So this is what would currently apply....
Table 4: Combined Heat and Power (CHP) Description Period in which Tariff Date falls Tariff (p/kWh) Combined Heat and Power with total installed electrical capacity of 2kW or less )tariff only available for 30,000 units) 1 April 2014 to 31 March 2015 13.24
So current return for 3rd party, given that those paying for the gas are likely to use it to maximum efficiency, and not flat out, may even turn unit down as low as possible at night.
13.24p/kwh X 1.6kw/h X 24 X 365 = 1855.72 pounds/annum. Cost of unit in pounds? 22,000? gives a return of
8.4%. Cost of money? (ie interest rate) best about 3% savings 4% lending.
Using the 3%, = 660 pound interest on your money, so 3rd party is only really getting 1195 pound/annum to pay off the unit. It takes just under 20 years at that rate.
Even if you use 0% interest the 1855 pounds returned per unit takes 11.85 years to pay off, on a machine with a 10 year life, maybe15 with major maintenance a couple of times.
Who pays for major maintenance, ie new stacks? Agreement seems to indicate end users, how happy will they be if fine print states stacks are 5,000 pound? What is the cost of stack replacement?
Scheme can change and close anytime, the above numbers do not add up to a commercial arrangement. No commercial arrangement would use 0% interest, and even using 0% for cost of money, not really profitable.
Are the units going to cost a lot less than 22,000 pounds? If so how much.
If I could see the real numbers on any of these schemes coming out at a realistic working number, I'd be in buying shares in a flash. I've always loved the technology, but hated the way CFU have gone about it. Years ago, the then MD B. Dow hinted the units would cost around $8k, but be connected to mains electricity and gas (and water). That's the point when I knew it was not going to work, then a few months later the number $40,000 came out (I enquired about buying one), then spread the price to those following on the net. Absolutely doomed from that point. They got the marketing/price etc all wrong.
These numbers still don't add up, unless relying on govt subsidy on top of another subsidy to get close. The technology will live on, but not in CFU's hands the way they are heading. They have a 1/4 of cash left. This will not save them.
CFU Price at posting:
0.7¢ Sentiment: Sell Disclosure: Not Held