The government has set very ambitious targets to reduce emissions in the UK - an 80% reduction in greenhouse gas emissions by 2050 and an interim 34% reduction by 2020 - and the solar PV industry is extremely important in meeting these targets, which will require lots of low carbon energy.
Renewable energy technologies, including solar photovoltaics, form a pivotal part of the drive to widen access to low carbon electricity generation to households, to businesses and to communities. The government envisages that domestic solar PV installations will provide a real contribution to the goal. And of course, increasing renewable electricity generation helps lower the UK’s reliance on fossils fuels.
At an event this year hosted by Schott Solar, former Stafford MP and Parliamentary under Secretary of State for the Department of Energy and Climate Change David Kidney, outlined the previous Government’s efforts in reducing carbon emissions through renewable technology: “The UK currently gets around 5.5% of its electricity from renewable sources. That will need to increase to around 30% by 2020 in order to meet our renewable energy target. Since its introduction in 2002, the Renewables Obligation has done much to move us towards this by tripling renewable electricity generation. We obviously have much further to go, and we need engagement from a wider cross section of the economy: frankly we want households and communities to be able to take part.”
Increase demand
This brings us on to Feed-In Tariffs, or FITs, which were introduced on 1 April 2010, and will undoubtedly increase the demand for solar PV systems still further, as well offer an additional income stream for those in the know. FITs will provide financial support for low carbon electricity technologies and incentivise the deployment of small to medium scale installations up to 5 megawatts capacity.
The scheme will support new anaerobic digestion, hydro, wind, microCHP and, of course, solar PV system installations. Electricity generation is something that has largely been dominated through large commercial companies, but hopefully through the certainty that FITs provide and the increased level of support that they bring, there will be more businesses, more communities and more individuals taking steps to produce their own, low carbon electricity.
David Kidney says: “Electricity generation is something that historically has been the domain of large industry players; through the certainty that FITs provide and the increased level of support that they bring, we will help more businesses, more communities and more individuals take steps to join the climate change fight and produce their own, low carbon electricity.
“Key decisions that we have taken to guarantee the success of Feed-In Tariffs have included ensuring household FITs income is tax free and index-linking payments to RPI, two issues that were raised very strongly by respondents to our consultation. We listened throughout the process and we’ve been able to design a better delivery in the final package as a result of the input we received. We fully expect these decisions we have taken to drive growth in the various sectors.”
The FITs will consist of two parts, a generation tariff and an export tariff, which are both guaranteed for a 25 year period for solar PV. Generation tariff means the electricity supplier will make a fixed payment to the householder for every kilowatt hour (kWh) of electricity they generate and use – set at 41p/kWh, a far higher level than previously expected. The export tariff means the electricity supplier will pay a fixed amount of 3p for every kWh of electricity exported by the householder back to the electricity grid, i.e. for any power that is generated but not used by the property.
Positive steps
This is a positive step forward and we have come a long way forward in the last 12 months. A year ago a domestic scale PV installation would have probably obtained a grant through the Low Carbon Buildings Programme and could have access to roughly 9p per kilowatt hour support through the RO. The same equipment installed today will get 41.3p per kilowatt hour, providing an incentive to all those involved.
In enabling energy consumers to be much more active and in control of their energy management, the government also intends to roll out smart meters to every home and business in the UK. The decision has also been made to delay degression – or reduction - of the tariffs for a year. This 12 month period will ensure that industry has the right conditions to hire and train new staff and still obtain the maximum boost from the FIT.
Simple solution
For businesses and households looking at benefiting from the FIT and reducing energy costs and carbon emissions, solar PV presents a simple solution. The sun’s energy can be used very easily with a photovoltaic system, with zero emissions. Solar PV has many benefits, as it is easier to retrofit and less intrusive, and for those few cases where planning permission is required, solar PV is often easier to gain for its installation. It is also a scaleable technology, meaning it can be specified to meet exacting requirements and can be easily extended at a later date.
PV can be supplied in many forms with the mainstream approach being standard PV modules fixed to the roof. However, ongoing developments in product design have also seen the integration of solar panels into the building fabric itself. The ASI Glass module range from Schott Solar, for example, combines energy generation with striking aesthetics to offer an integrated solar glass system, suitable for a wide variety of applications, including semitransparent façade glazing, roof glazing and rain screen cladding. Alternatively, the InDaX V 225 is designed for direct integration into pitched roofs, providing an efficient photovoltaic function as well as protection against rain, hail, snow and wind.
New opportunities
Having a strong renewable energy industry in the UK producing low carbon electricity from our buildings and reducing emissions is crucial. This will also play a big part in showing other countries that they too can reduce their emissions and that they shouldn’t be afraid of agreeing tough targets.
The tariff levels are set at a sufficient level to encourage commercial project developments to get off the ground. Just in the last three months we have seen a significant increase in the number of enquiries from organisations in the commercial world that are getting in touch with the company to look at ways of incorporating solar PV into their overall energy approach.
The introduction of the tariff regime provides a really positive framework for organisations who want to do their bit to reduce carbon emissions by adopting solar PV technology with the added benefit of a new revenue stream. The industry is set to grow massively over the next few years and so there are many opportunities for new jobs and new businesses in this sector.
