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The Low Carbon Economy Ltd

27 Mar 2009 05:03:03

Renewables tariff blueprint published

Renewables tariff blueprint published
Small scale renewables could earn up to 50p per unit of energy they generate under proposals published by the Renewable Energy Association.

In a blueprint for renewable energy tariffs presented to energy minister Mike O'Brien, the Renewable Energy Association laid out the rates at which both renewable heat and small scale electricity projects should be incentivised.

It suggested that households, businesses or organisations that have building-integrated photovoltaic solar panels should earn 50p per kilowatt hour (KWh) of electricity they produce.

The recommendations followed the government's announcement that next year it will introduce feed-in tariffs, which offer above market payments for renewable electricity generated by installations with a maximum capacity of five megawatts.

Under the plans, the government will also implement renewable heat incentives, which will apply to renewable heat projects of all scales including domestic, community, commercial and industrial.

It recommended solar thermal receive the highest incentive, receiving 16p per KWh.

The REA also proposed that tariffs be "terraced" to ease the investment burden. This would mean tariffs start off at a high "initial rate", followed by a "transitional tariff" and ultimately a long term "standard tariff".

Incentives for small scale renewable electric generation as well as for renewable heat were included in the Energy Act 2008.

Under the Low Carbon Buildings Programme, households can apply for grants to install microgeneration devices.



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