Showing posts with label Feed in Tariff. Show all posts
Showing posts with label Feed in Tariff. Show all posts

Wednesday, 1 August 2012

Community Solar Exempt from EPC Requirements

Fantastic news for green-minded community projects is that they do not have to reach the band D EPC requirements of domestic and commercial properties to benefit from the highest solar rates available.

Community properties are often old church halls and other such buildings that are hard to treat with energy efficiency measures. 

By ensuring that such properties can benefit from solar to the maximum degree the DECC allows them to become centres for energy-education and examples in the local area - thereby promoting energy generation and frugality. 

Look out for our own upcoming community projects as community leaders take advantage of this announcement form December 2012.

Community solar projects exempt from EPC requirements - Solar Power Portal
news.google.com
Solar Power PortalCommunity solar projects exempt from EPC requirementsSolar Power PortalThe Department of Energy and Climate Change (DECC) has announced its response to the Phase 2B consultation on the feed-in tariff scheme. A large part of the cons ...


Do you have experience of a community centre regeneration project?  Perhaps you think this announcement opens the door for your own community to benefit?  As ever, let us know your thoughts below.

Friday, 27 July 2012

Reducing the Costs of Solar PV

Greg Barker's role as Minister of State for Energy and Climate Change is not an easy one, he is tasked with responsibility for Climate change, fuel poverty and green economy.  It is the green economy that affects Norman Environmental, as it is that very sector of the market in which we operate.


In recent times the attractive Feed-in-Tariff rates for those who choose Solar PV have been tweaked, slashed, changed and meddled with to redress perceived imbalances in the system.  It is our role as Solar PV providers to roll with the punches and understand exactly how changes to these benefits impact on our customers - so that we can communicate clearly and make sales on an open and honest basis, the hallmark of a good, honest business.


The announcement from Mr Barker that FiT's have a certain future is good news, hopefully allowing us and other installers to concentrate on providing a better service to our customers, making us more efficient and giving clients some security.


Mr Barker goes on to say that he now intends to "work on bringing the price of installation down".  This sounds like good news for customers but the fact of the matter is that with less Solar PV demand companies genuinely cannot afford to undertake the work any more cheaply than they already do.


Exclusive: Certainty for feed-in tariffs - Solar Power Portal
news.google.com
Solar Power PortalExclusive: Certainty for feed-in tariffsSolar Power PortalThis revolution in small-scale green energy has been driven forward thanks to support from the Government's feed-in tariff (FiTs) scheme. FiTs are available for a range of te ...


Would you accept the government intervening in your industry, setting prices or meddling with your company structure?  How could such an intervention even be undertaken? Let us know your thoughts below.

Monday, 9 July 2012

5 Steps to Beat the Feed-in-Tariff Deadline

Could you benefit from £1,000 in your pocket every year for the next 25 years?  Do you believe in quality and long term security?  How about if that return was PROTECTED against inflation?

That is what a new Solar PV system from Norman Environmental and SolarWorld could bring you - effectively securing your energy future.

If you're anything like most UK residents you use more electricity and pay more per unit for it than ever.  You can measure this increased cost in pounds and pence - or by that fear and dread at the end of each month or quarter as you wait for your electricity bill to land on the doorstep, with an ominous 'thump'.

Any money you have struggled to save over the years is only growing at a rate below inflation as it sits in a high street bank.  Meanwhile there are strong rumours that the Bank of England's base rate could fall even further to 0.25%.  The stock market is not fairing much better.

Your opportunity to do something about this is closing, and it's closing fast.  On 31/7/2012 the Solar PV feed in tariff rate will be cut by 5p/unit and 5 years in length. Effectively reducing the overall returns by 40%.

The good news is that there is still time to secure the higher rate tariff if you ACT NOW.  Below you can find 5 simple steps that will help you ease your worries about energy costs and secure the following benefits;
  • Up to £38,000 (20% in savings and 80% cash)
  • 12% return on your investment EVERY year for 25 years
  • A fast and simple installation of a hi-tech improvement to your property
  • A high quality system by reputable installers - installed and certified BEFORE the tariff dro
So to get all this and more just follow these 5 simple steps;
  1. Click to Download our FREE ebook explaining,
    • the basics of Solar PV and the feed in tariff
    • how many panels you could fit on your roof
  2. Follow the link to use our FREE online Solar PV returns calculator and find out today's value of your 25 year returns
  3. Click to arrange a FREE site survey and quotation 
  4. Place your order
  5. Sit back, relax and enjoy 25 years of PASSIVE INCOME
Hurry though, time is short and we've promised ourselves not no more than 5 Solar PV orders before 31/7/2012.

Our unique guarantee is based on our experience and expertise.  We promise that for any order we accept we will complete and certify that installation in time for you to benefit from the highest applicable feed-in-tariff rate.  If we don't deliver your system in time then it is FREE. No catches, all we have to do is accept your order and we will deliver - or it's on us!

You have nothing to lose and everything to gain, follow our five step plan NOW and secure your energy future.



Thursday, 24 May 2012

FiT Deadline Extension

Feed-in-Tariff Extension to 1st August 2012

A lot of uncertainty has sprung up around the Solar PV Feed-in-Tariff since the turn of the year.  This centred around the government's initial intention to reduce the tariff from 43p to 21p on 12th December 2011.  A move that was eventually overturned in court.


Since 1st April 2012 the UK government have had their way and the basic tariff rate has been reduced to 21p per unit. Added to that is the condition that domestic properties must achieve at least a 'D' rating in an EPC assessment, or the rate falls to 9p!  Luckily for Solar PV customers prices of Solar kits have come down considerably, to the point where the yearly returns as a percentage of investment are almost as good as they were before Christmas 2011.  EPC D grades can be achieved quite easily, even in hard-to-treat homes.


download our FREE ebook
Need to learn more? Get our FREE ebook


The initial intention was to reduce the tariff again on 1st of July 2012 in relation to the uptake of solar in the spring and early summer months.  In simple terms, the more solar that is installed, the more the government have to pay out and so they intend to reduce the tariff in relation to the number of installations on a rolling basis.  However, due to the confusion caused by the court case and feed-in-tariff reductions, the uptake has not been anywhere near even the lowest 'trigger' levels.


By law any announcement to change the tariff must be made at least 40 days before the date of change.  This announcement date (20/5/2012) was missed by the government minister responsible, Mr Ed Davey.  So the lifetime of the current tariff has today been extended until the 1st August 2012 when it will fall to 16p.


Whilst the opportunity to benefit from a balance of low prices and good returns is clearly limited, we have an extra month's grace to help more people gain from the current 21p tariff.  Look out for our next blog post where we will compare the returns across both FiT rates.


How does this news affect you? Are you now in a position to invest in Solar? Let us know in the comment section below.  Perhaps you'd like to learn more about Solar PV and the feed-in-tariff? If so then click the link to download our FREE ebook, An Introduction to Solar PV - before it's too late! 

Thursday, 20 October 2011

Paying the price for 'Free Electricity'

There's no such thing as a free lunch. Anyone heard that one before? It's a terrible cliche we know, but it's so applicable to the 'free solar' companies working on domestic premises that it's use can't be avoided.

Let us be clear, we do not question the integrity of the companies offering these installations - far from it. In order to succeed in that market the installations have to be high grade quality, surveys have to be very accurate and installers very speedy.

What we do question is that the installations, and subsequent electricity, are 'free'.  Just because those whose roof's are used do not fork out payment at installation, does not make it 'free'.  Allow us to explain.

The overall cost of supplying and installing the type of 'free' systems being installed is approximately £4,000 - this is due to bulk buying discounts and low labour rates.  This 2kW system on a South Facing roof will generate three potential revenue streams;  two in cash - in terms of generation and export tariffs for the system provider and owner - and one in energy savings for the roof owner.  The values of which are summarised below.

Assuming RPI @ 2.5% and energy inflation @ 4.5%
 
So far so good.  You have rented the roof to your solar supplier, or their financial backer/partner and they have effectively allowed you to gain £3,500 worth of electricity over 25 years.  This represents about 10% of your electricity bills, without any up front costs. You even get the solar energy generated after the 25 year agreement is complete - not bad eh?

As with so many deals however, the true costs are in the small print.

Opportunity Cost
Having your roof filled with somebody else's solar panels mean that you cannot fill your own roof with solar panels, and neither can anyone else.  This would cost a little more to procure, say £5,600 for a decent kit, so immediately you've lost out to the tune of £20,500.

Maintenance and Home Improvements
Should you wish to undertake any maintenance to your property, perhaps the electrical system or the roof, and you have to turn off the solar system, then you must pay the supplier for his lost income and seek his permission.  What if you want a loft extension?  Good luck.  Written permission from the solar system owner will have to be sought and the final choice will always be theirs whilst the 'rent-a-roof' agreement is in place.

Selling Your Home and Redemption Penalties
Picture this; you are about to sell your home, your potential buyer likes the thought of solar panels on his new roof but he wants to own them himself and later he wants to realise the property's best value with a loft extension.  It is 20 years since the solar system was installed.  You refer to the system owner's contract to see what the penalty is for leaving the agreement five years early, it can't be much can it?  Wrong. It's £10,000 please, and that's one of the better contracts - they might not even grant you permission to sell.  Suddenly the potential buyer wants that value straight off the asking price, and who can blame him?

So like any transaction you have to weigh the real benefits against the true costs, and in most circumstances we don't think this stacks up in the home-owner's favour.

Monday, 10 October 2011

This is how we do it

There a plenty of impressive photo's online of completed Solar PV systems, glistening in the sunlight. Some of them are genuine (like those on our site) and some of them are pilfered from various corners of the world wide web, but we're not judging (needs must and all that). We've noticed a real dearth of information about the act of installation itself, and so took the opportunity to take a series of photos of a recent job in Bristol.



The slideshow above is a montage of those photos, hopefully showing our readers the various stages of installation of a 12 panel, 2.7kW Viessman. The system required two days work for 3 men on a detached house in Kingswood, Bristol. The basic stages of installation are;

1. Measuring and affixing the brackets
2. Installing the rail system
3. Laying out, affixing and connecting the panels in a series circuit
4. Siting the inverter
5. Making all necessary connections
6. Commissioning the system

Our happy customers Mr and Mrs O'Brien can expect yearly energy returns of 2,300kW/h, and a first year financial benefit (including energy savings) of £1,177. Over the 25 year FiT period they should receive an overall financial benefit of more than £29,000 - plus any inflationary increases in the generation tariff. That's about 13% per year.

Does that seem like a good return to you? Perhaps you have a comment or question on the logistics of installation or have an idea about improvements that could be made. Don't be shy, let us know your thoughts below.

- Posted using BlogPress from my iPad, what a brilliant App!

Thursday, 14 July 2011

Supply good energy to Good Energy

The Feed in Tariff is a wonderful thing indeed, allowing those of us who produce electricity via our own resources to be financially rewarded will raise awareness of the scarcity of energy and increase our respect for it. 

The FiT scheme is simple too; the government tax energy providers via the carbon levy and put that money into a pot.  The funds are redistributed to the energy providers who can prove that their customers have MCS accredited installations that are producing accurately measured quantities of electricity. The same customers are then reimbursed by the energy providers for each unit they produce on a quarterly basis.

A number of energy providers see this as an administrative chore, and who can blame them?  After all the energy they are 'purchasing' from micro-generators is so small when compared with the levels they produce via the fossil fuel hungry power stations. Good Energy are a company who sell only renewable energy, that is to say that 100% of the energy they sell is provided through, solar, hydro, anaerobic digestion, wind turbines or any other form of non-polluting renewable energy source.  They are the only company in the UK who offer such a supply.



As a result of their dedication to renewable energy Good Energy are excellent administrators of the FiT scheme.  Their application packs are simple, clear and concise whilst being comprehensive and transparent in walking their energy suppliers right through the FiT process.

That is why we at Norman Environmental encourage all our PV customers, or anyone seeking to become a micro-generator, to sign up to selling their energy to Good Energy - a company that encourages micro-generation as the very back-bone to it's business. Just like us really.

Sunday, 26 June 2011

Why we want the judicial review to back the FiT reduction for schemes over 50kW (part 2)

Last week we commented on how the clamour of heavily funded solar PV speculators to reverse the Government review of FiT's wasn't good for the renewable culture we need to nurture in the UK.  Today we are concentrating on the economic impacts of large scale, grid connected solar farms if they are rewarded with the original feed in tariff rates as the complainants would have it.


So to set the scene: The UK is still suffering from the effects of the credit crunch and subsequent economic recession. Unemployment is high (although recent figures suggest a significant reversal, much of that has been attributed to part time workers), as is inflation, the banks are not lending, interest rates have been at historically low levels since March 2009 and the construction industry has taken a nosedive at a time where housing stocks are low.

The FiT review is designed to discourage 'solar fields'

The Coalition Government are charged with reversing these trends, and must do everything in their power to do so for the good of the country. One of the growth sectors they have identified is the renewable/green market, since we as a country have made a legal commitment to reduce carbon output in the Copenhagen Agreement.  The UK has signed up to ambitious targets to reduce our carbon impact by half against 1990 levels, so it would seem that investment in the 'green' economy is the only solution. As a means of raising funds necessary to help make this staggering change in our culture, the omni-profitable utility companies have been hit with a carbon levy, or 'green tax'.  It was decreed by the last Government that this fund be re-distributed (via the feed in tariff) to those who generate their own electricity; simultaneously penalising polluters and rewarding those who turn to renewable sources of energy.  2 birds, 1 stone.

In the UK there are a number of FiT qualified installations available but, much like in Germany, the overwhelming favourite, accounting for about 95% of our FiT payments, is solar PV.  Solar PV installations come in many shapes and sizes but the recent FiT review has sought to discourage large scale installations on a purely financial level - and therefore make smaller systems more attractive to those who wish to invest in this vital sector of Britain's modern economy.

When thinking about the economic impact of the choice between smaller scale installations and 'solar fields', the simple economic principle to consider is economies of scale.  This principle is universally accepted by economists, politicians, butchers, bakers and candlestick makers alike.  The simple premise is that in the creation of any product, the more you produce the cheaper the cost per unit and the greater profit per unit you are able to make (up to a point where you maximise the marginal returns). When you apply that theory to the solar PV part of the UK feed in tariff scheme, the larger a solar PV project the cheaper the unit cost of supply and installation. However, due to the fixed value of payments the most attractive marginal return is set too high and the subsequent drain on the carbon levy pot of funds is perceived as too great by the current Government.  The simple fact of the matter is that the last Government set the fixed prices too high and created a market where large value speculators can use economies of scale to make disproportionate profits.  We would argue that at this juncture - where tradesmen are out of work, where students are selecting further education purely because they fear unemployment - it is the grass roots of business that need the shot in the arm, to create the wealth of tomorrow.    

The Government would prefer you pop a few panels on your house,
and so would the economy!

Consider now the ineconomy of smaller scale production where labour represents a higher proportion of the input and proportionally greater management time and greater effort per unit is required, not to mention the design nuances of small scale bespoke projects.  This means added costs, but luckily, in the instance of the FiT scheme, the unit price (set by the  Government) is also proportionally higher.  So smaller scale MCS installations require great input from local sources; or in other words - they provide more jobs.  The income generated from the scheme then goes to the people who own the small scale installation, who are far more likely to be the kind of  'normal' folk who have been affected deeply by the recession.  The scheme now turns into something that does not provide benefit only to the wealthy but also provides employment and secure income to those who are deeply concerned that today's pension market may never fulfil their requirements. In economic terms the review has reduced the marginal return for all those installations above 50kW and shifted the highest marginal returns to those installations below 50kW - making smaller installations, and smaller installers, a more attractive prospect.

In summary, we believe that if the judicial review finds in favour of the conglomerate of suppliers, installers and others it will mean more money for the rich and less for the poor; but should the Government's decision be supported it will mean that government intervention has been for the greater good, bringing more jobs, income and tariff benefits to the people who need it.