Energy-saving systems from Green Energy (eu)

New solar FiT will go ahead from August 1st

2012-05-24T06:01:00.000-07:00

After weeks of anticipation the Department of Energy and Climate Change (DECC) has today published the results of the latest solar feed-in tariff consultation. From August 1 the new rate for 4kW systems will be 16p/kWh, set in line with current installation figures.

With installed prices now more than 50 percent lower than in April 2010 when the FiT was first introduced, the latest tariffs are aimed at providing the same returns as originally set out.

Speaking in the House of Commons this afternoon the Minister of State, Greg Barker announced a range of alterations to the existing feed-in tariff (FiT) scheme. The UK solar industry will now benefit from a less complex degression management model, which includes smaller quarterly degressions linked to market deployment. This differs from the existing system, which offers an automatic degression.

As expected the new tariffs [seen below] will go ahead from August 1st, one month later than originally planned. After noting lower-than-expected installation rates the Department decided to hold off on cutting the tariff until the market begins to pick up.

Band (kW)	Standard generation tariff (p/kWh)	Multi-installation tariff (p/kWh)	Lower tariff (if energy efficiency requirement not met) (p/kWh)
•4kW (new build)	16.0	14.4	7.1
•4kW (retrofit)	16.0	14.4	7.1
>4-10kW	14.5	13.05	7.1
>10-50kW	13.5	12.15	7.1
>50-100kW	11.5	10.35	7.1
>100-150kW	11.5	10.35	7.1
>150-250kW	11.0	9.9	7.1
>250kW-5MW	7.1	N/A	N/A
stand-alone	7.1	N/A	N/A

The tariff for a domestic solar installation will now be 16p/kWh, down from 21p, and will be set to decrease on a three-month basis by 3.5 percent thereafter. These degressions are expected to be delayed if the market slows down. Uptake will be viewed in three different bands (domestic (size 0-10kW), small commercial (10-50kW) and large commercial (above 50kW and standalone installations). Quarterly reductions will be determined within those bands.

The new tariffs, which will now be paid over 20 years instead of 25 years, should give a return on investment (ROIs) of over 6 percent for most typical, well-sited installations, and up to 8 percent for the larger bands.

Investor income will also be boosted by the increase in the export tariff, which will increase to 4.5p from 3.1p. This will be particularly beneficial for large-scale solar investors, who will be able to add the export tariff to the feed-in tariff in order to generate a reasonable return on investment. All tariffs will continue to be index-linked in line with the Retail Price Index (RPI).

DECC also revealed that organisations with more than 25 solar PV installations will get 90 percent of the standard applicable tariff, increased from the 80 percent proposed in February. This increase reflects new evidence heard on costs involved for these projects.

Although reduced, the new rates are aimed at kick-starting the UK solar market, with an aim of installation at least 800MW in 2012/13. In fact, DECC expects that these rates to provide the resources for the UK to achieve 800MWp to 1,000MWp each year to 2015, with an extended ambition for 22GW for 2020. These figures account for solar capacity to be installed in each year than the original FiT budget offered over five years, reflecting the strong growth the industry achieved in 2011.

These figures do not include larger projects that are now able to use two ROCs; it is suggested there could be a further 300-600MWp installed under this mechanism before April 2013.

“Today starts a new and exciting chapter for the solar industry. The sector has been through a difficult time, adjusting to the reality of sharply falling costs, but the reforms we are introducing today provide a strong, sustainable foundation for growth for the solar sector,” Barker commented.

“We can now look with confidence to a future for solar which will see it go from a small cottage industry, anticipated under the previous scheme, to playing a significant part in Britain's clean energy economy.

“I want to send a very clear message today. UK solar continues to be an attractive proposition for many consumers considering microgeneration technologies and that having placed the subsidy support for this technology on a long-term, sustainable footing, industry can plan for growth with confidence.”

Alan Aldridge, Chairman of the Solar Trade Association said: “We broadly welcome many of the Government’s decisions for how solar PV will be treated in the FITs scheme and wholeheartedly welcome the inclusion of Solar in DECC's updated Renewables Roadmap; this should reassure consumers and solar companies alike that the Government recognises and stands behind a major role for the solar industry.

“Despite the currently slow market, the industry can have some confidence that the new Tariffs are tight but workable. Householders should be reassured the new Tariffs will provide more attractive returns than can be found elsewhere today. The STA is now keen to work with Government to get this positive message out."

The Minister also announced plans brought forward by Cornwall Council and the Building Research Establishment to set up a National Solar Centre in Cornwall.

Cllr Alec Robertson, Leader of Cornwall Council said: “The FiTs scheme allowed many people across Cornwall to learn about renewable energy, especially solar power, and Cornwall would welcome the establishment of a new National Solar Centre that will be at the heart of the bright future for PV in the UK. We’re pleased that DECC has announced changes that improve the predictability for the FiTs scheme”

Although many areas of today’s news will inject an element of confidence into the UK solar market there are still some areas that are expected to cause concern. There is a fear that the August 1st cuts could continue to stall uptake, and that DECC has not accounted for this issue fully within the consultation.

By Emma Hughes

Redwell is heater of choice for UK's largest industrial Infrared installation

2012-04-09T03:16:00.000-07:00

Redwell Space heaters were chosen for the UK's - possibly Europe's - largest industrial infrared heating installation.

RDC in Essex chose Redwell heaters for their 1,136 m2 unit in Braintree - the implications of installing and running either gas or oil heating being prohibitively expensive in such a large open area (see photo). In the end, only additional electric cable was required in addition to the site electrics to power the 60 Redwell heaters - no gas or oil pipes were required, no external fuel storage had to be installed and secured.

Infrared was additionally considered to be ideal for this sort of area, because the heating effect could also be localised - where desired. This is impossible to achieve with oil, gas or other electric blower-type heaters, where wasteage occurs through convection, resulting is an uncontrollable area being heated.

For full details, please read the attached case study (opens in new window).

Planning permission no longer required for non-domestic solar installations

2012-03-30T03:25:00.001-07:00

In news that will make life easier for many UK solar installers, from April 6 this year planning permission will no-longer be required to install solar PV or solar thermal on non-domestic buildings. The new rules will also mean that ground-mounted systems up to 9m2 will be able to go ahead without a planning application.

The new regulations, which are coming into affect by an amendment to Permitted Development Rights (PDRs), will have a great impact on the requirements for planning for retrofits on commercial and agricultural buildings. Those who were held back, or forced to cancel projects due to the delays planning caused when the feed-in tariff changes were going through, will no longer face such restrictions.

However, as with most things in life, there are certain conditions that must be met.

Roof mounted solar

A roof-mounted solar system must not protrude more than 200mm from the roof/wall surface it is mounted on. There is an exception to this is if the system is on a flat roof, where the solar PV must be less than 1m in height above the highest part of the flat roof excluding any chimneys.

The roof-mounted solar installation must also be more than 1m away from the external edge of the roof or the joint of the wall that it is on and if the system is situated in an area of outstanding natural beauty, or land with similar restrictions (article 1(5) then the solar cannot be on a roof slope or wall fronting the highway.

Furthermore, planning permission is required if the solar is on a listed building, on a building within the curtilage of a listed building or upon a site designated as a scheduled ancient monument.

Further conditions

The solar equipment must, so far as practicable, be sited so as to minimise its effect on the external appearance of the building;
The solar equipment must, so far as practicable, be sited so as to minimise its effect on the amenity of the area; and
Solar equipment no longer needed for micro generation must be removed as soon as reasonably practicable

Ground Mounted

In terms of ground-mounted solar, the new planning conditions also mean that installations of up to 9m2 will not require permissions. However, the solar must not be taller than 4m, only one to ground mounted system can be present of any one building, solar must not exceed 4m in height and the solar must not be installed so that it is nearer to any highway than any part of the building which is nearest to the same highway.

Further, the solar must not be installed within 5m of the boundary of the curtilage and planning permission will still be required if the solar is within the curtilage of a listed building or on a site designated as a scheduled ancient monument.

Further conditions

The ground mounted solar must, so far as practicable, be sited so as to minimise its effect on the amenity of the area; and
Ground mounted solar which is no longer needed for micro generation must be removed as soon as reasonably practicable.

Commenting on this news, Alexander Creed, Partner, Resources and Energy at Strutt & Parker, said: “We welcome these changes; they will make the installation of solar on commercial and agricultural much more straightforward and we always considered it perverse that you could install on domestic properties without planning but not commercial or agricultural ones.

“We think that this change opens a window of opportunity for those that have been considering installing solar but haven't progressed a project - possibly put off by the rollercoaster of feed-in tariffs. We think it opens a window as you will be able to install on a roof after the April 6 and this gives a good window until the June 30 before the next FiT reduction.

“As systems connected before the July 1 will benefit from a 25 year solar PV FiT and a linkage to the RPI rather than the CPI, this will give better returns to the project. With the current pricing for a 50kW system any project completed before July 1 should achieve an internal rate of return of over 10 percent.”

You can read the full legislation here

Written by Emma Hughes, Solar Power Portal

Redwell Infrared Heating Provide Free Heating to Homeless Shelter

2012-03-07T09:12:00.000-08:00

During the cold winter months we all long for warmth and comfort. However, there are many people in our society with no roof over their heads.

VinziDorf in Graz offers refuge for the homeless and provides them a place to sleep and a hot meal. But without volunteers and sponsors this would not be possible.

Redwell Manufacturing Co. Ltd. donates to the homeless shelter a range of infrared heaters to offer acomfortable energy efficient heating system.

Markus Pichler (Redwell) presents the infrared heaters to Mr. Manfred Rupp, head of VinziDorfes in Graz.

Mr Rupp say's thank you for this generous donation, "I am very pleased that there are still companies out there who strive not only to high profits but also demonstrate social welfare."

Summary of DECC’s proposed changes to the solar FiT

2012-02-16T04:30:00.001-08:00

by Peter Bennett

DECC's proposed changes to the FiT have been met with mixed reactions across the industry.

Last week DECC announced a raft of measures intended to improve the feed-in tariff framework and secure the long-term future of the scheme.

Below is a summary of all the changes announced last week that will directly affect the solar feed-in tariff rate and the manner it operates.

EPC requirement level D

In order to receive the full FiT value, properties must hold a level D Energy Performance Certificate (EPC) from April 1, 2012.

Following the announcement, some installers have contacted SPP to find out whether or not the solar installation will contribute to bringing the property up to EPC level D.

A DECC spokeswoman told SPP: “A generator must be able to demonstrate as part of their application for FiTs that the building to which the solar PV installation is attached or wired to provide electricity is rated at EPC level D or above. The FiTs requirement doesn’t prescribe how level D should be met.”

DECC clarified that people who want to use solar PV towards obtaining an EPC rating of D would need to “have the solar panel system installed, conduct an EPC and then apply for the FiTs scheme. The EPC must be sent with the documentation relating to registration for FiTs.”

Tariff rates
The tariff rates are exactly as DECC confirmed on January 19, as laid out below:

Scale	Current tariff *	Tariff from April 1
4kW (new build)	37.8p	21.0p
4kW (retrofit)	43.3p	21.0p
>4-10kW	37.6p	16.8p
>10-50kW	32.9p	15.2p
>50-100kW	19p	12.9p
>100-150kW	19p	12.9p
>150-250kW	15p	12.9p
>250kW-5MW	8.5p	8.9p
Stand alone	8.5p	8.9p

*Due to the ongoing legal dispute, the tariff rate for the lifetime of solar PV systems cannot be guarenteed. However, 43.3p will be paid for all systems registered between December 12-March 3 until April 1, regardless of the appeal.

The tariff level is then set to change in July. The tariff rate from July 1 will depend on the level of capacity installed during March and April. The new tariff options are outlined in the table below:

Deployment March-April 2012 (MW)	<4kW tariff rate
Option C: <150MW	16.5p
Option B: 150-200MW	15.7p
Option A: >200MW	13.

A further five percent reduction on the July level of tariff will be enacted in October, with 10 percent reductions being introduced every six months thereafter. The automatic baseline transgression of 10 percent every six months can be triggered early if deployment exceeds pre-determined levels. The system will be reviewed annually to ensure that it is performing well against its objectives.

Multi-installation tariff

Anyone who owns or receives FiT payments from 25 or more solar installations will be subject to a new multi-installation tariff. The tariff will be set at 80 percent of the standard tariff, to reflect the lower costs that such installations benefit from. However, DECC is consulting on a proposal that would allow social housing, community projects and distributed energy schemes to be exempt from the reduced multi-installation tariff rates.

Tariff lifetime reduction

The lifetime of the solar PV feed-in tariff is set to be reduced from 25 years to 20 years, to bring it back in-line with other FiT technologies. DECC maintain that a reduction in the tariff lifetime will allow potential users of the scheme to better compare technologies.

Inflation linking

DECC are consulting on whether the current RPI inflation linking should be removed or changed to the consumer price index (CPI). DECC argue that the current model does not reflect the actual investor behaviour being seen in the FiT market, as technologies tend to be capital intensive with costs loaded towards the start of the project with low ongoing operational costs.

Consultation response

DECC’s full response to the phase 1 consultation, ‘Phase 2A’ consultation on cost control measures for PV and ‘Phase 2B’ on all other FiT technologies can be read here. DECC requires responses to Phase 2A to be submitted by April 3. Responses to ‘Phase 2B’ need to be submitted by March 23.

RPI increase: 45.4p solar FiT from April 1

2012-02-16T04:00:00.000-08:00

The annual RPI increase means that some feed-in tariff rates will go up by 4.8 percent from April 1, 2012.

Ofgem has published a new table on its website outlining the feed-in tariff rates as of April 1 this year. Thanks to an annual boost from the Retail Price Index, some microgenerator’s FiT income will increase to 45.4p per kilowatt hour from that date.

This RPI increase occurs each year, and means that all those who have installed solar panels before March 3, 2012 will see their feed-in tariff payments increase by 4.8 percent. This means that those who are currently receiving the 43.3p rate will receive 45.4p/kWh from April 1.

However, the current court case throws into question the FiT rate for those who have installed between Government’s two reference dates: December 12, 2011 and March 3, 2012.

Those with 4kW installations completed on or after December 12, 2011 are currently receiving the 43.3p rate, although this will change to 21p on April 1 if Government wins on appeal to the Supreme Court.

If Government loses on appeal, all installations from March 3, 2012 will receive the 43.3p rate until April 1, when the rate will still drop to 21p while those who installed and registered before March 3 receive the RPI increased rates. The table below outlines the rates for all systems up to 5MW.

As well as highlighting the feed-in tariff rates for FiT years one and two, the table also outlines the potential tariffs for FiT year three. However, the higher, middle and lower rates provided by Ofgem differ from those outlined by Government last week in its latest feed-in tariff update. Ofgem was unavailable to comment on this when we contacted its office this morning.

The Department of Energy and Climate Change (DECC) confirmed that the new RPI tariffs quoted in the table below are correct, however the department will be working with the energy regulator to ensure that the information on the impact of the appeal is clear on the Ofgem website.

The solar industry is currently waiting for clarity from DECC on whether it will in fact appeal to the Supreme Court, or whether it will accept the Court of Appeal ruling that its December 12 reference date was “unlawful.”

Description	FiT Year 1 (2010/2011)	FiT Year 2 (2011/12)	FiT Year 3 (2012/13)
Solar photovoltaic with total installed capacity of 4kW or less, where attached to or wired to provide electricity to a new building before first occupation	39.6	If eligibility date is before 03/03/12: 39.6 If eligibility date is on or after 03/03/12: 21.0	Higher rate: 21.0 Middle rate: 16.8 Lower rate: 9.0
Solar photovoltaic with total installed capacity of 4kW or less, where attached to or wired to provide electricity to a building which is already occupied	45.4	If eligibility date is before 03/03/12: 45.4 If eligibility date is on or after 03/03/12: 21.0	Higher rate: 21.0 Middle rate: 16.8 Lower rate: 9.0
Solar photovoltaic (other than stand-alone) with total installed capacity greater than 4kW but not exceeding 10kW	39.6	If eligibility date is before 03/03/12: 39.6 If eligibility date is on or after 03/03/12: 16.8	Higher rate: 16.8 Middle rate: 13.4 Lower rate: 9.0
Solar photovoltaic (other than stand-alone) with total installed capacity greater than 10kW but not exceeding 50kW	34.5	If eligibility date is before 03/03/12: 34.5 If eligibility date is on or after 03/03/12: 15.2	Higher rate: 15.2 Middle rate: 12.2 Lower rate: 9.0
Solar photovoltaic (other than stand-alone) with total installed capacity greater than 50kW but not exceeding 100kW	34.5	If eligibility date is before 01/08/11: 34.5 If eligibility date is on or after 01/08/11 and before 03/03/12: 19.9 If eligibility date is on or after 03/03/13: 12.9	Higher rate: 12.9 Middle rate: 10.3 Lower rate: 9.0
Solar photovoltaic (other than stand-alone) with total installed capacity greater than 100kW but not exceeding 150kW	32.2	If eligibility date is before 01/08/11: 32.2 If eligibility date is on or after 01/08/11 and before 03/03/12: 19.9 If eligibility date is on or after 03/03/13: 12.9	Higher rate: 12.9 Middle rate: 10.3 Lower rate: 9.0
Solar photovoltaic (other than stand-alone) with total installed capacity greater than 150kW but not exceeding 250kW	32.2	If eligibility date is before 01/08/11: 32.2 If eligibility date is on or after 01/08/11 and before 03/03/12: 15.7 If eligibility date is on or after 03/03/13: 12.9	Higher rate: 12.9 Middle rate: 10.3 Lower rate: 9.0
Solar photovoltaic (other than stand-alone) with total installed capacity greater than 250kW	32.2	If eligibility date is before 01/08/11: 32.2 If eligibility date is on or after 01/08/11: 8.9	8.9
Stand-alone (autonomous) solar photovoltaic (not attached to a building and not wired to provide electricity to an occupied building)	32.2	If eligibility date is before 01/08/11: 32.2 If eligibility date is on or after 01/08/11: 8.9	8.9

DECC updates January installation figures

2012-01-26T11:04:00.000-08:00

by Peter Bennett

Figures published by DECC appear to indicate that the industry is beginning to recover from the ‘goldrush’ caused by the December 12 reference date.

The Department for Energy and Climate Change (DECC) has published the latest solar photovoltaic installation figures for 2012, which show that from January 8–22, 2,711 solar PV installs were registered for the feed-in tariff scheme.

The current rate of install follows the dramatic drop the industry experienced in the first week of 2012, which saw only 532 systems registered from January 1–8.

DECC’s figures indicate that the industry is slowly recovering from the shock of swingeing cuts to the solar PV rate, as installs have climbed back inline with rates the UK experienced in March 2011.

The graph below illustrates the incredible spike in solar PV installs in the UK during the run-up to December 12, after which a dramatic fall-off occurred as Government slashed FiT rates by over 50 percent.

Of the 2,711 systems registered, only 11 sytems in the 10–50kW range were installed, accounting for 263kWp of capacity added to the grid. In contrast, 87 percent of capacity added from January 8–22 was less than 4kW.

Following the Court of Appeal’s decision to uphold the High Court’s verdict that the December 12 reference date was illegal, and DECC’s consequent Supreme Court challenge, the industry is still operating under considerable uncertainty.

Until the legal battle currently being fought is resolved, installers cannot confidently quote exact feed-in tariff figures to potential customers. As the conclusion of the legal battle will most likely not be until after the March 3 reference date, installers can only guarantee customers a minimum FiT rate of 21p for <4kW systems.

The uncertainty the industry is currently experiencing is expected to be reflected in the market, as level of installs are predicted to stagnate.

DECC statement seeks to reduce solar FiT uncertainty

2012-01-10T06:54:00.000-08:00

Written by Emma Hughes

By January 31 the UK solar industry should know what lies in its future.

Following the uncertainty generated by the Department of Energy and Climate Change (DECC) decision to appeal the High Court’s ruling against the “unlawful” feed-in tariff deadline, an attempt has been made by Government to restore faith and ensure business can still be carried out. On Friday afternoon the Department released a statement confirming 4kW tariff rates until March 31, 2012, assuming its appeal is heard.

With fears beginning to mount that the tariff could be reduced to less than 21p as a result of the Judicial Review, many companies are unsure on what to say to new customers due to the uncertainty surrounding the future rates. So, following confirmation that there will be a hearing of its appeal against the JR, DECC has published the following statement, which it hopes will reduce the uncertainty:

“The tariff rate for PV installations less than or equal to 4kW will not fall below 21p for installations with an eligibility date between 12th December 2011 and March 31, 2012.”

DECC appeal permission hearing will be January Friday 13, which will be followed by the full hearing, if permitted, the same day. The findings won't be announced until the following week.

If DECC wins its case, it intends to publish its response to the consultation on or around the January 31 – which is the earliest date it can do so – along with the Phase 2 Comprehensive review. However, the proposals in the Phase 2 consultation are likely to depend on what the result of the Judicial Review is and the amount of PV that has been installed since December 12.

In the event that DECC loses its appeal it may turn to the Supreme Court. It is unclear at present what the implications of this will be.

According to Solar Power Portal’s calculations, the FiT budget is already blown. So if the appeal is lost, DECC may be forced to reduce the tariff for all PV systems installed post April 1 to just 9p kWh (equivalent to 2ROCs), however DECC Officials have stressed that this is not the preferred outcome.

Further updates will be published in due course

DECC revises FiT budget; adds £197 million to spending cap

2012-01-10T06:53:00.000-08:00

Written by Peter Bennett

DECC has revised the FiT budget to include larger-scale schemes that have elected to recieve the FiT over the RO.

DECC has revised the figures published for the feed-in tariff budget; increasing the spending envelope by £197 million over the next four years.

The revised figures were first published on December 8 in a document that outlined questions and answers about the control framework for DECC levy-funded spending. In response to the joint-committee inquiry the revised budget levels were also published, outlined in the table below:

According to DECC, the revised figures reflect a reclassification of those larger-scale schemes that have elected to receive feed-in tariff rather than the Renewable Obligation (RO) which was not factored into the original spending caps. DECC explicitly states that: “We have not made more subsidy available for feed-in tariffs or less for the RO.”

What DECC has technically done is to reverse a decision that assumed that those generating stations below 5MW, eligible for both the RO and the feed-in tariff scheme, will elect to receive the feed-in tariff rather than the RO. The result is that all spend from installations of less than 5MW have been included within the feed-in tariff spending limit rather than the RO spending limit.

The revised budget leaves the current Government commitments at the following (based on assumptions outlined here):

Year	DECCs FiT budget	Solar PV commitment	% of budget allocation
2011-12	£94,000,000	£89,408,783	95
2012-13	£196,000,000	£268,944,285	137
2013-14	£328,000,000	£282,391,499	86
2014-15	£446,000,000	£291,511,074	66

Taking into account the 20 percent headroom within the Treasury cap, it is likely, given Greg Barker’s continued commitment to linking the solar PV FiT rate to energy efficiency measures, that expenditure will fall within the cap over the total period up to 2012-13, given an April reference date.

**Total PV commitment - Level C energy efficiency (April Start)**
Year	Budget with 20% headroom	% of budget allocated (with headroom)
2011-12	£107,290,540	121
2012-13	£322,733,142	99
2013-14	£338,869,799	103
2014-15	£355,813,298	110

N.B Figures based on details provided by DECC which set out the relative costs of different tariff reduction options on a nominal, unadjusted basis.

The Government will found out on January 13 whether or not it is able to appeal a decision by the High Court that ruled the proposed cuts to the feed-in tariff as “legally flawed”. Barker maintains that immediate action was necessary to preserve an almost depleted feed-in tariff budget from being entirely consumed and jeopardising the entire future of the scheme

40% increase in gas prices expected by 2014

2011-11-16T05:53:00.001-08:00

14 November 2011, source edie newsroom

Gas prices are set to rocket in the next three years as demand peaks before levelling out as production exceeds demand.

That is according to new research by global strategy consultancy AT Kearney, which reveals that worldwide gas prices could increase by as much as 40% by 2014.

According to the research this spike will then be followed by falling prices and overcapacity, as well as growing pressure on business models of up- and midstream gas companies.

Developments in the international and European gas markets and global demand for gas and liquefied natural gas (LNG) will, the research claims, make 2015 a 'watershed' for gas markets.

The work found gas is becoming ever more important as an energy source at the global level, with an annual growth rate of 1.7%.

However, gas consumption within Europe will, according to AT Kearney, gain just 0.4% per year.

AT Kearney energy practice partner, Richard Forrest, said: "Over the past years, the European gas market has become incredibly dynamic owing to the changes in supply and demand.

"During the course of the economic crisis, not only did the level of gas consumption nosedive, but the origin of the gas also underwent massive changes and Europe began to move ever closer to the international gas markets."

PriceWaterhouseCoopers Award Redwell Top 3 Company

2011-11-15T06:40:00.001-08:00

FROM DEVELOPMENTS IN THE GARAGE TO ONE OF AUSTRIA’S LEADING COMPANIES

Redwell manufacturer GmbH has taken the product from concept to completion in less than a decade. Redwell has been presented with awards from WirtschaftBlatt, KSV1870 and PriceWaterHouseCoopers Austria and is now in the top three most successful businesses in Styrian.

Awards were presented to ‘Austria’s Leading Companies’ during the Celebration of Styrian Economic Development in the Helmur-List-Halle in Graz on 17^th October 2011. The awards are presented to companies which, as well as being financially successful, can demonstrate sustainable economic growth. These are among the key achievements of Redwell under the management of Director Michael Buschoff.

“I am proud to have developed a successful and award winning company over the past ten years,” said Mr Buschoff. “My vision is for Redwell to become an international leader in the infrared heating market via both sustainable development.”

Solar industry fears mount in the lead up to the Comprehensive FiT Review

2011-10-21T04:18:00.000-07:00

Representatives from across the UK solar sector today met with the Parliamentary Renewable and
Sustainable Energy Group (PRASEG) for a seminar on the implications of the first Comprehensive Feed-in Tariff Review. Among the speakers involved were Head of the Feed-in Tariff Review Rachel Solomon-Williams, Founder and Executive Chairman of Solarcentury Jeremy Leggett and Gordon Edge, Director of Policy, Renewable UK.

Congregating at the House of Commons this morning, delegates heard what’s expected as we lead up to what could be the most pivotal moment in UK solar history.

Rachel Solomon-Williams confirmed today that the Comprehensive Review is underway in the Department of Energy and Climate Change (DECC), although she was unable to confirm details of when it would be revealed, or what the rates will look like. It was however established that DECC has to operate within the Treasury-imposed, fixed envelope. It was made clear that if this budget overruns, the funding will need to come from DECC, for which, unfortunately, there is no budget.

It was also reiterated that there are no planned changes before April 1, 2012 “unless earlier action is deemed necessary,” which is a phrase many will remember from the recent fast-track review, which ended in tariff rates as low as 8.5p.

Expressing industry’s feelings towards the upcoming review, Jeremy Leggett demonstrated that while many were once excited about the UK solar energy industry, the lead up to the review “feels like Groundhog Day”.

“While we were doing 200MWp, Germany did 7,000MWp. We have to overcome our culture of ‘big energy’ […] we need a ‘glide path’ of FiT degressions, not a ‘cliff’,” he explained.

“There is never progress without confrontation, and we have to take it to Treasury. We have to debunk the lie about the cost of green energy.”

Speakers also referred to new data published on DECC’s website, including MCS figures not yet on the central FiT database. According to the latest numbers, approximately 40% more installations have been completed than have been published by energy regulator Ofgem.

At the end of September 2011, 316.4 MW of installed capacity was confirmed on the feed-in tariff scheme, covering 80,886 installations. Solar photovoltaics represented 83 percent (264MW) of the total installed capacity, and 97 percent (78,540) of all installations.

A total of 202.6MW of capacity (72,896 installations) was sub-4kW retrofitted solar photovoltaics while domestic schemes represented 73 percent (232.3MW) of total installed capacity and 98 percent (78,923) of installations. Just 14.9MW of capacity was installed prior to 15 July 2009, covering 3,824 installations, had transferred from the Renewables Obligation.

The new figures also show that during September 2011, 84.7MW of installed capacity, across 16,020 installations, joined the scheme, representing the highest figures in one month (in terms of both capacity and installations), and 48MW more than in August 2011.

This represented an increase of 37 percent in total cumulative installed capacity and 25 percent in installation numbers.

In terms of technology, the largest increase during September was in solar PV, with 80.5MW of installed capacity (15,450 installations) added to the FiT scheme, again the highest in one month. The largest contributor in terms of tariff codes was sub- 4kW retrofitted solar, with 44.8MW of installed capacity (15,245 installations) confirmed on the FiT scheme in September 2011.

More than 48MW of domestic installed capacity (15,742 installations) joined the FiT scheme in September, an increase of 26 percent in installed capacity and 25 percent in installation numbers.

These increased figures confirm fears outlined in the recent blog post by David Owen, Founder and CEO of Solar Media, which points to the fact that solar PV is likely to once again become the victim of its own success. The “unless earlier action is deemed necessary” quote used by Solomon-Williams most certainly refers to the amount of PV installed in recent months, pointing towards a significant cut in feed-in tariffs which could take place as another fast-track review.

In the wake of recent events, industry is beginning to feel concerned about the upcoming review, with rumours circulating about just how deep the cuts will be. At present, nothing has been revealed by DECC.

Minister of State for Energy and Climate Change, Greg Barker will be speaking at the upcoming Solar Power UK conference

Is it too late for large-scale social housing projects?

2011-09-16T03:25:00.000-07:00

The focus of attention over the next few weeks will be on the feed-in tariffs review, particularly once the Department of Energy and Climate Change (DECC) finally publishes the consultation paper. The belief in the industry, of course, is that the rates for solar PV will be reduced. How much is anyone’s guess, but 25 % seems a popular stab at it.

Some reduction must sensibly be expected, bearing in mind that costs have undoubtedly fallen over the past year. This means that the projected returns of 5 – 7% that the Government intended those getting involved to earn have doubled, or more in some cases, so DECC feels the need to reign them in somewhat.

Many believe that the review will in fact simply be an exercise by DECC to see what they can do with the remaining money in the FiT pot, which is rapidly disappearing.

If the consultation will suggest reductions and the announcements are made early in the New Year, to come into effect on April 1, 2012, does a local authority still have time to frame a large-scale solar PV project which would complete before the rates reduce?

A number of large schemes have come forward recently, such as the Wrexham CBC project, where an award of contract is imminent and a programme is being finalised to complete work to 3,000 homes by the end of March 2012.

But what if a Council has not yet started any project? Is it too late to meet the deadline?

I would say no, it is not, but only if the authority gets its act into gear -- very quickly.

In order to do this, they must gain political and managerial support. This will need to be lined up very swiftly, in order to allow a procurement exercise to commence. The urgent restricted procedure is available for the purpose of a quick procurement, lasting not much more than a month. Most seem to think that a framework draw down would be necessary to have any chance of meeting the deadline, but this is plainly not the case.

The procurement exercise needs to be truncated so that all work on the authority’s side is done immediately, such as the selection of tenderers and the tender evaluation exercise.

Recent tenders have shown that there are contractors out there still looking for commercial sized contracts and who are able to fit in excess of 100 properties a week under a programme.

It is true that prices might rise as the deadline approaches, and it gets more pressurised, but there is little sign of this yet.

Even if they do, I suppose it’s a case of doing the maths. If the authority can get 43.3 pence per kWh under current levels and that is to be reduced by a quarter, it is worth spending more to get the fitting undertaken before the rates decrease, as the benefits of the higher rates endure for 25 years.

There is, of course, one other reason why a social housing project might be seen to be timely now – the review will look at ways DECC can control the budget.

Having firmly shut the door on 5MW solar farms, large social housing contracts (which are often also MW size in total) are one of the last large calls on the FiT pot. The temptation for that door to be closed too must be there and it is possible that such projects will not be available at all after April 2012.

So it is likely that we will see another major push towards social housing projects over the next couple of months, and this will be a good thing for the amount of solar being installed and also for the UK solar industry in general, as well as for tenants and investment in housing at local level.

By Stephen Cirell

Solar to produce the bulk of the world’s power by 2060

2011-09-01T09:57:00.000-07:00

According to new research published by the International Energy Agency (IEA) solar could produce the bulk of the world’s power by 2060. These findings, set to be published in a report later this year, go beyond the IEA’s previous forecast, which envisaged solar PV and concentrated solar power meeting ~21% of the world’s power needs in 2050.

In an interview with Bloomberg News, Cedric Philibert, a Senior Analyst in the renewable energy division at the Paris-based agency said, “Photovoltaic and concentrated solar power together can become the major source of electricity. You’ll have a lot more electricity than today but most of it will be produced by solar-electric technologies.”

The forecasted scenario predicts that most heating and transport will switch from fossil fuels to cleaner electric power in just 50 years, driving down CO₂ emissions from a current 30 gigatons to approximately three gigatons per year.

However, while this is good news on a global basis, the Solar Trade Association believes the UK is at risk of falling behind. Howard Johns, Chairman of the Association said, “The news that the International Energy Agency anticipate solar - both PV and thermal - can become the world's major source of energy is welcomed by the STA.

"This news follows many reports this year predicting solar is set to achieve a major cost breakthrough with sustained investment today, including in the UK where Ernst and Young predict solar could reach grid parity by 2017.

"The STA urge the UK Government to take notice of mounting evidence about the potential of solar, and to urgently reconsider its faulty assumptions that solar is a technology that is too expensive to deploy in the UK. The UK can not afford to ignore this technology. We must invest today to secure major manufacturing opportunities and a bigger share in what will be a massive global market in the future."

In the UK alone, solar technology has the potential to readily generate up to 30% of the UK's electricity needs, and create thousands of new jobs. The country is currently awaiting the results of the Comprehensive and RO Banding Review, which should set out Government’s ambition for the UK’s solar future.

The IEA will publish its report later this year.

Solar PV: Rent or Buy?

2011-08-26T07:01:00.000-07:00

Everyone engaged in property matters will have come across the installation of photovoltaic (PV) solar panels, in order to reduce electricity consumption from the grid and to take advantage of Government’s feed- in tariff (FiT) scheme. Social landlords and local authorities are making moves to undertake feasibilities and to commission installations, some with a wary eye on Government’s review of the FiT tariffs in April 2012. A key issue for their feasibility thinking is whether to self-fund installations or to do so via a third party, also known as the ‘rent-a-roof’ option.

How does each option work?

Self funding is on the face of it very simple. For a small programme, the property owner might choose to finance it with cash (savings). Indeed with interest rates on savings and other ‘low risk’ investments so low, using spare cash to fund PV installation and then collecting the FiTs that are generated from it, represent very good rates of return. However, larger programmes will need to borrow the sums required to finance a programme of installations. In such circumstances, with lending costs around 4-5%, this still represents a viable option, with typical PV installations giving returns of approximately 10% per year.

Rent-a-roof is a mechanism to facilitate funding of the upfront installation by a third party. An investor will provide the funds necessary to undertake the installation; in return the investor will receive the large majority of the FiT proceeds. This is established by the property owner granting a lease to the investor for the roof space, upon which the installation is fitted. While investors will typically be looking for returns in excess of other relatively low risk investments, there is sufficient headroom to share a proportion of the FiT with the property owner.

Assessing Feasibility

The starting point for any property owner thinking of installing PV panels is to establish which properties are suitable, what the expected capital costs are and what revenue may be generated. The usual starting point is to undertake a desktop study where each property is assessed, via web-based imagery, such as Google Earth, to determine the suitability of the property for a PV installation. This can then be validated by on-site surveys. The financial feasibility of any particular installation is a reflection of the electricity that it will generate.

This can be calculated for each property, by reference to:

- The size of the proposed installation
- The efficiency of the panels to be installed
- The expected amount of daylight hours that a property should be exposed to over the course of a year
- The orientation of the property, relative to South.

An algorithm will then calculate the amount of electricity that the installation should produce and hence the overall ‘income’ that is derived, made up of three things:

1) The tariff paid for the generation of the electricity
2) The tariff paid for selling surplus electricity back to the grid
3) The saving that the property occupier makes on using the generated electricity.

It would be usual to produce a cash-flow forecast, which would include the initial cost of installation and the forecasted ‘income’ over (say) 30 years. The forecast allows the property owner to:

- Assess in cash terms the revenue that would be generated
- Assess the ‘attractiveness’ of the return, relative to other options
- Determine if self funding or rent-a-roof might be the best option.

While economic considerations will be paramount in the property owners’ decision, there will be further considerations including:

- The ability to self-fund a programme.

The practical consequences of giving a long-term lease interest over the roof of the property, in the rent-a-roof option. While the lease will identify who has what rights and responsibilities, the involvement of a third party in the property will be an added complication, for example where maintenance has to be done to the roof.

- The potential impact on the value of the property. While most commentators think that it will be neutral, it’s too early to tell what potential purchasers will think
- The impact on others with an interest in the property. Where the property is tenanted, the lease or tenancy agreement may need changing to facilitate granting a lease under the rent-a-roof option.

Cowboy Solar PV Installers

2011-08-11T04:18:00.000-07:00

By Terry Skee

The UK solar industry is booming and is set to expand even more in the coming years. With the cost of energy continuing to rise, domestic and commercial users are looking at alternative forms of savings, generating energy themselves, and with Government incentives enabling owners to earn money by feeding their electricity back into the national grid, renewable energy technologies are proving to be a popular choice.

Whilst this growth spurt is hugely welcomed by the solar industry, there is growing concern around the policing of the industry itself. Recent reports from the national mainstream media highlighting ‘cowboy’ tradesmen cashing in on the solar industry prove that action needs to be taken before the reputation of the industry is seriously tarnished.

What’s already in place?

The Microgeneration Certification Scheme (MCS) is an internationally recognised quality assurance mechanism which demonstrates to customers that a company is committed to meeting rigorous and tested standards. To become an MCS accredited company installers have to also be a member of the REAL Assurance Scheme or an equivalent Office of Fair Trading (OFT) approved consumer code scheme, costing more money. Whilst this is followed and adhered to by the genuine quality companies, it can be circumvented.

Essentially, any ‘cowboy’ can simply pay the fee and become MCS accredited. They can even pay a company to ‘handhold’ them through the process and ensure that their documents are filled in correctly and meet the standard to gain certification. Even after they receive certification, the installer can decide on what installation they want MCS to inspect and will obviously pick their best job.

Further, to be eligible for feed-in tariff (FiT) payments, the installation job must be MCS certified. This does not necessarily mean that the solar PV installer has to have an MCS certificate. They could do all the installation work, securing it onto the roof, etc, non-certified but could have an electrician who is MCS certified do the final connections, therefore technically making it safe and eligible for the FiT.

All of this can be carried out legitimately under the current MCS rules and because of the lack of legislative authority within the solar industry, activity like this will continue to tarnish the industries reputation.

In the meantime, reputable businesses, which have vast industry experience in installing and maintaining solar PV systems as well as a catalogue of satisfied customers, risk being tarred with the same brush.

There are disciplinary procedures within the MCS contract but are these put into practise and are they harsh enough? Probably not, since independents are largely self-policed.

How can MCS show impartiality if money is exchanging hands?

What the solar industry needs is a similar body to the Financial Services Authority (FSA), where experts and experienced industry leaders provide a professional forum to share ideas and best practise, leading them to decide on appropriate disciplinary action. Not only would this provide the quality assurance system that is necessary but also a legal infrastructure that would help reduce the number of potential ‘cowboys’ out there.

A system is needed to provide transparency not only within the industry but for the consumers who are being caught out by the rogue traders.

The solar PV market is a lucrative and rapidly expanding sector, and the financial gains are such that people from many different disciplines are trying to move into the market. Consumers and businesses should be aware of the limitations of the MCS accreditation and ensure they further research the company’s background and experience, as well as how in-depth the accreditation is.

If this was put into practise, the following questions need to be asked: who pays for it? Who will operate it? and what powers would it have to do what?

A benchmark needs to be established and used by the industry – but this will need Government’s support

UK LARGE-SCALE PV MARKET STOPS BEFORE IT STARTS

2011-08-02T09:24:00.000-07:00

The first day of August, which we have all been talking about since early March, is finally here. Marking the beginning of new, lower feed-in tariff rates for all photovoltaic installations over 50kW, today signifies the end of the UK’s solar industry as we know it.

The Fast-Track Feed-in Tariff review was launched by Government earlier this year in a bid to put a stop to what policy-makers saw as big greedy investors taking advantage of something that wasn’t designed for them. Slashing the incentive rates by up to 70% for PV systems over 50kW, they certainly achieved what they set out to do – and a lot more besides.

Energy Minister Greg Barker justified the proposed cuts by saying, “In these financially challenging times, it is even more important that we get the balance of the scheme right. The projections for take up of FiTs published by the previous Government failed to anticipate any large or small-scale non-domestic solar PV installations until 2013.

“These projections have clearly proved to be flawed. Current market indications are that a rapid increase in the number of larger solar installations entering the scheme could distort funding for smaller and domestic-scale installations as well as other technologies.

“We must act now to ensure that the scheme continues to deliver and we are able to achieve both our Spending Review commitment to improving the efficiency of the scheme, which will deliver £40million of savings (around 10%) in 2014/15, as well as ensuring that the benefits of a faster fall in technology costs are shared as widely as possible rather than captured in higher returns for a small number of individual investors.”

Many met this review with extreme contempt, angry that Government was not only applying the brakes to foreign investment opportunists, but also to community-backed schemes including planned installations on schools, churches, hospitals and council buildings.

Soon after the Consultation for the Fast-Track Review was opened, industry associations including the Renewable Energy Association (REA), Solar Trade Association (STA) and green campaign groups such as Friends of the Earth put their heads together to come up with a way to stop the review in its tracks, and to educate Government on why it was such a bad idea to cut the renewable industry in the UK down in its prime. And so the Our Solar Future Campaign was born.

Many others, including Government Ministers and industry veterans around the world were also outspoken about Government’s decision, expressing their sheer horror that it was even legal for policy to be altered by such an amount when hundreds of thousands of pounds of investment could be lost as a result – with no compensation option available.

The evident backlash formed as part of this campaigning caused Government to change its story somewhat. While it had for months been claiming that the reason for the cuts were down to fat cat investors taking the FiT payments away from poor Joe Average, it was now saying that solar had become a victim of its own success, and that because module prices had declined so much, the subsidy rate was too high.

And Government was right. Module prices had come down and the FiT rates were too high. So why were they just cutting the rate for large-scale plants? Why not making cuts across the board in order to create a level playing field and the potential for growth at all levels?

Government’s reasoning is still unclear.

Following a report compiled by the STA, which claimed that this inadequate support from the UK Government was clipping the wings of its fledgling solar industry, Climate Change Minister Greg Barker dramatically changed his tune:

"Historically, the Department of Energy and Climate Change has underestimated the contribution that solar can make," Barker said. "But solar is now going through an extraordinary stage of development… it's capable of scaling up and competing with the big boys. It's not just for enthusiasts. It has potential to be a significant source of energy.

"While I wouldn't necessarily concur with all the specific recommendations of the [STA] report, there is one clear message that I do agree with: that solar has far more potential than has previously been thought."

These rather unexpected comments, which allowed some hope for the solar industry, came just one day before the DECC revealed the new tariff rates after spending 31 days consulting – yet, unfortunately, they were as low as expected. In fact, it seemed the Department took one month to do nothing.

Ray Noble, PV Specialist said, “This was not a Consultation! No changes were made at all to the Government proposal as set out for Consultation. The problem that needed to be addressed is that the Government made a huge mistake in the CSR budget, allowing for only for single domestic installations, and they hoped and prayed that the Consultation would come up with a way to dig them out of the hole, which was an impossible task.

“As a result the tariffs that the Government have set are too low, in a deliberate attempt to kill off the growth in the industry.”

Move on or move out

After the devastating effect of this revelation had set in, half the industry picked itself up and ploughed ahead with plans before the full effect of the review took effect, while others decided the UK’s solar market was a lost cause, and walked away.

Just one month later, the first large-scale plant was installed, grid-connected and began generating 1,500 solar panels' worth of renewable energy.

In the months leading up to today, more than 10 parks were to be connected to the grid as well as countless large-scale rooftop installations. With the majority of the successful project developers installing up to 5MW of capacity, the completion of such ground-breaking plants was viewed as a real victory for the UK solar industry.

Just one example of this success came in the form of Octopus Investments, which successfully funded the installation of 11 large-scale solar projects throughout the UK ahead of the August 1 fast-track feed-in tariff deadline. The investment company completed 30MW of projects in partnership with Lightsource Renewable Energy, which was responsible for developing each of the sites.

Paul Latham at the investment company said, “We have been able to deliver these sites with finance from VCT and EIS funds which have attracted many-small scale investors. When the deadline for FiT qualification was brought forward, it posed some significant challenges and there was a lot of gloom amongst funders and developers.”

Sadly, it was not good news for all involved. Many who had received planning permission and had already laid out hundreds of thousands in investment costs were not lucky enough to beat Government’s tight deadline, as time simply did not allow. Back then, it seemed that all had been lost.

“Whilst some investment companies withdrew, we held our nerve. Our approach was to look at what could be built within the timescale to qualify for the scheme,” continued Latham.

A minor reprieve

What many of these developers didn’t know was that DECC had been keeping a feed-in tariff policy loophole under its hat.

The apparent escape clause, which DECC had been aware of for some time, was uncovered mid-July and provided UK project developers with the opportunity to by-pass the effects of the fast-track feed-in tariff review. In fact, some had already begun to take advantage of it.

Under sections 15 and 16 of the ‘Feed-in Tariffs (Specified Maximum Capacity and Functions) Order 2010’ document, developers were in fact able to install a system over the microgeneration amount (50kW) before the August 1 deadline (thereby receiving the higher FiT rate) and then install an extended capacity within 12 months. Importantly, this extended amount would also benefit from the higher rate.

DECC were by this point fighting to close the loophole in a bid to prevent further dipping into the FiT pot. A Consultation was opened a week later, confirming Government’s intentions to close the loophole by mid-September this year, and again slam the shutters down on projects over 50kW.

So what now?

In the wake of the very real effect the Fast Track Review has had on the UK’s solar industry, the renewable associations are making one last-ditch attempt to rescue larger solar installations, by campaigning for support under the Renewable Obligation (RO).

This week, the RO Banding review is expected to be published and, among others, the STA is hoping it can be used instead of FiTs to fill the gap and secure major UK solar opportunities. The RO Banding Review will set out the support levels that the Coalition Government plans to offer to different renewable power technologies under the 2013 Renewables Obligation Order.

This really does represent the last chance for the Coalition Government to support solar this Parliament.

Currently, solar is given two Renewable Obligation Certificates (ROCs) of support, which is insufficient. However, with the FiT scheme now only viable below 50kW, sufficient support under the RO is crucial if solar ambitions are to increase under the Coalition Government.

Recent studies suggest, given exceptional solar module price reductions, larger-scale projects require a short period of extra RO support between three to four ROCs to secure major UK manufacturing opportunities and ensure the technology can thrive on two ROCs per megawatt hour by the end of this Parliament.

The RO is not ideal for solar as, unlike the FiT, this complex mechanism is designed for energy industry professionals. Nevertheless, it now appears to be the only hope the schools, hospitals, communities and SMEs to benefit from solar and keep this sector of the industry going over the next few years.

Howard Johns, Chairman of the Solar Trade Association says: "This is the Government's last chance to get the UK's commercial solar industry back on track without committing any extra resources - at a time when investor confidence is at an all time low. Let's hope they see sense and use it."

In the meantime, while this tale of disaster hopelessness has been played out, the UK’s residential solar industry has been swelling at a gluttonous rate. To date, the UK installation figures total *149MW – a whopping 139MW of this is made up of residential projects.

This is an outstanding figure, but really only serves to prove industry’s point: if Government does not wake up and realise that a level playing field needs to be created by altering policy at all levels, then the UK solar industry is heading towards a boom and bust scenario – with or without large-scale solar.

*Note: Ofgem's latest figures do not yet reflect the recently-installed large-scale solar parks.

House of Lords displays unanimous support for solar

2011-07-18T08:34:00.000-07:00

Forming a positive response to the debate surrounding the fast-track feed-in tariff review, Lords from all sides of the House yesterday came out in unanimous support for solar. Going along with the recommendations of the Solar Trade Association, the Lords agreed that solar had been treated unfairly, and that policy decisions had been made without due consideration.

Lords who spoke out during the debate expressed frustration that key questions surrounding solar had not been answered by Lord Marland, who spoke for the Government.

Ray Noble, PV adviser to the STA said, "Solar did not even feature in the top ten technologies in the Renewables Roadmap launched this week. Yet it will be a major contributor to 2020 electricity in key EU countries. Parliamentary time spent discussing solar energy is precious, and the STA believes every opportunity should be taken to raise awareness and show it is a serious mistake to marginalise this technology."

Lord Whitty, former Chair of Consumer Focus and long-term fuel poverty campaigner, said all were concerned about energy bills, but derailing solar was not the answer. He pointed out that the tariffs could have been reduced in the manner recommended by the STA – i.e. a reduction of 25-30% across all sizes of projects – thus ensuring the cost of the scheme would be reduced, while the larger, more cost-effective schemes were treated fairly.

“We were talking about single-site operators; we were talking about farmers; we were talking about all-district heating schemes; we were talking about individual large buildings, schools, university campuses, community projects and small industrial estates,” he said.

“Those were exactly the sites on both the public and community side and the commercial side which we were attempting to encourage adoption of solar energy by extending the limit to 5MW. The idea that it has been a distortion that the benefit has gone to farmers and industrial operators is quite wrong.”

Conservative Peer Lord Lucas also expressed concern that the solar industry had been treated unfairly.

“Government said that adjustments would be made to the feed-in tariff, ‘as evidence on actual deployment, costs and performance emerges ... with the first review due to take place in 2013,’ subject to degression in the level of feed-in tariff from 31 March 2012. The meaning of that seems plain to me: anything that you get under way before 1 April 2012 will be at the stated tariff. Fine, that was said by a previous Government, but new Governments cannot just tear up what has been said before, which is what we appear to be doing,” he said.

Baroness Smith pointed out, “Ernst & Young has set out the effects [in its recent report], stating that the whole investor market has been ripped up by the feed-in tariff review.”

Lib Dem Lord Teverson also supported the motion and asked for solar to be given sufficient report under the Renewables Obligation.

The issue will now go through the Commons.

Fast-track feed-in tariff fate to be finalised

2011-07-14T08:34:00.000-07:00

Members of the Micropower Council, the Building Council for Sustainable Energy UK, the British Photovoltaic Association, the Anaerobic Digestion and Biogas Association and the Combined Heat & Power Association will today appeal to the House of Lords to seriously consider the fast-track feed-in tariff adjustments.

In what may be considered by some as a controversial move, the Group will today speak out against blocking the feed-in tariff review for solar photovoltaics systems over 50kW.

Listed for Lunch Break Business debate in the House of Lords, two motions will be put forward, expressing regrets at the Government’s recently announced decision to impose FiT cuts of up to 70%. The Micropower Council will lead a motion to let these changes go ahead as planned, while the other, an Early Day Motion backed by Leader of the Opposition Ed Miliband, calls directly for the Commons to block the changes.

Under the Energy Act 2008, changes to feed-in tariffs are effected by modifications to relevant Conditions of Electricity Supply Licences. Any changes to these have to be laid before Parliament for 40 days under the negative resolution procedure, and the changes cannot therefore be implemented if either House resolves not to approve them. These were laid before the House of Lords on June 9, 2011.

Although many in the solar industry agree with Miliband’s action against the tariff cuts, the Micropower Council and others named on the letter believe that if the changes were blocked, Government would move rapidly to protect the spending constraint for feed-in tariffs laid down in the Comprehensive Spending Review, and its likely reaction will be an immediate rapid review of the whole feed-in tariff.

The Group believes that this would in turn cause an instant collapse in investor and customer confidence, with many jobs lost as commercial deals currently under negotiation are put on hold. It claims further that businesses already established will find themselves unable to sell amid the uncertainty, leading to many inevitable and quite unnecessary company failures.

“In short, the entire industry for which feed-in tariffs are relevant would likely come to an abrupt halt in much the same way as it did some months ago for those affected by the fast-track review,” states the letter composed by the Group.

However, while the Group is lead to believe blocking the changes will cause ‘irreparable damage’ to the UK renewables industry, others conclude that letting the changes go ahead will have exactly the same effect. At the announcement of Government’s intention to cut the tariffs, Ray Noble, the REA’s PV specialist said, “This is far worse than anticipated. This industry has been strangled at birth.”

Howard Johns, Chairman of the Solar Trade Association said, “The solar industry is one of the genuine good news stories in the UK today, providing jobs, a new green industry and importantly some hope. Crushing it at this time is a serious strategic mistake but inevitable when it appears to be Treasury, not DECC, dictating energy policy. Not only is solar very popular, it is fast to deploy and inherently safe. We know that DECC can be visionary – it has been on renewable heat – it is in the public interest to apply similar vision to solar to reap the huge benefits of this technology.”

While the Group sympathises with this point of view, it remains adamant that the cuts should now be allowed to go through, claiming that “the damage has already been done.”

At present, the feed-in tariff scheme as a whole is scheduled for review in April 2012, when all aspects of the feed-in-tariff will be considered, with proper evidence, under the Government’s Comprehensive Review. The Group believes that this is the proper way to consider and conclude how to take tariffs forward, and urges the Lords to allow the changes to go through in order to prevent an earlier-than-expected review.

“This gives the wider industry a period of stability until then – stability which would not exist if the overturning the fast-track changes disrupts this. We therefore strongly believe it is in the best interests of the wider industry to draw a firm line under the fast-track review, implement these changes and move on, as any further uncertainty would destroy any remaining investor or customer confidence to an irreparable degree,” continues the letter.

The opposition is expected to agree that further uncertainty will destroy any remaining investor or customer confidence to an irreparable degree, but that this will arise from letting the cuts go ahead. The outcome of the debate is expected to be announced by the end of this week.

The letter was signed by Dave Sowden, Chief Executive, Micropower Council, David Green, Chief Executive, Building Council for Sustainable Energy UK, Charlotte Morton, Chief Executive,Anaerobic Digestion and Biogas Association, Reza Shaybani, Chairman, British Photovoltaic Association and Graham Meeks, Director, Combined Heat & Power Association.

GREEN ENERGY (EU) TEACH A SUFFOLK SCHOOL ABOUT RENEWABLES

2011-07-01T13:29:00.000-07:00

Green Energy (EU) has been teaching local school kids at Sidegate Lane Primary in Ipswich about the importance of renewable energy and sustainable methods of creating energy. GE (EU) feel it's important to inform children about the many ways to reduce our reliance on fossil fuels, Co2 and save energy. Children need to understand this new technology now to secure the future of their world.

The children were asked to design a building to include renewables. Ipswich Councillor Elizabeth Harsant, local business men Jeremy Goddard, Savills Commercial Director Chris Moody and GE (EU) Director Jonathan Howard judged their creations. It was amazing to see the designs the children came up with and the innovative ways of incorporating Solar PV, Solar thermal, water collectors and other means to save energy.

Ernst & Young reveal Feed-in tariff cuts could have been avoided

2011-06-20T06:42:00.000-07:00

Independent consultants Ernst & Young have today published an in-depth report focusing on the future of the 50kW to 5MW solar industry after the Government cast yet another shadow of uncertainty over the fledgling market. The UK Solar PV Industry Outlook Report highlights how the deep 70% cuts to feed-in tariff rates could have been avoided, meaning larger-scale solar energy projects would be commercially viable while also sticking to the all-important budget.

At present much of the medium-to-large-scale solar industry faces collapse, as the feed-in tariff will be reduced dramatically for all systems over 50kW, with those over 250kW receiving just 8.5p per kilowatt hour. Ernst & Young’s report highlights neither the cut down levels due to go ahead from August 1, nor the alternative Renewables Obligation – which sees solar receive two renewable obligation certificates (ROCs) – is sufficient to maintain the industry in the UK.

The report argues that marginally higher feed-in tariff rates of between 20p and 24p per kilowatt hour for solar installations between 50kW and 5MW could be the answer. These rates would result in an internal rate of return of 5% for project developers, allowing some of the larger solar farms and community-backed projects could go ahead.

Ernst & Young also demonstrates that feed-in tariff rates of 16p to 21p/kWh would also allow projects to proceed if the UK adopted a net metering scheme, which would mean that solar electricity exported to the grid was paid its true wholesale market value, as opposed to being bought at a price much lower than the retail rate.

Calculating that if silicon prices continue to decline to a possible 17%, the report also shows how the sector could reach grid-parity by 2017, which would mean delivering solar power at the same price as the grid.

The Solar Trade Association is now calling for informed decision making based on a transparent framework and an accurate analysis of the potential and role for solar in the UK. The STA highlights that current Government policy must be based on up-to-date cost inputs, full assessment of benefits, and full consideration of strategic and practical arguments. It is hoped that by outlining a way forward, the solar industry can push Government to provide the support it needs.

To read the report in full, click here.

Solar Power Portal Reveal: DECC takes one month to do nothing

2011-06-10T04:31:00.001-07:00

The UK solar industry's worst fears have today been realised as Government ploughs ahead with its proposed feed-in tariff cuts. Paying absolutely no attention to industry's kicking and screaming, the Department of Energy and Climate Change (DECC) has kept to its original plan and imposed ridiculously reduced rates of as little as 8.5p per kilowatt hour.

As you all know, the fast-track review was launched on March 18. At this time Government revealed that it was to cut the feed-in tariff for PV systems larger than 50kW as it believed these projects would take funding away from the smaller installations. Industry was then given until May 6 to respond to the tariffs, which it did in force.

Since then, the UK solar industry has been sitting on the edge of its seat while Government consulted on the tariff rates, to decide whether the cuts would actually go ahead as planned.

Throughout this timeframe, industry has been fighting tooth and nail to change the results.

Campaign in vain

During the consultation period all of the likely solar suspects rallied together in a bid to push back against the proposed rates. The Solar Trade Association (STA), Renewable Energy Association (REA) and the We Support Solar teams all did their bit to not only fight the decision, but also to demonstrate what Government needs to do in order to provide a future for large-scale solar, while at the same time keeping within budgetary restraints.

It seemed like the STA had finally got through when Barker suddenly changed his tune on the back of its Alternative Solar Revolution Strategy, published at the end of last week. Just days ago the Climate Change Minister was quoted as saying,

"Historically, the Department of Energy and Climate Change has underestimated the contribution that solar can make," Barker said. "But solar is now going through an extraordinary stage of development… it's capable of scaling up and competing with the big boys. It's not just for enthusiasts. It has potential to be a significant source of energy.

"While I wouldn't necessarily concur with all the specific recommendations of the [STA] report, there is one clear message that I do agree with: that solar has far more potential than has previously been thought."

This brought great hope to the fallen faces of the UK solar market. But sadly, this was nothing more than a red herring. To answer the question posed in yesterday's blog, yes, Barker's u-turn was too little, too late.

Construction concentration

While the various industry associations were trying their best to change Government's mind, others were all too familiar with the way things happen in this country. Dozens of developers who had planned large-scale projects have been working through the night to try and get them completed before the August 1 deadline, as they simply didn't believe that Government would change its mind.

Though it seems that some may actually make it on time, others will not be so lucky.

So, what does all this mean?

As expected, the results today have caused uproar in the industry. Ray Noble, PV Specialist said, "This was not a Consultation! No changes were made at all to the Government proposal as set out for Consultation. The problem that needed to be addressed is that the Government made a huge mistake in the CSR budget, allowing for only for single domestic installations, and they hoped and prayed that the Consultation would come up with a way to dig them out of the hole, which was an impossible task."

"As a result the tariffs that the Government have set are too low, in a deliberate attempt to kill off the growth in the industry."

Unfortunately for us, Noble's comments are spot on.

The sad truth is that this means we are unlikely to see many large-scale solar parks up-and-running in the UK unless Government comes up with an alternative incentive structure for them. Many projects will be abandoned in the coming weeks, while countless numbers of investors – both private and public – will lose out on hundreds of thousands of pounds.

This decision damages not only those with pots of money to spend on large-scale solar parks, which the Government was so afraid of supporting, but also those with their lives on the line. Many schemes around the country are now at risk, including those in communities, who had come up with innovative ways to distribute the feed-in tariff payments and give back to the surrounding area, schools who had planned to teach children about the importance of renewable energy in the most visible way possible and local authorities, who were working to beat fuel poverty in their constituency.

STA Chairman Howard Johns also talks about the impact on the country's plc:

"The Coalition Government have got it seriously wrong on solar and given recent statements in the press DECC Ministers are waking up to this. But Treasury have crippled DECC's ability to respond to major developments in solar and DECC itself hasn't got to grips with this technology.

"Ironically crushing solar makes zero economic sense for UK plc because it will lose us major manufacturing opportunities, jobs and global competitiveness. It also risks locking us in to more expensive energy options in future. It is inexplicable that the Treasury can be allowed to damage energy and industrial policy by taking decisions without taking into account the bigger picture. The Prime Minister urgently needs to intervene to prevent this calamity," he continued.

"Solar Trade Association will take every available opportunity to work constructively with DECC. But solar is now in a mess. Many investors and project developers are walking away badly burned and current Renewables Obligation support for solar is too low to prevent collapse. We want to meet with Ministers to find a way forward as a matter of urgency."

The REA's Chief Executive Gaynor Hartnell outlined Government's failure to assess the industry as an entirety, highlighting that by cutting the tariff for larger installations, it threatens to damage the industry as a whole.

"We don't support this. The logical approach would have been a 25% reduction across the board, irrespective of size. This is on account of panel costs falling significantly, a phenomenon expected to continue so that PV should need no subsidy before the end of the decade," she explained.

"We think Government should increase the size of the feed-in tariff budget and encourage a healthy PV industry to establish in the UK. But to be fair to the electricity consumer, Government must be prepared to intervene to reduce tariffs when justified, and the industry must accept this needs to happen.

"The handling of this whole affair has been poor. Larger-scale PV has been demonised, when it is the most cost-effective approach. Midway through this decade we're expecting its cost to be on a par with offshore wind," concluded Hartnell.

At present the tariff for systems up to 50kWp remain untouched, yet some are dubious about how these will be affected in the coming months. "Based on my knowledge of the large number of projects being installed at present, the total CSR budget will be exhausted by mid 2012 – then what happens?" asks Noble.

"If only they had got the CSR Budget right on day one the Government would have been singing the praises of the enormous growth in the solar industry and the green jobs market. Come on Mr Cameron do the right thing, correct the CSR error, rather than kill the industry," he concludes.

The rates that will apply for all installations with an eligibility date on or after August 1, 2011:

>50 kW – 150 kW TIC = 19.0p/ kWh
>150 kW – 250 kW TIC = 15.0p/ kWh
>250 kW – 5 MW TIC and stand-alone installations 8.5p/ kWh

The eligibility date is defined as the date as regards a particular Eligible Installation from which eligibility for FiT Payments commences which shall be the later of the date: a) as applicable, of (i) receipt by the Authority of a FiT Generator's written request for ROO-FiT Accreditation in a form acceptable to the Authority; or (ii) receipt by a FiT Licensee of a FiT Generator's written request for MCS-certified Registration; b) on which the Eligible Installation is Commissioned; or c) of Implementation

Huhne confirms new carbon budget

2011-05-19T05:46:00.001-07:00

Energy and Climate Change Secretary Chris Huhne has confirmed that the DECC will go ahead with its fourth carbon budget, increasing the emissions target to 80% by 2050. The decision has been made in the wake of the Committee on Climate Change report revealed last week.

According to the DECC, Government will continue to argue for an EU move to a 30% target for 2020, with ambitious action planned for the 2020s. "We will review progress in EU climate negotiations in early 2014. If at that point our domestic commitments place us on a different emissions trajectory than the EU Emissions Trading System trajectory agreed by the EU, we will, as appropriate, revise up our budget to align it with the actual EU trajectory," the Department claims.

"Before the end of the year we will announce a package of measures to reduce the impact of government policy on the cost of electricity for energy intensive industries and to help them adjust to the low-carbon industrial transformation."

Prime Minister David Cameron said, "When the coalition came together last year, we said we wanted this to be the greenest government ever. This is the right approach for Britain if we are to combat climate change, secure our energy supplies for the long-term and seize the economic opportunities that green industries hold.

"In the past twelve months, we have pursued an ambitious green agenda and today, we are announcing the next, historic step. By making this commitment, we will position the UK a leading player in the global low-carbon economy, creating significant new industries and jobs.

"The transition to a low-carbon economy is necessary, real, and global. By stepping up, showing leadership and competing with the world, the UK can prove that there need not be a tension between green and growth."

Huhne concurred, "Today's announcement will give investors the certainty they need to invest in clean energy. It puts Britain at the leading edge of a new global industrial transformation as well as making good our determination that this will be the greenest government ever.

"The Coalition Government has set a fourth carbon budget level, in line with the advice from the Committee on Climate Change, that sends a clear signal about our determination to transform Britain permanently into a low carbon economy. By cutting emissions we're also getting ourselves off the oil hook, making our energy supplies more secure and opening up opportunities for jobs in the new green industries of the future.

"Through the Green Deal, electricity market reform and the Green Investment Bank we're already putting in place the tools that will help us meet this ambitious carbon budget. This and every future British Government will have to keep up the pace and put in place the most effective policies to tackle climate change.

"Under this carbon budget, Britain in 2027 will be a different place and transformed for the better with warmer homes powered by green energy, many more cars powered by electricity and far less reliance on fossil fuels to drive our economy."

However, while this is viewed as a victory for the coalition in terms of living up to its 'greenest ever' pledge, not all are convinced.

The solar industry is still facing a great amount of uncertainty, as it is still unclear how much the feed-in tariff rates will be cut by in the coming months. While Huhne reassures investors that confidence can be restored, the increase of targets announced today does not lie with previous cuts to the renewables budget.

In fact, Government admits that, "Under the fourth carbon budget, Government will aim to reduce emissions domestically as far as practical and affordable, but also intends to keep open the option of trading in order to retain maximum flexibility and minimise costs in the medium-long term."

Solar Power Portal

New Solar Site!

2011-05-18T04:46:00.000-07:00

It has been three months in the making but we have just released version 1 of our new Solar Energy site: http://www.greenenergy-solar.co.uk/ .

We went for an entirely new look and feel to our existing websites, hoping for that "Wow!" factor as people land on the page with that great backdrop.

We now need to bring our other sites up to the same level of visual impact as this.

We really see this as version 1 of the site. There was so much information to get through it took three months just to compile this site. So much more information to add - and Green Energy Solar are adding products and suppliers to their catalogue the whole time. Check back!

UK fails to reach renewable energy targets

2011-05-01T04:59:00.001-07:00

As we all try and pick ourselves back up from recent knockbacks in the UK's renewable energy sector, it's rather worrying to find out that we actually missed our renewable energy target for 2010 by 3.5%. As a result, the levels of confidence we have in reaching the much larger, more daunting target set for 2020 are plummeting by the second.

This week the Renewable Energy Foundation (REF) published its analysis of the UK's renewables performance in 2010 based on data provided by the Department of Energy and Climate Change (DECC) and Ofgem. The report found that the country only managed to reach 6.5%, when the target was set at 10%. This means that renewables were responsible for approximately 25TWh of generation compared with the target of 38TWh.

Dr John Constable, Director of Policy and Research for REF said, "The EU's renewable targets have long been known to lack credibility and clarity of purpose. The UK results we are publishing today show that in spite of very high costs to consumers, the 2010 target has been missed by a large margin, and that consequently the EU 2020 target is plainly beyond reach. The counterproductive target-led renewable policy agenda to 2020 has now reached the end of the road, and should be replaced with a more feasible and reasoned strategy."

Sadly, this news only confirms the long-standing doubt that we are never going to reach the point where at least 30% of UK electricity is generated from renewable sources in 2020. I can already feel the disappointed looks from the rest of Europe as they proudly display their efforts. But they're right, we should be embarrassed.

What is really scary is that 2010 was the year that the so-called 'greenest Government ever' came into power. The UK was promised so much from the joint force that is the Coalition, and for once we were beginning to feel confident that reaching the 30% by 2020 was possible. Unfortunately, it wasn't long before our hopeful looks turned into downcast stares.

Incentive excitement

The introduction of the feed-in tariff was a huge boost for the UK's renewable industry, promoting more than 20MW of installations in the first four months alone, over half of which was down to solar photovoltaics. This was not necessarily surprising, as its not as if the UK does not want to do its bit for Mother Earth, it just needed an incentive in order to do so.

So, there we were, with a fantastic reason to run off and install solar panels and other green technologies across the country, when Government came along and started messing around with the policy. We are now in a position where the only thing that was driving our renewable energy mix fast towards our 2020 targets is at risk of being slashed to the point of no return.

Let's hope our policy makers are taking note of this failure to reach renewable energy targets. With just three weeks to get back to DECC with our thoughts on the fast-track tariff proposals, it's more important than ever that these shortfalls are highlighted.

Come on Government, wake up and smell the disappointment.