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Property: Land owners told act now to make most of high tariff for wind turbines

The Sentinel|October 3, 2013
United Kingdom (UK)Taxes & Subsidies

Land owners thinking of applying to put up a wind turbine are being urged to act quickly by an estate agency's renewables experts to take advantage of higher tariff payments before a likely change to the terms next year. Applications for Preliminary Accreditation submitted before December 31, 2013, will lock landowners into receiving the current higher feed-in tariff payment for 12 months while the turbine is installed and commissioned.


Land owners thinking of applying to put up a wind turbine are being urged to act quickly by an estate agency's renewables experts to take advantage of higher tariff payments before a likely change to the terms next year.

Applications for Preliminary Accreditation submitted before December 31, 2013, will lock landowners into receiving the current higher feed-in tariff payment for 12 months while the turbine is installed and commissioned.

But from next April there will almost certainly be a 20 per cent reduction in feed-in tariffs for small and medium sized wind turbines.

Mark Newton, partner and head of renewable energy at Fisher German which has 15 offices across England including Stafford, says landowners should act now because …

... more [truncated due to possible copyright]

Land owners thinking of applying to put up a wind turbine are being urged to act quickly by an estate agency's renewables experts to take advantage of higher tariff payments before a likely change to the terms next year.

Applications for Preliminary Accreditation submitted before December 31, 2013, will lock landowners into receiving the current higher feed-in tariff payment for 12 months while the turbine is installed and commissioned.

But from next April there will almost certainly be a 20 per cent reduction in feed-in tariffs for small and medium sized wind turbines.

Mark Newton, partner and head of renewable energy at Fisher German which has 15 offices across England including Stafford, says landowners should act now because there is expected to be a big rush to build wind turbines before March 31 if the project has not received Preliminary Accreditation.

Mark says: "The moral of all renewable projects has been that it is imperative to get them built as soon as possible in order to lock in to the higher feed-in tariff rates. The longer you wait, the greater the chance of the feed-in tariff rates being reduced.

"Many landowners are trying to gain pre-accreditation before December 31 this year to guarantee receiving the existing higher feed-in tariff rates for the following 12 months, which for a 100-500kw project is 18.04p/kwh. But to achieve this landowners need to have obtained planning permission and have a grid connection agreement in place.

"For large wind turbine projects there can often be lengthy delays in getting the grid connection, securing the finance and ordering the turbine so time is of the essence."

Mark says that if the 20 per cent degression comes into effect from April 1 it is likely that wind turbine projects on lower wind speed sites will not be as attractive, reducing payback from an average of seven years to ten.

He adds: "We would hope that if the feed-in tariff rates do come down, that there will be a reduction in the price of wind turbines to ensure the UK market for wind is still viable but this is not guaranteed.

"Historically as feed-in tariff payments have gone down this has been partially offset in the last three years by increases in the electricity price and we expect it will keep increasing above inflation over the next few years.

"Looking ahead to next year, if deployment in the first six months of 2014 is exceptional then further degression rates could be applied from October 1, 2014. As things currently stand we would urge landowners to take financial advantage of the current higher feed-in tariff payments before degression reduces the rates."


Source:http://www.thisisstaffordshir…

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