanical energy and the generator converts it into electricity. They work like the well known Kaplan Turbines used in hydro-electric power plants.

Cost Efficient

The estimated cost of this 200 megawatt structure is US$750 million, the company are in the early stages of site engineering. Financial modelling predicts that the tower will pay off in just 11 years - and the engineering team are for a structure that will stand for 80 years or more.

The Southern California Public Power Authority have already put their faith in Enviromission, signing a 30-year power purchase agreement with them to secure all the power generated by the proposed tower. With a predicted efficiency rating of 60% the tower is among the most efficient renewable power sources in the world and the SCPPA have identified this as a great opportunity to secure low/zero carbon energy for the 80 year lifespan of the project.

Our View

With such a short payback and long lifespan the future seems bright for solar towers. The question in our mind is space, the comparison with a fossil fuel generator per square metre of land used would be a very interesting comparison. Obviously space is not an issue in our deserts, but we also need to consider the initial carbon footprint of construction.

Do you have any ideas on the solar tower, Enviromission or renewable energy in general? Comment below and let's get the discussion going.

- Posted using BlogPress from my iPad, what a brilliant App!