Feed In Tariff

 
The UK Government recently announced the reduction of the Feed In Tariff for installations between 4KW and 250KW  by 50%. A large cry went out from the industry, mainly the supply and installation companies saying that it was wrong and that they are doomed as a result. The reality is that this a fledgling industry that is a couple of years old and like all technologies the capital cost is falling so it is only reasonable that the return falls in line. 
Don't forget how this is funded, it is by all of us in our electricity bills, residential and commercial so it is not something for nothing, it is something paid by the many to the few.
A number of sources suggest that a £15,000 investment under the existing tariff before it is cut will enjoy a tax free income and after 15 years the installation will be paid for along with a profit of £3,500. Under the new feed in tariff and with the cost of installation falling this could still make sense but of course there will not be room for profiteering. Not a bad thing.
When talking about a commercial buildings then Photovoltaics make less sense. As a business it is unlikely that the FD will want to make an investment that takes 15 years to recover. With the commercial lighting load normally accounting for 50% of electricity used in an office then it makes far more sense to reduce the energy used rather than generate more to subsidise an inefficient building. By fitting good lighting controls that switch and dim it is relatively easy to obtain a payback far quicker than with Photovoltaics. It is not unusual to have a payback in less than three years
Using our simple but effective lighting controls the opportunity exists for any qualified electrician to help their clients reduce energy and in turn CO2 emissions. Another win/win scenario.
 
Reduce before Generating