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Posts tagged with: Solar Feed In Tariff

 With the government and in particular Chris Huhne making it clear that they do not want the feed-in tariffs to be tapped into by large scale solar farms, the focus is very much on small scale roof mounted projects very much like the one just launched in Bournemouth. The scheme will see a number of council homes and schools across the seaside town fitted with solar voltaic panels, allowing them to benefit from savings on electricity bills as well as generate revenue from the tariff.

The feed-in tariff works by offering guaranteed, premium rates for units of electricity both utilised and fed back into the grid by small scale generators of renewable energy. The emphasis for the feed-in tariff is now well and truly on roof mounted solar projects where home owners are able to benefit from reduced utility bills and of course, in some cases a guaranteed revenue over the lifetime of the project. When the feed-in tariff was launched in April last year, the scheme being rolled out in Bournemouth is exactly what the DECC had envisaged as a way of reducing carbon emissions on a local level.

The Bournemouth solar project is being implemented in partnership between the local council and Mouchel and will create a number of jobs in the installation of the solar pv systems. Bournemouth councillor Peter Charon announced that,

“This is a fantastic scheme for the borough and clearly demonstrates our commitment to reducing our carbon footprint in Bournemouth. We are one of the first authorities in the South to install solar panels on our housing and other council buildings. I am delighted that Kingsleigh Primary School and Heathlands Primary School have elected to join the pilot scheme. Following on from the pilot we will be looking to roll it out to include all council housing, care homes and schools. The overall investment could potentially be £22million with £12million of savings by way of cheaper electricity bills and £15million by way of an income from the Government’s feed-in tariff.”


The early review of the UK solar feed-in tariff has caused consternation within the industry, still in its infancy and reliant on the tariff for log term viability. Chris Huhne, Secretary of the Department of Energy and Climate Change made the announcement this week that the FIT would be reviewed in light of the “threat” to the scheme posed by large scale solar projects which have begun to take advantage of the scheme. This combined with the recent spending review which will make it necessary to cut 10 per cent from the tariff rates.

The feed-in tariff was introduced as a means of attracting investment in solar energy and greatly increasing uptake in solar pv panels in the UK. The tariff works by offering guaranteed, premium rates for units of energy both consumed and fed back into the grid for small scale renewable energy producers. This tariff has been very successful at attracting investors and manufacturers alike, all keen to tap into the revenue which can be generated from the feed-in tariff. However, Huhne believes that the feed-in tariff has perhaps been too attractive with a number of large solar farms developing under the system. The DECC secretary stated,

“Since the Spending Review, I have become increasingly concerned about the prospect of large scale solar PV projects under FITs, which . . . could, if left unchecked, take a disproportionate amount of available funding or even break the cap on total funding,”

Solar Trade Association spokesman, Howard Johns lamented this news saying,

This is really bad news for the solar industry in the UK. Last week Ministers welcomed the study showing that 17,000 jobs would be created by the industry in 2011. This week has seen them once again changing the goal posts and threatening investment and jobs in the sector.”

The doom and gloom of the British winter in January, while not particularly cold, certainly lacks the solar energy you would expect to generate enough electricity from solar panels. Planning to make the most of scant solar resources, a manufacturer of what are considered the most efficient solar units on the market has announced that they have received MCS accreditation and are ready to install in the UK.

The Microgeneration Certification Scheme (MCS) accreditation is required before manufacturers can release their panels onto the UK market. Currently operational across the rest of continental Europe, the HIT series of pv cells produced by SANYO are a leader in energy conversion with a rate of around 21.6 per cent. This makes them a world leader in energy conversion efficiency and will certainly make them a sought after commodity throughout the British solar market.

The highly efficient HIT cells will operate under the feed-in tariff in the UK. The feed-in tariff is legislation which guarantees a fixed, premium rate for units of energy both used and fed back into the grid by solar micro-generators of less than 5kw. This means that British consumers will be able to benefit from increased revenues from solar panels able to generate more units of energy than competitor modules under the same solar conditions. The new panels which will become available from the 31st March 2011 will also mean that less roof space is required to generate energy, broadening the scope of households where solar installations are a viable option.

With the recent announcement that a number of foreign solar manufacturers are preparing to invest in the UK in order to take advantage of the feed-in tariff, the arrival of the HIT solar modules highlights how crucial the tariff legislation is in encouraging investment in our burgeoning renewable market. With the boost this will give to the economy in an already struggling manufacturing sector and job creation in green energy, hopefully Cameron’s government will take this on board and continue to give their backing to the legislation which makes UK solar energy viable in the long term.

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The uptake in solar panels on the back of the feed-in tariff mechanism is creating excitement amongst industry insiders in the UK. Indeed, recent announcements about impressive growth figures from such firms as Solar Century have perpetuated a general feeling of optimism about the future of solar energy in the UK. Soon to invest in the UK PV market are Inventux Technologies and Abound Solar. Both of these companies have recently received their MCS (Microgeneration Certification scheme) certificates and are ready to invest in the UK. Moves like this are sure to be followed by other solar manufacturers, creating jobs and bringing the UK closer to the much hyped ‘green revolution’ expounded by politicians across the globe.

The solar feed-in tariff works by offering guaranteed, premium rates for units of renewable energy both used and fed back into the grid by small scale solar pv generators. The tariffs were introduced as a way of encouraging investment in what have historically been expensive projects to set up – solar PV. The scheme has already been successful in bringing about an increased uptake in solar panels through a variety of projects being set up by fledgling and indeed, more experienced installers.

A number of projects under way; most typically employing the model whereby the solar company installs the panels on the homeowners roof free, allowing the homeowne to benefit from vastly reduced utility bills over the life-time of the project. The solar company benefits over the life-time of the project from the revenue, generated by the feed-in tariff. While homeowners have the option of buying out the contracts, such schemes have been criticised in some circles as being grossly unbalanced with regards to the profits made by the companies compared to the monetary savings made by the homeowners. Nevertheless, such projects have proved popular over the last 10 months and all evidence suggests that they will continue to prosper until tariff rates are cut as part of a government review.

Inventux and Abound are buying into this market, aware that the aforementioned buoyancy us based on the government’s tariff scheme and without it, the UK solar pv industry would be unviable. Inventux who specialise in micromorph silicon thin-film modules have already announced that they are involved in projects in the UK and will continue to grow their UK operations so long as tariff mechanisms make it a sustainable operation. Similarly, Abound with its CdTe thin-film modules is hoping to expand into the UK market by building relationships with already established UK installers. However, both companies will be aware from past examples that where feed-in tariffs are in place, there is no guarantee of long term success – this of course is in the hands of the governement.