By MEA's Technical Advisor and ‘Low Carbon Enterprise' consultant, Tristan Haynes.

Somewhat typically on the one day in ages I actually decide to take a day off we finally saw the good intentions to stimulate unprecedented growth of (small-scale) renewable sources of heat and electricity (announced by Ed Milliband of the Government's new Department for Energy and Climate Change (DECC) back in June 2009) start to be implemented! At the same time MEA has just unveiled its new team; ‘Low Carbon Enterprise' (LCE). This consists of various ‘sustainable energy experts' who offer tailor-made and impartial advice to public & third sector organizations, businesses, developers, farmers, communities and community buildings across the midlands as to how they can make the most of the ever increasing opportunities presented through the sustainable use of energy.

The measures announced this week include the confirmed rates of payment they will pay to anyone that generates electricity from various technologies (including solar PV and wind) from April this year. These are known as ‘Feed-In Tariffs', more simplistically branded as ‘Clean Energy Cashback' for homeowners, and have been available in much of continental Europe for a number of years. A key point about these payments is that they are guaranteed for 20 years and index-linked (taking much of the ‘risk' out of renewables). The intention is also that the ‘income' from these should be tax-free. At the same time DECC have also announced draft rates of payment for generating heat from various technologies including wood-fired heating, solar hot water and heat pumps; known as the Renewable Heat Incentive (RHI).

For many reading this that will be a satisfactory enough insight but for the more enquiring mind I've spent the rest of my week trying to catch up on the finer details of the announcements so you don't have to so please read on!

Whilst the rates announced are higher than many expected and broadly welcomed the fundamental difference in the operation of these new schemes compared to the more traditional incentives (such as grants) also poses some interesting complexities spring to mind for which I will attempt to offer some answers over the coming weeks (so keep checking back to this page!):

• Can those receiving FIT's or RHI's still receive capital grants for installation of the relevant renewable energy technologies?
• I have been using these technologies for years! What about me?
• How is all this being paid for?
• What impact will these schemes actually make?
• If I'm paid the same on every unit of electricity generated regardless does it actually matter how much I use myself?
• Is it worth still installing technologies even though the conditions are not ideal?
  Is the planning system likely to pose a problem to me if I wish to install these technologies?
• My property is ‘off-grid'; can I still benefit?
• Are just renewable energy technologies eligible?
• Traditionally biomass has only been a cost-effective option where it is displacing more expensive heating fuels like oil, electricity and LPG. How has this changed?
• How will they know how much renewable heat has been generated?
• What will happen to the cost of wood fuel?

If you are confused as to what all this could mean for you why not contact LCE to discuss how we might be able to work with you to help you make the most of the new opportunities? 01743 277105. Keep your eyes on developments here or at our new LCE team website at: www.lowcarbonenterprise.org.uk

There's still time to try and influence the finer aspects of the RHI which is out for consultation till 24th April: www.decc.gov.uk/en/content/cms/consultations/rhi/rhi.aspx

For the Government response to the Feed-In Tariff consultation and published rates for the various technologies see: http://www.decc.gov.uk/Media/viewfile.ashx?FilePath=Consultations\Renewable Electricity Financial Incentives\1_20100204120204_e_@@_FITsconsultationresponseandGovdecisions.pdf&filetype=4

Please note: the opinions expressed in this article are those of the author and not necessarily those of MEA. Individual advice on any of the aspects discussed should always be sought before making a decision as to whether to pursue any of the options discussed.