Landlord in line to benefit from higher FIT rate

Tuesday 7th February 2012

A Manchester landlord that signed terms at the lower Feed-in Tariff (FIT) rate is in line to receive benefit of the 43.3p price for 700 PV systems.

Renewable energy specialist Strategic Energy fitted 400 systems for St Vincent's Housing Association before the government's now-deemed unlawful 12 December deadline and also agreed terms for 300 more that are currently being installed.

It means the 3,000 home landlord will retrospectively receive rent on 700 roofs should the FIT revert to the higher rate until 3 March.

Strategic Energy Director, Martin Davidson, said: "St Vincent's Housing Association forged ahead with their PV programme by taking advantage of our pure equity FIT model that is viable at the 21p rate.

"Their primary reason was to reduce fuel poverty among tenants, lower CO₂ emissions and sustain local jobs; however following the High Court ruling they will receive the rent-a-roof model if the FIT returns to the 43.3p rate.

"Even if it stays at 21p they still get free PV, free electricity for tenants that will lower bills by up to £250-a-year, help maintain jobs and reduce their carbon footprint by 700 tonnes per year.

"We are in advanced talks with several other landlords who have considered our model and are keen to capitalise on our ability to start on-site quickly.

"Our association with law firms Cobbetts, Trowers & Hamlins, Addleshaw Goddard, Croftons and Squire Sanders means all the legal documents are drawn up and we cover the legal costs. We also have the workforce, stock and materials ready to use.

"The framework is compliant with the Council of Mortgage Lenders and also overcomes problems landlords have faced trying to obtain lenders' consent with approval granted by Barclays, HBOS and Dexia."

Strategic Energy has two financial backers; one an institutional investor, the other is specialist clean technology company, Hazel Capital.

Its pure equity model means none of the returns from the FIT need to be used to pay the cost of the debt.

Chief Executive at St Vincent's Housing Association, Peter Smith, said: "It is vital that social housing landlords take a lead in helping households to save energy and reduce fuel costs. We will be using any extra FIT income to invest in further physical measures."

Posted by 0 for St. Vincent's Housing Association Ltd.