Green energy: obligations and opportunities

As a nation we are bound by certain global and European protocols and legislation which have either worked their way through to the domestic statute book or are in the process of doing so.

These legislative provisions have introduced, or shortly will, a number of mandatory obligations, the main purpose of which is to reduce our collective carbon footprint. There are also various voluntary codes and incentives. The driving factors behind the general push towards green energy range from increasing social responsibility and accountability to improving energy security. There can also be a very good business case for embracing green technology. The installation of green technology can enable the receipt of payments under a relevant incentive scheme (FIT, RHI, ROC) and also improve the valuation of, and the demand for, the property in question. Not to mention the opportunities for manufacturers, consultants and installation businesses in the green energy sector.

Obligations

• Carbon reduction commitment requires organisations to buy annual allowances to cover their emissions from the previous year.
• Green Deal, promoted via the Energy Bill 2010/11, will introduce a charge on energy bills to help both domestic and non-domestic properties to finance energy efficiency improvements.
• Energy Performance Certificates provide information on a building's energy use and CO² emissions, as well as a report on how to reduce energy use and carbon dioxide emissions. Any building built, rented or sold needs an EPC.
• Display Energy Certificates show the energy performance of a building based on actual energy consumption as recorded annually over periods up to the last three years. A DEC is valid for one year and must be updated annually.
• Air conditioning inspections to be carried out on all air-conditioning systems with an effective rated output of more than 12kw, by an energy assessor at least every 5 years.

Opportunities

• Feed-in tariff (FIT) scheme became available from 1st April 2010.  The FIT covers electricity generated from renewable sources and is currently available for small-scale electricity generation using wind, solar photovoltaic (solar PV), hydro and anaerobic digestion technologies.  However, the Government has just announced proposals to halve the current subsidy for solar PV installation from 12 December 2011.  Although consumer groups maintain that householders can still expect a return of about 5%, we await the impact on the industry.
• Renewable Heat Incentive (RHI) is a similar scheme to the FIT scheme but is designed to encourage, and provide incentives for, the take-up of low-carbon heating systems.  The RHI tariff scheme will begin for non-domestic users from July 2011 and, it is expected, for domestic users from October 2012.

More detail on the schemes and regulations is available on our Green Energy pages. For more information or advice on green energy and to find out how our green energy team can help you, please contact Mark Miller on 01926 880736.

October 2011

Published in autumn 2011 edition of NewsBrief