· FITs provide a secured income over 20-25 years of electricity generation.
· A secured export rate of 3p/kWh over 25 years. The rest of the rate will change over the years.
· Offset grid supplied electricity (OFGEM forecasts 40% increase in cost over next decade (average cost to be over 20p/kWh in 2020).
· A typical homeowner can expect to achieve an average IRR of 7-9%. Higher levels are achievable when combined with grants or for particularly efficient systems/locations
What are the stages of a Feed In Tariff project?
In order to develop a successful FIT project the following project development cycle needs to be followed.
The development of such a project entails the design and implementation of renewable energy systems. Hence, such systems need to be planned carefully and implemented accordingly in order to be qualified for the FIT scheme. The design phase of such projects is the most important since it will determine its performance. The phases of a FIT project are:
- Pre-Feasibility Study Phase.
- Feasibility Study Phase.
- Project Development phase.
- Construction Phase.
- Operation-FIT implementation.
How important is the Pre-feasibility and Feasibility phase for the successful development of a Renewable Energy Feed In Tariff System?
The pre-feasibility and feasibility phases are the phases where the viability of such a project is determined. These are the stages which involves the higher risk, since most of the project variables are unknown. A well planned Pre-feasibility and feasibility phase should include and investigate the following elements.
- Site Selection for generation of electricity from Renewable sources.
- Site Investigation: The proposed site is investigated in order to determine the amount of renewable sources available and the suitability of the site to accommodate them.
- Analysis of environmental and site constraints and investigation of possible ways to mitigate them.
- Low Zero Carbon/Renewable technology Feasibility Study. The feasibility study includes:
1) Energy Yield Analysis.
2)Renewable Technology selection
3)Economic Analysis: Cost & Revenue assessment, ROIs etc.
- Conceptual Design
These two initial stages of the project development are vital for the successful implementation of the project. It is certain, that a well defined and analyzed project at feasibility stage, will guarantee to the potential owner the benefits of FITs.
If you would like to know more about implementation of Feed In Tariffs and Renewable Energy Technology Systems, feel free to contact our Low Zero Carbon consultants on T:08450091625
