Solar Feed in Tariff rate confirmed into the Summer

This weeks OFGEM update of Feed in Tariff rates seems to be splitting the two basic industry PV installer disciplines wider apart.

While on one hand Domestic, Industrial and Agricultural aspect have remained unchanged and look like we will have a Summer ofcontinued fixed rate of FiT which allows us to talk to the customer with some confidence of rates they will be paid while they organise planning or finance. Huge stand alone field systems that have been proliferating across the country however will be hit.

At the end of March 2013, any system being installed under the ROC's scheme will see the rate cut from 2 ROC's per 1MW of generation to 1.5 ROC's.. To keep this trend going, dissuading investment companies making too much money from these large scale PV programs, after May 2013 any stand alone system under FiT over 100kWp will drop from 7.1p a unit to 6.85p.

The industry see this as a clear indication by the Government to put off investment in large scale stand alone PV systems, as in many quarters they are simply seen as being installed for cash generation rather than any thought of power offsetting, which will be the case on most building mounted systems. Also as many large scale stand alone systems are funded by offshore companies, the continued flow of UK funded cash out the country, there is probably a stand against this continuing.

Large schemes either building mounted or free standing that will connect into either a large domestic or commercial supply and will assist with lowering their carbon footprint are still being encouraged, as the Governments stance is still to keep PV to assist with exisitng supplies.

OFGEM confirm big energy price increases over next couple of years

Extensively publicised yesterday (20th Feb), the outgoing OFGEM chief Alistair Buchanan has warned that the UK's existing fleet of power stations are right at the start of a process for decommissioning dirty coal powered power stations.
Gas
The two viable alternatives Gas and Nuclear, (renewables have been conveniently ignored), have their own set of problems. Gas is no longer the plentiful and cheap fuel of a few years ago, and the UK is now forced to keep negotiating to purchase Gas from other nations who still have a supply available for sale. The purchase cost of Gas will rise extremely rapidly over the next few years, meaning a knock on effect that electricity costs are going to rise rapidly.
Nuclear
Government Nuclear subsidies got pulled in 2010, but these are set to be put back in place again, as the original Nuclear operating companies, such as EDF, shelved plans for projects such as Hinckley Point after these subsidies were withdrawn. The Government have now taken a U turn and have re-instated those Nuclear subsidies in an attempt to get 'low carbon' generation kickstarted. Obviously building a Nuclear power station takes some 5 years or more, so that option is some time off.
Do it yourself!
As we will have noticed, Government tax breaks, subsidies and concessions have been continuing for Oil and Gas generation, though have been dramatically cut for Renewable technologies, however on a small scale you are possibly able to help yourself against these huge rises.
Essential will be insulating your house and business as much as possible. The easy one is more loft insulation, still being sold very inexpensively at DIY outlets. Even if you have loft insulation, putting more on top will make the house less likely to lose heat through the roof.
Solar PV systems have suddenly turned around almost overnight from being investors 'money making machines' to the saviour to avoid huge power bills. Currently, the Feed in Tariff is still going strong and with a domestic 4kWp PV system costing an all time low of around £5000, from Rudge Renewables if you have the space available, its a no brainer to use a Solar PV system in conjunction with energy saving measures to reduce your power bills right down to a fraction of what you are paying now.
The emerging Green Deal could help immensly to finance all sorts of energy saving solutions on the home if money is tight. However, with massive 7.5% interest and admin rates, if you can afford to pay for it yourself or obtain conventional lower interest finance, you will be able to be more flexible without having to endure Government backed assessors surveying your home. Either way, carrying out energy saving measures will save you a big chunk of money in the couple of years to come.
Resources
Independant Newspaper OFGEM report
Scottish Herald report
BBC News report
Energy Savings Trust for energy savings guidance

Richard is the Wilo competition winner!

Wilo, the famous German pump manufacturer in conjunction with giving away their promotional backpacks were last year running a competition to get a backpack photographed in the best location.
Our marketing guy, Richard Fuell took his backpack all the way to China for a holiday. His winning shot of the Wilo backpack on the Great Wall of China inspired the judges to offer him the main prize of a mountain bike.
As you can see, he's extremely excited about the win, and now plans to make use of the extensive cycle paths from our new offices into Exeter and avoid the traffic.

Thanks to Wilo for coming all the way down to hand over the prize bike to Richard. We promise to use more of your bore hole pumps for Off Grid projects this year!

We've moved .. well sort of!

At the end of December, we moved our main office premises to a super new location of The Old School, Clyst Honiton, EX5 2LZ.

This prestigious location and historic building is right in the middle of the new development action in Exeter, being a few minutes walk from the airport, 2 minutes from the M5, 30 seconds from the A30, not to mention the close proximity of the new Science Park, Sky Park and Cranbrook developments only minutes away.

While we are still settling in, there are still boxes to unpack, we are now fully running with better phone and network systems.

More updates in the coming weeks. In the meantime we are going full steam ahead with installing Biomass and Solar Thermal systems for the Totnes Transition Town energy project, providing people in fuel poverty less expensive heating.

Seaton Hospital press release

Part of the recent press release from N Devon NHS....

SEATON Community Hospital has taken a major step towards curbing its environmental impact – thanks to the League of Friends.

The hospital now has solar PV panels on its roof after the charity agreed to fund the full installation costs.

It is the first energy scheme ever financed by a League of Friends of any of the 18 hospitals managed by the Northern Devon Healthcare NHS Trust.

The array will significantly reduce the site’s electrical consumption and carbon footprint, while any incentive payments from the government will be split 50-50 between the Trust and the League.

Bob Lowe, deputy estates manager, has led the project for the Trust.

He said: “This is an innovative investment that has been totally instigated and driven by the League of Friends.

“This is the first time in all my years of involvement with support charities that such an offer has been made to the Trust.

“To invest in an area that benefits the hospital not only in reduced costs but the environmental impact of the site on the local community is extremely forward-thinking.

“They have seen the bigger picture and everyone is a winner as the installation is expected to generate between 50 and 200kW of energy daily, all of which will be used on the hospital site.”

Local company Rudge Renewables completed the installation by the end of July, ahead of a deadline that ensured the best tariff from the government.

The hospital’s clear southern aspect in Scalwell Lane made it a prime candidate for a solar PV array, and the 80 individual panels will produce 20kW of electrical energy.

It is anticipated that 17,700 kWh (units) of electrical power will be generated each year, while the site’s energy footprint will be cut by 2.5 tonnes of carbon.

There will also be financial benefits, with a projected £1,770 coming off the annual energy bill and repayments of £2,600 each year through the government feed-in tariff.

Mr Lowe said the cost of the scheme was expected to be recouped in seven to 10 years.

He said: “With little or no maintenance, the installation will just enhance the site’s goal of providing local healthcare services in an environmentally-friendly manner.”

Dr Joe Pitt, chairman of the League of Friends, said: “When we came up with the idea of funding solar power for the hospital we were delighted with the very positive response from the Trust.

“As a League we always want to help improve patient services at Seaton hospital and this sort of scheme should release funds currently spent on energy bills to instead go to direct patient care.

“We are also aware of our wider responsibility to help reduce the carbon footprint of the hospital.

“We feel it is a model of how the voluntary sector can help the NHS to deliver on those aims, and we hope this model can be copied elsewhere.”

Solar Trade Association says it like it is

Solar PV still attractive tomorrow!

STA explains value of solar investment to domestic consumers

New calculations show that investing in solar will continue to be attractive for domestic properties despite the reductions in the Feed in Tariff (FiT) tomorrow when the FIT for domestic systems will reduce to 16p and the FIT lifetime will reduce to 20 years. However, the price paid for power exported back onto the grid will increase to 4.5p tomorrow, better reflecting the true market value of locally generated power.

A returns ‘Calculator’ devised by the Solar Trade Association (STA) [1][2] for its members, based on credible data, clearly shows the good returns that domestic customers can expect.

Returns for investors in solar power over recent months have been exceptionally attractive [3] and the rate of solar installations is again on a steady upward trend, after a drop-off in April. The new calculations mean the STA and its members are confident that investment in solar will still be attractive when the Tariffs reduce tomorrow (1^st August).

The STA Calculator illustrates returns with the following example: for a family installing a large 4kW system in August costing £8,000, using 50% of their power in the home and exporting 50%, the STA Calculator shows the system will have paid for itself within 10 years, with returns of 9.2% over the 20 year life of the Feed-in Tariff [4]. The solar power system itself is likely to last around 40 years providing many years more of household savings!

Householders are advised (for example by REAL) to always get 3 quotes for solar installations as solar prices continue to come down and it may be possible to better the example cited. The REAL Assurance website provides top ten tips for consumers thinking of generating their own energy [5]

STA CEO Paul Barwell said;

"Our figures show that solar is a no-brainer investment. Compared to the returns you can get these days in banks and many other investments, solar provides a very solid and attractive return. That is particularly the case if you consider energy bills are rising faster than anyone expected.

“Investors in solar are also helping us to drive an exciting energy revolution, putting power in the hands of everyday people, while saving the planet."

The STA Calculator is based on the Government's own projected increases in electricity prices and on established national average yields from solar power. In practice electricity prices are rising faster than Government is projecting and power yields from solar in some parts of the country are higher. Consumers who use more than 50% of the power their solar generates in the home can expect higher returns, while returns will be lower for consumers who use less.

Returns are likely to be even better because electricity bills are rising faster than Government figures suggest:

Because solar partly replaces the import of electricity from the grid, this is an important part of the returns calculation [3]. In reality electricity prices are rising faster than the Government data used in STA's model predicts. This means households could save even more money by switching to solar. Analysis of Government statistics by the REA shows that the average annual increase in electricity bills for the period 2005 to 2011 was 6.6% above inflation. While the STA Calculator is based on conservative assumptions, using this real-world rate of increase in electricity prices means returns on the example above of a 4kW system for a family home installed in August, rise from 9.2% to 11.4%, with payback after 9 years.

Paul Barwell said:

“Nobody knows what electricity prices will be in future but we do know they have gone up substantially over the past few years. This trend may well continue as the UK becomes more reliant on importing its energy in an increasingly competitive world.

“Solar gives people the opportunity to take control of their electricity bills and help us move away from damaging fossil-fuel dependence. We believe the smart money is on solar.”

The industry is delighted that the vital role of solar has now been recognised by Government - DECC will be revising their Renewables Roadmap to properly reflect the large contribution expected by solar power in 2020.

10kw turbines add up to the best option

We have installed our first Bergey 10kW wind turbine this week. Though having installed a number of other turbine types, we are really impressed with the engineering used throughout the Bergey design ethos. As reported recently, the Excel 10kw turbine has recently withstood an American tornado and come out the other side unscathed. Unlike a number of fragile and high maintenance wind turbines being sold in the UK that either need to be shut down in high wind conditions to avoid damage, or worse simply fall to bits in extreme winds, the Bergey Excel 10kW just keeps going!

The Bergey 10kW will only need maintaining every 3 years (not 3 months, as some expensive types), and will only cost around £46,000 fully installed. 

If you think you may have missed the boat for that higher 28p Feed in Tariff, the Government have announced last Friday 20th July that the new FiT will be introduced in December, not October as originally announced.. Just in time to get that planning through!

Call us on 01297 23048 for more information..