Wind power in UK: Feed in tariff rates published

BWEA, the UK’s leading renewable energy trade association, hailed today’s publication of feed-in tariff payment rates as a further step in the ‘green energy revolution’ changing the way electricity is generated and used in Britain. The new green incentives will stimulate the growth of the UK small wind energy manufacturing industry, the only microgeneration technology in which the UK leads the world.

The Association calculates that the feed in tariff could pay up to 10,000 per annum to an owner of an 11 kW small wind turbine in a location with good wind speeds. The range of tariff levels is such that it encourages all levels of investment, from householders and farmers to small and medium sized businesses. Wind energy is set to get from 4.5 pence to 34.5 pence per kilowatt hour, making wind turbines an attractive proposition for everyone with a good location.

Maria McCaffery, BWEA Chief Executive, said: "The feed-in tariff has encouraged substantial renewable energy deployment across Europe and we are certain that it will have the same effect in Britain. In time, it will significantly increase the proportion of electricity generated by all small renewable energy devices, while fostering self reliance and clearly establishing the link between generation and consumption of electricity."

In two examples, the Association has highlighted that an 11 kW device with an installation cost of around 44,000 at site with a wind speed of around 5 meters per second could yield a total income of 10,026 per annum; while a 6kW device costing in the region of 22,000 under the same parameters could return 3420 per annum. These examples are typical of the expected 5-10 year payback for well-located small wind systems.

Alex Murley, BWEA Head of Small Systems, said: "Today’s announcement on feed in tariffs is a historic day for UK citizens, the UK energy sector, and anyone interested in reducing their energy bills.

The Department of Energy and Climate Change (DECC) has unveiled a tremendous policy agenda that will stimulate UK small scale wind manufacturing, create thousands of UK jobs, and transform national attitudes towards energy generation and use.

To expedite this green energy bonanza we now need the introduction of Permitted Development Orders, to ensure that installing your own wind turbine is a routine and streamlined process." 

* BWEA hails introduction of financial incentives for small scale renewables
* 1 kilowatt hour of wind energy to get up to 34.5 pence
* Case studies show householders will get significant cash payments for green energy
 * UK is the world’s second biggest small wind power market, equating to 25% of global demand;
* UK manufacturers currently hold an 82% revenue share of the UK market;
* Over 500 UK based jobs created in 2008;
* The UK micro and small wind industry now provides 1,880 UK based jobs;
* UK SWS installed capacity now exceeds 20MW, with 7.24 MW installed in 2008 alone;
* Over 10,000 small wind systems deployed in the UK since 2005;
* Export revenue for UK manufacturers doubles between 2007 and 2008;
* Over 10,000 small wind system exported by UK manufacturers since 2005;
* UK manufacturers now export 50% of output to over 100 countries;

Quotes from UK small wind system manufacturers:

Ampair Ltd (Bracknell, UK)
"Ampair considers this to be an opportunity for British consumers and British manufacturing industry to work together to create lasting long term value."
– David Sharman (Managing Director, Ampair)

Proven Energy Ltd (East Kilbride, UK)
"The implementation of feed-in tariffs will make a remarkable difference to the adoption of renewable energy in the UK and shows the important role small scale renewables will play in achieving a significant reduction in CO2 emissions."
– Chris Simpson (Chairman, Proven Energy)

Vertical Wind Energy Ltd (Northumbria, UK)
"Feed In Tariffs (FITs) are to be welcomed as they are exactly the sort of stimulus the small wind industry needs, if we are to ensure the UK economy is a centre of excellence for small wind systems and micro-generation as a whole.

FITs and permitted developments (when/if introduced) will be a double shot in the arm for the micro wind industry in the UK and remove the current barriers to growth the industry faces in the UK and mean we can really move the UK economy to a low carbon economy with all the jobs and skills that that will bring."
– Tony Gordon (CEO, Vertical Wind Energy Ltd)

Gaia Wind Ltd (Glasgow, UK)
"The Feed In Tariff is not just a new regulation but a framework onto which a new market will develop for agricultural and small commercial renewable energy products. It allows customers to invest in financially sensible and long lasting renewable energy products as well as allowing new companies to build sustainable businesses that deliver benefits for the economy which also increases the UK’s energy independency and of course improves the environment.

The clever bit of the FIT is that it promotes those products that perform well; the more clean energy a product produces, the stronger the incentive!"
– Johnnie Andringa (Managing Director, Gaia Wind)