News

Moving the UK solar market past the ‘boom and bust’ stage

TSF UK — Mon, 06 May 2013 10:36:05 +0000

International solar visionaries discussing future of UK solar market

LONDON, 6 MAY 2013 – The UK solar PV market is making headlines again as its 500 MW of installed capacity accounted for 10% of the global installations in the first quarter of 2013. As a result, the UK market passed the 2 GigaWatt mark of cumulative installed solar capacity. 2012 hasn't been a bad year either. Government statistics confirm 779 MW of installed PV capacity in 2012. According to Solarbuzz, 11.3% of the UK’s electricity last year was generated from renewable energy sources.

The UK market is experiencing a new ‘bloom’ period; however, based on past trends, this could just as well be considered a new ‘boom’ period.

Roughly, the development of the British market can be divided into four phases. First, there was a period of slow growth before the first Feed-in Tariff (FiT). Then there was the first boom in 2011, caused by the FiT. The third period followed the FiT cuts and was characterized by adjustment and a search for new financing models. In 2012, boosted by the Renewables Obligation Certificates (ROCs) scheme, the ground-mounted segment saw a rise in popularity, though most installations that year were still rooftop systems. The new ground-mounted 'boom' really came into its own in the first quarter of 2013, leading to the spectacular numbers that put the UK back on the map. But now that 31st March has come and gone and support under the ROC scheme has been reduced, the market could well come to another standstill.

It seems that the UK market is still characterized by a ‘boom and bust’ trend. Many experts and market players are calling for updated FiT policies to stimulate new market growth. The real question should be: How can the UK market really move past the ‘boom and bust’ stage?

To try to find an answer to this question, Solarplaza, in cooperation with the BPVA, is bringing together their best lineup of solar experts ever for the fourth edition of ‘The Solar Future: UK’ conference. This high-level strategy conference will feature solar visionaries such as Jeremy Leggett (Founder & Chairman, Solarcentury) Anton Milner (Managing Director, ib Vogt & Founder, Q-Cells), Jigar Shah (Founder, SunEdison & former CEO, Carbon War Room), Thierry Lepercq (Chairman, Solairedirect), Nick Boyle (CEO, Lightsource Renewable Energy) and Reza Shaybani (Chairman, BPVA). These and many other international veterans will share their visions about a future solar UK market beyond any government support – the central message being that the future of solar PV goes beyond any government support.

Some of the major themes that will be covered include topics such as the global solar PV industry developments impacting the UK market, smart grids, grid integration, smart energy management and the realistic potential of energy storage. Furthermore, the expert speakers will identify the most attractive elements per market segment and highlight the best – and sometimes most creative – ways of financing projects without being reliant on government subsidies. Examples of subsidy-free yet successful markets such as the Netherlands will be highlighted and explained.

The Solar Future: UK ’13, will take place on 16th July 2011 in London, and will bring together more than 150 industry experts from the financial and business sector, and government and regulatory authorities.

For more information and to register, please visit: www.thesolarfuture.co.uk

Four new solar power plants completed in the United Kingdom (30MW)

TSF UK — Tue, 16 Apr 2013 10:28:24 +0000

Berlin, 15th April 2013: ib vogt GmbH has completed about 30 MWp of new solar power installations in the UK in the first quarter of 2013. The addition of these projects four new projects takes ib vogt’s UK capacity to over 55 MWp.

Ib vogt GmbH completed four new solar power plants projects in the UK, with a total rated output of about 30 MWp. The sites, all completed in March, are as follows:

	Pyworthy in Devon; approximately 5 MWp
	Manston Farm in Kent; approximately 10 MWp
	West Farm in Pembrokeshire; approximately 8 MWp
	Langunnett in Cornwall; over 6 MWp

This will enable over 8,100 households to be supplied with electricity, with carbon dioxide savings of around 14,500 tonnes a year.

The affiliate company of vogt solar ltd, which is based in United Kingdom, played a decisive role in the development of these projects. It will continue to support the solar power plants through ongoing operation and maintenance servicing contracts.

Additional UK projects with a total rated output of over 100 MWp are being developed for remainder of 2013.

Source

Four new solar power plants completed in the United Kingdom (30MW)

TSF UK — Tue, 16 Apr 2013 10:28:24 +0000

Berlin, 15/4/2013: ib vogt GmbH completed four new solar power plants projects in the UK, with a total rated output of about 30 MWp. The sites, all completed in March, are as follows:

	Pyworthy in Devon; approximately 5 MWp
	Manston Farm in Kent; approximately 10 MWp
	West Farm in Pembrokeshire; approximately 8 MWp
	Langunnett in Cornwall; over 6 MWp

This will enable over 8,100 households to be supplied with electricity, with carbon dioxide savings of around 14,500 tonnes a year.

Additional UK projects with a total rated output of over 100 MWp are being developed for remainder of 2013.

Source

Abundant investment opportunities for solar projects

TSF UK — Mon, 18 Jun 2012 13:16:08 +0000

No shortage of funding as solar PV conference to highlight increasing opportunities for installers and investors

London, UK, 18 June 2012 – According to finance experts at this year’s Solar Future UK conference (London – 26 June, www.thesolarfuture.co.uk), there are more options available for funding solar PV projects than ever before. Many installers focusing on feed-in tariffs alone may be missing out on other project opportunities to sustain their businesses.

One funding alternative is through Renewable Obligation Certificate (ROC) financing, as solar industry expert, Ray Noble, explains, “Projects over 5MW are ineligible for FiTs payments but will receive incentive payments under the Renewable Obligation – and there’s no capacity limit for systems funded under ROCs. Some of the bigger players have pipelines of PV projects in place using ROC funding, but we need to do everything we can to raise awareness of ROCs in the solar industry.”

Bruce Davis, managing director of Abundance Generation, has researched the potential for crowd funding for renewable energy projects:
“Retail finance and crowd funding have previously been seen as niche or small scale sources of funding for solar and other renewable technologies, but our research suggests that there is untapped latent demand for long-term investment products whose return is based on producing sustainable, renewable energy amongst mainstream customers. As more platforms come to market we will see a big shift in the ownership and investment profile of renewable energy away from the relatively rich few and towards the many – something which will benefit the industry in the long term as it seeks to demonstrate the benefits of green growth to the mainstream.”
Giovanni Terranova, founding partner of Bluefield Partners LLP, a specialist asset manager for solar PV infrastructure, sees increasing opportunities in the UK market for installers and investors:
“The UK solar industry has reached an important and exciting stage in its development and has the opportunity, for the first time, to be the cornerstone of the government’s onshore renewable policy.

Due to significant cost reductions in the price of modules the solar industry in the UK is now a cost-effective solution in comparison to other renewable technologies. Solar has the potential, using lower subsidies, to see to a significant increase in installed capacity over the coming years and to be a major part of the government’s 2020 renewable electricity target. The 22GW target set and confirmed by the Government has the potential to transform the UK market in one of the most interesting markets in Europe over the next few years.

For Bluefield, a specialist investor into large scale ground based or commercial rooftop installations, we see increasing opportunities in the UK market for installers and investors.”

The conference will feature a total of five speakers who will discuss different approaches to project finance for solar PV:
•   Giovanni Terranova (Bluefield Partners LLP) will discuss the role of investment funds
•   Bruce Davis (Abundance Generation) will talk about crowd funding for renewable energy projects
•   Anton Milner (Q-cells founder) will present the options for large PV power plant financing
•   Ray Noble (Solar BIPV), will explain the opportunities available using ROCs and Power Purchase Agreements (PPAs)
•   James Donaldson (Investec Bank), will talk about the barriers to solar PV financing

The Solar Future conference, supported by the British Photovoltaic Association (BPVA), will feature expert speakers who will present their views and predictions on the future of the UK’s solar PV market. Delegate places can be booked at the conference, which takes place on 26th June, by visiting www.thesolarfuture.co.uk/registration/

UK needs ‘Solar Spring’

TSF UK — Mon, 18 Jun 2012 13:15:20 +0000

London, UK, 10th June 2012 – The UK solar industry is at a crossroads in its development, according to Edwin Koot, chief executive of Solarplaza, the independent global knowledge platform for the solar PV industry. Mr Koot believes that it’s now up to the industry players, and not the government, to shape the UK market for solar PV.
“The UK solar industry needs to reflect on what happened over the past 18 months. It can either throw in the towel or realise that there is a solar future – even without feed-in tariffs – and fight for its future.
Understandably, there’s a lot of resentment in the industry about how the coalition government has handled changes to the feed-in tariffs. For some installers, it’s been too much to bear and after the 2011 ‘solar feeding frenzy’, the drastic cuts have led to job cuts and worse still, businesses going bust.

Today, most installers agree that in pure financial terms solar is still a good bet for domestic projects. System prices have fallen in line with the tariffs, and the return on investment is similar to what it was when the tariffs were at their high point. A return of 8-10% is impossible to match with any other guaranteed investment. Yet orders have dropped off a cliff. Why? For the simple reason that the public has lost confidence and is confused. There has been so much negative media coverage about the feed-in tariffs that installer’s phones have stopped ringing. And unfortunately the solar industry has to share the blame for that.

The Netherlands has a thriving solar market today, yet the government stopped all subsidies earlier this year. The consensus is that stability with no tariffs is preferable to the confusion of ‘stop-go’ subsidies. There are of course other factors at play, not least that green initiatives have captured the Dutch public’s imagination.
So what can we do in the UK? The industry needs to work together, to cooperate more, to ‘grow the pie’ before they fight over it. It needs a concerted effort to change public opinion… a ‘Solar Spring’, if you like. I believe there is still an appetite among UK citizens to reduce the stranglehold of the ‘Big 6’ energy companies. People want solutions to rising energy prices and fuel poverty. People believe in the seriousness of climate change, despite what Daily Mail journalists write. Solar power is not the only solution to these problems, but it’s a start.

We need to re-build confidence in the long-term future of the market, and share that with the public. We need innovative thinking, new business models, hard work and investment in promoting all of the good things about solar – not just the cash returns. To achieve that, first we need to bring the industry together.”

Edwin Koot will be chairing The Solar Future conference in London on 26th June. Attendees can take advantage of a 2-for-1 booking offer at www.thesolarfuture.co.uk/registration/
“The Solar Future, UK: III”, supported by the British Photovoltaic Association (BPVA), will feature expert speakers who will present their views and predictions on the future of the UK’s solar PV market.

Renewables 'help jobs and growth'

TSF UK — Wed, 25 Apr 2012 10:31:58 +0000

BBC - The renewable energy industry supports 110,000 jobs in the UK and could support 400,000 by 2020, a report says.

The Renewable Energy Association (REA) and consultants Innovas conclude that the industry is worth £12.5bn per year to the UK economy.
Last week the European Commission said low-carbon generation and energy efficiency could generate five million jobs across the EU by 2020.

Read full article online

UK tops 1 GW of installed solar capacity

TSF UK — Mon, 27 Feb 2012 13:02:27 +0000

26.02.2012: The UK now has more the 1 GW of installed solar capacity, according to the Guardian newspaper. The newspaper notes that when the UK introduced the solar feed-in-tariff (FIT) scheme in Aug. 2010, the country only had 26 MW of solar capacity. Earlier this month, UK Minister of Energy Greg Barker said he wants the FIT scheme to deliver 22 GW of installed photovoltaic capacity by 2020. … Source: The Guardian; Summary: PHOTON

More info:

http://www.guardian.co.uk
http://www.guardian.co.uk/environment/2012/feb/23/feed-in-tariff-solar-breakthrough

Britains energy ministry submits new plan to cut feed-in tariff

TSF UK — Mon, 23 Jan 2012 08:52:11 +0000

19.01.2012: The UK Department of Energy and Climate Change (DECC) has announced contingency plans to delay the cut to the country’s solar feed-in tariff (FIT), in the event that it loses a legal case at the Court of Appeal about the tariffs. DECC wrote in a statement that it is laying before Parliament draft license modifications that make provisions for a reduced FIT rate from April 1, 2012, onward for new photovoltaic (PV) installations with eligibility dates from March 2012 or later. DECC Minister Greg Barker said, “I know this is a difficult time for the sector and I want to do as much as I can to end the current uncertainty created by the legal challenge. We must reduce the level of FITs for solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole feed-in-tariff budget." The Court of Appeal recently postponed making a decision on the DECC’s challenge to a December High Court ruling that questioned the legality of the government’s proposed changes to the solar FIT scheme. The High Court said that bringing forward the cutoff date to Dec. 12, which fell in the middle of an ongoing public consultation on changes to the FIT scheme, would be unlawful. ... Source: DECC; summary: PHOTON

More info:
http://www.decc.gov.uk/en/content/cms/news/fits_jan12upd/fits_jan12upd.aspx
http://www.decc.gov.uk/en/content/cms/news/wmsch_fits/wmsch_fits.aspx

Feed-in tariff rates will not be further reduced before April 2012

TSF UK — Tue, 10 Jan 2012 15:43:21 +0000

At a meeting with the Department of Energy and Climate Change (DECC) the BPVA were told that there is a “high level of certainty” that the proposed feed-in tariff rates of 21p and below will remain unchanged until April 2012. This news casts aside fears that Government will further reduce the already slashed feed-in tariff rates for solar before April 2012.

On October 31 this year DECC revealed plans to reduce the feed-in tariff incentive rates for solar installations below 250kW. At the residential level, these cuts would go as deep as 50 percent, chopping the rates down from 43.3p per kilowatt hour down to just 21p. These new rates were said to take effect from April 2012, with a cut-off deadline of December 12 (today) for installations which were to receive the higher rates – despite the fact that the consultation would not end until December 23.

Outrage begun to spread through the UK solar industry as the legality of imposing an installation deadline weeks before the consultation on the policy ended, prompting yet more uncertainty in the already concerned industry.

While there was a great amount of backlash in response to the proposed feed-in tariff cuts, many found that the new rates were acceptable, especially with the falling cost of solar photovoltaic technology. However, those rushing to install systems before the cut-off point begun to worry that the incentive rates could again be reduced, with the principle ‘nothing is certain’ saturating the market.

However, we can reveal today that the Department has sought legal advice on how it can now proceed. According to our source, the Government hopes to respond to the consultation in January 2012 and will need to do so by February 8, 2012 at the latest, if rates are to be changed from April 1, 2012 as proposed. Government is aware that the industry needs certainty as soon as possible and says that it “will strive to announce a decision quickly.”

Government would “almost certainly” not be able to set a tariff below 21p (or the other tariffs proposed in the FiTs Phase 1 consultation) without a further consultation. If this were the case, changes could not be implemented on or before April 1, 2012, as there is simply not enough time to launch a new consultation between now and then.

This news provides at least four months of assurance for an industry which has to date experienced nothing but uncertainty. The ongoing level of tariffs for solar PV, together with proposals for a cost control mechanism for feed-in tariffs, will be part of the feed-in tariff Phase II consultation, which will be published some time in January 2012.

Source: BPVA

FITs cut "unlawful" says Judge

TSF UK — Tue, 10 Jan 2012 15:41:18 +0000

In a dramatic judgement yesterday at the High Court, Mr Justice Mitting found Government Ministers had acted unlawfully in cutting feed-in tariffs from the 12th December. After a two day hearing closely examining the law, he decided that Ministers were not following the correct legal process, and were wrong to reduce tariff rates without first laying regulations before Parliament.

Mr Justice Mittings finding was so emphatic that he went on to refuse the Government the right to appeal, saying they stood little chance of overturning it. This does not stop the Government asking the Appeal Court to hear their case - but in an unusual move Mr Justice Mitting even reduced the time available for them to make this request, saying they must file legal arguments with the Appeal Court by 4th January.

As things now stand therefore, the "eligibility date" of 12th December is unlawful, and Government will have to table new proposals. A new date is likely to be around the end of February - this would give time for the 40 day period of consideration the law requires which Ministers ignored this time around. However if the Government do appeal the finding - as they have said they will - and successfully overturn it, they will be able to re-impose the 12th December date. This means that while there is a good chance of a later eligibility date, it will not be possible to guarantee the higher rates to customers until the legal process has finished.

Clearly this adds to the uncertainty for the next few weeks - but the longer-term effect of holding the Government to account and insisting on due process ought to reinforce the demands that Government must never again throw the solar industry - or indeed any part of the new environmental industries - into the kind of turmoil solar has faced in the last couple of months. The finding is also intensely embarassing for Ministers, as it once again throws the spotlight on their botched handling of the entire policy.

What is now needed is for Ministers to take the criticism on the chin, and start afresh from here, drawing up a sensible path forward that takes solar from current levels of subsidy to grid parity in a predictable way that allows the industry to develop. It is time for Ministers to recognise that the fact solar prices have fallen faster than expected is a good news story, not a reason to shrink the industry. It is disappointing that despite the Judge warning they are unlikely to succeed, Ministers are still proposing to drag the process out further - but it is worth keeping fingers crossed that a break over Christmas, and some fresh legal advice will cause them to think again. They can be assured that if they take the sensible path, the solar industry will be with them.