Renewables Press Article

Renewables Press Article

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  Renewable Energy: Greeninga Cotswold manor When Charles Levinson bought Owdeswell Manor in Gloucestershire two years ago, the 190-acre stud farm was the perfect home for his horse-mad family, but there was something missing. “It was a bit like a factory and we have been working hard to put the soul backinto it,” says Dr Levinson. “We are planting woodland, replacing hedging and stone walling and rearing traditional livestock. We have gone organic and want to create a sustainable, natural and slightly wild place. Part of that sustainability includes using alternative energy sources. “Just as it is nice to eat our own lamb with vegetables out of the kitchen garden, it is nice that we are going to be producing our own power,” he adds. Dr Levinson is no stranger to innovation. Doctorcall, the medical services group he founded in 1988, was the first private visiting doctor service in the UK and the first mass provider of flu vaccinations for office and retail environments. It also introduced new methods of health screening which have since become standard practice. Installing solar photovoltaic (solar PV) panels seemed the obvious entry to the world of renewables, but, despite a glut of information, taking the first step wasn’t straightforward to begin with, according to Dr Levinson. “We were being bombarded with fliers from renewable energy companies who said they would install solar panels for free,” he explains. “But, in return for that, they would keep any subsidy payments from the government for the electricity that we would produce. I thought it would make sense to do it ourselves and keep the payments.” However, with a growing business to run, Dr Levinson decided he needed independent advice to help realise his renewable ambitions. After an initial visit, Benjamin Davies of Knight Frank’s Renewable Energy team was able to recommend a suitable solar PV installation as well as a supplier, Southern Solar. Located on the roof of a barn away from the main house, the 10kW system, which cost £23,000 and covers 70 square metres, will deliver a 20% annual return on investment. This takes into account the cost savings on the family’s standard electricity bill and also the income from the Feed-in Tariff (FIT) that pays almost 40p for every kWh of electricity produced. The FIT is index-linked and will be payable for 25 years. Using Knight Frank to project-manage the scheme proved a good investment following the government’s sudden decision to cut the FIT payments for electricity produced by solar PV (see panel). “The installation was commissioned with a day to spare to qualify for the old tariff,” says Benjamin. “If we had missed the deadline, the annual return would have dropped to around 10%.” Acting on Benjamin’s advice, Dr Levinson is also planning to install a biomass boiler in an outbuilding next to the manor house. This will run on wood pellets and will supply enough heat for central heating and hot water. In addition to making a very significant dent in the Levinson’s £5,000 yearly oil and electric-storage heating bill, the boiler should qualify for the Renewable Heat Incentive (RHI), which is paid for every qualifying unit of heat energy produced by eligible systems. The FIT and RHI payments are clearly part of the attraction at the moment for those installing renewable energy schemes, but there are other longer-term benefits, says Benjamin. “If the price of electricity and heat from traditional sources continue to rise, renewable energy may soon make sense financially even without subsidies. Some people seem to think solar PV is no longer viable following the cuts to the FIT, but that’s definitely not the case as installation costs are falling even faster. “I also think that the environmental standards for commercial buildings and rental properties will become stricter. In the future the incentive to employ renewable energy may be more about avoiding penalties than taking advantage of subsidies,” he adds. Dr Levinson agrees. “It definitely feels like I’m adding value to my property. Not just for myself, but for future generations.” www.doctorcall.co.uk Renewable energy was part of the prescription when Dr Charles Levinson decided to green his traditional Cotswold manor house. The Rural Report finds out more and rounds up the latest news from the sector Words: Andrew Shirley Image: Hugh Nutt Just what the doctor ordered For more information on Solar PV schemes or any other renewable electricity and heating installations please contact: [email protected] or 0117 945 2638 KnightFrank.co.uk/Rural Out of sight. Many rural properties will have a barn or outbuilding where solar PV panels can be discretely located Compact. Biomass boilers can often be accommodated in existing outbuildings KnightFrank.co.uk/Rural THE RURAL REpoRT spRINg 2012 | 0908 | THE RURAL REpoRT spRINg 2012 Low res image Solar PV Feed-in Tariffs reduced The government subsidy for electricity generated from renewable sources known as the Feed-in Tariff (FIT) has been cut for solar pV installations. The new rates (see table below) will apply until 1 July 2012. After that the payments will be reduced further, based on how many new schemes were registered in March and April – the higher the uptake, the greater the cut. It is then proposed that FITs will fall by 5% in October 2012 and 10% every six months after that. The government says the cuts are needed because of the huge number of new solar PV schemes and the sharp drop in panel prices. FIT rates for other renewable electricity technologies, such as wind and hydro, will not be cut until 1 October 2012. Renewable Heat Incentive Premium scheme extended The Department of Energy and Climate Change has extended the Renewable Heat Incentive premium, which was due to finish at the end of April 2012. Homeowners planning to install systems that generate heat from renewable sources will be able to apply for a capital grant to help pay for the cost of qualifying installations (see table below). However, DECC also said that the Renewable Heat Incentive (RHI), which pays people for every unit of heat generated by renewable sources, is not likely to be made available for domestic properties until summer 2013. Commercial installations already qualify for the RHI and it was hoped that homeowners would be able to join the scheme at some point this year. News update Output Old tariff 3 Mar-1 Jul 12 (kW) (p/kWh) (p/kWh) ≤4 (new build) 37.8 21.0 ≤4 (retro fit) 43.3 21.0 >4-10 37.8 16.8 >10-50 32.9 15.2 >50-100 19 12.9 >100-150 19 12.9 >150-250 15 12.9 >250-5,000 8.5 8.5 Stand alone 8.5 8.5 Renewable heat Premium technology payment Ground source heat pump £1,250 Biomass boiler* £950 Air source heat pump* £850 Solar thermal hot water panels £300 * For homes without mains gas heating Knight Frank renewable energy expert Benjamin Davies (left) with Dr Charles Levinson, Biggles and Tippy “We are planting woodland, replacing hedging and stone walling and rearing traditional livestock. We have gone organic and want to create a sustainable, natural and slightly wild place.”