Energy: Electricity

House of Lords written question – answered on 19th October 2010.

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Photo of Lord Skelmersdale Lord Skelmersdale Deputy Chairman of Committees

To Ask Her Majesty's Government what public intervention subsidy is given to home generators of electricity by (a) photo voltaic cells, (b) water wheels, and (c) wind generators; and what is the maximum kilowattage allowed to be generated in each case.

Photo of Lord Marland Lord Marland The Parliamentary Under-Secretary of State for Energy and Climate Change

The feed-in tariffs (FITs) scheme provides financial support to incentivise small-scale, low carbon electricity generation, particularly by individuals, householders and others who have not traditionally engaged in the electricity market. The technologies supported by FITs include solar photovoltaic, hydro and wind projects currently up to 5MW.

Under FITs, generators receive both a generation tariff and an export tariff. The generation tariff differs by technology type and scale, and is paid for every kilowatt hour of electricity generated. There is no cap on how much electricity can be generated. The generation tariffs for the above mentioned technologies start at:

41.3p/kWh for solar PV up to and including 4kW in capacity;

19.9p/kWh for micro-hydro up to and including 15kW in capacity; and

34.5p/kWh for micro-wind up to and including 1.5kW in capacity.

A full table of technologies and tariffs available under the scheme can be found at vvww.decc.gov.uk/fits.

The tariffs for year 1 of the FITs (2010-11) were set to provide a 5-8 per cent return on investment (ROI), taking into account all potential benefit streams (generation tariffs, export tariff and bill savings).

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