Ceramic Fuel Cells Share News (CFU)

The Department of Energy and Climate Change has revealed details of its feed-in tariffs for small scale low carbon electricity generated from the likes of solar and wind power. The scheme will start on 1 April 2010. Householders who install solar panels or wind turbines up to 5MW will be paid for electricity generated even if they use it themselves - a generation tariff. An additional payment will be received if the electricity is fed into the grid - an export tariff. Government models suggest that 2% of the UK requirement for energy could be generated by these small scale projects by 2020. The attraction of the tariffs is that they provide a predictable, index-linked (RPI) income in return for the investment in the renewables technology. There is no income tax payable on the income. The wind tariff lasts for 20 years and the solar one for 25 years. The tariffs have been set to provide a return on initial investment of 5-8%. The guaranteed tariffs vary and a complete list can be found at http://www.decc.gov.uk/en/content/cms/news/pn10_010/pn10_010.aspx. The tariffs have been set for the next three years although they will be adjusted for inflation. According to the government a typical 2.5kW well-sited solar pv installation could offer a homeowner a reward of up to £900 and save them £140 a year on their electricity bill. Some analysts believe that this could equate to a payback period of 10 years but Even if projects have already commenced they will be eligible for the scheme. Dr Steve Mahon, chief investment officer at Low Carbon Investors is pleased with the announcement. He says that: "Today's announcement should help encourage the levels of finance required to make this a viable form of generation in the UK. It is encouraging to see that policy-makers have been long-sighted enough to make this an index linked payment so that real term returns will not drop as wider economic conditions change". Low Carbon Investors is the manager of AIM-quoted Low Carbon Accelerator, whose investments include wind turbine manufacturer Proven Energy. Dr Mahon adds that "we expect to see a steady flow of finance into renewable project developers as investors look for strong returns from the long term nature of this policy".AIM-quoted glass and plastic composites manufacturer Romag, whose PowerGlaz subsidiary produces solar photovoltaic products, believes that it is well placed to supply the market. PowerGlaz has already signed supply agreements with British Gas and Kingspan and this will help it tap the UK market. Romag even intends to install solar panels at its factory in County Durham. This will also provide a demonstration site for the PowerGlaz technology. The plans are not just about solar and wind power. Hydro, anaerobic digestion and domestic scale microCHP (combined heat and power) also have feed-in tariffs. However, the microCHP scheme is a pilot of up to 30,000 units. AIM-quoted Ceramic Fuel Cells is developing microCHP boilers for homes in conjunction with e.On. Fuel cells supplier CFC has also developed gas-to-electricity generator BlueGen, which is the size of a dishwasher and can work with an existing or new boiler to produce up to 17,000 kilowatt hours of power a year. BlueGen will be available in the UK by April 2010. There was also news of a renewable heat incentive scheme which is due to commence in April 2011. This will encourage investment in technologies such as ground source heat pumps, biomass boilers and air source heat pumps. The consultation process has commenced on these proposals.