April 3, 2012

Loans For Businesses Wanting To Install Renewable Energy Systems

Filed under: Energy News — Tags: , , , — Newsroom @ 12:40 pm

Although there are many small and medium businesses that would be interested in the installation of solar panels or biomass boilers, the difficulty in obtaining finance is causing these companies to delay in making anything more than tentative enquiries.  The word that the UK may be heading back towards a further recession isn’t doing anything to steady the nerves of small businesses.  The extremely high gas and electricity charges that have been major concerns to large number of business owners is attracting them towards green technology but unfortunately in a considerable number of cases their local banks haven’t been able to assist in providing the finance required.

ReEnergise Finance is a new Cheshire based company which has been formed in order to assist businesses which are having difficulty in obtaining bank finance for renewable energy and energy efficiency projects.  It currently has links with ten non-mainstream banks to help companies which are struggling to obtain the finance required for improvements and installations which are a part of the government’s Green Deal.

Businesses which want to borrow between £75,000 and £5million will be directed towards the banks to enable them to benefit from the renewable energy and microgeneration sector as the major problem faced by many small and medium businesses is the lack of availability of bank loans.

One of the directors of ReEnergise Finance, Adam Hewson, who was previously a GE banker, has said that the new company is already dealing with a number of schemes including biomass installations, and anaerobic digestion and large-scale photovoltaic projects.  Mr Hewson also commented that a partnership had just been formed with Panasonic Europe’s solar division in order to assist their clients to find funding.  Mr Hewson continued by stating that ReEnergise Finance had the expertise to obtain the best financial deals for green energy projects.  He said “In an environment where banks are restricted and reluctant to lend against what is perceived as new technology, there is a need for a specialist intermediary, in particular for commercial projects under the £10m mark.”

Mr Hewson continued “In reality, finance is available in the UK for renewable energy; the trick is finding it and working with a partner that will get you the right deal.  Government schemes are available but you have to have already invested in energy efficient equipment to qualify.  We’re offering businesses the chance to do that, what we see as the final piece in the energy puzzle.”

Domestic Finance

ReEnergise Finance are also preparing the launch of domestic finance in June 2012, before the government’s Green Deal commences.  They anticipate becoming a Green Deal provider.  Some details still need to be finalised including the length of time homeowners will have to repay their loans.  There are some months before the Green Deal commences in October 2012 and during the intervening months there will be much more information which will become available.

November 4, 2011

Take Independent Advice – Before Proceeding

Filed under: business energy — Tags: , , , — Newsroom @ 10:41 am

All the current talk is regarding the installation of solar panels at businesses which will then be able to sell excess electricity back to the national grid.  It does appear from information received that many businesses are going down this route without taking advice from an independent energy broker who can suggest the best way forward for businesses where the staff don’t have the knowledge which is essential before making a decision which may not be the best choice for them.  An independent energy broker has the expertise and experience necessary to guide businesses forward and will manage the whole installation process.  It’s great that businesses want to proceed – energy brokers ensure that the correct decisions are made.

The major problem of this week relating to energy has been centred around the probability that the FiT payments will be reduced on all solar panel installations which haven’t been completed by 12th December.  The current price being paid to those businesses which already have photovoltaic panels is over 43p for every kWh of excess electricity which is sold back to the national grid.  The proposed new figure of 21p for each kWh is more than a fifty per cent reduction on the payments.

The huge wave of interest over the past few months for these installations has snowballed.  There have been so many orders that small companies which carried out the fitting of solar panels have needed to recruit more people, and the new staff members have required training in order to be able to do the work.

Many installers have a full order book, but with the proposed reduction in the FiT payment, the number of orders is likely to dwindle.  Most installation firms have their diaries full for months, but with there only being five weeks until 12st December, then many installations already planned will lose out on the highest payments, and some business customers may decide not to proceed with the installation.  The consultation period relating to these changes doesn’t end until 23rd December which is nearly two weeks after the cut-off date.

The government hadn’t expected such a high uptake so this is their way of slowing the number of installations down.  Unfortunately this has a knock-on effect for every company involved with solar panels.  Companies who were expecting to have their solar panels installed during the early part of 2012 probably won’t receive the higher FiT payment unless the government reconsiders their decision after the consultation period.

This decision by the government doesn’t just affect their balancing of the books – it has ripples which extend a huge way, affecting the livelihoods of many people.  Perhaps the government will reverse their thoughts, but wouldn’t it have been better if they had considered all possibilities before going ahead and making statements which affect a growing industry.  The economy is fragile enough and the alternative green technology is good news.  Don’t knock the stuffing out of this new industry.

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 20, 2011

Take Advice Before Rushing In!

Filed under: business energy — Tags: , , — Newsroom @ 1:16 pm

After discussing solar panels and that householders and owners of business premises are going to be able to sell excess energy back to the national grid, the window of opportunity to receive the highest benefit is likely to end earlier than some experts were anticipating.

Apparently for those properties which already have solar panels, and those customers who will be having them installed before 31st March 2012, the FiT payment will remain unaltered.  However, for new installations after that date, the subsidy may be reduced by as much as 75%.

Currently electricity being sold back to the national grid receives up to 43p for each kilowatt hour which is generated, so based on that figure (which is the highest – many homeowners are being paid 36p kWh, and the lowest figure currently paid is 29p) the amount which will be paid from April 2012 will be 11p for every kilowatt hour sold back to the electricity supplier.

The seventy five per cent reduction being suggested is the worst case scenario, with other percentage reductions in the region of 25%-50% also being mentioned.

Now one of two things will happen – either many more people will decide to have solar panels installed before 31st March 2012 thereby locking in their FiT, or people will be concerned that at a later date, figures already given to them will change thus making their investment less attractive.

Many headlines in the last twenty four hours have suggested that this date of 31st March 2012 is new, and the reductions in the FiT which are currently generous, are unexpected.  However, with a little digging around and a few questions to the right people, it has been confirmed to me that the existing arrangements regarding the installations of solar panels and payments from FiT have always been expected to change at the end of the current financial year.

I suppose that what it does prove is that you shouldn’t always believe what is written in the press without doing your own due diligence!

It does make it difficult when so many variations on one story are being bandied around – yet again, there is probably a modicum of truth in them all – and then Chinese Whispers join in the proceedings.

What it boils down to is that if you are able to afford the capital outlay required to pay for solar panels (approximately £12,000) then it is a good investment with returns being in the order of ten per cent.  Financing the system at this point, unless it is at an extremely low interest rate is possibly not cost effective.  There are also some companies offering a free installation; the customer keeps the savings on their own energy bill (up to £100 each year) and the company who provide the solar panels receive the FiT payments.  I don’t think that this is worth consideration at this time.

As with most decisions in life it is a matter of personal choice.  I just advise a little caution, and also a conversation with an independent energy broker who will be able to give you all the relevant facts and figures.  He will probably be able to arrange the installation for you whilst at the same time, ensuring that you are paying the lowest tariff for your energy.

October 13, 2011

Training Opportunities – But Let’s Do the Job Properly

Filed under: Energy News — Tags: , , — Newsroom @ 9:10 am

There is a momentum which appears to be gathering pace and over the past couple of days there are details being given about different companies all signing up for alternative green technology.  This is good news for businesses across the UK – not only will the new technology reduce their energy bills, but there will necessarily be employment created for  many workers.

How long will it be before there are so many companies wanting installations of solar panels and biomass boilers, before there is a shortage of staff able to fit them.  There are recruiting advertisement already starting to appear, which offer training courses to quality successful applicants in the installation of solar panels – one such course offers full training in only three days!

Perhaps I am a little naive as I had been under the impression that entrusting expensive installations would have been to experienced installers with more than a three day on-the- job training.  Not that I am, in any way, denying that the creation of jobs is good.  I am equally sure that all training will be more than adequate to carry out the tasks required by the installation companies.  I am further convinced that a newly-trained employee will be partnered with installers with considerable experience.

My major concern is not with these new recruits – I am more than delighted that job openings will be popping up throughout the UK.  My worry stems from the fact that as the technology is fairly new, the numbers of really experienced installers will be somewhat limited.  Over the passage of time matters will evolve and of course, fitters and companies alike will soon be totally up-to-speed with the work involved.

It is important that when these new staff are sent to fit a new system, that they have all the answers to the inevitable questions from homeowners and business owners alike.  If the client/customer doesn’t immediately feel that the person sent to do the work has all the information and  answers they want then confidence will dip very quickly.

This is an excellent opportunity to improve the UK unemployment figures, to provide training which leads to a worthwhile job.  Let’s not rush everything through so quickly leading to accidents – which will completely reverse the good intentions.  I don’t want to be pessimistic, I always hope that the best will happen, and usually this is correct.  I’m apprehensive because this is such a big deal, not only for the UK, but globally.

Let’s be positive, and ensure that all training given is to an exceptionally high standard.  If the instructors know what they are doing and have the qualities which are so important for all teachers to encourage their students whilst, at the same time, providing constructive criticism.  No-one benefits if every trainee passes the course, when patently they should have been failed.  Every teacher wants to think the best of their students, and this is fine – however, the standards achieved by the students must be high.

October 11, 2011

Take Your Time – You’ll Know when it’s Right!

Filed under: Renewable Energy — Tags: , , , , — Newsroom @ 10:38 am

In the past couple of weeks there has been a huge influx of emails and post advising me of the advantages of solar panels.  In every case the inference is that the decision needs to be taken immediately otherwise the opportunity may pass – for ever!

This of course is absolute rubbish and companies currently want the business in all areas across the UK – in that way they can advertise that “a local home” has had solar panels installed.  The more popular and as advertising becomes more obvious there may be a waiting list to have photovoltaic solar panels fitted.

There will be a huge uptake in the fullness of time, when the UK population as a whole realise the benefits – however, trying to persuade people into doing something, isn’t the best way to gain business.  I will, when I choose, definitely have solar panels fitted, and I’m sure that many other UK residents and business owners feel exactly the same.  We do know the benefits but being slightly awkward by nature, we will have them fitted at a time chosen by us.

In the meantime we have reduced energy costs as much as possible.  We do have low energy light bulbs, and in readiness for the winter we have tinfoil behind every radiator.  We haven’t felt the need to switch the central heating on yet, but we do have individual thermostats on every radiator and switch them to minimum in the spare bedrooms.

I am occasionally asked the best way for a business to reduce its energy bills.   I know many people who own their own business in various industries and strangely, whilst at home they automatically make attempts to save electricity and gas, when at work it is a totally different matter.  In the workplace they grumble about the cost of their energy bills, but they haven’t done anything to reduce them!

The best way of dealing with the ever increasing energy costs at work is to make a member of staff responsible for getting all the information, and give them the authority to contact an independent energy broker to arrange an energy audit of the premises.  The broker will be able to give advice on green technology and whether it will be beneficial for your situation.

Remember that in the workplace there are many machines being used at all times, so when it is the end of the day, switch all non-essential computers etc off rather than leaving them on stand-by.  By making small changes it is possible to reduce the electricity and gas bill by a significant amount.  Check you usage regularly, and if you suddenly notice an increase, make the effort to establish what has changed to cause the difference.

A little thought may make huge savings which for those with quite small businesses and low profit levels may make the difference between success and failure.

October 10, 2011

UK Companies Helping To Solve US Energy Problems

Filed under: Energy News — Tags: , , , — Newsroom @ 11:18 am

We are all aware of the necessity to reduce the amount of energy being used in both the workplace and in the home.  More people are beginning to be aware of alternative green technology, and when the government’s green deal starts to have an effect with homeowners and business owners alike, then solar panels and biomass boilers and other energy saving devices will be installed throughout the UK.

In the meantime, it is interesting to note that in the US they also have an energy crisis.  Not that it is unexpected of course however the companies involved in trying to improve the situation may surprise many UK residents.

A consortium of big business players have been organised to provide low cost loans to enable homeowners to make their properties more energy efficient so that there is less wastage.  A stipulation for receiving a low-cost loan is that the improvements made must pay for themselves by generating lower energy bills.  Improvements can include the installation of new windows and air-conditioning upgrades.

Six South Florida cities including Cutler Bay and Miami are the first in the US to receive this funding from the consortium which was set up by Sir Richard Branson.  His company, Carbon War Room, which is a non-profit venture, started the ball rolling by bringing together the other companies which are providing the $550 million finance.  These companies include Barclays Bank, Lockheed Martin – the defence and technology corporation, Ygrene which provide energy start up finance, Energi Insurance Services and Hannover Re – the world’s third largest reinsurance company.

The US cities involved in the partnership have already started to sign up the first deals with the consortium and the upgrades will commence early in 2012.  A second partnership in Sacramento with the same consortium of businesses has also commenced with $100 million finance in place.

Briefly the system will work by a homeowner or business owner contacting Ygrene.  They will arrange for a specialist energy audit of the premises, and indicate the improvements required and the total energy savings which can be made.  If the savings, over twenty years, are more than the cost of the improvements, then the premises are eligible for a low-interest loan.  The customer then agrees to pay for the improvements by a surcharge on their local tax bill.  A local contractor is appointed to do the work and on completion is paid by Ygrene.  If the property changes hands then the new owner continues with the repayments.  This scheme also benefits the local economy by providing many new jobs as in many instances local contractors will be used.  When the improvements are at larger commercial organisations Lockheed Martin will apply to be the contractor.

There is obviously an opportunity for all of the US states to look for funding in this manner, and all eyes will be on the two areas chosen to start proceedings.  If successful, and there is no reason to think otherwise, it is a good opportunity for several large conglomerates to join forces to provide services on a huge scale to the benefit of everyone.

October 4, 2011

Your New Best Friend – An Independent Energy Broker

Filed under: Energy Efficiency — Tags: , , , — Newsroom @ 10:38 am

There are many different companies that are now offering to install solar panels to small businesses and residential consumers.  Those home owners and companies which are thinking of installing solar panels as a way of reducing their electricity bills, and also plan to sell excess energy back to the national grid, must ensure that, if they are planning the finance through the government Green Deal system, that they only use an accredited supplier.

Additionally, prior to even getting to that position, the suggested system of micro generation must have been recommended by an accredited and objective adviser after they have completed an assessment of the property.

The adviser will confirm that the financial savings are within the boundaries agreed by the Green Deal and until that time it isn’t possible to arrange to proceed with the installation.  The adviser will take care of everything.

An independent energy broker is ideal to provide assistance for those business and residential consumers who aren’t looking to finance through the Green Deal their solar panels and any other improvements through alternative green micro generation.  The energy broker will be able to provide considerable information and advice in order to ensure a successful installation.  The independent energy broker will also be able to arrange for the excess energy to be sold to the national grid.

Those people whether or not it is for business or residential premises are well advised to use the services of an independent energy broker rather than trying to sort matters on their own.  A broker will have had considerable experience in managing projects similar to this, and will be able to negotiate the best price for the installation, and will also be able to agree the most appropriate contract with an energy provider.

Whilst having green technology installed, it is still important to consider the older tried and tested methods of saving energy.  The major one which is also the most well-known is by loft insulation.  As a high proportion of heat dissipates through the roof it makes perfect sense to have as much loft insulation as possible.  High quality loft insulation can save pounds on gas and electricity bills.

Another method of insulation is by cavity wall; however, the cost in some properties is disproportionate to the amount of savings which can be made.  It may be possible to obtain a grant for the full or partial cost of the cavity wall insulation, and in those circumstances it is obviously a good idea, as there will be some financial savings.

It may also be possible to obtain a grant for the loft insulation which, if it is available, is a great bonus.  These grants may be age, or income related or may depend on whether the homeowner has a disability.  Whatever every business or homeowner does towards a greener future in the UK, it is really important to implement savings on the amount of energy being used.  A little thought and action can bring about some considerable savings.

September 19, 2011

Solar Panels – A Nice Little Earner!

Filed under: Solar PV — Tags: , — Newsroom @ 12:28 pm

During the past few weeks there have been some queries from both small business owners and also residential consumers as to whether we have enough sun in the UK to ensure that solar panels are a worthwhile purchase.  Solar panels don’t actually need bright sunshine in order to operate fully.  The normal UK weather which on many occasions is somewhat cloudy still provides sufficient light to make the installation of these panels a profitable venture.

Another question has been in relation to properties with thatched roofs and this will need specialist advice to confirm the current guidelines; however, a discussion with your energy broker will be essential to discuss various alternative proposals, should these prove to be necessary.    A solution for those owners whose houses have thatched roofs may be to site the panels on a garage or outbuilding roof, or even sited on a purpose built frame within the garden.

Another query has been regarding the position of the property and whether it must be south facing.  Although the panels can work in every compass position the best performance will be from those properties which are sited from the east to west.

The great advantages of the installation of solar panels is not only in the reduction in the energy bills across twenty five years but the bonus of selling all excess electricity back to the local energy provider who will pay handsomely for this additional energy.

The government’s green deal is firmly on the table and the opportunity of low interest loan payments for those consumers who want to pursue this method of contributing towards a greener future and a reduction in their carbon footprint mean that there is likely to be considerable interest from the business sector as well as the residential consumer.

The first step forward to finding out whether this green deal is a good one for you, your family and your business is by contacting your local independent energy broker, who will be able to advise you as to the best way forward.  These independent brokers can find the best deal for you and they will supervise the whole project from start to finish.

Before starting anything it is probably worth asking the energy broker to arrange an audit of the premises in order to confirm the amount of energy being used, and they will be able to identify where there is an opportunity to reduce consumption.   Listen to the experts and by following their suggestions the savings that can be achieved will be substantial.

Before making any decisions it is important to be fully confident about the quality of work from any company who install solar panels.  Ensure that you ask where they have previously installed them, ask them to show you round similar properties where they have done the work and also ask them for references.  This will be a substantial outlay and you want to be sure that all the work will be carried out professionally.

August 31, 2011

Helping Farmers to Go…Green!

Filed under: Energy Efficiency — Tags: , , — Newsroom @ 11:31 am

It appears that many UK farmers are quite interested in progressing with green energy on their farms by installing solar panels.  This isn’t quite as altruistic as it sounds, as these farmers looking to complete the purchase of this method of making energy are anticipating a return on their investment which is expected to be in the region of £20,000 each year.

When looking into this a little more closely it appears that Barclays Bank have polled their farming customers and over one third of them – there are over 200,000 farmers in the UK – have indicated that they would like the possibility of installing green technology. This also means that two thirds of farmers aren’t interested!   Barclays have decided that this is a market in which they would like to be involved.  Their business arm has allocated £100m to help farmers with the purchase of equipment to provide solar and wind power.

The major problem with this is the purchasing price to set up the technology.  One farmer has had solar panels installed on a grain store.  Barclays contributed £130,000 for this venture and the farmer is anticipating receiving £20,000 annually from the export of power to the national grid.

We all know that the banks have been told by government that they have to help businesses more – this way it seems that Barclays are looking to honour that agreement by lending to the farming community, and of course, the revenue generated will probably be one of the ways that the bank know that their investment is secure.

Another piece of “green news” albeit on a much smaller scale is that Richmond upon Thames Borough Council has recently announced the launch of the “Richmond Business Energy Efficiency Fund”.   This fund is designed to assist small and medium businesses in Richmond to reduce their energy consumption.  A grant of £1,000, which must be applied for, is available for purchasing energy efficient equipment including low energy lighting, time switches, insulation, “A” rated refrigeration and boilers.

This figure of £1,000 won’t go far towards larger installations; however, for small businesses which are struggling this may be enough to kick-start them on the way to becoming more energy aware.  Even small changes will make a difference and Richmond Council is acknowledging the contribution to the local economy made by local shop owners and business.

Of course, Richmond Borough Council is not the only council offering grants to small and medium businesses within their borough.  Other County and District Councils across the UK are also making similar offers – and it is worth any shop or business owner asking their council what is currently available.  A little encouragement from government and councils which does appear to be forthcoming will make a huge impact on energy bills for these businesses.  It is also well worth every shop and business owner contacting an independent energy broker who will be able to give valuable advice on how to further reduce their energy bills.  They may also arrange an “energy audit” of your premises which will establish where the money is being spent, and the best way to reduce these costs.  Contacting an independent energy broker is really important as they are able to search all the energy providers in order to obtain the greatest savings for your business.