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
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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.
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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.
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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.
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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
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How Do I maximise my Return?
• Orientation
• Any Orientation between East and West
• South Facing will provide optimum yield.
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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
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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
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How Do I maximise my Return?
• Nominal Power Ratio
• Positive Power Tolerance
• Module Installation
• Manufacturers and Guarantees
• Inverters
• Remote Monitoring
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Remote Meter Monitoring
“Bill gradable” Data and condition based maintenance
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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.
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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
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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
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Ground Mount Options
• Land Sale
• Ground Rent
• Joint Venture
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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
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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
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Examples
• Option 1
• 50kwp
• Option 2
• 100kwp
• These are designed to maximise available roof
area and R.O.I. within tariff bands
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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.
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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.
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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
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What would it look like?
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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