RenewaBlog

A record number of homeowners had solar panels installed this month, according to energy regulator Ofgem.

The devices have been fitted to 2,257 homes so far during August, up from 1,700 in July and 1,400 in June.

More than 6,688 homes have had solar panels fitted since April, when the government’s scheme to reward people who generate their own energy altered.

The feed-in tariff system now enables homeowners to receive 41.3p for every unit of energy they generate.

This is regardless of whether they use the energy or sell it back to the National Grid.

After the panels are installed, the tariff is paid for 25 years and increased in line with inflation.

This replaces the previous system, under which people could obtain grants to help cover the cost of installing the green technology.

According to the Energy Saving Trust, solar panels usually cost between £6,000 and £12,000 to buy and install, depending on their size.

The panels most commonly installed by homeowners, consisting of eight panels able to generate up to 2.5kW, cost between £10,000 and £12,000.

The Trust calculates such panels could generate about £700 a year from the feed-in tariff, as well as saving homeowners about £100 a year on energy bills.

In addition, people could make about £25 to £30 through selling unused energy back to the National Grid.

DECC is hoping to make an announcement about the RHI in the Autumn By Rachael Meredith

Senior policy advisors in the renewables industry have claimed the Treasury is to blame for the hold-up on an announcement on the Renewable Heat Incentive (RHI), while it grapples with how the scheme will be financed.

Speaking to NewEnergyFocus.com, the former chair of the Renewable Energy Association (REA), the serving head of policy at the REA and the policy advisor at the Micropower Council cited issues over the proposed method of levying the scheme as the stumbling block.

The RHI was originally drafted by the former Labour government (see this NewEnergyFocus.com story), which proposed introducing a levy on fossil fuel suppliers who “supply fossil fuel to consumers for the purpose of generating heat”. This will be used to provide a financial incentive for those who generate renewable heat.

However, Philip Wolfe, former REA chair and current chair of Ownergy, and Paul Thompson, head of policy at the REA, both claim that implementing such a levy will not be as easy as it was for electricity suppliers in relation to the Feed-in Tariff (FiT).

According to Mr Thompson, the current legislation, which sets out the RHI proposals, was prepared at the last minute and, as such, was not properly thought through.

He said: “Government initially didn’t want the RHI, but it was too much trouble not to do so it changed its mind last minute and introduced amendments to make it happen and when you get things done last minute you are more likely to have stuff that isn’t as well thought out.”

On the implementation of a levy, he added that it would not be so easy to implement as there was a smaller number of fossil fuel heat suppliers compared to players in the electricity market, meaning less companies would have to cover the costs.

“The previous government ducked that decision, but the current government has got to get to a decision on how the money will be raised and figure out how it will answer the accusation that it is unfair.”

Mr Wolfe reaffirmed that the issue the government was “grappling” with was how it funds the scheme, claiming that it seemed broadly happy otherwise with the proposed model.

Mechanism

Explaining why the levy was causing such problems, he said: “In the case of FiTs, it was relatively easy to organise the levy of the electricity on the electricity users as they have that in place already with the Renewables Obligation (RO).

“What they didn’t think hard enough about at the time is you can’t readily do the same for other energy sources. The intention is the RHI would do the same but by raising a levy on fossil fuel supplies. The trouble is gas and heating oil is not sold to consumers as electricity is – there is not the same mechanism in place.”

The former chairman of the REA said that one way to improve the situation would be to levy the fund much higher up the chain, by doing it at the wholesale point rather than the retail point. However, the government would need to introduce new legislation to enable them to do that.

Cost reduction

The issue of the levy and how the RHI will be financed appears to be the primary reason for the delay in getting an announcement about the future of the scheme, however the renewables industry notes that once a scheme goes back to government, there is a danger that the whole thing could be reviewed.

The Micropower Council, which has been lobbying for the renewable heat subsidy scheme, suggests that one way in which the scheme could be changed is for it to be firstly targeted at the fuel poor to keep costs down.

Grace Bennett, policy manager at the Micropower Council, said: “It is a question of money and concerns within government about the nature of the original proposal to finance it through a levy on fuel bills.

“We accept there is not a great deal we can do about the costs without reducing the impact of the scheme, but it could be targeted firstly to those on lower incomes.”

She added that given the Treasury is looking to cut costs, there is always a risk of cuts being made to tariffs or eligible technologies, but she claimed it would be detrimental to the policy measure.

Efficiency

On this issue, both Mr Wolfe and Mr Thompson agreed that there was a risk of further changes being made to the RHI, but they added that the Department of Energy and Climate Change (DECC) “gets” the scheme and should hopefully only tinker with the tariffs rather than making any severe changes.

Mr Wolfe said: “There is a good chance they will stick with the RHI as planned but raise the funds by users of gas and heating oil higher up the chain.

“Once it has been held up there is no knowing what they might decide to tinker with but everyone seemed pretty happy with the design of it so I am hoping they won’t change it.”

Mr Thompson explained that the REA was not expecting drastic changes at this stage because the heat incentive was “pretty good value”. He explained that making the RHI less effective, for example by cutting eligible technologies, would be more expensive in the long run as you would have to “make it up from somewhere else to meet the targets”.

He added: “DECC really does get it. Some people will be worrying if this lack of an announcement means it is just dead, but they are very, very seriously working on it. The people involved are very committed, but the next couple of months will be crucial.”

Mr Thompson claimed one solution to the problem with the levy system could be that DECC introduces some kind of fix for the first year, by maybe doing it under general taxation or a one off levy on some of the larger energy companies, while it works on a longer term fix.

DECC

Commenting on the current position on the RHI, a spokeswoman from DECC provided the following statement: “The government is committed to increasing the amount of renewable heat in the UK; this is a crucial part of ensuring we meet our renewable targets, cutting carbon and ensuring energy security.

“We are currently looking at the Renewable Heat Incentive (RHI) proposals. We will look to make an announcement on the future of the proposed scheme as soon as possible, likely to be in the autumn.”

This was reaffirmed by the Treasury, which pointed to DECC’s Annual Energy Statement: “This government is fully committed to taking action on renewable heat. The government is considering responses to the Renewable Heat Incentive consultation and will set out detailed proposals on how to take forward action on renewable heat through the Spending Review.”

“Golden egg”

While there are clearly problems to be solved before the RHI can be put in place, the renewables industry has offered some insight into the cause of the hold-up and provided some reassurance that the government is seriously considering the scheme.

Business leaders and managers are being invited to an event in London next month to find out how they can improve performance and reduce carbon emissions.

The open evening on September 2 will provide information on a pioneering carbon management course. The Strategic Carbon Management Master of Business Administration (MBA) programme equips students with the knowledge of climate change needed to be part of the emerging low-carbon economy.

The course was the first of its kind in the world when it was launched in 2007 by the University of East Anglia (UEA). The programme is now offered in a modular version at the university’s new base UEA London, near Liverpool Street Station.

Since its launch the programme has led the way in merging climate change considerations with new business management models. The MBA brings together internationally established research and teaching expertise from a number of schools within UEA, including the School of Environmental Sciences – a world leader in understanding environmental issues and their impact on society.

Course director Dr Gideon Middleton said: “An increasing number of companies are starting to recognise that climate change and the need for a global low-carbon life-style will be major factors that shape the global economy during this century.

“To many businesses and organisations this creates both significant risks to their current operations as well as opportunities for new products and services. By bringing this programme to London – the world’s carbon capital – we are maximising the opportunity for organisations to meet these challenges and to ensure that future business leaders are equipped with a robust business knowledge and a holistic understanding of climate change.”

The programme starts in January and runs on a modular, part-time basis over two or three years. Instead of the traditional dissertation, students undertake a management consultancy skills module comprising two consultancy projects and a challenge event to help them gain valuable real-life experience while they study.

The open evening will give attendees the chance to find out more about the MBA by talking to the course director and current students. Administrators will be on hand to answer any application queries.

The open evening on September 2 runs from 6-8pm at UEA London, 102 Middlesex Street, London, E1 7EZ. To find out more visit www.carbonmba.com or contact Rebecca Hill at UEALondonMBA@uea.ac.uk or 020 7059 4413.

The Prince of Wales will go on a five-day tour of Britain next month, highlighting some of the best examples of communities and individuals starting to live more sustainably.

Part of The Prince’s START initiative, the Royal Tour will include visits to a community-run city farm in Newcastle, a town-wide “grow your own” project in Yorkshire, and an energy savings company in Nottingham as well as three national START festivals, two START Living Shops and a civic dinner in Manchester.

The Royal Tour will begin in Glasgow on Monday 6th September, before heading to Edinburgh, Carmarthen, Bristol, Newcastle, Todmorden, Manchester, Nottingham, and Birmingham, before ending up in London on Friday 10th September.

The Prince of Wales will be travelling on the Royal Train, which runs on sustainable bio-fuel, hosting a series of meetings and receptions between station stops. Her Royal Highness, The Duchess of Cornwall will join the tour for the Bristol and London visits.

In Glasgow, The Prince will:

* visit an exhibition by the START partners on the concourse of Glasgow Central Station;

* meet representatives from Glasgow City’s sustainability projects;

* start a Glasgow to Edinburgh cycle challenge; and

* depart Glasgow Central Station by Royal Train, piped out by a lone piper.

In Edinburgh, The Prince will:

* arrive by Royal Train at Waverley Station and walk to St Andrew’s Square to visit Scotland’s START Festival; and

* visit a special START Living Shop in St James’s Shopping Centre, where members of the public can get advice and products to help them lead more sustainable lives.

In Wales, The Prince will:

* visit Wales’s START Festival at the National Botanic Garden for Wales;

* launch the “Size of Wales Rainforest Project”;

* launch the The Prince’s Regeneration Trust’s Green Guide for Historic Buildings;

* launch the Carmarthenshire Community Challenge.

In Bristol, The Prince and The Duchess will:

* join shoppers around the special START exhibition in Cabot Circus Shopping Centre;

* meet community groups, including the Bristol Cycle group, a local energy savings advice group, and representatives of the award-winning shopping centre itself;

* hear and meet a local Gospel Choir; and

* officially open the START Living Advice Centre.

In Newcastle, The Prince will:

* visit a city farm which was re-opened after local community activism and the formation of a partnership with the City Council; and

* unveil a START beehive, as part of a Newcastle-wide beehive scheme.

In Todmorden, The Prince will:

* be taken on a tour of the town by volunteers from the Incredible Edible Todmorden Scheme (identified as a “breakthrough project” by the Sustainable Development Commission);

* see examples of where public spaces have been used to grow vegetables, herbs, fruit and flowers for communal use; and

* visit the town’s market which sells local produce from the scheme.

In Manchester, The Prince will:

* meet representatives from grassroots community projects supported by Manchester City Council and Foundation, including young people from Sabden Primary School and the START Living Retrofitting Alliance;

* attend a dinner of 400 guests at a civic dinner at the restored Gorton Monastery; and

* see a Sustainable Fashion Show, showcasing designs from Manchester College and Manchester Metropolitan University students.

In Nottingham, The Prince will:

* have a cup of tea with a pensioner who has benefited from solar panels in her roof;

* meet members of a locally-created energy-savings company;

* visit community gardens in an area of transformed wasteland; and

* meet local faith groups in a disused church to discuss the future of the building.

In Birmingham, The Prince will:

* discuss how we can live more sustainably in the future with a group of college students with a video link to business participants at a Mayday Network event in London;

* tour an interactive exhibition which shows smarter working and living examples from local businesses and community organisations;

* take a group of children around a museum on a “START Trail”; and

* see the world’s first hybrid car, the Lanchester Petrol-Electric Mark 7 Prototype Car, built in 1926.

In London, The Prince and The Duchess will:

* meet exhibitors and visitors during a tour of “A Garden Party to Make a Difference”, held from 8th – 19th September in Clarence House, Lancaster House and Marlborough House Gardens; and, beforehand

The Prince will also:

* attend a session of the IBM Summit at START in Lancaster House.

START (www.startuk.org) is a national initiative by The Prince’s Charities Foundation to promote and celebrate sustainable living. HRH is touring the country, visiting community groups and examples of sustainable behaviour, as well as three national START festivals, to help show how we can all make positive changes to our lifestyles.

The Prince’s START initiative builds on the work of the charity Business in the Community, of which HRH has been President for 25 years. Over that time, BITC has been working with businesses to develop partnerships which create, promote and support sustainable communities.

START is a Public/Private/NGO partnership which has been created in response to research which shows that when it comes to dealing with issues like climate change and sustainability, people are looking for information and advice.

It’s aim is to explore what is possible: from the cheapest and simplest to the most complex and futuristic; from quick fixes to long-term solutions. So far, a number of leading businesses have signed up to the initiative including B&Q, Virgin Money, Marks and Spencer, Asda, EDF Energy, Addison Lee, IBM UK & Ireland and BT Group plc.

The week-long tour will culminate in ‘A Garden Party to Make A Difference’ in the gardens of Clarence House, Lancaster House and Marlborough House from the 8th to the 19th September 2010.

Household heating can now be remote controlled through mobile phones with the release of a new iPhone app from smart home firm PassivSystems.

With 29 per cent of UK carbon emissions coming from the home and 60 per cent of the energy that people use in the home coming from heating, the need for more effective management of energy is obvious.

“The PassivEnergy app is all about making home energy management easier,” said Colin Calder, CEO, PassivSystems. “The ability to turn the heating up from the bus ready for when you get home, or to turn it off if you forget when you are on holiday, means the days of wasted household energy could soon be at an end.”

The PassivEnergy home energy management system was launched in May this year, and could reduce household energy consumption by up to 18 per cent. It provides consumers with complete control over their heating and hot water consumption by optimising a home’s energy use, learning when it needs to use energy and when it needs to save it.

The PassivEnergy iPhone app makes managing your household energy easier still by allowing users to:

• Remotely check and change the temperature in their home

• Turn the heating on or off

• Override all heating settings

• Check, set and change their holiday settings

• Lower energy bills and reduce carbon footprint

“No one lives their life to a rigid schedule and an incredible amount of energy is wasted simply because our lives don’t run to routine,” continued Colin Calder, PassivSystems. “This app gives people the flexibility to manage their energy in a way that suits them, allowing them to save money on bills without the hassle of constantly fiddling and adjusting with their heating controls.”

PassivEnergy works by talking wirelessly to sensors and controls installed around the home and is managed using the wireless touch-screen PassivController which replaces existing boiler and heating controls. It differs from smart meter solutions by actually managing household energy, rather than merely providing information on it.

“People are increasingly aware of the need to manage their energy more efficiently,” concluded Colin Calder, CEO, PassivSystems. “But just because people have information about their energy consumption does not mean that they have the time to act on it. The PassivEnergy iPhone app is a real game changer, as it’s effectively a remote control for your house and makes it easy for consumers to control and manage their heating from anywhere.”

The PassivEnergy iPhone app is free of charge to PassivEnergy customers and can be downloaded for free from the iTunes app store.