Using Farm Waste to Benefit from Government Incentives

Posted by Clare Burns on 16-Jun-2015 10:21:00

Using waste to generate heat and electricity can attract incentives through two government renewable energy funding regimesUsing_farm_waste_to_benefit_from_government_incentives

 

You’re a farmer

The margins for producing food are low

Input costs are rising and farmgate prices are falling

You’re looking for new income streams

Have you thought about anaerobic digestion?

 

Anaerobic digestion has been about for decades.

In Exeter in 1895 they used the process to fuel street lamps.

Technology has improved.

So have efficiencies.

So have the economics

 

Anaerobic digestion uses your organic farm waste and turns it into something valuable

It turns it into a biogas and a biofertiliser

  • The biogas can be used to generate heat and electricity
  • The biofertiliser can be spread over land, replacing some chemical fertilisers

Got you interested?

 

There’s more!

Generating energy from waste means you can apply for an extra subsidy

In fact, you can apply for two government incentives for renewable energy

 

The Feed-in Tariff is for the electricity you generate from your waste

The payment you get depends on …

… whether it’s used on the farm

… or if you sell it to the grid

 

On Farm

For every kWh of energy you produce you receive a payment 

  • Plants up to 250kW currently receive 10.13p/kWh

  • Plants 250kW - 500kW receive 9.36p/kWhr

  • Plants above 500kW receive 8.68p/kWhr 

note – 2015/16 prices used

 

But be warned

These prices may fall under what’s called ‘degression’

Changes have to be factored into any calculations you make

You can read more here.

 

To the Grid

You can also sell some of your renewable electricity to the grid

  • For this you’ll receive a minimum of 4.85p/kWh
  • But negotiate and you can get up to 6p/kWh

 

But be warned

Connection to the grid isn’t always easy

There are costs involved

Sometimes big ones.

 

But FiTs aren’t the only incentive for anaerobic digestion

There is a chance to get …

Double Subsidy

RHI (renewable heat incentive) and FiTs are two of the government incentives for renewable energy.

 

Generating electricity from biogas also produces heat

Capture the heat and you can use it…

  • … to heat livestock buildings
  • … to heat water
  • … to heat your offices

 

For every kWh of heat you’ll get paid

This is through another government incentives for renewable energy

The non-domestic Renewable Heat Incentive pays…

  • Biogas combustion up to 200kWth - 7.62p/kWh

  • Biogas combustion from 200-600kWth – 5.99p/kWh

  • Biogas combustion over 600kWth - 2.24p/kWh

You can find more here:

https://www.ofgem.gov.uk/environmental-programmes/non-domestic-renewable-heat-incentive-rhi/tariffs-apply-non-domestic-rhi-great-britain

 

Anaerobic digestion has been around for decades.

Thanks to government incentives for renewable energy it could provide your farm with security for decades to come.

Why wait? Start benefiting now!

 

Takeaways:

  • Anaerobic digestion can turn your organic farm waste into something valuable, so use it.

  • You can use it to generate heat and electricity.

  • Make sure you know what government incentives are available for renewable energy.

  • There are costs involved (sometimes big ones) but they can pay off.

  • Renewable energy could provide your farm with security for decades to come.

 

To get the best benefits for your business - get the free eGuide now: The Essential Farmers Guide to the Financial Benefits of Waste Energy

The Essential Farmers' Guide to the Financial Benefits of Waste Energy

Topics: Anaerobic Digestion / Biogas, Farming

Clare Burns

Clare Burns is a technical marketer with many years’ experience in the energy arena, as well as in fashion, telecoms and education. Fluent in 3 languages, Clare has worked across Europe. She currently works for ENER-G, a UK manufacturer of carbon reducing, energy efficient products exporting its cogeneration technology across the globe.