Solarfeedintariff.co.uk has received hundreds of enquiries asking how the coalition government’s Spending Review will impact on feed-in tariffs. Feed-in tariffs, in the UK known as the Clean Energy Cash Back scheme were introduced as a way of incentivising investment in green energy through the payment of fixed, premium rates for energy generated from small scale renewable projects. Most of the enquiries coming through this website have focused specifically on how the Spending Review will affect UK solar projects so we will seek to answer some of the most popular queries.

How will the Spending Review affect Feed-in Tariffs?

The Department of Energy and Climate Change (DECC) has stated that the tariffs will now be focused on the most cost-effective technologies and fortunately, this includes solar pv. The DECC has said,

“Feed-in tariffs will be refocused on the most cost-effective technologies saving £40m in 2014-15. The changes will be implemented at the first scheduled review of tariffs [in 2012, to kick in 2013] unless higher than expected deployment requires an early review.”

While rates for solar projects will remain unchanged, the government has announced that changes could be made in the 2012 review which could see the tariff cut by 10 per cent in 2014 and 2015. Rates paid by the tariff could be effected by what the DECC have termed a ‘Trigger Point’ where a figure for solar installation is met, reducing the tariff payments.

When will the Trigger Point take affect?

No announcement has been made as yet on the Trigger Point criteria but is likely to revolve around something like installed capacity or applications to install. We will not hear anything until 2012 at which point the government will have to revisit the legislation because currently there is no mention of trigger points in the tariff scheme.

When is the best time to install?

Perhaps one of the most common questions coming to us through our website is the question of the best time to install solar pv panels in order to start taking advantage of the feed-in tariffs. Our answer is always, right away! As it currently stands, you will be able to take advantage of rates of 41.3p until 2012 for units of energy generated from your solar panels. If, however there is a massive take up in solar installation within the next 2 years, the government may decide to reduce the tariff for future installations.

How will any changes affect people who have already installed?

It won’t. Contracts are fixed meaning that anyone who signs up for a tariff rate of 41.3p for units of energy generated can expect those payments for the next 25 years.

Solarfeedintariff.co.uk along with a number of environmental groups are happy with the way solar pv projects are safeguarded amongst the government’s drastic spending review. Now is certainly the time to take advantage of high tariff rates and generate revenue for your household for the next quarter of a century.

The BBC website yesterday released a business article showing that all is not doom and gloom in the financial world. Certainly, while we are told that Britain is set to reel under the dramatic public sector spending review of the coming months, farming at least has the potential to benefit financially from the government’s solar feed-in tariff scheme.

Solarfeedintariff.co.uk has been a keen exponent of the tariff system both home and abroad for the last three years as a way of making solar projects viable, profitable and of course, a long term alternative to other unprotected investments. Now, as the BBC has reported, it is now the turn of forward thinking farm owners to cash in on the tariff scheme which pays small scale producers of solar photovoltaic energy a fixed, premium rate both for the energy they use and feed back into the national grid.

On a BBC website laden with news of the scrapping of the Ark Royal, cutting the Housing budget and the Spending Review, it is good news for a young and growing UK photovoltaic industry that high profile media outlets are now regularly running with solar feed-in tariff case studies. Never one to shy away from the media, Glastonbury festival entrepreneur Michael Eavis plays a prominent role throughout the article, highlighting the very simple financial rewards involved in investing in solar. Indeed, in an industry often reluctant to change Eavis provides perhaps the best example of how farmers can increase profits through investing in new areas, in his case, Rock Festivals and Solar panels.

With a number of solar pv companies now vying to tap into the burgeoning solar market on British farms, landowners will have no shortage in sourcing panels in order to start tapping in to the tariff scheme. The BBC article, rich with quotes from suppliers stressing difficulty in keeping up with demand at the moment, highlights that, once the revenue generation model of solar pv becomes better understood and widely accepted, then the potential for long term profits in UK rural solar projects will continue to go from strength to strength.

For more information on how you could benefit from the solar feed-in tariff, please contact: elliot@solarfeedintariff.co.uk

Solarbuzz, the market research group which focuses on solar photovoltaic (pv) has released its UK pv market 2010 report and highlights strong growth potential for the year ahead. Indicating the link between the market and the feed-in tariff legislation, Solarbuzz predict that 2011 will see a surge in solar pv installation as investors look to tap into the government’s tariff scheme.

With a focus on such factors as market segmentation, market size and tariff rates the report has highlighted the continuing growth of the infant solar pv market in the UK. Alan Turner of Solarbuzz said,

“The early entrance of big name brands are helping to lend public confidence to what is generally a poorly understood renewable energy source in the UK,”

The Solarbuzz market report has highlighted the following trends for solar pv:

• The south east accounts for 45 per cent of residential solar pv installations in the US
• 2011 solar pv figures will be hugely impacted by emerging agricultural and industrial projects
• Big name brands entering the solar pv market will easily meet the growing demand for solar installations

Hamburg based solar specialist. Centrosolar has opened a UK subsidiary as a way of tapping into the now lucrative UK solar market. Buoyed by the introduction of the feed-in tariff back in April, the UK has attracted growing interest from investors at home and abroad looking to take advantage of the tariff’s offerings.

Centrosolar are a company well known in Germany for the production of both crystalline high performance solar modules and thin film modules designed for roofs not able to take weightier systems. With UK product certification now granted, Centrosolar is looking to ship its products from their plant in Wismar, Germany to the UK where demand for solar systems has grown exponentially through the summer.

Centrosolar are more than aware of the positive affects which strong incentives can have on renewable energy and in particular, PV. Germany has been one of the world’s leaders in solar energy uptake over the last ten years thanks to the strong tariff legislation which has attracted investment in its renewable industries.

With a view to twinning German solar engineering with local market knowledge, Centrosolar have recruited Simon Gerrard, former Head of Sales for Solarcentury to run its UK operations. With daily news updates reporting on the ever-growing success of the UK feed-in tariff, it is very likely that not only will Centrosolar build a strong bridgehead, but others are likely to follow suit before too long.