May 8, 2012

Solar Industry Fights Back

Filed under: Energy News — Tags: , , — Newsroom @ 11:27 am

The recent reduction to the Feed-in Tariff (FiT) payments has caused a considerable slow-down in the number of customers wanting to install photovoltaic solar panels.  The government cut the FiT incentives by fifty per cent on 1st April 2012, so that installations with a capacity of 4kW or less now only receive 21p instead of the previous figure of 43p paid to customers for electricity exported to the national grid.

The Department of Energy and Climate Change (DECC) show on their website that a total of 9,026 installations were completed in the week ending 1st April as homeowners wanted to ensure that they met the deadline for higher payments.  The following week when the new tariff was imposed the number of installations slumped to 820.

The Solar Trade Association (STA) are encouraging its members to be positive about the benefits of installing solar panels, and to make sure that businesses and homeowners realise that they will still get a good return on their investment.  In the last year the cost of photovoltaic panels has reduced considerably.

The problem for both business and domestic customers relates to the tariffs, and the current uncertainty of whether these are likely to be reduced again.  The managing director of Freewatt Renewable Energy, Julian Patrick has been urging the British Photovoltaic Association and the Solar Trade Association to provide clear information regarding the current tariffs.  He said “I felt they needed to take responsibility for helping the industry.  They put out a lot of negative messages about the effect of the feed-in tariff being reduced, but so far we haven’t had any positive messages since it has been cut.”

Leonie Greene, speaking for the Solar Trade Association confirmed that a letter had been drafted for installers to send to local media, giving the positive message that “solar still pays.”  She also confirmed that weekly figures have started to increase by about sixty per cent, which may suggest that the market is picking up.  DECC figures for week ending 22nd April have been revised to show that there were 1,346 installations, which is 56% higher than the original prediction.  There really hasn’t been sufficient time, to show whether this is a permanent upturn.

The government is being urged to delay plans to introduce further cuts to the FiT.  They have three alternative proposals regarding the cutting of tariffs again in July, which depend on the installations during March and April.  With these being low, there is the possibility that reductions to the FiT could be smaller than anticipated.

There are an increasing number of businesses asking for advice on the installation for larger systems, which may indicate that the real uncertainty is with the domestic sector.  Alexander Creed a partner at the energy and resources team at Strutt and Parker, property specialist agents commented that those businesses which are on a good site, and have the latest technology realise that they can still get 7-8% return on income.  He said “It still makes a lot of sense for businesses that need to address issues around energy use and sourcing, as well as their green credentials.”

April 26, 2012

Solar Industry Continues to Struggle

Filed under: Energy News — Tags: , — Newsroom @ 12:27 pm

A survey which was conducted during the early part of April (2012) has revealed that a potential twenty five per cent of employees involved in UK solar businesses have lost their jobs during the past nine months. The Cut Don’t Kill Campaign has only just announced the findings of the survey which involved 190 of UK solar businesses.   The companies surveyed included major and local installers.  Since July 2011 there has been an estimated loss of 6,000 jobs.  This figure was based on the previously suggested figure of 24,000 employees in the solar industry.

From the total companies surveyed more than seventy per cent have said that they lost money when the government suddenly announced that they were going to cut the Feed-in-Tariff (FiT) with very little advance warning in December 2011.  The total financial losses were more than £66m.  A legal battle ensued, with the eventual result being that the cuts were delayed until March 2012.  Although there were increased installations during November and December 2011 the government proposals lead to a huge reduction in sales.  During the past few weeks installations have fluctuated wildly owing to further cuts to the tariffs at the beginning of April.

The results further revealed that business was “very slow” at the time of the survey and respondents admitted that they were either “worried” or “very worried” as to the future of their company.  Another disturbing comment was that over forty per cent of those businesses surveyed expect to make redundancies over the next few months.

There may be further cuts to incentives which are due in July and October this year.  The government is currently consulting on these proposals, but the vast majority of solar businesses surveyed are dismayed with these plans and want the government to reconsider the level of cuts to the tariffs.

A spokesperson for the Cut Don’t Kill campaign said “If the government is serious about seizing the momentum and boosting renewable energy jobs it has a very funny way of showing it.  After the local policy shambles of the last six months it is now vital that the government’s actions need to match their soothing words.  The Department for Energy and Climate Change needs to think again and abandon the next round of swingeing feed-in-tariff cuts expected in July.”

The Department of Energy and Climate Change (DECC) has confirmed that a date for the response to the consultation hasn’t yet been set, but anticipate that it will probably be released next month.

There is also another consultation still open which relates to feed-in-tariffs for different renewable energy technologies including wind energy.

November 2, 2011

Only You Can Decide

Filed under: Solar PV — Tags: , , , — Newsroom @ 10:41 am

Over the past few weeks the government’s green deal has been mentioned many times, but now it has been confirmed that the FiT (Feed in Tariff) payments are going to be reduced.  The new proposals which are currently out at the consultation stage suggest the following amendments to the scheme.

The present rate of 43.3p kWh (kilowatt hour) will continue to be paid to customers who already have solar panels installed.  Customers who have solar panels installed and accredited before 12th December 2011 will also receive the full payment of 43.3p on a permanent basis.  However, those customers who choose to have solar photovoltaic panels installed, but after the cut-off date of 12th December 2011 will receive the current rate until April 2012 and then the rate will reduce to 21p. These figures apply to all installations under 4kW.  Larger installations of up to 250 kW will also have their tariffs reduced.

The reason for the change in figures is partly as a result of the popularity of the solar panels and the FiT.   The high level of interest and subsequent number of installations has increased dramatically and there now is a requirement to balance the books and also to ensure that the scheme has completely secure financial foundations.

During September of this year there were almost 16,000 installations of photovoltaic panels which is nearly double the June 2011 figure.  From April 2012 there will be a minimum energy efficiency condition for every property which wants to benefit from the FiT payments.

The cost of solar panels installations has reduced considerably over the past few months according to government figures.  In June 2011 the average price was £13,000 whereas at the end of October it was £9,000.  This is obviously excellent news for those homeowners who are purchasing the new technology from their own savings.  However, the reduction in the cost of the panels should also benefit those looking to finance the deal as the monthly repayment costs, which must be lower than the amount of energy which will be saved every month, will also reduce thus leaving larger cash balances for the customer.

The reduction in the FiT payments has been expected, although the proposed figure has only just been given.  Those homeowners who can finance the cost of the installation from savings will possibly decide that, if they are going to go down the route of solar panels, it is wise to do so before 12th December 2011.  This will ensure that they will receive the highest rate of FiT.  This payment for selling excess energy produced back to the national grid will remain constant for at least twenty five years, which is the minimum life expectancy of photovoltaic solar panels.

It really is a situation where as the old phrase says “you pays your money and takes your choice”.

October 31, 2011

Is The UK Solar Energy Boom All Over?

Filed under: Solar PV — Tags: , , — admin @ 11:15 am
Band (kW) Current generation tariff (p/kWh Proposed generation tariff (p/kWh)
≤4kW (new build) 37.8 21.0
≤4kW (retrofit) 43.3 21.0
>4-10kW 37.8 16.8
>10-50kW 32.9 15.2
>50-100kW 19 12.9
>100-150kW 19 12.9
>150-250kW 15 12.9
>250kW-5MW 8.5 8.5*
stand alone 8.5 8.5*

News that the coalition government plan to cut the feed in tariff by between 51-55 percent has not been taken well by the fledgling UK renewable sector. The fact that these changes may take effect in December 2011 and not April 2012 has really taken many by surprise.
We are now in the consultation period until the 23rd of December 2011 but most seem to think that these changes will go ahead and this will start the death throes of the UK solar industry.
Personally I’m not sure, panel and inverter costs have dropped massively in the last year. Some believe that panel prices will continue to drop this thus making the process viable again.

October 14, 2011

Ready, Steady…We’re On the Way!

Filed under: Renewable Energy — Tags: , , , — Newsroom @ 12:45 pm

Further to my comments regarding the increased opportunities for work within the alternative technology market there is a report, just available, which states that over the last eighteen months the numbers of workers in the solar industry has leapt from 3,000 to 25,000.  These numbers are set to increase further and by the end of this financial year may be as high as 32,000.

The launch of the government’s Feed in Tariff (FiT) in April 2010 provided the momentum for the renewable energy generation within the UK.  The FiT guarantees an inflation-linked income for twenty five years for on-site installations of renewable electricity which are less than five megawatts.

The number of workers employed in the solar industry may even be much higher than estimated as they only account for the domestic market.  When account is taken for the businesses who are also purchasing installations then the number will increase by a huge percentage.  There are currently 4,000 solar companies registered with REAL (Renewable Energy Association).

The numbers quoted above are the people who are involved in the installation of solar panels they but don’t account for ancillary staff levels.  In addition to the registered solar companies there are also 60 more companies involved in the solar manufacturing supply industry and a further six companies with solar manufacturing and assembly plants.

There are currently 81,000 homes in the UK which have already had solar panel installed.  There is a capacity issue as installations are running ahead of the FiT budget.  This is a situation which needs to be managed as quickly as possible.

As the industry is increasing rapidly, the cost of the solar installations is reducing.  That obviously is a bonus for everyone.

The energy market as a whole is in the middle of tremendous change.  It is still essential for everyone to do their best to reduce the amount of energy being used, in the workplace as well as the residential market.  Independent energy brokers are needed to give advice on the most appropriate method for individual companies.  This isn’t a situation whereby every business is the same as every other.  A broker has the experience and expertise to explain to the customer which is the best way ahead.  The same broker can then put in place all the relevant pieces of the jigsaw.  They will arrange for any installation which is required, so that the business owner is able to relinquish everything to do with it.

These brokers are an essential part of making the UK a greener place.  Many business owners don’t really want to be bothered in trying to make the arrangements themselves.  They have enough to do with keeping their business afloat, so when the expertise is available for them, just let them get on with the job!

We are at the start of a really interesting period in which we are looking at the new technology and the way that it benefits us.  Local councils throughout the UK are sending out literature explaining about the help which they can offer us.  Let us hope that everything is soon ready for the boom, which will surely involve us all.