Council drives forward solar photovoltaic panel installations to generate income

Shropshire Council’s Cabinet approved a plan this week which could earn the council substantial income in the next 25 years through generating electricity from sunlight.

Councillors approved the £2.5 million investment in up to 30 solar photovoltaic (PV) installations, each of which would produce 3,200 to 39,600 kilowatt hours of electricity each year, and generate annual income for the council under the ‘feed-in tariff’ (FIT) scheme.  Feed-in tariffs are payments to ordinary energy users for the renewable electricity they generate from an energy supplier.

For the council this will also achieve a reduction in its carbon emissions footprint, further saving on its ‘carbon tax’ liability under the CRC Energy Efficiency scheme, a Government initiative aimed at improving energy efficiency and cutting emissions in large public and private sector organisations.  If all of the proposed schemes gain planning consent and Distribution Network Operators approval, they could cumulatively save 500 tonnes CO2 annually.

The Government had proposed dropping the Feed-in Tariff (FIT) payment by 50%, ie from 43.3 pence per kilowatt hour to 21 pence per kilowatt hour for 4 kilowatt power systems, with effect from 12 December 2011. That proposal has been ruled unlawful by the courts, but it is still expected to be introduced in the near future when the scheme is reviewed again. 

Cabinet members approved plans, as installations qualifying for the FIT need to be in place by March 2012 to benefit from the higher level payments for the next 25 years. 

Councillor Cecilia Motley, Shropshire Council’s Cabinet member responsible for carbon reduction and sustainability, said: 

“We have a brief window of opportunity to benefit from the FIT scheme and we need to take action now. 

“The UK has a target that, by 2020, 15% of our total energy demand should come from renewable sources and all sectors of the economy are expected to contribute to this.  By investing in renewable energy generation, on an invest-to-save basis, we can help this target, but also generate a substantial revenue stream for the council over the next 20 to 25 years. 

“Making use of solar PV will bring environmental, economic and social benefits in the form of a reduced carbon footprint for the council, local generation of electricity, keeping money in the local economy, revenue generation for the council, and generating jobs for the local economy.” 

What are feed-in tariffs?

If you install an electricity-generating renewable technology like solar photovoltaic panels or a wind turbine, the Government’s Feed-In Tariff scheme means you can get money for the electricity you generate from your energy supplier.

You will be paid for the renewable electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid.  In addition, you will also save money on your electricity bill, because you’ll be using your own electricity.

The following technologies qualify for the scheme:

• solar electricity (PV) (roof mounted or stand alone)
• wind turbines (building mounted or free standing)
• hydroelectricity
• anaerobic digesters
• micro combined heat and power (CHP).   

What is the CRC Energy Efficiency Scheme?

The Department of Energy and Climate Change developed the CRC (Carbon Reduction Commitment) to help deliver the UK’s pledge to reduce greenhouse gas emissions by at least 80% from 1990 levels by 2050.

It should also help to ensure security of energy supply in the UK.  Analysis suggests the CRC could reduce CO2 emissions by up to 11.6m tonnes per year by 2020.