SOLAR BLOG

A recent article in yesterday’s Daily Mail could have misled many readers in terms of the perceived merits of installing solar panels on your roof. There is a distinct difference between solar PV panel solutions (which generate electricity) and solar thermal panels (used for the sole purpose of heating water).

Solar PV (Photovoltaic) Panels convert the natural sunlight into electricity for use throughout the home. Generating your own power means therefore that you significantly reduce the amount of power needed to be drawn off the national grid.

The benefits of solar PV massively outweigh those of Solar Thermal solutions, as Solar PV installations are tied to the Feed in Tariff Scheme. The FIT’s provide excellent financial incentives for homes who install solar PV, as recognition that they are now generating there own power, and thus taking less kW from the grid.

Solar Thermal on the other hand can sometimes be unreliable and fail to live up to it’s expectations. When it comes to a choice between Solar thermal and Solar PV, there really is no contest.  

The financial savings of Solar PV are extremely attractive at this current time, with householders able to claim 41.3p per kWh of electricity they generate, and an extra 3p per kWh for any electricity generated that is not used, and fed back to the grid (export tariff).

It is vital that consumers know the distinct differences between Solar PV and Solar thermal technology, and also that they appreciate the much greater benefits offered by Solar PV compared to Solar Thermal.

With a government review of Feed In Tariffs planned this Autumn, time is very much of the essence in terms of signing up for Solar PV. This way, householders will be guaranteed the current top FIT rate if they commit in the next few weeks.

You may or may not be aware of recent press coverage last weekend about a potential government review of the FIT system. The Managing Director of BSOLAR Peter Bladen has provided the following response for people who are still undecided about Solar PV installation.   

Feed in Tariff Review:

The recent articles regarding a possible review of the Feed-In-Tariffs paid to home owners who install Solar PV Panels has not gone far enough in describing what Government intentions and responsibilities are and will be. We understand that this article has raised serious concerns regarding solar panel installation investment with BSOLAR. I am pleased to be able to fill in the rest of the details by answering the obvious questions.

1)     You are correct in your understanding that Feed in Tariff’s (FIT’s) are not directly Government funded. FIT’s are established in law, under which the Government is responsible for regulating through the MCS. However, it is the energy companies that are responsible for paying their customers FIT’s.

2)     Your investment will be safe. If you sign a contract with your energy provider now it will not be subject to retrospective law changes.

3)     The current FIT rate payable to energy producers is at the moment set to remain until 2012 with a review planned for 2014. The Government are looking at bringing this date forward to 2012, after which the FIT rate for new installations after that date may be reduced. This change will affect new entrants into the scheme only, it will not affect contracts signed before then.

Anyone who is considering solar panelling installation would be advised to sign up before 2012 to receive maximum income.

4)     Your contract will be with the energy company who are your present suppliers.

5)     If in the future you do decide to change energy companies your FIT contract will not be affected. After commissioning you will receive your certificate from the MCS, the possession of which lets you register as a power provider, regardless of which energy supplier you use.

The recent article also mentions the deterioration in performance resulting in inflationary gains by 0.3%/year. We acknowledge that performance of solar panels do decline slightly with age, which has been factored into the manufacturers guarantee. By the end of the 10 year guarantee the panels in your system will still perform to 90% of their original capacity, by which time we have calculated the return on your investment should be complete. Your panels are still guaranteed to work to 85% of your original capacity after 25 years, by which time you will have made a substantial profit.

To close then, if you are seriously considering Solar PV for your property, the advice would be to proceed now and well before 2011. With a review of renewable heat incentives scheduled for October, the current FIT rate is also highly likely to come under scrutiny as well. Therefore our honest advice would be to install now or in the next few weeks in order to guarantee the FIT rate of 41.3 pence.

BSOLAR were once again out in the community on Saturday 11th September as part of Sefton Council’s Green Energy Fayre, which was hosted in Hesketh Park in Southport. Despite the weather being somewhat dubious, there was still plenty of interest and enquiries about the company and the host of renewable energy solutions on offer.

Since the exhibition, BSOLAR have secured several Solar PV system installations across the North West region. This is not only good news for the company, but also in terms of the region’s continuing push towards using more renewable technologies.

Even as we approach winter, the Solar PV market appears to be strengthening even further, which means only good news for 2011 and beyond.