The world's largest sustainable building show was in town earlier this week. Well, that town being London, or more specifically Earls Court. It is amazing to see how the show has grown over the last five years. It is huge, taking over both halls of Earls Court exhibition centre, including upstairs.  

Well this year we had the opportunity to exhibit, and it was a hectic but very fruitful three days. As one of the highest accredited renewable energy installers in the UK we had a good deal of interest from all angles, architects, developers, self builders, and of course others in the trade. A few companies promoting themselves as experts in all forms of renewables, but with only one MCS (microgneration certification scheme) qualification, for a single technology! tut tut.  So buyer beware, if you want to benefit from the incoming FIT (Feed in Tariff) Scheme, or next years RHI (Renewable Heat Incentive) then you will need to make sure you use MCS approved products, installed by an MCS approved supplier, for the technology in question obviously!   

Others a little naughty; well plenty of manufacturers reinventing themselves as 'green' some genuinely, but many questionably. How green can concrete be!!! And plenty of the big brand names, with new 'green' products, on a big stand with several gigawatts of inefficient lighting and plastic a plenty! Some people just don't get it do they!!!  This isn't a ploy, a marketing exercise, it is the way we need to change to have a chance of survival. Buildings and how we build are instrumental to this. And of course how we generate and use energy. The Code for Sustainable Homes is a wonderful piece of legislation, leading up to zero carbon homes by 2016. Since being planned it has led to great innovation from architects, product developers and installers such as ourselves, to create buildings that are energy efficient and self sufficient. From our point of view the integration of technologies such as wind, solar PV, solar thermal, heat pumps and rainwater harvesting. Combined with new building materials and construction methods. Zero Carbon homes are achievable now.  BUT there will be public challenge and dissent. You can't build a zero carbon house and expect it to look and be exactly the same as we have been building for the last 30-40 years or more.  To me that is a good thing, not just because of the greater use of microgeneration and renewable energy, but because I love some of the designs that architects we know are working on. I'm a traditionalist, and a history buff to boot, but we can't live in the past. We just have to build differently in the future.

For all that though many of our enquiries were from those looking to renovate or improve an existing property or home. Not without its challenges, but it can be done. To varying degrees and with varying costs you can improve the energy efficiency and sustainability of older homes. As proof in point on our website you will see the case study of an Edwardian Manor house that is now practically self sufficient, a combination of wind power, solar PV, solar thermal and an air source heat pump. All integrated, all supporting each other. Of course insulation and lighting were addressed too.

This week we got the go ahead on twelve new build properties for a social landlord. The developer was struggling to get below Code 3 (Code for Sustainable Homes), but after coming to us, with just replacing the gas boilers with Air-source heat pumps we delivered the solution to meet code, reduce the running costs of the homes by 30% and reduce the co2 emissions from heating by 50%. That is just one technology. When you integrate others you can make a huge difference, and that is where we come in, fully capable and qualified to integrate a range of technologies to achieve what is required for new build and renovation projects.

 Look I'm rambling again! Just wanted to say we went to Ecobuild, and we had a great show. Look forward to seeing you next year at Ecobuild 2011, at Excel in London.   

The recent confirmation of the Feed in Tariff for solar photovoltaic systems has provoked a great deal of interest, and no small amount of work for solar PV installers.  Suddenly the world has caught on to the economic sense, as well as the positive environmental impact of installing solar PV systems.  For once the government has done something more than green wash, by making the feed in tariff rates higher than the initial consultation figures.  What do feed in tariffs mean and how do they work? How good a financial proposition is it to install solar PV systems at home or for your business?  Well read the below extract from The Guardian, and if you still have questions, or want to explore the possibilities for your home or business to make money from your roof give us a call.  One thing to be aware of, in order to be eligible for feed in tariffs you do need to use MCS approved products, installed by an MCS accredited installer. This ensures you get the best service and stops the cowboys. Don't be hard sold, or miss sold, speak to an expert installer. Did I mention we are one of the highest accredited installers in the UK? 

Is solar power a bright investment?

 If the government offered to pay you £1,000 a year for the next 25 years, in return for an up-front investment of £12,500, you'd snap it up in a second. Well, that's pretty much the deal on offer this week after the government finally revealed what it will pay those who install electricity generating solar panels – in and around their homes – through the new "Feed-in Tariffs" (FITs).

After years of campaigning by environmental groups – helped in small part by this newspaper – the government has finally agreed to reward households and businesses installing electricity-generating measures with enough of a return to make it a serious financial, as well as an environmental, investment. If you've got the money (which is a big "if") and, crucially, a sunny, south-facing roof, you can earn a 7%-10% tax-free return, an income that will rise in line with inflation. At the same time, you get to do more than your fair share in reducing the UK's carbon­ emissions.

In the week that the energy regulator,  Ofgem, warned the nation to expect 20% electricity price hikes by 2020, and warned future supplies were in jeopardy, investors in solar panels will have the added benefit of being a net provider of electricity, and largely insulated from future price hikes that could see household bills top £2,000 a year by 2020.

Announcing the new tariffs' introduction this week, the energy and climate change secretary Ed Miliband said the guaranteed income would be a big incentive for householders "to make the move to low carbon­ living".

"The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past."

Although Milliband announced a number of tariffs – including what the government will pay those installing wind turbines – the one that will appeal most to the average UK householder will be for installing photovolatiac (PV) solar panels – at a typical cost of £10,000-£12,500.

From 1 April, households with approved  schemes will be paid for the electricity they generate, even if they use all of it themselves.

The level of payment depends on the technology and whether it is being fitted to an existing  home, or installed as part of newbuild. Importantly, future payments are guaranteed for the next 25 years and have been, unexpectedly, linked to inflation.

Anyone fitting a typical £12,500, 2.5kW PV system to their existing home will initially be paid 41.3p per kilowatt hour (kWh) generated. Enough, according to Miliband, to reward them with up to £900 in the first year on top of a £140-a-year saving on their bills.

The measure, which is inevitably quite complicated, is designed to reward those who reduce their own electricity consumption by installing low-energy lighting and A-rated white goods, and to ultimately export excess electricity generated back to the grid.

Households get an extra 3p for each kWh they export on top of the 41.3p they get paid for all units generated. Those building PV roof panels into a new-build home get a slightly lower tariff (36.1p per kWh). The fact that the payments are not taxed make it a particularly rewarding investment for higher-rate taxpayers – those earning more than just over £43,000.

Regulated payments

The feed-in rates change depending on which year you install the technology. They will also apply to installations commissioned since July 2009 when the policy was announced. Early adopters, who have installed grant-assisted PV and registered  for the ROC scheme, will also receive payments, but at just 9p/kWh.

The payments will physically come from your existing electricity supplier, but will be overseen by the regulator Ofgem. Jeremy Leggett, chairman of SolarCentury, the biggest supplier of PV systems to UK homes, says homeowners need a largish (8m²), unshaded, south-facing roof, or similar place to mount panels.

"Feed-in tariffs are going to be a big boost for the industry and for the first-time, homeowners can see a decent financial return," he says. "We estimate homeowners can save and earn more than £1,000 per year for 25 years, increasing with inflation, giving a payback in around 10 years."

He says homeowners with flat roofs may well find they can install a system, as will those with conventional roofs that face a few degrees either side of south, east or west. Panels perform best in unshaded sites angled towards the sun at a pitch of 30-40 degrees.

Prior to this week's announcement, grants of up to £2,500 had been available to those installing PV panels under the terms of the government's Low Carbon Buildings Programme. There are still grants available for other green technologies. FITs now provide the entire financial incentive for PV installers.

Dave Timms, climate and energy campaigner at Friends of the Earth, says the new tariffs will allow people to turn their homes into mini-power stations. "We were hoping the government would go further, but this is very welcome and long overdue," he says.

"For householders who have a south-facing roof, PV panels are really worth looking at. Not only are they a sound financial investment, they will also allow you to do your part in tackling climate change.

"Our homes are responsible for over a fifth of UK emissions, but by fitting renewable electricity systems and wind turbines, we can be part of a greener, safer future."

There is an expectation, he says, that once investors and banks see the benefits of the scheme, specialist loans or top-up mortgages will become available for those who want to install a system, but can't raise the capital.

Take it from me – it's worth it

This week's announcement on solar panels is good news for homeowners wanting to install green energy systems, simplifying the procedures and shortening the payback time of renewable technologies,writes Ashley Seager.

Ashley Seager went solar three years ago

I fitted solar photovoltaic panels on my house nearly three years ago. They are great – we get 90% of our electricity off our own roof over the course of the year. And three years ago the panels were more expensive than they are now.

We spent £17,000 but got half of that back in a grant from the Low Carbon Buildings Programme, which was dogged by complexity and stop-go decisions by the government.

It is much easier now. You install the solar panels or wind turbine and away you go – no messing about with grant applications that take months.

The pain for people like me who have already fitted such technologies is that we will only get a tariff of 9p per kWh, roughly equivalent to the payments we already get from the government's renewable obligation certificate scheme.

The Department of Energy and Climate Change (DECC) argues that it is incentivising new installations, not helping people who have already done one and may have got a grant for it. But that means early adopters – many of whom stuck their hand in their pocket for a lot of money and became evangelists for the new technologies – get a lower return than they would get if they had waited. Pity.

But, undeterred, I am looking at fitting solar thermal panels elsewhere on the roof to generate most of our hot water. That is because, as well as announcing the cashback for green electricity schemes, DECC also published its proposals for payments for renewable heat gear such as solar thermal or ground source heat pumps.

I reckon that from next April a normal solar thermal system could generate around £200 a year, based on the 18p per kWh DECC is proposing. Added to the £150-odd you save in heating water, you approach a 10% return, assuming you pay £3,000-£3,500 for your thermal system. Go for it!

Your questions answered

I have a PV system and am furious I'm not getting the new tariff. Can I rip it down and start again? Technically, it has to be "new", and everyone in the industry has speculated as to whether this is possible. Unclear at best.

These figures look great on paper, but are they guaranteed? How much electricity  your system generates, and the resulting returns will depend on the size and quality of panel and its position. Shading has to be avoided – even a telegraph wire. But sun-hours in the UK are remarkably stable and well documented – so you should get close to the promised figures.

What happens if I move house? The most obvious drawback, but it needn't put you off. Estate agents will get used to selling their benefits, and a PV scheme should add to the value. Lots of people spend £12,000 on a kitchen and don't expect to get the money back. If your buyer won't pay up, find another or take the system with you.

Are there any planning problems? In England and Scotland, you don't need planning permission for most home solar electricity systems, as long as they're below a certain size – but you should check with your local planning officer if the building is listed, or is in a conservation area. In Wales and Northern Ireland, you still need permission.

Is it just solar PV? No the government has announced tariffs for those fitting wind turbines – good out in the countryside – and also hydro schemes. Perhaps more importantly, it has said it will be giving feed-in tariffs to households installing solar water heaters, from April 2011. These are much cheaper (£3,500). There's also help for air and ground-source heat pumps. Money will be returning to this subject in forthcoming articles.

Have they got to be on the roof? Do they require maintenance?No. People  have installed panels in gardens and on south-facing walls – although given their cost, you will want to find a secure spot where they can't be easily stolen. There are no moving parts and they require no maintenance – PV systems  are designed to last 20-30 years. 

Well, the government closed the Low Carbon Building Programme grant funding for solar PV and Wind turbines two months early, and without notice. Not a great day when we found out. They didn't even notify all the accredited installers like us, just closed. But the news over all is very good. 

The final rate for Feed in Tariffs was announced and the figures were better than expected. Most domestic solar PV installations will be at 41.3p per KWH. This means even better payback and an even better investment.  We have never been so busy, and the interest, as people become aware of the new tariffs is increasing daily. Now people can do the right thing for the environment, but at the same time make a sound financial investment.  To be honest, a good percentage of our customers just want to save money, or make some, and that is good. It is a great bye product of that decision that they are doing something very positive for the environment, and to combat climate change. Most though are green minded and have always wanted to do their bit for the environment, but have been restricted financially. Now, whilst solar photovoltaic systems and wind turbines still have relatively high capital costs to start, the financial payback is very high. Both The Guardian, and The Times recently published articles saying how installing microgeneration (wind, solar PV) is now a 'no brainer'. And our customers are saying the same. Increasingly we are being asked how big a solar pv system can we fit on our roof, the bigger the system, the better the payback. Having said that we are still installing smaller systems where the roof or the budget dictates that.

So all of this is good news for the environment, but beware, the number of cowboys out there is increasing rapidly. Many ask us to install for them as they aren't accredited. Many sell systems on incorrect or false promises. The most important thing though, if you don't use an MCS accredited installer, you WILL NOT be eligible for the Feed in Tariff. This is VERY important. To be sure of the quality of your installation, and to make sure you get the tariffs you need to use a qualified MCS installer and MCS approved products.  Ask the questions, and ask for client testimonials. Solar PV, wind turbines and most renewable technologies are a big financial investment, and can be poorly installed,  or installed in inappropriate places. Do not get ripped off when you are trying to do the right thing. Be sure to check out your installer, question them, and use an MCS accredited installer. Or best still, use Eco Environments!  I promise you won't get hard sold, mis-sold or misinformed. You'll get the system you want and the service you deserve. That's the sales pitch, why not put us to the test?! We are award winning!

We were recently asked to participate in one of Oxfams campaigns ahead of the Copenhagen climate change negotiations, Climate Voices.  Climate voices has been a global project, looking at how climate change is affecting people, and what they are doing about it.  It is not just the headline issues of Bangladesh or Africa that were addressed. With the recent events in Cockermouth, and not so long ago in Boscastle, Cornwall, climate change affects us here in the UK too.

We took part in the Climate Hearings in the Northwest. Here is what Oxfam said about them;

Climate Hearings brought out some amazing stories - people all over the world are really suffering from climate change, and these stories needed telling. After what has happened in Cumbria in the last few weeks,  it is impossible not to think about the brave people from Cockermouth who are trying to carry on with their lives after the floods and, at the same time, about people in Haiti, who have been hit by 4  typhoons in a year and simply do not have even the chance to try to lead an ordinary life.

It is important to feel connected to climate change, to realise that we are being affected here, and that we are doing something about it. So Climate Voices was launched from our North West HQ!

Two events ran from Manchester and Liverpool. Participants came from a variety of backgrounds to share how they were being affected by climate change, and what they were doing about it; we had people from the council, a transition town movement, a renewable energy provider, student campaigners, sustainability activists, a University researcher and an artist campaigner. They were a really switched-on and inspiring bunch, it was great to meet so many people with their individual take on climate change.

To see my Climate Voice go to  http://www.youtube.com/watch?v=xMRyZjK6rJI  Other local voices are listed on the right of the page.

On a global basis you can read more about the Oxfam Climate Hearings at http://www.oxfam.org/en/campaigns/climatechange/climate-hearings

Let us, and Oxfam now what you are doing to combat climate change.

David Hunt

We made the regional press this week following our trip to Westminster last week, to meet senior civil servents at BIS (Dept of Business, Innovation, and Skills, formally many reincarnations, but really still the DTI!), and then to Westminster to meet some MP's. No surprise we were stood up by Alistair Darling, either having his eyebrows dyed or finding ways to avoid paying anything towards the introduction of renewable energy and microgeneration. Or both!

Here is what the press said,

Liverpool green entrepreneur David Hunt met with MPs in Westminster to highlight environmental business issues this week.

David, who is director of alternative energy company Eco Environments in Sefton, was part of a delegation from the Chambers of Commerce Northwest who met with Kenneth Clarke MP, and Phil Woolas MP, Minister of State for the Northwest, and former Minister for State for the Environment.

“We delivered our Business First manifesto to MPs from all parties ahead of the forthcoming election,” explains David.

“A key part of this message revolved around access to finance, trade credit and taxation. In particular there was a focus on the green agenda, the Low Carbon Economy.”

David went in his capacity as a member of the Liverpool Chamber steering committee on Energy and the Environment.

“I was particularly keen to push the issue with regard to renewable energy. ŠThere is much talk from government about green jobs and the low carbon economy leading us out of recession, but there is so much more practically that can be done to help.

“Businesses large and small want to reduce their energy costs and their reliance on ever more expensive fossil fuels, simple measures like including wind and solar power into the Enhanced Capital Allowance (ECA) scheme would be a big help. Letting companies offset 100% of the costs against tax.

“From our experience as installers of renewable energy systems we know many companies want to go green, but planning and taxation are key factors that inhibit such investment. It was a useful opportunity to deliver that message straight to the heart of Westminster.”

Perhaps it was no coincidence that the following day it was announced that planning may be relaxed on the installation of small to medium sized wind turbines, and heat pumps. OK, maybe it was a coincidence!! Still years in this business have made me a sceptic, I'm not holding my breath. I'm still waiting to see how the government will try to wangle out of the commitments they've already made.  

We asked Kevin Samuel, a local independent mortgage adviser, to consider the financial impact of an investment in the new wave of eco technologies.  His findings might pleasantly surprise you. 

Traditionally, one of the barriers to the adoption of green technologies has been the up-front cost of investing in the equipment – a problem that often deterred even those with otherwise impeccable environmental credentials.  The reduction in the cost of the technology, the introduction of the feed-in tariff which guarantees a payment for any energy that your system generates, the availability of grants to help meet the cost of installation and the prediction of low interest rates over the next few years has, however, made the proposition far more attractive. 

Taking a real life case study as an example, after allowing for available grants the installation cost of a small Photovoltaic system was £9,000.  This system is calculated to initially generate £829.93 per year for the homeowner in a combination of savings on electricity otherwise purchased from their electricity provider and payments received for self-generation. 

Assuming a return on savings of 2.5% and an annual increase in electricity prices and generation payments of 5% (which is half of the Government’s own predicted rate of future increase) the system will have paid for itself within 11 years and will generate a surplus of almost £23,000 during the 25-year period that the system will be under warrantee.  If the system lasts only a further 10 years without requiring maintenance (as it will conservatively be expected to do) the net return would be an even healthier £53,600. 

Conversely, a homeowner without any spare cash to invest, but with equity in their property could use their next re-mortgage point as an opportunity to release some equity to invest in eco technology.  Alternatively, they could consider a separate additional loan specifically for this purpose.  The same homeowner raising the £9,000 on a 25 year repayment mortgage at 6% would need to repay £58.67 per month or £704.04 a year leaving an initial annual surplus of £125.89.  Over 25 years that would generate a surplus of £22,000 and again if the system were to function without maintenance for only 10 years past the guarantee period the total surplus would be in excess of £57,000. 

Both scenarios ignore the positive impact on the market value of the property or its improved marketability. Green energy.  No longer just ethically a sound decision, but now financially sound as well. 

Kevin Samuel is Managing Director of Crosby Mortgage Solutions Limited.

The good news is that there are grants available to help towards the cost of your renewable energy installation, and better news still, easy and quick to obtain. HOWEVER, for the installation of solar PV or wind turbines most of these grants will end in March 2010 when 'Feed in Tariffs' come into effect. I'll post a new Blog on this after 30th October when the government is to make an announcement on these. For now though...

Homes 

The main grant programme for domestic installations is the Low Carbon Buildings Programme- Phase 1.   From this programme you can claim 

·        Up to £2,500 towards the cost of solar photovoltaic (PV) systems.

·        Up to £2,500 towards the cost of a wind turbine installation.

·        Up to £900 towards the cost of an Air Source Heat Pump

·        Up to £400 towards the cost of a solar thermal system. 

We can access grants on all of the above technologies. All of our installations have attracted the maximum grant available. For full details of this grant visit www.lowcarbonbuildings.org.uk/how/householders/ 

Another possibility for households in the Northwest is ‘Foundation- A Climate Fund for the Northwest,’ details at http://foundation.climatefund.org.uk/ 

Sometimes, dependant on location, there are small grants available from local charities or local authorities as well.   Check your local authority, and try search engines, or give us the details of your proposed project, and let us do the digging for you!

Businesses

 Grants

Sadly there aren’t any grants for businesses on a national basis, but there are some regional pots of money, and other options. 

For example businesses in Lancashire can claim up to 50% of the installation costs to install renewable energy systems. Through the ‘Lancashire Small Scale Renewables Scheme’ www.lancashire.gov.uk/corporate/lcdl/money/ssrs/index.asp 

The NWDA (North West Development Agency) also have certain pots of grant funding available, for example ‘Finance for Business- Grants for improving your resource efficiency’ (trips off the tongue doesn’t it!)  see www.nwdabusinessfinance.co.uk/improving-your-resource-efficiency 

A good source for searching for Green Grants is the aptly names Green Grants Machine, see www.greengrantsmachine.co.uk 

For farmers and rural businesses, especially those in start up, or looking at expansion, there are monies available from the NWDA again, this time the ‘The Rural Development Program for England (RDPE).’  This could be used to fund wind turbines or other renewable energies and energy efficiency measures.  For further details see http://www.nwda.co.uk/areas-of-work/people--jobs/rural-economy/rdpe.aspx 

Many of these business grants are hard to locate or to get to grips with, feel free to discuss your project with us, and let us do the leg work for you? 

Loans 

The main source of loans for energy efficiency projects is the Carbon Trust interest free loans. Funding up to £200,000 over four years for refurbishment or upgrade projects (not new build).  See www.carbontrust.co.uk/loansExpect to jump through a fair few hoops though! 

Enhanced Capital Allowances Many energy saving products, such as energy efficient air-conditioning, heat pumps, low energy lighting, solar thermal systems (all of which we supply and install) and some other equipment can be 100% offset against your tax bill in year one. See http://www.eca.gov.uk/etl/default.htm or ask for us to send you our ECA summary fact sheet, produced by our nice smiley accountant friends at Alexander Myerson & Co.

Leasing One way to reduce your upfront capital costs is to consider a tax efficient leasing option. Most of our equipment can be leased over two to four years, subject to eligibility, and the title transfers to you once the lease is paid for. Just ask us for details.

Charities, Schools, Community Groups, Not for Profits 

Great news that the Low Carbon Buildings Programme- Phase 2, has recently been extended and had additional monies made available. Not only that but it is now far easier access. We can now plug you straight into this funding, which is for up to 50% of the capital project costs. See http://www.lowcarbonbuildingsphase2.org.uk/  But applications for Solar Photovoltaics and wind turbines must be made by March 2010. 

You can apply for up to £5,000 towards the cost of a feasibility study on renewable energy projects. And up to 50% of the capital costs for your renewable energy project, through part of the Big Lottery funding scheme, ‘Community Sustainable Energy Programme (CSEP)’, another one that trips off the tongue! See www.communitysustainable.org.uk 

There are quite a few options for community and not for profits; another one for the Northwest is ‘Foundation- A Climate Fund for the Northwest,’ details at http://foundation.climatefund.org.uk/ 

Again, it is worth searching around, or giving us details of your project and letting us do some homework for you. For impartial expert advice on any renewable energy or energy efficiency project, from technical questions to grant applications or for a quotation please give us a call.

Meet a little concept called “peak oil,” which — despite its detractors — is daily showing more signs of becoming the new global reality:

• An analysis by The Daily Telegraph (ominously titled, “Britain heading back to the Dark Ages”) concluded that the UK will face blackouts by 2017 due to a 3,000-megawatt-hour shortfall of energy supply. That shortfall will double by 2025 unless more new power plants are brought online quickly.
• Market-watcher Matthew Simmons, a proponent of peak oil, says the world’s crude oil production peaked in 2005. He cites recent data from both the International Energy Agency (IEA) and the US Department of Energy to back up his assertion. In fact, of all the large (more than 1 billion barrels) oil fields identified around the world, many are now decades into production and are now dwindling in output. An IEA assessment of the 800 leading fields, which hold about 75 per cent of the globe’s estimated reserves, finds that production fell by 6.7 per cent last year, nearly twice the 3.7-per cent rate of decline in 2007. (Sources: Foreign Policy, Wikipedia, The Daily Telegraph)
• Just last week, the Norwegian Petroleum Directorate lowered its estimate of recoverable resources from the Barents Sea from 1,030 million cubic metres of oil equivalents to 910 million cubic metres. The organisation also reported that recent years of “record-breaking” exploration activity have resulted in “many, but small, discoveries.”
• Cantarell, Mexico’s largest oil field, has seen a precipitous drop in production over the past two years. From its 2003 peak of 2.1 million barrels per day, its daily output this summer has declined to 590,000 barrels. The US, one of Mexico’s top oil importers, has seen its supplies from the country cut by one-third over the past two years. (Sources: Market Oracle, Wikipedia)
• Even last week’s major news announcement from BP — its discovery of a giant oil field, dubbed Tiber, in the Gulf of Mexico — was followed with numerous caveats. Yes, it could contain up to 3 billion barrels of crude oil (though it’s sobering to note that, at 2007’s global oil consumption rate of 85,897,000 barrels per day, that’s enough for just 34.9 days). But that oil is buried 35,000 feet beneath the ocean (for comparison, Mount Everest is 29,029 feet tall). For all the engineering challenges it presents, the best guess has Tiber producing by 2020 after an investment of billions.

Thanks to Greenbang for the information.

You can already connect your solar photovoltaic (PV) system to the national grid and sell your surplus electricity, but from April 2010 you will get paid for everything you generate.

Solar Photovolataic (PV) panels convert sunlight into electricity and contrary to popular belief work very well in the UK. The panels work in daylight, so while they produce more the sunnier it is, as long as it is daylight they will be working.  The systems are fully automated and require no input from you; you use what you generate first and automatically ‘export’ any surplus. If you are using more than you generate you ‘import’ the amount you need.  Typically a domestic home will export 40% of what you generate.

Between now and March 2010 you can get a grant of £2,500 as long as you use an MCS (Microgeneration Certification Scheme) accredited product and installer. The cost of a domestic system, depending on what you want to generate, or the size of your roof, is typically between £10,000 and £15,000. Which is quite an outlay, but as from April 2010 you will be paid for all the electricity you generate. The panels are guaranteed for 25 years, but will last longer.  It clearly also adds value to your home, the Nationwide suggest as much as 10%.

We are currently installing a system for a customer in Liverpool. His system will cost £11.500. Through the Low Carbon Buildings Programme we will be able to obtain a £2,500 grant for him, reducing his capital costs to £9,500.  His system is predicted to generate 1865 kwh’s (or units) per year, and offset over 1 tonne of CO².  What will this mean based on the new Feed in Tariffs from April?

Income/savings

1865 x 36.5p = £680.73  (The amount he will be paid for generating the electricity)

1119 x 11p  =   £111.90  (The amount he will save by not having to buy that amount of  

                                          electricity as he has generated it himself).

746x 5p       = £37.30p    (The amount he will be paid for his exported electricity)

Total income/saving £829.93 per year. This figure will increase each year as electricity prices increase, as may the amount you are paid for your exported electricity. The main tariff for income is fixed for 25 years though, it will not go down. So during the 25 years, if electricity prices do not change the payback will be £20,748.25. But we all know what is happening to electricity prices. The government work on a basis of 10% increase annually, but this is we think conservative. As prices go up, your savings increase.

The larger the system the more you will be paid and the quicker the payback. This also applies to commercial premises and roofs.

* Figures based on latest government consultation but unlikely to change.