Renewables Levy Exemption Certificates
Another way of saving money with renewable technology for businesses is to obtain a Renewables Levy Exemption Certificate (Renewables LEC).
Renewables LECs bypass the need to pay the Climate Change Levy (CCL), which is a tax on energy products (electricity, natural gas, LPG, coal) used in businesses. Businesses which use these energy sources currently pay the CCL at a rate of £5.24/MWh used.
If you use the energy produced by a renewable system (provided that the system capacity is between 50kW and 5MW) in your business, you may be eligible for an LEC, saving you the £5.24/MWh CCL. It is also possible to sell the certificates back to energy suppliers.
Charities and non-business organisations do not need to pay the Climate Change Levy.
More information on LECs is available on the Ofgem website.
Selling Shares for Community Hydroelectricity
Where community schemes are starting to benefit by hydro projects is when local people can buy shares which then yield an individual profit in addition to the profits made from the FiT that is fed back into the community.