Energy Efficiency

Ofgem report on the Feed-In Tariff

The latest quarterly report from Ofgem is on the way, we have reviewed the last report and consider what the future may hold.

The dominance of Solar PV was accountable for 90% of all the FIT registered installations.  This confirms the stability of the Solar PV industry.  Since the introduction of the schedule and review program, the feed in tariff rates are now transparent for installers and clients, eliminating the uncertainty that sat above the industry like a dark cloud.

With material prices dropping the average install rate has significantly dropped, producing a ROI of around 10%.  With the Energy Gain Solar Loan, you can even have a system installed with no capital outlay.  These factors combined show us that the Solar PV market is still a growth industry and the end user will still receive fantastic benefits from a Solar PV installation.Wind is still complicated

Although the benefits of wind are great, the long drawn out installation process is problematic for even the battle hardened of clients.  The material and installation costs are high and the planning permission process is complicated, with many residents and businesses objecting due the aesthetics.  In comparison to a solar installation the costs are significantly more and when considering the additional maintenance costs a wind turbine has extremely high capital costs.

“With material prices dropping the average install rate has significantly dropped”

The Future

I expect Solar PV to maintain its popularity in the next Ofgem report and may even increase the gap as more and more people see solar in their streets, neighbouring communities and at their places of work.  The forthcoming Ofgem report only comprises of technologies that qualify for the feed-in-tariff, so those products that will receive the Renewable Heat Incentive, such as heat pumps, biomass and thermal solar don’t affect these figures.

The RHI will generate their own reports when the RHI finally launches later in the year and it will be interesting to see which technologies will dominate the RHI scheme, early indications are thermodynamic panels, if they do qualify, will be the most installed technology.

Craig Jones BSc (Hons) MSc Technical Director

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