A world leading energy & climate change consultancy

About the AEA Microgeneration Index

Contributors

Colin McNaught

Colin McNaught
Colin has 20 years of experience in the energy field covering economic, technical and policy studies across a wide range of technologies and techniques. His recent work includes assessments of carbon saving potential for a number of businesses and local authorities, identifying microgeneration and energy efficiency opportunities. This work includes technical and economic analysis of the opportunities and the development of delivery mechanisms to take the potential to reality. Colin has a detailed understanding of how the FIT and Renewable Heat Initiative transform the economics of microgeneration.

To discuss the AEA Microgeneration Index and the issues it raises, or to request a tailor-made report for your organisation, please contact Colin at:

Colin McNaught
Knowledge Leader - Energy
t: +44 (0) 840 190 6191
m: +44 (0) 7968 707 649
e: colin.mcnaught@aeat.co.uk

Other contributors to the AEA Microgeneration Index include:

  • Heather Haydock
    Heather Haydock
    Director, Energy & Climate Change
  • Erika Rankin
    Erika Rankin
    Specialist Consultant, Energy & Climate Change
  • Ben Sang
    Ben Sang
    Specialist Consultant, Energy & Climate Change

The AEA Microgeneration Index provides analysis of the UK microgeneration sector's performance over time and establishes how well Government incentives are working.

The UK Feed-in Tariff (FIT) scheme was introduced in April 2010. It aims to incentivise the use of small-scale, low carbon electricity generation (under 5 MWe). The FIT scheme, together with the forthcoming Renewable Heat Incentive, has a major role to play in helping the UK make a successful transition to a low carbon economy.

The low carbon technologies supported by the FIT scheme include:

  • Solar photovoltaics (PV).
  • Wind.
  • Hydro.
  • Anaerobic digestion (AD).
  • Domestic-scale micro combined heat and power (CHP) (up to and including 2 kWe - pilot for first 30,000 schemes).

Under the scheme, installations receive an attractive 'cash back' payment for every kWh of electricity generated. The tariff levels depend on the type of technology and the size of the system. The income that can be gained has increased very significantly, in the case of small-scale PV by 600%. The design of the FIT scheme has set tariffs at a level that should provide a return on investment of between 5% and 8%.

Before 1 October 2010, it was possible for existing generators to transfer into the scheme. While generators under 50 kWe were transferred to the FIT scheme, existing installations between 50 kWe and 5 MWe (installed after 15 July 2009) could choose to remain under the existing Renewable Obligation (RO) arrangement.

It is envisaged that low carbon technologies, and the incentives that aim to drive their uptake, will play an increasingly important role in helping the UK to meet its carbon targets. AEA has helped produce the UK renewable energy statistics for DECC and its predecessors for many years. The AEA Microgeneration Index complements this by tracking the progress being made against the expectations for small-scale renewable energy generation.

 

The AEA Microgeneration Index Methods and Assumptions

Data

The AEA Microgeneration Index uses Ofgem data on schemes that have applied for FIT accreditation. While these installations have been commissioned their place on the FIT register will not necessarily have been confirmed by Ofgem.

This data is published every three months and AEA is providing analysis so that this data is easily accessible.

The data is provided to Ofgem by applicants and they are responsible for its accuracy.

Ofgem updates and revises the data from time to time. Hence data extracted at a later date may not precisely match previous data.

Data is not guaranteed to be accurate, as errors may be picked up before schemes are confirmed on the FIT register.

Some schemes that have applied for the FIT may not have registration confirmed. This will affect some schemes that applied close to the cut off date for the publication of the latest AEA Microgeneration Index statistics; earlier applications will now be confirmed on the FIT register.

Location Information

Several schemes do not have location information in the Ofgem data. Therefore, the region and local authority are unknown. AEA searches out additional data to identify the location of these schemes. This has a focus on identifying the largest projects, which have the greatest impact on the regional and local data. This process reduces the number designated as 'Unknown', with those remaining predominantly small-scale solar PV schemes.

To date there are some local authorities where no applications have been made to the FIT. There may be microgeneration systems in these areas which were not eligible to register under the FIT. The charts for these local authorities will show no capacity.

For further information about FITs, please visit Ofgem's website www.ofgem.gov.uk/fits.