Beware of pitfalls if taking advantage of Feed-in Tariffs
NEW Feed-in Tariff (FIT) rates, which took effect from April 1, mean the installation of a small scale wind project can make an attractive investment for a farming business.
But energy consultant Sarah Wells urges caution.
“The FIT announcement is really good news and means that installing a wind turbine can now give you a simple return of around 15 per cent and photovoltaic systems can return approximately 8-10 per cent,” said Miss Wells who works with Herefordshire-based 7Y Services.
She says the proper process must be followed if the project is to benefit from the new rates:
- A proper site visit at an early stage to assess suitability is essential
- Data capture needs to take place over a number of months using an appropriate wind monitoring device
- In-depth analysis of data needs to be undertaken
- Planning permission must be sought and advice in this area is key to the success of the project
“Purchasing the right turbine is also critical. Although the new rates will entice more people down the renewable energy road, it is still an immature
market and there are a number of differing opinions on how to set about the whole process. It is still an expensive exercise and getting it wrong will cost you dearly,” she said.
Miss Wells also stresses that purchasing a wind turbine or renewable equipment must be sourced from an accredited micro-generation certification scheme (MCS) product list and must be proven under the same scheme. She also says in order to claim the new FIT, the installer and the turbine must be accredited through MCS.
“We are well on the road to supplying advice and working with farmers and rural businesses to take them through each step of this process,” she concludes.
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