21 Sep Amber Rudd set to unleash a solar revolution!
Well the above title is true she certainly has! The industry is now in more of a mess than ever. After the announcement was made last month sales and orders are becoming impossible to deliver due to the demand and stock levels.
In 2011 this industry found its self in the same position, huge orders and a limited time to deliver them before the cuts came into place, companies were installing at a remarkable pace, completing huge projects over night, the result was a huge over spend on the feed in tariff budgets. If the tariff was left to reduce slowly the cost to the government would have been greatly reduced thus avoiding the boom and bust.
It seems to me the government would have predicted the scenario of the increased install rates after the announcement but this time it would seal the fate of the scheme because when the installation figures rise it will trigger digression marks quickly causing a short and sweet decline in their payments and also giving them the real cause to suspend the feed in tariff with no legal implications.
We do still hope that by the 25th of October a compromise may have been met when other factors are considered like unemployment. The REA has estimated that if the proposals are adopted and the cuts to the solar industry result in 15,000 job losses then this will represent a net loss to the taxpayer of £94million in terms of lost tax and National Insurance revenue, and welfare payments, which is as much as proposed budget cap until the end of the scheme.
The next real breakthrough is battery storage and it’s not far away, but this also could be affected by the proposed cut as it will reduce the appetite for installing solar, but for the people on the scheme it will be a no brainer to store this energy and utilize it whilst getting paid for it.
We are all hoping that a sensible solution can be found before any changes come into effect as solar as not met its full potential yet and without government support as a nation we will look to be going backwards simply because of cost cutting measures.
If we look at the next few years I expect rises in electricity costs and grid problems to become a real problem for businesses and home owners, this is when having a solar system installed along with battery storage will become essential and will not require the support of any green subsidies.
Editorial by Tom Mastin, Renewable Installation Manager.
Hero Renewables are proud winners of last months Panasonic Installer of The Month Award, for all solar enquiries please do not hesitate to call us free on 0808 222 0 111.