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Funding the cost of equipment in order to reduce energy consumption is often the single biggest obstacle that businesses face when deciding on whether or not to proceed with a low carbon project. It can also be a major issue for suppliers and manufacturers trying to sell their products and win new business.

Our partners principle aim is to increase our clients cashflow, whilst at the same time reducing their Energy consumptions and CO2.  We also assist third party service suppliers to win new business by providing independent, flexible leasing solutions for their own clients; which can reduce the need for large Capital outlay, often increase cashflow and free up working Capital.  At the same time this can help to simplify the decision making process and add further value to the end client.

The team have been working in the energy sector for many years and understand the common issues and challenges that all parties face. This is why we offer a range of products and services to overcome these key concerns:

They can offer you a truly independent, tailored solution which is based on the merits of each individual client that we work with.  Utilising our network of over 30 lenders we are experts at finding the best leasing solution to meet your needs whilst highlighting the significant tax benefits that come with leasing.

 

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If you would like more information on this service, please email me at elliot@solarfeedintariff.co.uk

British homeowners are benefiting from the reductions in Chinese wholesale solar prices. This has enabled many homes in the U.K to reduce their carbon emissions. Unfortunately the influx of cheap panels has also damaged the European solar producers who struggle to compete.

The price of PV (photo voltaic) solar panels has dropped by as much as a third this year alone. This has had a huge impact on the returns available for home owners turning to solar.And there is a boom at present as consumers try to install the low-cost equipment before the level of handouts via the government feed-in tariff (FIT) is reassessed in April next year.

Solar Century, a larger London-based supplier that also assembles PV equipment, says a large amount of its equipment is imported from China.Britain has come late to the solar party with government ministers preferring in the past to concentrate on wind power and only fairly recently trying to stimulate demand by offering subsidies to solar users.

This has meant PV manufacture has been concentrated in countries such as Germany and Spain where harnessing the power of the sun has been encouraged for many years.The US, and more recently China, have gradually latched on to the growing global market for solar and have been setting up factories in double-quick time.But the very low labour costs – and allegedly the very cheap finance available from state-owned institutions – has rapidly propelled China into pole position in the production of solar equipment.

The rapid build-up in capacity in the Far East is playing a major role in driving down the cost of panels, but it is also being blamed for a crisis at many German and particularly American rivals.Whatever the reason for solar manufacturers losing out, it should be easy to see a winner: the British homeowner. But it is also tough for consumers deciding which panels they should buy knowing any producer could out of business and shred any 25-year guarantee along with it.

 

Despite the uncertainty surrounding the UK solar photovoltaic industry, the fact remains that with the feed-in tariff in place in any form, there will continue to be a market for investors. The coalition government has announced that they will be changing the feed-in tariff to focus on smaller scale, roof-mounted solar installations to the detriment of large scale solar farms.

However, for those installing solar pv panels, there are still very healthy returns to be had from the payments which come from the feed-in tariff scheme something which Eco Environments believe is the main catalyst behind the growth of the industry in the UK.

There is a very evident media focus on climate change and the resulting political rhetoric which follows and also, a growing culture of awareness in green energy, recycling and the need to dramatically reduce carbon emissions on a domestic level. David Hunt of Eco Environments believes however that the growing interest in installing household, roof-mounted solar panels comes not from a desire to be environmentally friendly but from the commercial advantages which come as part of the feed-in tariff.

Hunt believes that,

“Most people are looking at it now domestically because they are going to get two or three per cent on an ISA or out of the bank account, but with the solar they can get 15 per cent”.

At a time where it is very hard to find savings accounts offering attractive interest rates and there is a worldwide lack of confidence in traditional investment opportunities in the stock market, it is perhaps unsurprising that the great majority of people look to install solar panels for purely financial reasons. After all, while it is the government’s business to meet carbon reduction targets and appear to be environmentally friendly, it is the homeowners business to dramatically reduce their utility bill while hopefully creating a very steady revenue stream on the side

It is unsurprising that the man who headed the Department of Energy and Climate Change (DECC) when the feed-in tariffs were announced under the previous government has joined the campaign against making cutbacks to the feed-in tariff. Ed Miliband now leader of the opposition has come out in favour of maintaining the current rates paid to solar projects regardless of scale.

Greg Barker is in favour of reducing the feed-in tariffs for larger scale solar farms to ensure that investment is focused on solar rooftop installations rather than large scale solar farms which have sprung up in order to take advantage of the tariff payments. The coalition government has maintained that in order for household solar projects to be successful, a cap on payments will be introduced for all solar projects over 50kw capacity, making large scale solar farm projects financially unviable.

Miliband showed his opposition to proposed cuts by signing an early day moton with a view to provoking a debate in parliament to highlight the reasons for maintaining the solar feed-in tariff for all projects. A Labour Party spokesman commented that,

“There has been no real debate about this significant change and we want to see it debated properly at the committee level.”

The feed-in tariff works by offering guaranteed, premium rates for units of energy both used and fed-into the grid by solar photovoltaic generators. The feed-in tariff mechanism was introduced as a way of making solar projects more commercially viable by off-setting the obvious set up costs in installing solar pv equipment. Therefore, the proposed 40-70 per cent cuts for installations over 50kw could prove disastrous for larger schemes as investors are turned off by a lack of returns.

Shadow climate minister, Huw Irranca-Davies echoed the leader of the party stating,

“Minister Greg Barker’s decision to go ahead with the proposed dramatic Feed-In Tariff reductions for community, school and hospital schemes, is a big blow to British industry and betrays the government’s promise the be ‘the greenest government ever.”

Adding, “A decision such as this which fundamentally alters the future for the solar industry in the UK deserves real debate, where MPs can question the Minister on his rash and ill-thought out decision. It should not be snuck quietly through the Commons.”