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What are Feed-in Tariffs?

Feed-in Tariffs (FIT’s) are cash payments from an electrical supplier paid to anyone who owns a renewable energy generating system.

As of April 1 2010 your supplier is mandated to pay 29.3p for every kilowatt hour (kWh) for 25 years, index rated, for ALL the renewable energy your system produces.

Is 29.3 p/kWh a Fair Amount?

In short, yes. Not only does the government project you’ll earn back the capital cost of investment in 8 to10 years but your Rate of Return (ROR) will be over 10%.

Are there any other forms of income from my solar array?

Yes. Any excess energy can be exported to the grid at 3p/kWh or sold on the open market via a Power Purchase Agreement (PPA).

In addition to the generous FIT payment and the export tariff, owners can use the energy they produce to offset their current electricity usage, thus greatly reducing their electricity bill.

What do you mean by offset?

We mean you can use the energy you’ve already been paid to generate. In other words, you can stop paying your utility company for your electricity (at an average of 15p/kWh) and start using the electricity you are producing, even while you’re being paid 29.3p/kWh to produce it! It’s not double-dipping. It’s legal.

How many times do I get paid for the solar I produce, again?

Three times
1st – Your income from the FIT.
2nd – Your income from every kWh you export.
3rd – Your income in the form of savings on your own utility payments.

Are there other export opportunities?

Yes. Not only are you guaranteed the 3p/kWh by exporting your surplus energy back to the grid, but also there is a rapidly growing market for green energy in the U.K. Your extra energy may already be worth over 3p in the open market and will only increase in value in the coming years.

What size solar system do I need to build to qualify?

Anything over 100kW and up to 5MW will guarantee you the 29.3p tariff.

How big is that?

1MW of solar requires a minimum of 5 acres of land. So if you’re going to start solar farming you need 5-25 acres. Even with a solar installation sheep can still graze.

What will it cost to build a solar system?

Currently, prices are quoted at £3.50 to £4.50 per Watt, fully installed. 1MW would cost £3½ to £4 million, fully installed. GSEC has consistently managed to negotiate significant price reductions.

What income will 1 MW produce?

Between £350,000 and £500,000 per annum, depending on location and type of system installed.

The chart above shows the ROR and 25-year cumulative totals on a 1MW solar investment.

STAND-ALONE SYSTEM is one where the owner is not offsetting the business’s electricity.

NON STAND-ALONE SYSTEM includes the financial benefit of offsetting.

25 YEAR TOTAL: Annual amounts from both FIT and offset income will increase due to inflation and the rising cost of energy.

What's my first step?

Talk to a solar energy expert.

What should I know about GSEC?

Our American company, GOODWIN SELF ECO CONSULTING,LLC., has managed the financing and installation of over 5 MW large-scale agri-business solar projects in California this past year. We have worked with major American farms, rice and nut facilities, a unified school district as well as the largest fruit-drying facility in the world. Last year we brought in financing and project managed the largest private solar PV installation in Northern California, a 1.2 MW system at the DePue Warehouse in Maxwell.

What sets GSEC apart?

GSEC has established relationships with international financing companies and understands that the key to success is knowing how to finance solar projects across a variety of markets.

In addition, because we understand the relationship of latitude and climate to solar efficiencies, we are dedicated not just to ensuring you have the best array for your specific site, but also one that is engineered to be the most cost-efficient.

Because of our strategic relationships with makers of the finest single-axis and dual-axis trackers, which enhance production and maximize tariff income, our company will take the lead in producing the highest output from solar arrays at the most competitive cost.

What would GSEC do for me?

We are now working with landowners, businesses and investors both to manage the financing, installation and operation of 100kW to 5 MW solar systems that benefit from these FIT’s, and to successfully generate and distribute profitable energy in the rapidly growing green energy market.

How would we start?

Our first action would be to assess your property to see if you have an appropriate site for solar. Then we would find the financial plan that best suits your needs:

• We can project manage a solar installation which is fully financed by the landowner.
• We can bring in a percentage of financing to landowners who want to make a partial investment.
• We can bring investors to provide a generous upfront payment to lease the land of farmers or businesses which have appropriate sites for a solar system.

Once the financing is in place, what's next?

Our company has strong relationships with the top panel makers, inverter manufacturers and monitoring companies as well as with outstanding solar integrators. We manage the entire installation by tendering RFP’s, sourcing the best materials, vendors and installers, vetting all bids, negotiating all contracts and long term guarantees and project managing the solar integration. GSEC also handles all government and utility FIT mandates to ensure interconnection and accreditation.

We take the burden of investing in solar off your shoulders.

Added bonuses to consider

• Should you decide to build an enhanced solar array (with single or dual axis trackers) and be able to build it in an ideal location for solar (such as the South Coast of England) you will be able to produce up to 40% more power and the income return on your investment will be substantially better.
  
• The 29.3p/kWh tariff level is allocated at the time the system is installed, then “locked” over the life of the contract - 25 years for solar PV. And remember, this generation tariff is linked to the Retail Price index (RPI) and will alter with inflation. The export tariff rate is on an annual contract with your supplier. The 3p rate is also index rated and expected to rise considerably over the 25 year lifetime of the solar installation.
• FIT income from domestic installations will NOT be taxable income.
  
• Solar arrays will NOT be subject to Inheritance tax.

The Future of Solar

• In addition to the immediate gold-standard investment of solar, the need for clean energy will only grow. If the U.K. is to meet EU targets, it will need to generate up to 40% of its electricity from renewable sources by 2020.
• Significant renewable energy capacity will be required by 2016 for all new legally mandated, zero-carbon commercial and industrial buildings.
• More and more businesses will be looking to buy green energy as part of their company's sustainable profile.
• The Government is currently working on a scenario whereby in 2020, 2% of all electricity will be generated from small-scale (up to 5MW) renewables. This scenario will require 1 million solar PV installations.
• The FITs have been established by the government, but the money that pays for them comes from the energy supply companies. They pass these costs on to the customer. So those homes and businesses which do not install renewables will pay for those which do. The choice is yours.

For more information on Feed-In Tariffs and GSEC, contact:

Nick Goodwin Self
T +44 (0)7913-057-124
U.S.A. +1 310-488-2305
nick@goodwin-self.com

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