Solarbuzz, the market research group which focuses on solar photovoltaic (pv) has released its UK pv market 2010 report and highlights strong growth potential for the year ahead. Indicating the link between the market and the feed-in tariff legislation, Solarbuzz predict that 2011 will see a surge in solar pv installation as investors look to tap into the government’s tariff scheme.

With a focus on such factors as market segmentation, market size and tariff rates the report has highlighted the continuing growth of the infant solar pv market in the UK. Alan Turner of Solarbuzz said,

“The early entrance of big name brands are helping to lend public confidence to what is generally a poorly understood renewable energy source in the UK,”

The Solarbuzz market report has highlighted the following trends for solar pv:

• The south east accounts for 45 per cent of residential solar pv installations in the US
• 2011 solar pv figures will be hugely impacted by emerging agricultural and industrial projects
• Big name brands entering the solar pv market will easily meet the growing demand for solar installations

News of spending cutbacks have made depressing reading over the last six months as the government is seeking to rein in spending as a way of controlling spiraling national debt. Health, education, policing and defence have of course been at the forefront of controversy regarding spending reviews and the inevitable consequences which arise as a side effect. Now it is unfortunately renewable energy’s turn to feel the squeeze as some call for cut backs in green energy incentives.

At a time when all members of the coalition government are bemoaning cupboards barer than those of Old mother Hubbard it is perhaps not particularly surprising that Energy Secretary Chris Huhne has been urged to safeguard investments in British renewable energy.

The feed-in tariff which was introduced back in April works by offering guaranteed, premium rates for energy produced by small scale renewable generators. While Huhne has come out and said that, “There is no money left”, he has at least until now talked a good game about supporting green energy in this country. Feed-in tariffs have been absolutely crucial in solar pv taking off in the UK and the future success of UK solar undoubtedly relies on the existence of a strong tariff scheme.

Fearing cutbacks which would cause irreversible harm to burgeoning UK renewable energy businesses, Friends of the Earth (FOE) have carried out their own report designed to show that maintaining and encouraging a strong renewable energy industry has distinct advantages for the struggling e News of spending cutbacks have made depressing reading over the last six months as the government is seeking to rein in spending as a way of controlling spiraling national debt. Health, education, policing and defence have of course been at the forefront of controversy regarding spending reviews and the inevitable consequences which arise as a side effect. Now it is unfortunately renewable energy’s turn to feel the squeeze as some call for cut backs in green energy incentives.

At a time when all members of the coalition government are bemoaning cupboards barer than those of Old mother Hubbard it is perhaps not particularly surprising that Energy Secretary Chris Huhne has been urged to safeguard investments in British renewable energy.

The feed-in tariff which was introduced back in April works by offering guaranteed, premium rates for energy produced by small scale renewable generators. While Huhne has come out and said that, “There is no money left”, he has at least until now talked a good game about supporting green energy in this country. Feed-in tariffs have been absolutely crucial in solar pv taking off in the UK and the future success of UK solar undoubtedly relies on the existence of a strong tariff scheme.

Fearing cutbacks which would cause irreversible harm to burgeoning UK renewable energy businesses, Friends of the Earth (FOE) have carried out their own report designed to show that maintaining and encouraging a strong renewable energy industry has distinct advantages for the struggling economy.

Campaign director for FOE, Craig Bennett said,

“It’s absurd that the Treasury is even reviewing FIT payments because the scheme isn’t financed by taxpayers, and there is already a planned review in two years time. Huhne must stand firm and allow councils, communities and businesses to benefit from green energy revolution.”

The real benefits of feed-in tariffs will be put into perspective in a couple of years when we are able to retrospectively assess the growth of UK renewable investment and uptake compared with our European counterparts. While there are some who may argue that a cash strapped government could better spend its money elsewhere, it is hard to deny that a strong green energy industry would be a vital both for revitalising the economy and helping homeowners make savings on utility bills.

Hamburg based solar specialist. Centrosolar has opened a UK subsidiary as a way of tapping into the now lucrative UK solar market. Buoyed by the introduction of the feed-in tariff back in April, the UK has attracted growing interest from investors at home and abroad looking to take advantage of the tariff’s offerings.

Centrosolar are a company well known in Germany for the production of both crystalline high performance solar modules and thin film modules designed for roofs not able to take weightier systems. With UK product certification now granted, Centrosolar is looking to ship its products from their plant in Wismar, Germany to the UK where demand for solar systems has grown exponentially through the summer.

Centrosolar are more than aware of the positive affects which strong incentives can have on renewable energy and in particular, PV. Germany has been one of the world’s leaders in solar energy uptake over the last ten years thanks to the strong tariff legislation which has attracted investment in its renewable industries.

With a view to twinning German solar engineering with local market knowledge, Centrosolar have recruited Simon Gerrard, former Head of Sales for Solarcentury to run its UK operations. With daily news updates reporting on the ever-growing success of the UK feed-in tariff, it is very likely that not only will Centrosolar build a strong bridgehead, but others are likely to follow suit before too long.

Since the feed-in-tariff came into place in April there have been a large number of companies looking to sign up land owners to option agreements to build solar famers on their land. Now this can be an excellent way for a farmer/land owner to maximise the income they generate and also to diversify their income. Typically the option will be a rental agreement lasting for 25 years where a fixed fee is paid or a percentage of the FIT is offered. The yield will almost always be multiples of what could be made by farming the land sounds great so where is the catch?

The catch is that the site has to be built and producing energy by March 2012 to be viable, so with planning timescales this means you have just one chance with one company to generate this income. Some of the companies out there signing land owners up don’t have any intention of building the sites instead they are looking to get the option agreement signed and sell it on to a company with the infrastructure in place at a profit. This means if they don’t manage to sell the option on the site will not be built and the land owner will miss out on this once in a lifetime opportunity to benefit from the feed in tariff.

So what should you look for?

Proof of funding is the most important element. If a company contacts you and the cannot prove they have funding in place do not deal with them. Whatever they offer you is irrelevant as they don’t have the means to build the site. I would also ask whether the company providing the finance (generally investment bank etc) has invested in green energy before and if they have any other solar projects up and running. This reduces the risk of funding being pulled at a later stage.

Next most important is which company is building the site and what experience do they have in large scale solar farms? Ensure the company has experience in building solar farms and preferably as some running effectively in other solar markets such as Spain or Germany.

Ensure the company has experience in dealing with planning issues on renewable energy. This is important with the tight time scale of the FIT . Once again you have only one shot at getting the site built on the land and you want someone with experience to ensure the process runs smoothly.

Finally look at what the companies are offering you financially, dependant on where you are in the country and grid connection costs a rough guideline is between £500-£1000 per year per acre. If the company offers much less than this you are being short changed. If the company offers much more than this alarm bells should be ringing as the project is unlikely to be viable and therefore you may miss out on your chance to utilise the FIT.

We work with a company who have everything in place to ensure a smooth solar farm build. If you would like any further information please email me at elliot@solarfeedintariff.co.uk