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Renewables: It pays to keep FiT in commercial premises

Feed-in tariffs offer a rapid payback when installing solar photovoltaic panels and other microgeneration technologies. But the benefits they can bring to businesses are less well publicised, says Clare Campbell.
Solar PV was by far the most popular technology funded by the Low Carbon Buildings Programme with more than £54 million awarded to solar PV projects out of £62 million allocated to electrical microgeneration. It's one of the more familiar and visible ways of going green, and people instantly recognise its combination of lower fuel bills and reduced carbon footprint.

And now any building that has sufficient roof space, an electricity demand and is connected to the grid can take advantage of the feed-in tariffs (FiTs), which provide guaranteed income for 25 years for each kWh of electricity generated, even if it's used on-site (which also saves on energy bills, of course). The scheme converts solar PV from an overhead into an investment - with a healthy return, something not to be sniffed at in these lean times.


The size or capacity of a solar PV system is measured in kilowatt peak (kWp) - that's the maximum power output, at the optimum time of day, with the unshaded panels mounted at the optimum angle. A 1 kWp system will typically yield 800-1000 kWh of electricity per year - that's up to 1,000 x 41.3p (the FiT rate for retrofit installations up to 4 kW) in the first year alone. There's a sliding scale of payment rates for larger installations, but the highest rates apply at the start of the programme, so early adopters stand to benefit the most.

The two key types of solar PV module are monocrystalline and polycrystalline.

Traditionally, monocrystalline was regarded as the more efficient, and was the more expensive, but as the technology has improved, these days there's little difference in cost or performance, with both types offering around 14-15 per cent efficiency. A meter in the system reads how much electricity is generated and used on-site, and how much is exported to the grid, and the utility company uses these figures to calculate payments due.

There's plenty of information around about the FiTs and what they mean for house-holders - simply click on www.energysavingtrust.org.uk and there's a link on the front page under 'generate your own electricity' to lots of information on solar PV.

FiT also applies to businesses

But what's less well publicised is that the FiT also applies to business premises. In fact, any installation on an occupied building up to a huge 5MW is eligible for financial support through the scheme - and that's a lot of solar PV.


To give an idea, at the Dimplex offices we've installed a 16-panel 4kW system for training purposes, shown below - around twice the size of what's considered to be a typical domestic system. An installation on a very large commercial building could be many times this size and still qualify for FiT support. So you can see there's a serious revenue stream available to businesses.

Offices, schools, factories, doctors' surgeries, shops, warehouses, hotels... the list of potential installation sites is endless. President Obama is even installing solar PV (in conjunction with solar thermal hot water) at the White House in Washington. So wherever you're working, the chances are your customer could stand to benefit from installing solar PV.
If you're Part P qualified, you could access this lucrative market by attending a manufacturer's solar PV training course to become an approved installer.

The Dimplex course, for example, is approved by Logic Certification to give a qualification that's recognised industry-wide.

Solar PV is more sensitive to orientation and tilt than solar thermal panels, and performance drops off with very small changes to the alignment, which is why specification and installation by a properly trained and qualified installer is vital.
It is important that the course also fulfils the training requirements of the Microgeneration Certification Scheme, completing one aspect of MCS accreditation.

Full MCS accreditation is required for any installations to qualify for the FiT and other government funding initiatives.

Much-needed shot in the arm

The FiT is giving a much-needed shot in the arm to the renewables industry, a valuable boost as the country waits to see how the coalition Government's spending cuts will affect the fragile economic recovery. So soon after the tariffs were introduced, it's to be hoped the powers that be leave this potential avenue of cuts well alone, at least until after the promised review date of 2013.

With the CRC Energy Efficiency Scheme also putting pressure on businesses to go green and reduce their carbon emissions in this first 'footprint' year, and the FiT rates dropping as time goes on, now's the time to talk to your customers about solar PV - and to think about getting qualified to install it yourself.
27 December 2010

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