Small scale onsite energy generation
Small-scale onsite low carbon and renewable energy technologies – also known as microgeneration – <45kWs heat and <50kWs for electricity, offer ways of producing energy from renewable, low carbon and carbon-neutral sources. They mostly harness solar energy such as wind, photovoltaics, solar thermal, biomass, hydro and heat pumps. Some heat pumps harness geothermal heat from deeper underground sources.
In this section of the site you can find out more about the different kinds of microgeneration, how we’re supporting them and how you can get involved.
Some key facts about microgeneration:
- There are a growing number of microgeneration installations in the UK – generating heat and/or electricity on site, cutting out distribution losses, for electricity
- Heat technologies include solar thermal water heating, heat pumps (ground source heat pumps, water source heat pumps and air source heat pumps), and biomass (wood fuelled stoves and boilers).
- Electricity technologies include micro and small wind turbines, solar photovoltaics (solar PV) and micro-hydroelectric schemes.
- Micro-CHP (micro combined heat and power) generates heat and electricity.
There is still grant support for heat technologies through the £131m Low Carbon Buildings Programme (LCBP). There is also support through CERT (Carbon Emissions Reductions Target), and now through feed-in tariffs for solar PV, hydro and wind. It has been proposed that there will be support for heat technologies through the Renewable Heat Incentive fon which a consultation recently closed.
- Formal decisions following the consultation on the Renewable Heat Incentive have not yet been taken. See DECC webpage on Closed Consulations
- Reduced VAT: small-scale onsite low carbon and renewable energy technologies pay 5 percent VAT (but this does not apply to DIY installations). Biomass boilers are covered by this.
- The Microgeneration Certification Scheme (MCS) is a UKAS accredited certification scheme third party certification scheme for installers and products, offering consumers OFT level protection. MCS, or an equivalent mark for solar thermal products is already mandatory for access to LCBP grants. It is linked to feed-in tariffs. Referencing European and international standards where they exist, MCS integrates a robust consumer code of practice.
Average installation costs and savings
Generating heat (potential eligibility for the renewable heat incentive from 2011)
- Solar thermal (renewable) – £3000-£5000 to install. It can provide about a third of overall annual hot water needs, reducing domestic water heating costs by between £55 and £95 a year. It is still eligible for LCBP grants and permitted planning. Certificated solar thermal installations are listed in the recent Renewable Heat Incentive consultation as eligible for tariffs from 2011, though a decision on RHI has not yet been taken.
- Ground Source Heat Pumps (low carbon) – £7,000-£13,000 to install. Running such a system may cost around £540 a year. It provides approximately 50 percent of hot water and all space heating. It is eligible for LCBP grants and permitted planning.Certificated heat pumps are listed in the recent Renewable Heat Incentive consultation as eligible for tariffs from 2011, though a decision on RHI has not yet been taken.
- Air Source Heat Pumps (low carbon) – £5,000-£10,000 to install. Running a well designed and sized ASHP costs (for space heating) around £440 a year. It can save up to six tonnes of carbon and £870 a year, if replacing an electric heating system. It is still eligible for LCBP grants, but not yet eligible for permitted planning (due to some low noise from the fan).Certificated air source heat pumps are listed in the recent Renewable Heat Incentive consultation as eligible for tariffs from 2011, though a decision on RHI has not yet been taken.
- Biomass (carbon neutral) – £3,000 for a standalone stove. An auto-feed boiler for an average home costs around £9,000, including installation. A biomass boiler can save around £470 a year on heating bills, and is still eligible for LCBP grants and permitted planning. Certificated and eligible biomass installations are listed in the recent Renewable Heat Incentive consultation as eligible for tariffs from 2011, though a decision on RHI has not yet been taken.
Generating electricity (eligible for highest tariff under the Renewables Obligation and eligible for feed-in tariffs from April 2010)
- Micro and small wind turbines (renewable) – roof mounted microwind systems start at about £1,500 to install and larger mast mounted systems cost £11,000 - £19,000. Not enough data yet exists on financial savings. Not yet eligible for permitted planning (due to noise issues). Certificated wind turbines are eligible for feed-in tariffs.
- Solar PV (renewable) – an average system costs £8,000-£20,000 to install, depending on its size and grid connection. It can save up to £250 a year for 2.5 kWp system, providing 50 percent of a household's yearly electricity needs. Eligible for permitted planning. Certificated solar PV is eligible for feed-in tariffs.
- Micro-hydro (renewable) – depending on location, a 5kW scheme (suitable for an average home) costs £20,000-£25,000 to install, and offers substantial savings due to the technology generating energy night and day. It is eligible for feed-in tariffs but not eligible for permitted planning.
- Micro-CHP (low carbon) – this is still under trial, but may eventually become competitive with domestic gas condensing boilers (around £3,000). Substantial savings are likely on electricity bills.
- The Energy Saving Trust’s interactive online diagnostic tool offers advice on which onsite energy technologies to consider.
For further information on generating your own energy, and on these technologies, visit http://www.energysavingtrust.org.uk/Generate-your-own-energy or call the Energy Saving Trust’s “Act on Co2” advice line: Tel 0800 512 012