Feed-in tariff delivers £180,000 for generators over first three months

Ofgem has attempted to clear up the confusion surrounding the number of households and businesses taking advantage of the government's feed-in tariff renewable energy incentive scheme, yesterday releasing detailed figures revealing 6,850 new installations have registered for the scheme since its launch in April.

The update confirms that in total 9,350 installations have registered to receive payments through the feed-in tariff scheme, but of these about 2,500 were pre-existing installations that have simply transferred from the Renewable Obligation subsidy scheme into the feed-in tariff.

Industry insiders have been concerned that Ofgem's failure to publicly distinguish between pre-existing and new installations has allowed critics of the scheme to overstate its success and accuse the incentives available of being overly generous.

The figures were made available in the first quarterly newsletter from Ofgem E-Serve, the agency set up to administer the feed-in tariff.

They also reveal that under the scheme total payments worth £182,059 were made to renewable energy generators between the start of April and the end of June. As anticipated, the solar sector has dominated the early months of the scheme, with solar photovoltaic installations accounting for 44 per cent of all installed capacity, compared to 35 per cent wind capacity and 21 per cent hydro.

However, there has been more interest in the incentives from the business sector than was originally anticipated, with 41 per cent of feed-in tariff-registered capacity coming from installations on commercial properties.

The update will also fuel concerns that not enough is being done to notify households and businesses that already operate renewable energy installations that they are able to register for the feed-in tariff.

An estimated 6,000 pre-existing installations accredited under the Renewable Obligation are able to be migrated to the feed-in tariff scheme, but to date only 2,500 have done so.

Ofgem said in the newsletter that "a large majority of the remaining installations are still to provide the required information to allow them to be migrated", meaning that many early adopters have only a few weeks left to submit the necessary documents and enter into the feed-in tariff scheme before the 1 October deadline.

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Feed-in Tariffs impact solar PV more than other technologies

The REA‘s analysis of Ofgem‘s figures show 6,930 solar PV panels serving the domestic sector have been installed since the introduction of the FiT.

The Renewable Energy Association (REA) has published its analysis of figures obtained from energy regulator Ofgem, which show that 6,930 solar PV panels serving the domestic sector have been installed since the Feed-in Tariff (FiT) was introduced in April this year.


The figures, as interpreted by the REA, also reveal that 1,376 domestic PV installations have been transferred from the Renewables Obligation (RO), with a further 14 schemes transferred across the commercial, industrial and community sectors.

Based on this analysis, the REA claims the tariffs have had more of an impact on solar PV than other technologies.

Chief executive of the REA, Gaynor Hartnell, said: "In the first five months of the scheme, the tariffs have had more of an impact on solar PV than other technologies, but that's hardly surprising.
"Solar panels are the most straightforward renewable power generation technology for the average householder. All you need is some roof space with right aspect. It is usually rapid to install and planning permission is rarely required as it is permitted development."

She added that, despite this, it was important to keep the growth in perspective, with the UK having only installed 2% of the PV installed in Belgium last year, meaning "we have a lot of catching up to do".
The figures, correct yesterday (September 6), provide further detail on those published by Ofgem last week, which showed how many solar photovoltaic devices were fitted in August under the Feed-in Tariff.

Projects installed under the Renewables Obligation, prior to 15th July 2009 Projects installed under the Renewables Obligation, after 15th July 2009New houses with PV panels under 4kW, built after 1st April 2010 Existing homes (ie retrofitted with PV panels) under 4kW, built after 1st April 2010Projects in range 100kW to 5MW, built after 1st April 2010Projects in range 10kW to 100kW, built after 1st April 2010Projects in range 4-10kW, built after 1st April 2010

Source: REA's analysis of Ofgem's figures
On top of looking in greater detail at the number of installations which have migrated from the RO - with more set to transfer before the October 1 cut-off date - the REA has also surveyed its members to find that the tariffs have resulted in a 62% increase in employment levels to date, with an overall increase of 125% likely by the end of the first tariff year.

The survey was based on the results of 45 companies, ranging from sole traders to large multinationals. The REA said the majority of the responses were from installers, with five new companies having been set up as a result of the FiTs.

The REA released its analysis on the day that climate change minister, Greg Barker, endorsed FiTs for solar power during a visit to Birchwood High School in Bishop's Stortford, Hertfordshire - the first school to benefit from a new scheme offered by renewable technology enabler, Our Generation.
Our Generation has secured private sector funding as a result of the government's FiT, which will be used to enable "hundreds of schools" throughout Britain to have solar electricity systems installed free of charge.
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