INDUSTRY COMMENT BSEE


The sun will shine again on solar PV


Paul Reeve, Director of Business Services at the Electrical Contractors’ Associaon (ECA), explores the future of solar PV aer the government’s tari cut


announcement last year.


ast Autumn, when the government proposed cuts of 87 per cent on the tariff received by the solar installation sector, many feared the imminent demise of domestic solar PV.


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At that stage, the solar industry was supporting 34,000 jobs along the supply chain, the majority in small and medium- sized businesses, and contributing around 10 per cent of total UK renewable energy.


As a result of a major campaign drive by the ECA, alongside other key players such as the Solar Trade Association and the Renewable Energy Association, the government was persuaded to row back on the proposed cuts. In the end, the government cut back on their small-scale feed-in-tariffs (FiTs) cuts by around one-quarter, but this still means a highly challenging 64 per cent reduction. Yet things could have been very much worse, particularly when the original government consultation implied that industry rejection of an 87 per cent cut might result in a total withdrawal of FiTs altogether.


While making the case with key government officials, including Energy Minister Andrea Leadsom, local MPs and parliamentary committees, the ECA emphasised that the sector was well on the way to standing on its own two feet, possibly within five years.


A key queson now is whether there will be enough of the UK industry le to reap the benets of the next ve to ten years, or whether they will ulmately go to overseas compeon which is already seizing opportunies across the globe.


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The latest reduction in FiTs has already had a major impact on the size of the solar PV sector, and may delay UK parity with other energy sources by several more years. The sector will need to adapt quickly to the new business environment, with a maximum cap of £100 million in the overall subsidy provided during the next two years. A successful UK renewable energy industry means jobs and growth, and it contributes directly to a safer, non- disrupted, and 'no carbon’ energy future for the country. There is good reason to anticipate that solar PV will, at some stage, enjoy a second renaissance. This is likely to coincide with the expected uplift in electrical energy storage in both residential and commercial buildings, and what now appears to be a wind-down in fossil fuel reliance. Localised energy storage systems such as the Tesla Powerwall are set to push electrical storage forward. In October last year, a major step was taken by a Californian real estate firm, who had Tesla battery systems installed on 24 office buildings, reducing their peak energy consumption by one-quarter.


Survival in the short term is, of course, an essential precursor to longer term success. Solar PV is part of a massive and growing global appetite for solar renewables, and continued price reductions and innovation in two crucial areas: solar panels and batteries.


A key question now is whether there will be enough of the UK industry left to reap the benefits of the next five to ten years, or whether they will ultimately go to overseas competition which is already seizing opportunities across the globe.


www.eca.co.uk BUILDING SERVICES & ENVIRONMENTAL ENGINEER MARCH 2016 29 What’s New? See our new product and services secon starng on page 33


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BSEE Vol.35 No.3 March 2016 Building Services & Environmental Engineer


Essenal reading for building services professionals and speciers THIS MONTH’S


BIG ISSUES: BREXIT: The environmental impact BIM: Discussing the basics


SAFETY: Protecng workers from re and explosion ENERGY: The future of solar PV


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