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Local Energy Scotland Pre-Registering for the Feed in Tariff.

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Presentation on theme: "Local Energy Scotland Pre-Registering for the Feed in Tariff."— Presentation transcript:

1 Local Energy Scotland Pre-Registering for the Feed in Tariff

2 Introduction The Overall Picture Three stages in more detail Questions
Local Energy Scotland Pre-Registering for the Feed in Tariff Introduction The Overall Picture Three stages in more detail Questions Dan McCallum & Rosie Gillam - Awel Aman Tawe Note on Questions Accepted anytime through the text facility and there will be further opportunity between sections and at the end.

3 Local Energy Scotland Pre-Registering for the Feed in Tariff
Introduction Local Energy Scotland What is pre-registration Why pre-register

4 Local Energy Scotland & CARES
Webinar admin. My name is Andrew Morton - from Local Energy Scotland Joined by Rosie Gillam of Awel Aman Tawe who will support questions & gathered much of the content here (& thanks to Dan McCallum & Rosie for initiating) Please type in questions at any time & we will try and pick up as we go, but we will also pause for questions Raise your hand facility

5 Local Energy Scotland & CARES
Accelerate the uptake of locally owned renewable energy Support community involvement in local energy Support shared ownership projects Maximise the impact from community benefit

6 CARES Support Local Development Officers Specialist support Our Team
Partners Our Team CARES Toolkit & Guides Mentor & Consultant Frameworks Case studies & project reports Good Practice Principles Resources CARES Grants CARES Loans Signposting Not for this presentation but for the slide… Resources include Information on technologies Project planning Managing contractors Financial matters Shared ownership Community benefits Case studies and project models Good practice principles Framework contractors Mentors Funding

7 CARES Support This webinar will be recorded & made available
opportunity-for-communities-to-extend-feed-in-tariff-eligibility/ Further information on pre-registration is also available on this page CARES support for Community Buildings The CARES enablement grant is available to fund: Planning, legal, financial & technical advice Design & procurement of system Any of the other items listed as compatible with claiming FIT Link to Local Energy Scotland web pages

8 What is pre-registration?
Ofgem administer pre-registration Secures the higher feed in tariff irrespective of the Energy Performance Certificate (EPC) rating Applicable to eligible installations up to 50kW on non-domestic buildings, installed by communities Generally applied to building integrated solar photovoltaic (PV) generation Applications from schools are considered differently to those from communities

9 Is pre-registration available?
Quote from Ofgem guidance 2.48 For community applications for pre-registration received on or before 31 March 2019, where the MCS certificate is issued on or after 1 April 2019, the Eligibility Date is the date the application is received by the FIT licensee. Link to the communities and schools guidance Ofgem’s FAQs

10 Why pre-register? Not a binding commitment at this stage, but keeps the potential to secure FiTs open Securing the FiT supports projects by combining additional income with long term certainty The pre-registration process is relatively simple Pre-registering triggers an additional 12 months to install, commission & accredit an installation Pre-registration applications are now time limited & must be submitted by 31st March 2019

11 Why pre-register? Quote form fit closure guidance
2.6 For community energy and school installations applying for pre-registration, Ofgem must receive their application on or before 31 March … Community installations will then have 12 months from their pre-registration application date in which to commission and then apply. Link to fit closure guidance Link to tariff rates

12 Local Energy Scotland Pre-Registering for the Feed in Tariff
2. The Overall Picture Stage Pre-registration Stage Agreements Stage Installation

13 The Overall Picture Stage 1 Stage 2 Stage 3 Pre-Registration
Agreements Installation Commitment - Now Before March 31st 2019 Intermittent during Spring / Summer 2019 Intermittent during Summer / Autumn 2019 Find buildings Informal Agreements Secure EPC Generation scale estimate Pre-register Assess viability Formal Agreements Secure Funds Obtain required consents Installer quotes Select Installer Programme Installation Commission Accredit with FiT Licensee Ongoing Tasks

14 Local Energy Scotland Pre-Registering for the Feed in Tariff
3. Stage 1 Community & building eligibility EPC & estimate of scale of installation Pre-registration application

15 Stage 1 Community Eligibility Community Interest Company (CIC)
Cooperative Society Community Benefit Society Registered Charity Subsidiary company wholly owned by a Charity With no more than 50 employees (full time equivalent) The application requires evidence to confirm eligibility

16 Stage 1 Building Eligibility
Any non-domestic building (or part) that is able to obtain an Energy Performance Certificate (EPC) (Some unheated buildings cannot obtain an EPC. An EPC exemption may substitute in some cases, however this has not been verified here.) Your own criteria (not an Ofgem requirement) Building owner / occupier’s interest in the opportunity & their permission to use the EPC Electricity bill payer’s interest in buying the electricity & their permission to use the MPAN (meter number) A building which is unable to be heated etc can have an EPC exemption issued. A reliable and very experienced EPC assessor has told me that Ofgem accept these for FIT applications. I haven’t had to use one and so I’ve never found it out. Also the EPC doesn’t have to cover the whole building/buildings served by the MPAN. Ie if you had an MPAN serving a leisure centre, lecture hall and canteen and offices you would only need an EPC for one office, all the others are covered.

17 Stage 1 Energy Performance Certificates
Many buildings will already have an EPC All buildings are obliged, on sale or rent, since 2008 Public buildings have been obliged since 2013 The EPC must be valid (less than 10 years old & the same EPC at both pre-registration & accreditation) Find an EPC or Assessor in England & Wales Find an EPC or Assessor in Scotland Worth noting it must still be valid when the MCS cert goes in – ie not expired or superseded due to a new one (ie if building works going on be careful of someone making new EPC). Not sure how strict Ofgem will be.

18 Stage 1 Energy Performance Certificates
Uses a Standard Assessment Procedure to grade building energy efficiency, from A to G Pre-registered buildings can have any rating & still receive the highest applicable FiT tariff

19 Stage 1 Estimating the scale of installation Often defined by the unshaded southerly roof surface Online satellite images may be sufficient (rule of thumb) 7m2 /kW, ideally between 70m2 (10kW) & 350m2 (50kW) Be space generous & avoid close proximity to edges

20 Stage 1 Building Suitability
If a choice is available, or local buildings are being researched, target the best buildings Those with modern large unshaded south facing roofs Those with (relatively) easy access to those roofs Those with high daytime electrical load Those that consume electricity 7 days a week Those that have high summer demand Those that already have an EPC (search by postcode) Target good generation & high on-site demand

21 Stage 1 Pre-Registration Application Do not use Template 1
Some links still go to

22 Stage 1 Pre-Registration Application Available on the Ofgem website
The excel sheet is the correct application form Note that the EPC rating is required, but you may still need to request the higher tariff Worth noting you need to request this in your to Ofgem? They will ask for it but avoids last minute panics if you do know. Can pre-register up to 10 buildings on each application form

23 Stage 2 Assess project in more detail Formal agreements Secure funds
Local Energy Scotland Pre-Registering for the Feed in Tariff Stage 2 Assess project in more detail Formal agreements Secure funds

24 Stage 2 Tasks to cover, once pre-registered Grid connection enquiries Planning consent or confirm permitted development Work (with building) on financial assessment Work (with building) on formal agreements Secure funds (two very simple & short words, but…) Obtain quotes for installation Re-visit financial assessment, with confirmed data

25 Stage 2 Viability Financial viability will depend on many factors.
Disclaimer - this is intended to help Local Energy Scotlandesimate the carbon and financial savings from PV systems. This is an internal resource and should not be used to make investment decisions and we take no responsibilities for its accuracy. MCS accredited PV installers should complete a site visit and make estimates prior to any decision to progress an installation. Variable value Units Year Annual Cumulative Balance -22500 Rated output 25 kWp 1 £2,621.84 -£19,878 On site tariff 11.60 p/kWh 2 £2,665.89 £5,287.74 -£17,212 FiT gen. 4.03 3 £2,710.50 £7,998.24 -£14,502 FiT export 5.24 4 £2,755.68 £10,753.92 -£11,746 use on site 70.00% % 5 £2,801.42 £13,555.33 -£8,945 Inflation 2.50% per year 6 £2,847.72 £16,403.06 -£6,097 KK value 788.94 kWh/kWp 7 £2,894.59 £19,297.65 -£3,202 Maintenance 10% % of income 8 £2,942.02 £22,239.67 -£260 Degradation 0.8% 9 £2,990.02 £25,229.69 £2,730 Output per panel 270 Wp 10 £3,038.57 £28,268.26 £5,768 Installation cost £900 £/kWp 11 £3,087.69 £31,355.95 £8,856 £22,500 £ total 12 £3,137.36 £34,493.31 £11,993 Simple payback 8.1 years 13 £3,187.59 £37,680.89 £15,181 First year gen. 19,724 kWh 14 £3,238.36 £40,919.25 £18,419 Capacity factor 9.00% 15 £3,289.68 £44,208.94 £21,709 Deemed export Y Y/N 16 £3,341.55 £47,550.49 £25,050 Requiring 93 panels 17 £3,393.95 £50,944.43 £28,444 Area 148.8 m2 18 £3,446.88 £54,391.32 £31,891 e.g. 10.4 m by 14.3 m 19 £3,500.34 £57,891.66 £35,392 IRR 11.45% 20 £3,554.32 £61,445.98 £38,946 offset tariff 14.50 before payback simple payback including inflation This PV partnership project will save (using 0.203kg/kWh) (over 20 years) 73,671 kg CO2 56054 kg saved on site & kg to grid For the building occupier (20 years) For the PV owner (20 years) demand offset 276129 kWh (20 years) generation 362912 financial saving £12,801.58 includes inflation financial benefit £38,945.98 over 20 years Viability Financial viability will depend on many factors. These must be assessed at this stage, prior to entering into formal agreements The assessment on the right is to highlight that this is not a “get rich quick” opportunity

26 Stage 2 Shared learning & experience
Supporting template & exemplar agreements Use of site (right to house & access the generation) Power Purchase Agreements (PPA) (agreement to buy the energy generated at an agreed price) Tendering (including bulk procurement to reduce installation costs) Billing processes & tariff reviews Monitoring, maintenance, insurance, etc.

27 Local Energy Scotland Pre-Registering for the Feed in Tariff Stage 3
Select Contractor & Install Accredit with FiT Licensee Ongoing management

28 Stage 3 Installation & FiT accreditation Installers must be MCS accredited MCS certificate is required to accredit for FiTs Fit accreditation is applied for through a FiT Licensee, who will be an Energy Supplier, but this does not have to be the same Supplier as the demand Plan for variable income Income is subject to FiT & billing period time delays Income will vary in value due to changes in on-site demand, season & weather

29 Stage 3 Operation & Maintenance PV is relatively maintenance free, but should be inspected (occasionally) & kept clean (regularly) An annual safety test is required for public buildings Actively monitoring output is beneficial Periodically reviewing tariffs will be required Advise a performance assessment every 3 years Asset, public liability & loss of earning insurance Operation & Maintenance If in public buildings should really be safety tested every year and advise performance assessment every 3 years. Asset and public liability insurance inc loss of earnings advised

30 Further info… www.localenergy.scot 0808 808 2288 info@localenergy.scot
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