Top 10 FiTs Tips

The introduction of the new
Feed in Tariffs (FiTs) has meant a very busy couple of months for me where my focus has been redirected onto small scale turbine development. This is where the opportunities lie and what the FiT system favours. Starting the process of building a wind turbine now on your farm or land could pay serious dividends in a few years' time.   
 
Being at the forefront of wind energy development, I now find myself very excited about what the future holds for wind turbines and have been busy speaking at many conferences in the last couple of months on this subject.

I must have addressed approaching 1,000 individuals from platforms such as the Renewable UK international small wind turbine conference in Glasgow, CLA and Farming Futures conferences for farmers and landowners to the "Tissington" day for Natwest clients. There’s definitely a buzz of enthusiasm about the opportunities available and to date I have over 250 suitability assessments and these are increasing daily.
 
FiTs were announced on the 1 February 2010 and came into effect on all new projects from 1 April 2010.
 
My top ten FiT tips:

1. The best opportunity for FiT payment is in the 15 to 500kW category, which are small to medium sized turbines.  
2. Get cracking on your project - a guaranteed income plus RPI for 20 years is reason in itself to start now.
3. You get paid for generating and using your own electricity. You can also get paid for selling electricity into the grid.
4. Where electricity is sold to the grid, owners will receive an additional export tariff of 3p/kWh plus RPI
5. The price of electricity is estimated to rise by at least 60% in the next 10 years if you are making your own and selling it to the gird you are in a wonderful position.    
6. If you receive RDA grant funding, be careful you might not receive FiTs.
7. FITs could be reviewed after 3 years perhaps to a less favourable tariff for wind.       
8. Only new projects built since July 2009 get the FiT payments.
9. Your FiT payment can be assigned to a third party for example to your bank, the banks like this as it helps with debt financing.
10. Don’t buy second hand turbines, you won’t receive FiTs if you do.

Mark Newton FRICS is an equity partner at Fisher German and is a leading wind specialist.  

Click here to read the Farming Futures factsheet on Wind. You may also find the Renewable UK site useful.

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