Sustainable Energy Facts January - March 2019

Sustainable Energy Facts January - March 2019 What you need to know about sustainable energy now

Support Schemes – Tariffs as at 1 January 2019 Feed in Tariffs (FiTs) Technology

Wind

Solar PV

Anaerobic Digestion (AD)

Scale

Tariff (p/KWh)

<50kW

8.24

50kW - 150kW

4.87

100kW - 1.5MW

1.55

1.5MW - 5MW

0.47

<10kW

3.79

Renewable Heat Incentive (RHI) Phase 1 / Non-Domestic Applicable until

Technology

Scale

Small Biomass

<200kWth

Medium Biomass

200kWth 1MWth

Large Biomass

>1MWth

10kW - 50kW

4.03

50kW - 250kW

1.69

Biomass CHP

All

250kW - 1MW

1.33

Ground / Water Heat Pumps (HPs)

All

Tariff (p/KWh)

Tier 1: 3.05 Tier 2: 2.14 Tier 1: 3.05 Tier 2: 2.14 Tier 1: 3.05 Tier 2: 2.14 4.42 Tier 1: 9.36

>1MW

0.15

Standalone

0.05

<250kW

4.50

Air to Water HPs

All

2.69

250kW-500 kW

4.27

Solar Thermal

<200kWth

10.75

31 March 2019

Tier 2: 2.79

1.54

<100kW

8.03

100kW-500 kW

6.46

500kW - 2MW

6.46

Small Biogas

<200kWth

4.64

>2MW

4.73

Med Biogas

3.64

Micro CHP

<2kW

14.52

200kWth 599kWth

Large Biogas

> 600kWth

1.16

All - Exportff

All

5.24

Deep Geothermal

All

5.38

Hydro

31 March 2019

Tier 1: 4.76

kW

> 500

Applicable until

Biomethane

All

Tier 2: 2.80 Tier 3: 2.16

31 March 2019

Renewable Heat Incentive (RHI) Phase 2 / Domestic NB: the figures in red have decreased since our September December 2018 edition of Sustainable Energy Facts as a result of degression.

The figures in blue have remained static or otherwise risen due to either CPI or RPI inflation.

Market Update

Technology

Scale

Tariff (p/KWh)

Ground & Water HPs

<45kWth*

20.46

Air Source HPs

<45kWth*

10.49

Biomass Boilers

<45kWth*

6.74

Solar Thermal

<45kWth*

20.66

Applicable until

31 March 2019

Q3 2018 Renewable Energy Quick Stats (from BEIS) • • •

33.1% of total generation in the third quarter of 2018 came from renewable energy – a new record.

56% of electricity generated came from low carbon sources over the same period.

1,534 plug-in Electric Vehicles (EVs) were registered in December 2018, an increase of 59% on December 2017. Total new car registrations fell by 6.8% over the year, showing the appetite for EVs.

End of FIT On 18 December 2018, the government confirmed that the FIT generation and export tariffs will both close to new applications on 31 March 2019.

The end of the scheme removes the all-important income certainty that FITs provided, making small scale projects harder to financially deliver. There remains a short window of opportunity for small solar PV projects to qualify for FITs before the closure date. Even with FIT income projects will need to displace imported electricity in order to be attractive, but good returns can still be achieved from PV and help to future-proof your business. Fisher German can help determine the viability of your project in light of these changes.

Consultation on ‘SEGs’ There is some potential good news for renewable energy generators on the horizon following BEIS’s launched of a consultation on legislation to introduce ‘Smart Export Guarantees’ (SEGs). The document, published on 8 January 2019, outlines proposals which would require larger electricity suppliers to offer at least one export tariff available to generators of up to 5MW capacity. The price paid per unit and length of contract will be at a market price determined by the suppliers. This would provide a helpful route to market for smaller generators but, as ever, the detail will be critical.

The consultation also explores how SEGs could interact with battery storage and enable smarter energy use by consumers. Our team will keep a close eye on how SEGs develop and the opportunities which may arise as a result.

Large scale solar resurgence Land acquisition activity from solar park developers has increased over recent months and looks set to continue through 2019 and beyond. Ongoing reductions in panel and component costs and increasing energy costs make projects potentially viable, despite the end of subsidies. Developers are looking to connect into the previously untapped 132kV High Voltage network where capacity can be available for large scale projects exceeding 50MW. In the absence of subsidies, the market is being driven by corporate PPAs (power purchase agreements) where corporations enter into an agreement with the developer in order to fix their long-term energy price, in turn satisfying sustainability commitments and reducing their carbon footprint. Our Sustainable Energy team has extensive experience advising on solar farm options and leases and are able to assist landowners to secure the best terms.

AD boost from waste strategy Defra has published a ‘Resources and Waste Strategy for England’ which sets out proposals for local authorities to undertake weekly collections of separated food waste from households. This is potentially good news for the AD sector as it should increase supplies of food waste feedstock and therefore enhance the need for more AD plant capacity to make use of the waste.

Future heat strategy The government has published a number of reports relating to the decarbonisation of heating in the UK, most recently ‘Clean Growth - Transforming Heating’. Amongst policy areas identified is an aspiration for all buildings to work towards EPC level C by 2030 and consideration of how renewable heat will be supported following the end of the RHI in 2021 without direct subsidy. Consultations on off gas grid heating, Part L building regulations relating to energy performance and a framework for heat networks are also expected in 2019. Although the report does not provide any immediate policy outcomes, the direction of travel with regard to reducing carbon intensity of heating is clear.

Private rented sector Minimum Energy Efficiency Standards Landlords should be aware that since April 2018 a minimum energy standard of EPC level E has applied when letting property to new tenants.

Currently the legislation is relatively toothless due to a series of cost exemptions for the letting of dwellings. However, recent changes to this legislation mean an ‘expenditure cap’ will be introduced on 1 April 2019. This will mean that landlords now have to spend up to £3,500 (inc. VAT) on achieving level E before a cost exemption will apply and significantly increases the impact of the regulations.

Most properties will likely achieve level E for significantly less than the cap however landlords are advised to review their housing stock and assess the likely implications. Fisher German’s property management team are already assisting clients in understanding the regulations and assessing the implications for their property in both the immediate future and longer term as the government plans to raise the performance standard over the next decade.

Energy & Rural Business Show 2019 Fisher German will be exhibiting at the Energy & Rural Business Show in Telford on 6-7 February 2019. Aimed primarily at farmers and landowners, this year’s event incorporates EVs and Rural Business Expos and will once again provide an excellent opportunity to find out the latest information on sustainable energy. Our team of energy experts will be on hand over the two days to discuss projects face-to-face and offer advice on recent market developments, as well as speaking in the battery storage and solar seminars. NFU and CLA members can attend the event free of charge.

Find us on Stand 2 for an informal chat or to ask more specific questions. For more details and to register for the event visit http://www.energyandruralbusiness.co.uk/.

fishergerman.co.uk 01858 410200 sustainableenergy@fishergerman.co.uk

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Registered number: OC317554 Registered office: The Head Office, Ivanhoe Office Park, Ivanhoe Park Way, Ashby de la Zouch, Leicestershire LE65 2AB Regulated by RICS Fisher German LLP has tried to ensure accuracy and cannot accept liability for any errors, fact or opinion.

Please do not use this as all the advice needed to make decisions.