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.”

Cambridge based solar technology company Polysolar has developed a hi-tech photovoltaic glass which could be used at next year’s Olympic Games in London and also the 2022 FIFA World Cup in Qatar. Polysolar’s transparent PV glass has been designed for use by architects in windows, cladding and glass structures as a way of generating green energy. The glass is already in use in other countries and is able to generate 100w of energy from each pane of glass making it an effective way of generating clean energy from wall and roof space.

Explaining the idea behind the glass, Hamish Watson the founder of Polysolar said,

“Our product is different from any other solar panel on the market, because it can be used as a building material, making it a highly cost effective integral part of the building. Unlike traditional solar cells, which need to be southward facing, the glass can be positioned anywhere, so is more flexible for large scale architectural and engineering projects and hence it generates a higher yield.”

Importantly, Polysolar’s glass has received MCS certification for the UK feed-in tariff. This means that where installed, landlords will be able to generate revenue from the energy which the panes generate which is used or fed back into the national grid. The Ploysolar product will also have the attraction that where installed, property owners will see massive reductions in their electricity bills. Aside from the obvious financial benefits, Hamish Watson is well aware that the green credentials of solar pv technology will be very welcome by event organising committees.

“Our PV glass has generated a lot of interest and we are in discussions to install it at the 2012 Olympic village, where it could be used to help generate power for information displays across the site. We have also had early discussions with the organisers of the 2022 World Cup and the developers of London’s Walkie Talkie building – both projects are obviously quite exciting for our company.”

On a rooftop in Suffolk there now sits a vast 500KW solar panel project which, much to the pleasure of the solar installation firm involved Going Solar and client, Debach Enterprises has been completed in advance of the August cut-off date for the current feed-in tariff rates. For projects completed after that date, tariff rates will be reduced as part of controversial reductions in the money paid out as part of the scheme. The £1.2m project would have fallen foul of the cutbacks in the tariff as it is over the 50KW threshold putting it in the large scale project bracket.

The 2,200 solar panel project completed by Going Solar will generate up to 440,000kw hours of electricity every year, enough to power the warehouse and provide a surplus to the national grid which as well as being enough energy to power 100 homes, will generate a healthy revenue stream via the tariff pay outs. The government’s cuts in the feed-in tariff come as they try to move the emphasis away from large scale solar farms and into smaller scale roof mounted solar projects. Going Solar Director Charles Houston believes that not all rooftop schemes should face the cuts and that size should not necessarily be a factor in precluding them from the tariff scheme.

“The consultation has only just been completed and we are arguing there is a case for treating rooftop installations differently. The government has a valid point trying to address large solar farms, but with rooftop installations the energy is often used on site and you are only using dead space that is up on a roof. If a business wants to cut its carbon by using that space then it should be encouraged to do so.”

Going Solar has announced that they will be focusing on solar thermal projects in the future with Houston going onto explain that,

“The Renewable Heat Incentive is about to make solar thermal collectors very attractive to schools, hotels and other sites with high water demand, while there is a real window of opportunity for 50kW solar installations. The feed-in tariff went up in April as it is linked to inflation and at the same time solar panel prices have come down. There is now an opportunity for businesses installing mid-sized projects to complete installations before the long track review of feed-in tariff likely recommends further cuts to come into effect from 31 March next year”.

Long before he became the Department for Energy and Climate Change’s chief scientific advisor, David Mackay lectured a course at Cambridge on how to perform back of the envelope calculations called ‘Order of Magnitude Physics.’  To teach the course, Prof. Mackay used a series of example calculations based on renewable energy.  Little did I know that the examples he was using would later become part of a book he was writing (and little did he know of the fame and career change that it would bring) but it was listening to these lectures during my undergraduate that confirmed my ambition to work in the solar energy industry.

Already extremely concerned by the growing evidence for ‘human-caused’ climate change, Prof Mackay’s course taught me some astonishing facts, such as how the amount of solar energy delivered to the Earth is ten thousand times the total amount of energy we use over the course of a year.   He made me realise that human civilisation has a huge amount of work to do to halt its greenhouse emissions, but he also gave me the hope through new technologies, we really can wean ourselves off fossil fuels without impacting our quality of lives too severely.

After a PhD and several years working in solar photovoltaics for a large company in Germany, I returned to the UK and was astonished to find that the Government has extremely low ambitions for solar energy and even more astonished that it is using David Mackay’s analysis, at least in part, to justify this.  At present, the Treasury’s £360m cap on Feed-in tariffs means that support for solar PV at all scales will end by mid-2012 and limit solar PV capacity in the UK to less than 3% of Germany’s current installed base.

When I re-read Mackay’s key book ‘Sustainability Without the Hot Air,’ I find it paints a very compelling argument for solar energy.   Prof Mackay repeatedly points out that solar energy can deliver far more energy than any other renewable energy technology in the UK, as illustrated by the fact that the amount of solar energy we receive in the UK is fifty times the total amount of energy we use, including transport and heating.  At the time of writing, David Mackay singled out two hurdles for widespread solar adoption in the UK; cost and space. It seems as though these hurdles have been interpreted by the Government as insurmountable barriers, whereas careful re-examination of these hurdles using up-to-date figures reveals them to be significantly less onerous than Mackay first assumed.

In relation to costs, David Mackay states ”it will be wonderful if the cost of photovoltaic power drops in the same way that the cost of computer power has dropped over the last forty years.” This is exactly what has been demonstrated over the last 5 years.  Jenny Chase, a solar energy analyst at the research firm Bloomberg New Energy Finance claims “In 2011 we expect an oversupply of solar panels which will put continued downward pressure on system prices.” In his book, David Mackay uses a solar electricity cost of €0.25 per kWh which is 4 times current wholesale electricity costs, but only twice the price of retail electricity, and seeing as prices have continued to fall exponentially since the time of writing in 2008 we can expect this gap to be closed fast.  In fact, the cost of solar energy is falling much faster than that of any other energy technology to the point where it is the expected to compete with unsubsidized retail electricity prices in UK latitudes by 2014/2015¹.  In contrast, the cost of nuclear energy has risen 5 fold since 1970 according to a recent study by Yale University’s Arnulf Grubler².  By supporting the solar industry now, it will soon be able to support itself without subsidy.

Digging deeper into the Government’s original modelling of overall ambition for PV, the Renewable Energy Association has found that a mid-range future fossil fuel price scenario was used which assumes a cost of $80 per barrel of oil in 2020 (which is unlikely considering current prices are frequently above $100).  By using such unrealistic forecasts, the value of investment in solar energy is being systematically undervalued.

The second issue that Prof Mackay raises is with the amount of area required to get large amounts of solar energy.  Whilst there is a vast amount of solar energy available to us in the UK, that energy is disperse, meaning you do indeed need to cover a considerable area in solar panels to cover our electricity needs.  Prof Mackay points out that to get our current electricity (50 units of electricity per person per day) needs would require 200m² per person.  This is a huge amount of area, but it’s important to realise that reaching that target is highly plausible.  The total amount of roof space per person in England is 47m², domestic gardens 114m², and roads and open spaces make up 60m² and 2300m² per person respectively³, so by using a proportion of roof space and a small proportion of open space we could certainly get close to 200m².  Its important to point out that open space does not mean prime farmland, there are many brown field sites that could be put to good use.  Nor do solar panels on open space prohibit the use of that land for other means.  When placed in fields for example, solar arrays can still permit some animal grazing and in other countries, solar arrays are often positioned along motorway banks or as canopies above car parks.

Obviously getting between 100m² and 200m² of solar panels per person in the UK would be a gigantean undertaking and one that would change the look of our country, but this would be just one of a long line of gigantean undertakings that have taken place in our history.  The expansion of organised farming, the construction of road and rail networks, and more recently the construction of electricity and mobile phone grids were all projects that have profoundly changed our country and its appearance.  Just because the task may be large, does not make it impractical.  In the UK we happily resurface 60m² of road per person every 5-10 years.

Solar energy has already proven itself highly popular in the UK.  It is one of the few technologies that can be produced effectively on a domestic scale giving power to families to generate their own electricity.  Solar energy can also be deployed staggeringly quickly.  In 2010 alone Germany installed 8GW of solar energy distributed among over 200,000 individual installations.  That is equivalent to over two nuclear power stations, and there is no way those nuclear power stations could be built so quickly.

There is a misconception that micro-generation does not result in large amounts of energy, but multiplied thousands of times, the amount of energy we can harvest from small solar installations is enormous.  The UK will of course need a balanced mix of different energy technologies, but lets give solar its rightful place alongside the other major forms of energy generation.  As Prof Mackay points out; ‘to complete a plan that adds up, we must rely on one or more forms of solar power. Or use nuclear power. Or both.’

Dr Toby Ferenczi is Chief Technology Officer of Engensa and a member of the Renewable Energy Association’s Solar Energy Steering Committee.

1. AT Kearney Report; ‘The True Value of Photovoltaics for Germany’ 2010
2. Arnulf Grubler, Yale University; ‘The costs of the French nuclear scale-up: A case of negative learning by doing’ Energy Policy, 2010
3. Department for Communities and Local Government, Land Use Statistics (Generalised Land Use Database) 2005, www.communities.gov.uk/publications/planningandbuilding/generalisedlanduse