[holding answer 11 June 2009]: The Department supports the development of the manufacturing of renewable energy generation in the UK. This includes creating a supportive policy framework for the deployment of renewable energy in the UK (including long-term support for deployed renewable energy generation), as well as targeted support for the development of next-generation and lower cost wind energy technology. An example is the recently-launched £10 million scheme to support offshore wind deployment under the Environmental Transformation Fund, which aims to stimulate and encourage the development and demonstration of offshore wind technologies, and components for larger turbines, to enable their deployment within 2020 time scales.
However the Department does not hold information on the level of either wind or renewable manufacturing broken down by local authority area.
Payback periods are generally difficult to estimate accurately, because of the huge amount of variation that can come from system costs, system capacity and energy produced, fuel displaced, size of the house and energy prices from different suppliers. Payback periods will also depend on changes in energy prices in the future and as we cannot predict future trends in energy prices, it is very difficult to give an accurate payback period.
The following table details average costs of systems for each technology type and the annual cost savings on fuel bills relative to each technology type where specific assumptions have been made:
Technology Average total cost ex VAT (£) for LCBP funded installations (to end May 2009) Possible cost savings from annual fuel bill (as published on EST website) Air source heat pump 7,400 £20 to £700 savings on fuel bills per year.1 Ground source heat pump 10,800 £160 to £840 savings on fuel bills per year.2 Solar PV 13,000 Approximately £190 saving on electricity bill per year.3 Solar thermal hot water 4,100 Approx £50 to £85 saving on water heating bill per year.4 Wood fuelled boiler 8,900 £170 to £410 per year if fuel displaced is solid fuel or electricity. 5 1 Savings are approximate and vary depending on the fuel displaced. Assumptions are that the air source heat pump provides 100 per cent. of space heating and up to 50 per cent. of hot water, with the additional 50 per cent. provided by electric heater, in a detached property. 2 Savings are approximate and vary depending on the fuel displaced. Assumptions are that the ground source heat pump is installed in a detached property which provides 100 per cent. of space heating and up to 50 per cent. of domestic hot water, the additional 50 per cent. is met through an electric heater. 3 Assumes a 2kWp system with 50 per cent. on site consumption with excess exported to the grid on a typical export tariff (A 2kWp system could provide over 40 per cent. of a household’s yearly electricity needs). 4 Savings are approximate and vary depending on the fuel displaced. Savings are based on the hot water heating requirements of a three-bed semi-detached home with a 3.5 m squared panel. 5 If you replace a gas or solid fuel system with a wood burning system you may end up paying more for your fuel
Support for householders and communities has been provided through the low carbon buildings programme £131 million grant scheme which has helped with up front costs. The Government are committed to bringing forward feed in tariffs and the renewable heat incentive in April 2010 and April 2011 respectively. These incentives will also play a part in reducing pay back period.