30 September.

Ownergy, the full service provider of renewable energy systems, today published a report on the first six months of Feed-In Tariffs uptake in the UK since the scheme went live on April 1^st. The report shows that the market is developing in line with initial forecasts. It also provides powerful evidence that Government fears about Feed-In Tariff eligible installations being out of control are unfounded.

The key findings are as follows:

• 32MW of installations to date means the scheme is on track to meet the first year targets of 100MW
• The number of installations to date will mean just over a 1p increase to the average electricity bill
• Majority of installations are for residential solar PV
• Interest from the commercial market has been modestly encouraging and is predominantly for installations where the generated power can be used onsite, is in line with the objectives of the scheme
• The 8% per annum average rate of return is adequate in some sectors but there are still a considerable number of barriers to entry that dissuade investors of all types

The report details the feedback from the industry that any cuts in the tariff rates would undermine investor confidence and dramatically reduce installation rates. This would mean that targets would not be hit, the current increases in job numbers would be reversed, and confidence in other subsidy schemes would be destabilised.

Philip Wolfe, Ownergy chairman and architect of the Feed-In Tariffs scheme in his former role as Director-General of the Renewable Energy Association, said: “The industry and Government should share my pleasure in the uptake of the Feed-In Tariff eligible renewable energy systems. The scheme is delivering exactly what it was meant to do in terms of a rapid increase in the number of installations, creation of jobs and increase in the amount of renewable energy generated in this country which has historically been pitifully low.

“But it is apparent that the scheme has a long way to go before we are in the enviable position of having to consider dampening enthusiasm through lower tariff rates as is happening in some countries in Continental Europe. Despite the best efforts of the industry, awareness of the Feed-In Tariffs is still low and there are still several barriers to entry.

“If the Government believes that an early review of tariff levels is required, it could not be more mistaken. To do so would stop investment in its tracks and undermine confidence not just in all renewable energy schemes but in other sectors dependent on a consistent regulatory regime.

“It must also be stressed that the Feed-In Tariffs is paid for through a levy on electricity bills and is not from public expenditure. As such, it can make no contribution to reducing the public sector deficit.”

The Department for Energy and Climate Change (DECC) has published its own figures today as well and these show that no anaerobic digestion (AD) or micro combined heat and power (CHP) schemes have joined the feed-in tariff (FIT) scheme at the end of its second quarter in operation.

Number and capacity of FiT installations
at the end of Q2 2010

Over 2,700 (98 per cent) of all installations were Solar Photovoltaics, with the majority of these being retrofitted sub-4 kW arrays (mainly on domestic premises). However, given the smaller size of these installations, this translates to 44 per cent of total capacity, at 6.7 MW.

• In 2009 Scotland had around one quarter more renewable generating capacity than England. Renewable generation in England was 10 per cent higher than in Scotland because biofuels based capacity (the most prevalent sources in England) are used more intensively than hydro and wind (which predominate in Scotland).
• In Wales generation from wind was over 3 times the generation from natural flow hydro, and Wales generates more electricity from wind than any English region. In 2009 wind generation in Scotland was nearly 50 per cent more than in England, and five times as much as in Wales.
• In England the region with the largest generation from renewables is the East, where nearly half the generation comes from landfill gas. The North West and East account for two-fifths of England’s renewable generating capacity. London and the South West have the lowest capacities.
• In England the regions with the largest generation from wind (including offshore wind with landfall in that region) were the North West, the East, and the East Midlands; together they comprised more than 70 per cent of the total. Almost two-thirds of landfill gas generation came from the East of England, South East and North West.
• Yorkshire and the Humber is the largest generator from “other biofuels” because of the co-firing of biomass in coal fired power stations.