Victoria Lancaster MA (Hons), MRICS Chartered Rural Planning Surveyor

Victoria LancasterMA (Hons), MRICS

Chartered Rural Planning Surveyor

Renewables Opportunities

•Which suits you?

•Tariff changes

•Biomass information

Shares of Electricity Generation

• Amount paid by farmers for energy in 2013: £1.01billion

• Most farms can bring renewable technologies into their farm strategy

• 4 - 10 year payback on 20 year ‘tied-in’ tariff

• Which one best fits your business?

SAFE

RISK-O-METER

RISKY

Feed In TariffsFeed In TariffsFeed In TariffsFeed In Tariffs

Feed-In Tariffs (up to 5MW)

• FIT lifetime: APRIL 2010 – 2021• APRIL 2012 Major cuts introduced for PV• DECEMBER 2012 Cuts for other technologies• Stricter digression mechanism:

– Quarterly for solar PV (min 3.5%)– Annual reduction for other technologies and…

– Contingent (depending on take up)

• + Pre-accreditation

Solar Farm Lease – pros and cons12MW 70acres

4.6MW30acres

2MW10acres

5MW 30acres

On-roof Solar PV

20kW array

Solar Tracker

Commercial Renewable Heat IncentiveCommercial Renewable Heat Incentive

Heat Costs

Digression

•Budget 2011 to 2015: £860m. 2016? Will run to 2020?

• There will be a degression trigger for each tariff band and for the RHI as a whole. Assessments will be made quarterly.

• The trigger for degression in each band is set at 150% of the expected levels for that technology

• Once an individual tariff trigger is hit, the tariff will be reduced by 5%, with provision for subsequent reductions of 10% and 20% if expenditure levels are not falling back after the initial reduction

How the biomass CRHI tariff is calculated:

1.Boiler Sizing: supplier will size your boiler according to your current energy usage and profile.

2. The RHI states that the heating profile is 13.14% of the total annual maximum capacity of the boiler. This equates to 1314kWh.

3. Example: 100Kw boiler:

100 x 1314 = your Tier 1 hours @ 8.4p/kWh = £11,038 per year

Plus additional Tier 2 hours @ 1.9p/kWh

Plus savings on buying fossil fuels/electricity

Installations April 2014

TAX

Talk to your accountant

The UK remains committed to its legally binding 15% renewable energy target by 2020

2012 position: 4.1%

What we can do to help…• Phase I

- Feasibility

• Phase II- Planning Application if required

• Phase III- Project Management

In summary: Whether you have 30 or 3,000 acres we can advise and

guide you to a bespoke solution that suits your farm and your long term goals.