My Response to the Latest Renewable Heat Incentive Consultation

The United Kingdom’s Department of Energy & Climate Change has been pussy-footing around with the Renewable Heat Incentive. there is another short consultation which closes on 23rd April 2012. You can get the web link to the consultation at http://www.decc.gov.uk/en/content/cms/meeting_energy/Renewable_ener/incentive/incentive.aspx

I have replied to the consultation on behalf of Genersys Plc. I set out my response below:- Continue reading

UK Energy Statistics 3rd Quarter 2011

The Department of Energy & Climate Change has published statistics showing energy trends for the third quarter of 2011. The statistics show, comparing the position with the third quarter in 2010:- Continue reading

Great News for businesses and Non profits – the Renewable Energy Incentive Starts

From Monday 28th November 2011 Schools, hospitals, businesses and communities in the United Kingdom have been able to get financial incentives from the Renewable Heat Incentive for installing renewable heat. The Department of Energy and Climate Change have announced the opening in full of this phase of the RHI, and I expect that the thermal solar (or solar water heating) part of the incentive will be particularly attractive and that my company Genersys will be particularly busy with it. Solar thermal is the cleanest form of renewable heat.

A business installing 200Kwh of solar thermal panels will be able to claim 8.5p per kWh for the renewable heat generated. For businesses in particular there are three financial benefits, and for non profits there are just the first two:-

  1. The 8.5p per kWh is more than most businesses are paying for heat if they use gas, and less than they are paying if they use oil or electricity. The incentive provides an income stream which is produced from the capital cost of the investment over the next 20 years. The 8.5p is linked to inflation so the return is real and predictable in real terms. Coincidentally Genersys solar panels are unconditionally guaranteed for 20 years provided they are properly installed using approved components.
  2. In addition to the incentive there is of course the fuel savings on the fuel that will no longer be used. This adds another financial incentive.
  3. If the business installs solar thermal using Genersys panels, it will be able to claim accelerated capital allowances, writing the investment off against profits in the first year, instead of over a number of years. In real terms, if you do the maths, the real rate of return becomes higher because you can moderate the capital expenditure against corporation tax.

The incentive is very good and should make installation of solar water heating for all businesses and non profit organisations virtually a no brainer.

Starting Up your Condensing Boiler after the Summer

Modern boilers are very efficient but compared with old system boilers they are very complicated. People usually experience difficulty in starting them up after the summer. You switch the central heating on and nothing happens. What should you do? What follows is for knowledgeable people who are comfortable working with do it yourself projects. If you have any doubt whatsoever call a Gas Safe qualified plumber. Continue reading

Aberdeen Plans to reduce Council Tax as a Renewable Energy Incentive

While Greg Barker, Minister at the department of Energy and Climate Change, struggles to get the Renewable Heat Incentive up and running in a logical and coherent form and struggles to respond to an enquiry from my Member of Parliament Mike Freer about the lack of certainty in the RHI, the Scots seem to be getting on with decarbonising heat and delivering a cleaner more emission from Scotland that puts DECC to shame. In particular the City of Aberdeen has managed, without much fuss and a great deal less angst and much more common sense than that has been displayed by the chaps at DECC. Continue reading

Another Delay to the RHI

The thermal solar industry was promised by the government that the Renewable Heat Incentive would come into effect on 30th September 2011. This promise was made around two years ago. Like all incentive schemes the government needs to get approval from the European Commission to the incentive package. It expected approval to be rubber stamped but the European Commission has expressed concerns that part of the non domestic RHI – that relating to biomass – has been given too high incentives by the RHI. Thus with EU approval withheld the whole non domestic RHI is held in abeyance. The government is for some reason unable to bring in the non controversial tariffs like that relating to solar thermal because it means changing the proposed regulations and submitting them to Parliament. Continue reading

Photovoltaic versus Solar Thermal – Energy Production

Sometimes politicians forget the plot. The plot is climate change. The only point of solar panels is to produce carbon emission free energy, but now in many countries the point seems to be simply having solar panels themselves. I should add that there are two types of solar panels but the government are subsidising the wrong type. Continue reading