Investment:
With a life expectancies in excess of 40 years and 20 years of government guaranteed subsidies, installing micro-hydro systems can be a valuable investment producing sustainable long term cash flows.
Hallidays Hydropower are keen to invest in suitable sites and would welcome the opportunity to invest in your site if practical. Our investment is limited to those schemes greater than 50kW.
If you are an investor interested in a government backed annuity with minimal operational exposure please contact:
Feed In Tariffs (FITs):
What are Feed in Tariffs, and how are they going to generate my income?
As of 1st April 2010 a new government backed incentive for green energy was launched to help the UK reach its 2020 targets of at least 15% of the country’s energy to be generated from renewable sources. The aim of this incentive is to increase the number of renewable generators in the UK. These can be in any form, varying from an off shore wind farm to a single solar panel to an Archimedean hydro screw.
The FITs are:
- Guaranteed for 20 years from the date of installation
- Tax free income for domestic installations*
- Index linked to inflation
How do I get paid from the FITs?
FITs are the main source of income from renewable energy generation. They give the owner a ‘two tiered’ payment system:
Stage 1: The owner is paid to GENERATE electricity. The owner will get paid a set amount per kilo watt hour (kWh) generated, i.e. per unit generated. See the table bellow for tariffs:
Scale |
Generation Tariff |
(p/kWh) |
|
≤15 kW |
20.9 |
>15 - 100kW |
18.7 |
>100kW - 2MW |
11.5 |
>2MW - 5MW |
4.7 |
Stage 2: Stage one is simply to generate the electricity in kWh's, the owner can now do one of two things with that kWh – use it or sell it.
- Using it on site: you can use the kWh on site, saving the user the cost of 1kWh, typically 12p(the current cost of a unit of electricity)
- Export to the grid: you can sell the kWh back to the national grid at a standard rate of 3p per kWh
Example:
For a 14kW system running at full power:
14kW X 1hour = 14kWh Generated.
Stage 1:
This scheme is below 15kW for GENERATION, so as per the table above, you will receive 20.9p per kWh:
14 X 20.9p = 292.6p = £2.93
Stage 2:
If you use, for example, 5kWh on site, you will therefore export the remaining 9kWh to the national grid. You will get paid 3p per kWh exported, and you will save 12p per kWh used on site. Therefore:
For use on site:
5 X 12p = 60p = £0.60
For power exported:
9 X 3p = 27p = £0.27
From this you can work out your total income from both revenue and savings. This is simply the sum of all the figures above:
£2.93 + £0.60 + £0.27 = £3.80 per hour.
Remember, this income is generated 24 hours a day, all year round, though varying flows will affect the hourly turbine output.
For more information on Feed in Tariffs visit http://www.fitariffs.co.uk/
Grants:
Grants are generally no longer available. The FITs have replaced grant funding and provide an alternate incentive for installing micro-generation systems. There are some grants available in exceptional circumstances, though if you do receive a grant, you may not be eligible to receive the FITs.
Call or email us with any further questions.
*Commercial organisations will need to pay corperation tax on any profits made