Has the reduction in government subsidies made investment in renewables uneconomic?
The Feed in Tariff (FiT) scheme that was introduced in April 2010 ended in March 2019. However as the cost of technologies has fallen dramatically and the cost of grid supplied electricity has increased, (particularly the non-commodity element) since the FiT was introduced the business case for onsite renewable energy generation will often make complete sense. The trick is to size the system correctly.
The FiT certainly did its job with over 800,000 domestic installations deployed. Subsidies should not be permanent, they were probably set too high in the first place so an investment in renewables, particularly solar was based on maximising the subsidy revenue without enough emphasis on whether the technology delivered generation to meet the demand profile on the site.
The Renewable Heat Incentive (RHI) is still available for domestic and commercial renewable heat technologies such as ground source heat and biomass. It has been announced by Ofgem that this subsidy will end on the 31st March 2021.
I get faster paybacks from investing in other energy saving products
OnGen supports investment in energy efficiency measures.
Potentially an investment in energy efficiency such as LED light bulbs will provide a quicker payment than some renewable technologies, however, payback ignores the savings and cash flows after the payback period has been reached.
If you would like to consider which potential energy efficiency measures could be deployed such as LED lighting and controls contact email@example.com and ask about OnEfficiency our energy efficiency feasibility assessment tool.
We don’t have the budget
OnGen works with a variety of funders and can arrange finance for viable projects thus avoiding the capital outlay.
Some funders will install and maintain a system selling you the energy at a lower rate than you can buy from the grid.
Cheaper electricity and no capital risk.
Should battery storage be considered with renewable energy generation?
The costs of lithium ion batteries is falling all the time and there has never been a better time to consider onsite generation with battery storage, whether that’s with a new deployment or a previously deployed technology such as solar panels.
The business case is more likely to stack up when there is excess generation during periods of the day which can be stored and discharged when grid supplied electricity is most expensive for example during a red zone.
Our clients are not asking us about renewables at the moment
There is a perception that renewables don’t work at the moment. This is a brilliant opportunity to demonstrate quickly and cost effectively whether they do and create real value for your client.
It all sounds really complicated?/ We looked into this before and it seems like too much trouble?
The software has been designed specifically for non-energy experts. If you still feel it’s too complicated or you simply don’t have the time and resource to perform the assessments we provide a managed service using your instance of the software and generating the assessments for you.
The software doesn’t recommend any installer or funder but it can sign post in the right direction if you need help with this.
How can we rely on the commercial assessment?
The financial forecasts have been reviewed and checked by a firm of Chartered Accountants specialising in the renewable energy sector. The assessments are of course only as robust as the assumptions used in the calculations.