On-site & Micro News

Wednesday 24 December 2008

Proven Energy says that its wind turbines can have a payback time of five years

Small-scale wind turbine manufacturer Proven Energy has said it wants the government to set a 20p per unit feed-in tariff rate for wind when they are introduced in the UK, as the company looks to the new scheme to take some of the financial burden off its customers.

• UPDATE 12-01-09: Since the time of writing, Proven Energy has contacted New Energy Focus and says it is in fact advocating a 40p per unit feed-in tariff rate.

Speaking to New Energy Focus yesterday, Jamie Glover, UK channel manager for Proven, said: "Savings are entirely wind dependent but if they are on a good site, wind turbines pay themselves off in about five years on average, and will continue to make money after that. But feed-in tariffs will decrease the payback time proportionally, and will certainly drive demand."

"Payback time will depend on what rate is decided when feed-in tariffs are introduced. In Europe there are many different rates but I would hope for a 20p rate for the UK - the payback time for people with small-wind turbines would be greatly reduced."

The new tariffs, laid out in the Energy Act 2008 (see this New Energy Focus story) and expected to be implemented in spring 2010, set a fixed rate at which small-scale renewable electricity producers can sell power to the National Grid.

But Mr Glover added that small scale manufacturers like Proven are unlikely to see a take up until news of the feed-in tariffs spreads to the public at large.

"Widespread knowledge of the new feed-in tariffs is not available at the moment so we have not experienced a greater interest because of it. But I am sure that clarification of what the tariffs will be, as well as time, will ensure that the public are more aware of the savings and benefits of generating your own electricity."

Growth

Despite the difficult economic climate, the East Kilbride-based firm also said that the rising cost of electricity and fuel and the increasing technical awareness of the public helped it grow by 50% last year.

Mr Glover said: "Renewables are in a recession bubble at the moment as fuel costs rise and the public starts to become aware of the benefits of renewable energy. Wind is a good investment in an environment where there aren't many good investments left."

The company has this month installed a 15kW wind turbine at Meadowfield Primary School in Leeds, which is set to benefit from the introduction of feed-in tariffs.

At present the public sector is eligible for 50% grants from Phase 2 of the government's Low Carbon Buildings Programme which provides funding for small-scale renewables projects on public sector buildings.

Proven said this has driven investment in renewables for the public sector, but the scheme ends next year and the firm added that they expect to see a drop in orders of this kind.