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Posts tagged with: Solar Feed In Tariff

Commenting on publication today of a safety review of the UK nuclear industry following the Fukushima crisis in Japan earlier this year, Friends of the Earth’s energy campaigner Tony Bosworth said:

“This report does nothing to alter the Alice-in-Wonderland economics of nuclear power – it’s a gamble we don’t need to take.

“After more than five decades of nuclear generation the industry still relies on huge public subsidy, while solar is set to operate without taxpayer support within a decade.

“Getting tough on energy waste and plugging in to the UK’s vast green power potential will meet our energy needs and build the new job and business opportunities our economy is crying out for.”

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.”

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.”