With the impending contraction of the solar feed-in tariff, the race is on for those wishing to tap into the existing rates paid out to investors in solar energy in the UK. One of many hoping to set up under the current tariff regime is German manufacturer Solon who having secured a deal to construct a 408kw site in Buckinghamshire will be looking to have everything in place sooner rather than later.

The impetus to have everything in place comes from the fact that in August, the government are to make cutbacks to the feed-in tariff meaning lower yields for installations falling after that date. Meeting their construction timetable will mean client Rockspring benefitting as a large scale generator from tariff rates which will be cut for projects over 50kw through cutbacks.

Covering 1.4 hectares and employing over 1,500 modules this project is a good example of the large scale solar farms which the government is trying to push away in favour of smaller scale solar installations.

Having faced the challenge of cheap solar modules flooding the market from China and reductions in subsidies across the European Union, missing the revenues to be generated from the UK feed-in tariff would certainly be a bitter pill to swallow. In all, things are not overly rosy for the German manufacturer and missing the opportunity of revenue from the solar feed-in tariff could prove one misfortune too many.

• Reduced tariffs for over-50kW solar
• Increased support for farm-scale anaerobic digestion

Proposals to reduce the financial support available to larger scale solar-produced electricity have been published by the Government today as part of plans to protect financial support for homes, communities and small businesses.

The consultation follows the launch in February of a fast-track review into how the Feed-in Tariffs (FITs) work for solar photovoltaic (PV) over 50 kW after evidence showing that there could already be 169 MW of large scale solar capacity in the planning system – equivalent to funding solar panels on the roofs of around 50,000 homes if tariffs are left unchanged.

Such projects could potentially soak up the subsidy that would otherwise go to smaller renewable schemes or other technologies such as wind, hydro and anaerobic digestion.

Projections at the start of the scheme had shown no large scale solar under the FITs was expected until at least 2013.

Today’s consultation also covers proposals to provide added support to farm-scale anaerobic digestion given the disappointing uptake of such technologies to date.

Greg Barker, Climate Change Minister said:

“Our cash for green electricity scheme is a great way to reward homes, communities and small businesses that produce their own renewable power.

“I’m committed to an ambitious roll out of microgeneration technologies as part of the Coalition’s green vision of a much more decentralised energy economy.

“I want to make sure that we capture the benefits of fast falling costs in solar technology to allow even more homes to benefit from feed in tariffs, rather than see that money go in bumper profits to a small number of big investors.

“These proposals aim to rebalance the scheme and put a stop to the threat of larger-scale solar soaking up the cash. The FITs scheme was never designed to be a profit generator for big business and financiers.

“Britain’s solar industry is a vital part of our renewables future and our growing green economy. The new tariff rates we’re putting forward today for consultation will provide a level of support for all solar PV and ensure a sustained growth path for industry.

“Taking a pro-active approach to changing tariffs will allow us to avoid the boom-and-bust approach we have seen in other countries and enable us to support more homes and community schemes, and a wider range of technologies such as wind, hydro and anaerobic digestion.”

As solar PV technology has developed, its costs have reduced, and are now believed to be around 30% lower than originally projected. This means the technology does not need as much support to be competitive.

The Government is therefore proposing reducing the support for all new PV installations larger than microgeneration size (50kW) and stand alone installations. The new proposed rates are:

• 19p/kWh for 50kW to 150kW
• 15p/kWh for 150kW to 250kW
• 8.5p/kWh for 250kW to 5MW and stand-alone installations

These compare with the tariffs that would otherwise apply from 1 April of:

• 32.9p/kWh for 10kw to 100kw
• 30.7/kWh for 100kw to 5MW and stand-alone installations

Such changes are in line with amendments made to similar schemes in Europe where in Germany, France and Spain tariffs for PV have been reduced sharply over the past year.

Alongside the fast-track review of solar, a short study has also been undertaken into the lack of uptake of FITs for farm-scale anaerobic digestion. The study suggests that the tariff for this technology is not high enough to make such schemes worthwhile. The proposed new tariffs are:

• 14p/kWh for AD installations with a total installed capacity of up to 250 kW
• 13p/kWh for AD installations with a total installed capacity of between 250 kW and 500 kW

These compare with the tariffs that would otherwise apply from 1 April of 12.1p/kWh for AD up to 500 kW.

Government policy is specifically to deliver an increase in energy from waste through anaerobic digestion, not to promote energy crops, particularly where these are grown to the exclusion of food producing crops. DECC is talking to Defra and others about the best way to implement controls to make sure this does not happen.

The Government will not act retrospectively and any changes to generation tariffs implemented as a result of the review will only affect new entrants into the FITs scheme. Installations which are already accredited for FITs will not be affected. Solar PV installations less than 50kW are not affected by this fast track review.

These changes are proposed to be implemented in advance of the comprehensive review of FITs, which is currently underway and will look at all aspects of the scheme.

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“Solarfeedintariff.co.uk believe the government has made a mistake in reducing their support of the U.K’s solar industry. Solar farms would have brought the country closer to its renewable energy targets much faster and more cheaply than roof top solar alone”

Engensa, a UK based solar company recently installed the UK’s first micro-converter system – a radical new technology that enables millions of otherwise unsuitable roofs to be used for solar PV by eliminating many of the problems associated with shading.

As thousands of families each month install solar PV systems, the crucial role of the inverter – the nerve centre of any system – is coming under increasing scrutiny.

A standard inverter has two distinct roles: the first is to convert the DC current produced by the panels into AC current that can be used in the home.  The second, crucially important, role is to manage the output of each of the panels and this is where traditional inverters can struggle.  The problems come about when even a small part of the installation is shaded by a tree or a nearby building.  Solar cells are essentially large semi-conductor diodes (similar to computer chips) which convert sunlight into electricity and are connected together to make a panel.  When even a single cell within a panel is shaded it limits the current that can flow in the whole system, because with a normal inverter the solar panels are connected in series.  This means that with a regular inverter the entire system performs to the standard of the weakest panel.

As the snows fell before Christmas, Engensa installed the UK’s first ever micro-converter – a radically different kind of solution manufactured by SolarEdge, an Israeli based leader in PV power optimization.

Instead of having a single inverter, the SolarEdge system is made up of multiple PowerBoxes, which sit under each solar panel and maximise the power of each individual panel and communicating this to a central inverter across the existing power lines.  In addition, PowerBoxes maintain a fixed DC string voltage, allowing optimal efficiency of the SolarEdge PV inverter at all times and enabling a significant increase in the amount of electricity generated over the lifetime of the system.

According to Dr. Toby Ferenczi, Engensa CTO, it is ‘the UK’s first of a kind installation with distributed power harvesting.  In plain English that means you get more energy output and greater PV monitoring capability compared with a conventional solar PV system because each panel is controlled separately.’  According to experts at Engensa, this new technology means that the impact of shadows falling on the panels is greatly reduced because only the output of the shaded panels are affected, rather than the whole system.  It also means you can install panels in different orientations giving much greater flexibility when designing the system.  A third benefit is that system owners have much greater insight into how their system is performing since it allows the output of each individual panel to be monitored in real-time, even from an iPhone.

‘SolarEdge’s product is a breakthrough that we have been waiting for,’ says Dr Ferenczi.    ‘Our focus, in the increasingly competitive solar market, is to provide our customers with the best technological innovations from around the world and as part of this commitment we are delighted to have installed the first SolarEdge system in the UK.’

Since the intoduction of the government’s feed-in tariff scheme in April 2010, renewable energy and the potential for individuals to cash in has been a running theme in the British media. While certain newspapers have taken a negative view of the potential for green energy and an even dimmer view of some of the companies attempting to take advantage of the new legislation, there is little doubt that feed-in tariffs have had a big impact on the British mindset on renewables.

Historically reactive and often adverse to change, the British public is becoming increasingly aware of the financial rewards that can come from investing in renewable energy based on feed-in tariff pay outs both for the energy used by the household and energy fed back into the national grid. Once commercially unviable, feed-in tariffs work by offering premium, guaranteed rates to renewable micro-generator thus off-setting the high costs of solar panels while offering attractive returns to investors over a period of 20-25 years. This financial mechanism has led to a great deal of companies springing up with offers to fit solar panels to households for free, the benefit to the homeowner being reduced utility bills and the benefit to the companies being long term returns from the tariff.

Indeed, British Gas research alone has shown that the tariff will spur around half of Britain’s homes to eventually invest in solar panels, bringing in an annual revenue of between £600 and £1000. The national grid, which has been criticised of late for its perceived inability to cope with the shift towards green energy has released findings about the future for solar energy in the UK. Certainly, with the UK on target to meet its climate change targets within the next decade, it seems that solar photovoltaic (pv) should also go from strength to strength on the back of the tariff legislation. The national grid has shown that within the next 10 years around 31,950 MW of solar panels will be connected.

The national grid has shown that around 29,000 MW will be needed to exceed government targets of generating 15 per cent of energy by renewable means. This would mean enough energy to power around 20 million homes, a massive change in the way energy is both generated and consumed in the UK. The national grid has shown that while we are certainly on the right track in order to bring about a root change in the way the UK generates energy, the government has to remain focused on renewable energy. With a review of tariff rates due, it will be essential that the government maintains a tariff rate which continues to incentivise long-term investment.