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 31^st 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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Ofgem’s Sustainable Development Focus has released figures showing that in the first 6 months of feed-in tariffs in the UK, over 11,000 generator have registered for the tariff, marking a considerable surge in solar photovoltaic installations in particular. Indeed, with 11,352 renewable systems installed, it indicates that the scheme has been more successful than predicted, with enough output to power around 35,000 homes.

Feed-in tariffs work by offering fixed, premium rates for both the energy generated from renewable systems (which is then fed-back into the grid), and the energy used. When first introduced by the Department of Energy and Climate Change (DECC), it was with the intention of incentivising investment in green energy by off-setting the costs of installing renewable energy systems by creating long term, guaranteed yields from the projects. Emulating schemes applied successfully abroad, it seems that in the first 6 months of operation, the tariffs have certainly been effective as a means of boosting renewable installations across the UK.

In order to get the UK grid network fully up to speed with the complex requirements of a low-carbon economy, the Sustainable Development Focus Report also published its proposals for updating the country’s network. Working on a framework of Revenue= Incentives+ Innovation+ Outputs (RIIO), Ofgem is planning on generating £32 billion of investment much needed to upgrade a UK national grid not yet ready for green energy and the mechanisms set up around it.

Alistair Buchanan of Ofgem wrote in a foreword to the report,

“This is the biggest change to the regulatory framework for 20 years and sets the network companies on a path to playing their full role in the transition to a low-carbon economy while delivering value for money for all consumers.”