Incentives
The Feed-in tariff (“FIT”) scheme became available from 1st April 2010. It covers electricity generated from renewable sources and is currently available for small-scale electricity generation (that is, an installation with the capacity to generate up to a maximum of 5 MW of electricity) using one of the following renewable energy technologies:
The 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 began for non-domestic users from July 2011 and, it is expected, for domestic users from October 2012.
The Renewables Obligation (“RO”) is a scheme under which green certificates, known as Renewables Obligation Certificates (“ROCs”), are issued to accredited generators for eligible renewable electricity generated and supplied within the UK.
Where a supplier is unable to present sufficient ROCs to Ofgem to meet its obligations, it must pay an equivalent amount into a buy-out fund. The proceeds of the buy-out fund are then distributed back to suppliers by Ofgem in proportion to how many ROCs they have presented over the relevant 12 month period.
Contracts and funding arrangements
In order to take advantage of the above incentives participants will need to have the relevant technologies installed and the appropriate funding agreements in place.
We can provide advice and assistance in relation to the following:
contracts for the purchase, installation and maintenance of renewable energy equipment;
contracts with energy providers in relation to FIT payments; and
contracts with Ofgem in relation to RHI payments;
advice in relation to funding arrangements and schemes to fund the installation and acquisition of renewable energy equipment.
Property issues
We can provide owners, occupiers, registered providers and/or contractors with advice and assistance in relation to the following:
Green Deal
The “Green Deal” is a financial mechanism to be launched mid-2012 enabling the provision of fixed improvements to the energy efficiency of households and non-domestic properties, funded by a charge on energy bills that avoids the need for consumers to pay upfront costs.
We can advise owners and occupiers in relation to their rights and obligations under the Green Deal. Landlords should already be looking ahead to the rolling-out of the Green Deal and new leases should be granted with suitable terms included to make compliance with the Green Deal as easy as possible.
