From 1st January 2016, the feed-in tariff (FiT) rates for new solar PV installations are set to reduce by up to 87% which hasn’t just created uncertainty within the industry, but many homeowners and businesses are now jumping to the conclusion that solar will no longer be an attractive proposition.
However, EvoEnergy are actually in support of the FiT cuts and whilst we agree that the cuts may spell the demise of the domestic market, it is imperative that businesses understand that the cuts are not a threat to the future viability of solar PV in a commercial environment, particularly those with large roofs.
Whilst the severity of the FiT cuts appears high by percentage, the actual reduction is just a few pence per unit; unlike the extremity of the cuts back in 2012 which were only around 50%, but were substantial in monetary value circa 20p per unit. The cuts had to happen sooner or later and EvoEnergy feel that there is no better time for the industry to stand on its own two feet without installers at the mercy of the Government.
Furthermore, at EvoEnergy we believe that the cuts will actually make the industry work harder to implement new innovation in terms of design and delivery to maintain an attractive return for the client. Over the last 12 months, this is one area where we have excelled and for the most part, driven the industry including;
- Designing and implementing the Export Power Control device to combat DNO export restrictions;
- Innovated and installed the UK’s largest solar car port;
- Through High Voltage solutions, we have brought the best of ground-mount technology to a rooftop environment for the first time in the industry;
- Utilised SolarEdge technology to optimise and monitor individual panel performance;
- Innovated new methods of delivery such as ‘rope access’
Following the FiT cut, it’s also more important than ever that businesses are aware of the various options that can give them immediate and affordable access to generating their own electricity. This includes Energy Efficiency Financing and also Power Purchase Agreements, which we anticipate will become the most popular routes to solar in a post-FiT cut environment.
On the contrary, many companies are now legally obliged to consider energy efficiencies – such as solar PV – after the ESOS assessments were recently imposed by the Government. For those companies that need assistance in discovering the benefits of solar PV for the purpose of meeting your ESOS requirements, we are here to offer the consultation you need.
EvoEnergy Managing Director, Mark Wakeford, recently gave his positive comments on the forthcoming FiT cuts;
“The cut has to happen sooner or later. Whether we like it or not, government intervention in the market inevitably leads to distortion over the long term. As for those voices calling for it to happen much later, the inevitable can only be put off for so long. In the case of solar, the end position will still be the same once the subsidy money runs out, so as an industry it’s our job to show customers in the private and public sector that solar has future potential far beyond the current export tariff.
Solar installers are regularly bringing in ever-greater design efficiencies and lower delivery costs, on top of the main benefits to customers when moving partly or entirely off grid. A more competitive, subsidy-free future will surely boost this further over the long-term.”