UK feed-in tariffs: buy your hectare of woodland now
Today's UK government announcement on incentives for small scale renewables has three unexpected features: a) The payments for renewable heat, such as the home burning of wood to replace gas or rooftop solar hot water, are much higher than predicted.
b) The figures for wind have risen since the autumn consultation document. This means that well-located wind turbines of the 6-15kW size are likely to produce returns above 13% per year.
c) The figures for solar PV have been increased slightly, but do not offer returns as good as wind. Importantly, the government has also signalled that it will allow PV installed at any time over the next 28 months to capture the full feed-in tariff. Previously, the tariff declined for installations made after March 2011.
An earlier article on this topic which looks in more detail on the incentives to take up the new 'feed-in tariffs' is here.
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After decades of foot-dragging, the UK construction industry has begun to see the importance of good insulation and higher environmental performance. Large housebuilders are beginning voluntarily to build their major developments to a better standard than required by building regulations.
New UK housing has insulation standards that do not come close to matching the best northern European levels. Individual homeowners and ethical investors have built single 'eco-homes' but a small new development in Bladon, Oxfordshire is among the first to be speculatively built by a mainstream housebuilder.
The new houses are not 'zero-carbon' and do not use the Passiv Haus technologies pioneered for low-emissions housing in Germany. But they are a substantial improvement on most mass-produced homes. Will they make the builder more money? No, says the company, but the experience it has gained will enable it to build eco-homes at a more competitive price in the future. These nine houses each cost over £40,000 more than their draughty Persimmon equivalents. The builder expects the price premium to be slightly less.