COMMERCIAL SOLARSTILL LOOKING TO THE FUTURE


Despite the recent turmoil over FITs and falling tariffs, the case for businesses to embrace solar photovoltaic microgeneration can still be compelling, as Paul Reeve, the ECA’s head of Environment, explains


T


he last six months have been a rollercoaster ride for solar photovoltaic (PV) installers and customers. Much of the attention has been on the domestic PV market – two thirds of installed PV capacity to the end of 2011 was on housing, but the remaining third has been installed commercially, including on public buildings.


The Department of Energy and Climate Change’s (DECC) latest plans for Feed-in Tariffs (FITs) include a rolling series of reductions, following big reductions already introduced in April (see Table 1). The net result is that even the highest FITs are set to go to around 10p/kWh by 2014. Two factors have an inordinate effect on demand for PV microgeneration. The first is the upfront cost of the system and the second is uncertainty – whether it’s about how FITs work, the financial returns or a range of practical issues such as planning, grid connection and whether the system will ‘work as advertised‘ (see Table 2). Unfortunately, the government’s recent actions have given potential non-domestic customers plenty to think about. DECC also requires at least a ‘D’ rated energy performance certificate (EPC) before premises owners can be entitled to FITs. Against a backdrop of legal appeals and shifting


GDC Group’s Millbrook House offices in Southampton have been equipped with a Dimplex solar photovoltaic system


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ECA Today May 2012


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