Church Solar PV Scheme

Transcription

1 Diocese of Truro Church Solar PV Scheme Discovering God s Kingdom, Growing the Church

2 Option 1 100% Purchase Solar PV This option is aimed at any parish that has the capital to invest in the whole system itself and would like to take on the full responsibility and risk in return for the potential income and profit. The systems are expected to take between 8 to 9 years in most cases to pay off in full before the church can start to make a profit. If a parish can afford to buy the system outright, then this is always the best option to adopt, because it will bring in an income from the start as well as reducing electricity costs. This could easily amount to thousands of pounds over the life of the system. The price of the system itself will be dependent on the size of the system, the complexity of the project, i.e. any new wiring needed and the type of panels, i.e. Standard panels or Solar Slates which fix in like a slate roof. The risk with this option is obviously greater and break-even is only expected after 8 to 9 years but the rewards are also the greatest out of the options available. Insurance cover and performance monitoring will be needed, but the potential benefits should outweigh these risks for the parish looking for longer term gains. Feed-In-Tariff Church Ownership of Equipment Church Export Rate Church

3 Option 2 Free Solar PV This is the option that 30 Church Schools across the Diocese have opted for, in which photovoltaic (PV) panels are installed without cost to the school. The Feed-In-Tariff and Export Rate goes to the installer and the school has the unlimited use of the electricity produced. The system is installed free of charge and performance managed for the 25 year period as well as having a number of guarantees that ensure the Church against any underperforming components. You do not need to change electricity supplier or make any special arrangements as any negotiations with your current supplier will be done for you. Not every property will be suitable for installation of PV panels because of shading from trees or the roof not being structurally strong enough for any additional weight. Some older properties may also require an upgrade of their electrical system which may have to be carried out before any panels can be fitted. This approach is often used when financial resources are already allocated or the Church can t afford to wait the 8 to 9 years for the payback of the scheme, but want the benefits of the free electricity produced (with reduction in electricity bills) and reduced vulnerability to electricity price increases in the future. The PV panels will be installed and leased for the 25-year period of the FIT, at the end of which period they are given to the church for free to continue to use most panels manufactured today can be expected to last well beyond 25 years, say up to 50 years. It is hoped through competitive tendering and the number of Churches interested in the scheme That a percentage of the Feed-In-Tariff will also go to the Diocese of Truro as well as the PV Installer. The exact percentage given over is yet to be decided but this income received could then be used for a multitude of projects from helping Churches that weren t fortunate enough to have PV Panels installed, funding repairs to a property, funding further environmental projects or helping contribute to the Common Fund. Feed-In-Tariff % PV Installer / % Diocese of Truro Ownership of Equipment PV Installer Export Rate PV Installer

4 Option 3 Part-Buy Solar PV The general set-up of this option is similar to the free solar option; but if the parish would like some of the returns of the FIT and export rate, then they can invest up to 50% of the cost of the system, with any investment expected to provide more than double the return over the duration of the project. As the 50% FIT for the installer still provides enough return for the company, they are still able to offer performance maintenance without charge as with Option 1 and guarantees provided as standard. This option is the middle-of-the-road route and offers good benefits, as well as avoiding many of the risks of the project. Parishes will be able to buy into the Part-Buy solar option through a denomination of shares, the number of which will be 100 to 1,000 depending on the volume of interest. There will be no minimum amount as the Solar Installer will pay any remainder. It should be a very safe and secure investment for the 25-year period that the FIT is in operation. For example, a 10% investment in the cost of the system would return a 10% FIT equivalent and this short offer could be opened up to the congregation and other parties. The rate of return should be higher than expected from any savings account or ISA and it would be guaranteed to make money on the parish s investment every day as it simply relies on there being light each day to keep it working. Feed-In-Tariff Church or other Parties up to 50% shares / PV Installer 50% or more / % Diocese of Truro Ownership of Equipment up to 50% Church / from 50% PV Installer Export Rate Church or Party up to 50% / from 50% Truro Diocese

5 Option 4 Lease Finance Solar PV This option is for Churches that are interested in owning the solar PV equipment outright rather then leasing the roof space in exchange for free electricity but don t have100% of the upfront costs or interested in going down the Part-Buy Route. The lease option works by paying a small deposit upfront dependent on the size of the system and leasing the equipment from the PV installer for the next 15 years. The lease repayments would be paid in full by the Feed-In-Tariff from the PV Panels for the first 15 years and any further returns from the panels would be free for the Church to receive. After the 15 year period the Church will own the system outright and will continue to receive the FIT as a revenue stream for the next 10 years of the government scheme. Churches could potentially also use the panels for a further 25 years after the initial 15 year period as the panels are still actively producing electricity to use which will continue to lower electricity costs. The key benefit of this option compared to others is the opportunity to spread the cost of ownership of the system over a number of years. Effectively not having to touch any specific reserves to purchase it as it will generate its own income and pay for itself in the long run. The lease finance option also allows the Church to gain a small income and reduce its electricity costs over the first 15 years while at the same time paying off the lease finance of the system. After the initial15 years the solar equipment lease will have now been paid off and the Church will be able to keep the income from the FIT to itself to support the Church in any areas it wishes. The only areas which Churches must be aware of is any performance maintenance will have to be carried out by the Church itself once the lease period of 15 years is over, this is simply checking that the panels are producing enough electricity for their condition and have not dropped in efficiency. This can be checked by comparing monthly electricity bills of previous months and making sure the costs have not gone up significantly. The panels would still in most cases be covered by a manufacturers guarantee if any dips in efficiency are found. Feed-In-Tariff up to 100% Church, % Diocese of Truro Ownership of Equipment PV Installer for 15 Yrs / Church for every year after. (10 years of the FIT) Export Rate 100% Church Export Tariff s are set at an additional 3p per kw unit and all FIT income is TAX FREE.

6 Frequently Asked Questions How long will the solar panels take to install? Approximately 2 to 4 days, depending on the size of the system. How long is the lead time between signing the agreements and installation? Once a faculty and planning permission have been granted PV systems would take 2-3 weeks to install from signing the agreements. It is important to note that no work may commence until a faculty has been granted. How much space does a standard 4KW system cover? It depends on the type of panels used, but typically between 25 to 30 square metres. How long do solar panel systems last? The solar panels themselves last between 35 to 50 years. This longevity is expected to improve as technology advances, but performance will always reduce slightly, typically by about 1% a year over time. The only other part of the system that would need replacing over the 25 period will be the inverter which is the black-box which converts the electricity produced by the panels from DC to AC which may need replacing every 15 to 20 years. How much does a typical 4KW system cost? The 4KW systems we will be using range from 13,000 to 20,000 depending on the installer and type of Panels and the purchasing scheme. Our building is in a Conservation Area/World Heritage Site/Area of Outstanding Natural Beauty/Site of Specific Scientific interest. Can I still install Solar Panels? Yes, Cornwall Planning Officers have confirmed that solar panels in these areas are covered under Permitted Development but must be sensitive to the area and comply with certain regulations. This property is Listed. Will I require permission to install solar panels Yes, you will require Listed Building Consent for any Listed property not covered under ecclesiastical law, such as churches. What permission will I need to install solar panels on a church? You will be required to submit a request for a recommendation for a faculty through the DAC at the Diocese of Truro. Forms may be requested from the DAC Secretary, Revd Julie Millar. It is a good idea to indicate your interest in installing solar panels on your church roof to the DAC at an early stage of your project planning. How long will a Faculty for a church take? Faculties can take anywhere between 2 to 6 months from initial application depending on what issues may need to be resolved for your particular parish proposals. Full plans are required before the DAC can formally consider the proposals. The DAC meets monthly except in August. Are solar slates an option we could have? These may be an option in some circumstances but the DAC has reservations about the limited life of such tiles compared to conventional slate roof tiles. English Heritage opposes their use on historic buildings. Where can I find out more about the FIT and Church of England attitudes towards PV solar on Churches?

7 More information can be found on the Exeter Diocesan Website under the Shrinking the Footprint initiative and the national society website It is important to be aware that any electricity used outside of daylight hours will result in the property using grid electricity and, therefore, still being charged for using this, so properties will be unlikely to escape all electricity price increases in the future.