Council’s bid to make money from renewable energy installations

Rochdale Council is planning on more renewable energy installations across the borough in a bid to make money and help the environment.

The Council is hoping to make the most of the ‘Feed-in-Tariff’ – a Government initiative to help increase the level of renewable energy in the UK towards the target of 15 per cent of total energy from renewables by 2020.

The introduction of the tariff has changed the financial incentive to install renewable energy systems and well designed schemes can deliver financial returns of 8 – 10 per cent.

The Council aims to develop its own capacity to produce, install and manage renewable energy systems eligible for the FiT payments.

To start with the Council will approach the FiT through a ‘roof landlord’ perspective until they can develop a more comprehensive package.

The roof landlord scheme is suited for social housing provided by the council.

The scheme will see the council rent out roof spaces and have a PV (Photovoltaic) system installed by a solar company. The installation cost will be nil.

The user of the building gets the electricity generated by the PV panels for free.

The solar company will then get the FiT payments. The rate of payment is fixed for 25 years.

After a period of years (which varies amongst companies) most solar companies will then transfer ownership to the building owner, in this case the Council.

The business case which is currently available would see the private sector solar company have ownership for 7 years and the Council would have ownership for the remaining 18 years.

Preparatory works to embark on a borough-wide, comprehensive programme of renewable energy installations will commence “immediately,” according to a Council report.

The report adds: “The potential financial returns from FiT projects are undeniable, as shown by the rapid move by financial investors into this market. It is also clear that the best way for a local authority to maximise the financial benefit is to retain as much control and ownership as possible.

“The annual reduction in FiT rates makes a pressing case for early action.

“A strong lead by the Council and other public sector partners will also stimulate growth in the private sector green economy.”

The plans have both positive and negative financial implications for the Council.

The negative implications relate to the start up costs of recruiting and training relevant personnel, procuring equipment and installing and managing systems.

The positive side is that income would start straight away through reduced energy bills and FiT payments

The Leader of Rochdale Council Councillor Colin Lambert said the council needs to “get in fast” he described it as a “model to bring money in” and said it could potentially bring in “millions.”

Councillor Lambert said the benefits to the environment are also “great” and it is something the Council should “pursue.”

The Council’s Sustainability Team is keen to hear from any companies who are already involved in this type of scheme.