Slide 1

Slide 1 text

“The Renewable Energy Experts”

Slide 2

Slide 2 text

The Feed-in Tariff & How to maximise your returns

Slide 3

Slide 3 text

SolarTech Limited • Over 350 man years of Industry experience • Over 6,500 installations in the UK • Over 60,000 m/2 of Solar Installations • Annual CO2 savings of over 48,000 tonnes • Lifetime CO2 savings 1,200,000 tonnes

Slide 4

Slide 4 text

SolarTech Limited • N.H.I.C. Award winner for the best practice in renewable energy systems; • Green Apple Award “Gold” Winners • Shortlisted for R.I.C.S. Award for 2011 • Shortlisted for MicroPower awards 2011 • Shortlisted for Renewables Road show Project of the year and Apprentice of the Year.

Slide 5

Slide 5 text

FEED IN TARIFF SCHEME Announced February 2010 “This “clean energy cashback’” will allow many people to invest in small scale, low carbon electricity, in return for a guaranteed payment for the electricity they generate. “ “We are also keen for local authorities to work with other partners on community scale renewable electricity schemes which can be supported by Feed in Tariffs.” “the cost of the Scheme should be borne by all licensed suppliers in proportion to their share of the UK electricity supply market” Taken from the Government’s response to the Summer 2009 consultation.

Slide 6

Slide 6 text

Feed-in Tariff Headlines •Guaranteed 20 year income stream •This can be assigned to a third party to finance the installation. •Part of the 2008 Energy Bill •Funded by the utilities as an additional “renewables obligation” on all Energy users. •Tariff will be index linked to R.P.I. •Income is tax free •Tariff paid on “total generation” with an additional payment for exported electricity.

Slide 7

Slide 7 text

P.V Schematic How it all works The solar panels Solar photovoltaic (PV) panels convert the light energy from the sun into electricity that can be used to power appliances in your home. P.V Modules DC Isolators Inverter AC WORKS PV kWh METER AC Switchable Isolators CONSUMER UNIT In roof or on roof

Slide 8

Slide 8 text

How Do I maximise my Return? • Orientation • Any Orientation between East and West • South Facing will provide optimum yield.

Slide 9

Slide 9 text

How Do I maximise my Return? • Tariff Level Thresholds • There is not a flat Tariff • Break Points as follows: • 10-50kw 13.03p/kw • 50-150 11.50 p/kw • 150-250 11.00 p/kw • Export 4.5 p/kw • Maximise your ROI

Slide 10

Slide 10 text

How Do I maximise my Return? • Tariff Level Thresholds • There is not a flat Tariff • Break Points as follows: • 10-50kw 13.03p/kw • 50-150 11.50 p/kw • 150-250 11.00 p/kw • Export 4.5 p/kw • 10kw

Slide 11

Slide 11 text

How Do I maximise my Return? • Nominal Power Ratio • Positive Power Tolerance • Module Installation • Manufacturers and Guarantees • Inverters • Remote Monitoring

Slide 12

Slide 12 text

Remote Meter Monitoring “Bill gradable” Data and condition based maintenance

Slide 13

Slide 13 text

No content

Slide 14

Slide 14 text

Income Streams • Feed-in Tariff provides index linked income stream for 20 years. Provides a typical ROI of 8-12% • Both of the above are “bankable” and can be used to finance capital spend.

Slide 15

Slide 15 text

Finance Solutions • Lease Purchase (all technologies) • Typically over a 5-10 year period enables capital repayment to be spread over a number of years and will be almost “cash neutral” • Ownership of equipment transfers to end user at end of term • End user will continue to enjoy income stream for 10-15 years depending on technology

Slide 16

Slide 16 text

Finance Solutions • Free P.V. • Capital cost covered by S.P.V. • Typical Ground Rent • End user will continue to enjoy reduced energy bills and capital cost taken out of build cost. • Check if project grants affected by F.I.T. • Retro fit a possibility

Slide 17

Slide 17 text

Ground Mount Options • Land Sale • Ground Rent • Joint Venture

Slide 18

Slide 18 text

No content

Slide 19

Slide 19 text

Finance Solutions • J.V. • End user invests equity into S.P.V. • Typical 10% return on equity • 10-30% of project value with balance in debt • Dividend from S.P.V. • Downstream payment if S.P.V. sold on

Slide 20

Slide 20 text

Finance Solutions • J.V. • End user invests equity into S.P.V. • Typical 10% return on equity • 10-30% of project value with balance in debt • Dividend from S.P.V. • Downstream payment if S.P.V. sold on

Slide 21

Slide 21 text

Examples • Option 1 • 50kwp • Option 2 • 100kwp • These are designed to maximise available roof area and R.O.I. within tariff bands

Slide 22

Slide 22 text

Financials • Option 1 • £57,423.00 (capital cost) + VAT at 5% • Less than 3 year payback! • 20 year benefit £1.349m • This includes FiT income and energy savings • FiT income is Government backed index linked to RPI and for a 20 year period.

Slide 23

Slide 23 text

Financials • Option 2 • £106,017.00 (capital cost) + VAT at 5% • Less than 3 year payback! • 20 year benefit £2.68m • This includes FiT income and energy savings • FiT income is Government backed index linked to RPI and for a 20 year period.

Slide 24

Slide 24 text

Environmental Benefits • Option 1 • CO2 Savings 21,592 Kg / annum • Lifetime savings of 539,800 Kg • Option 2 • CO2 Savings 43,393 Kg / annum • Lifetime savings of 1,084,825 Kg

Slide 25

Slide 25 text

What would it look like?

Slide 26

Slide 26 text

Summary • There are a range of options available • You have one chance to get it right • It is a 20 year investment • Thank you for your time