March 27, 2012

Solar Power – Bring Us Sunshine…

The Government’s final attempt to cut the FiT was defeated last Friday, 23rd March (2012) when the Supreme Court refused to allow their appeal.  This related to a problem created by the government when they attempted to change the date by which solar installations were able to receive the full 43.3p kW subsidy.  The government wanted to bring the date forward to 12th December 2011 as being the cut-off date for receiving the full FiT payment.   They planned to reduce the payment to 21p from that date, rather than the previously agreed date of 3rd March 2012.

This resulted in a fiasco which has caused a major hiatus for many solar installation companies.  Smaller firms were badly affected when the government first announced the change in dates.   For many the waiting game proved to be too difficult, as customers who were anticipating the full FiT payment of 43.3p decided not to proceed when they were told that the subsidy would be reduced.

The Way Ahead

Greg Barker, the Energy and Climate Change minister has now stated that much of the “red tape was being removed from those who wanted to become accredited installers, including the requirements to have a surety bond in place prior to being authorised; to hold warranties for the 25 year of the plan when they were longer than standard industry warranties, e.g. for boilers; and the requirement that installers pay for an Independent Conciliation Service”.

Mr Barker also tried to allay concerns that implementation of the Green Deal would be delayed, stating that a “managed” roll-out would proceed.  In other words the minister isn’t anticipating that the whole scheme will be ready on the due date.  He continued by stating that the government will respond to the Green Deal consultation in April and that further legislation will be in place by the summer recess.

There will also be a new Green Deal Ombudsman appointed who will be able to handle complaints.

Visits to Properties with Green Technology Installed

During this last weekend business and residential customers who had already installed green equipment or upgrades, allowed visitors into their properties so that it was possible to see various installations.  These included, at one end simple draught proofing and insulation, to other premises with woodchip fired boilers or solar water heating systems.

The weekend was a great success as people who had seen solar panels on neighbours’ roofs were able to get information as to the benefits from those customers who actually knew the advantages.  Although the majority of people were aware of the FiT there appeared to be only limited knowledge regarding the Renewable Energy Incentive and the Green Deal which showed the need for further publicity.

The Green Deal Must be Inclusive

Whilst opening up premises with green technologies already installed is a great way forward there is still a sector of the public who must be included and advised about their best options.  The more vulnerable customers who don’t look to change suppliers and aren’t aware of the free insulation and other services available to them need to have additional support.

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.