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Mr & Mrs Preston

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10% Happy PV Returns continue into 2012

Stop Press: We introducing our Best Value Branded PV residential systems at £7,999 + Vat or less. Even with 21 pence FIT payments the annual returns will be 10% and possibly better, index linked and tax free over 25 years.

Returns could theoretically be as high as 20%! (see our ‘FIT Kafuffle’ article)

The only thing that has really happened for certain is that the cost of entering the Solar PV market has fallen.

FIT Overview

Solar PV Investors are rewarded in three ways via the Solar PV Feed-In-Tariff [FIT]:

Generation Tariff – up to 21.0 pence per kWh generated (2012/13)
Export Tariff – a fixed 3.1 pence per kWh exported to the Grid (2011/12*)
Lower Electricity Bills – consuming self-generated electricity reduces consumption of commercially generated, paid for electricity. At around 13 pence + Vat per kWh it soon adds up!

Example: A UK taxpayer generating 3290kWh in the 2012/13 FIT year from a 4kW roof mounted system on their main residence costing £8,400 would receive:

3290 X 21.0 pence generation tariff = £690.90 tax free
1645 X 3.1* pence deemed export tariff = £ 51.00 tax free
TOTAL= £ 741.90 *RPI uplift due from April 1, 2012

Plus: If 1,645 kWh of self generated electricity (50% of the PV generated annual total output) was consumed within the home then approximately 1,645 X 13 pence would be saved on the commercial electricity bill = £213.85

The combined value of income and savings is £955.75, a return of c. 13.8%

It’s possible the Government may have to briefly revert back to the 43.3 pence Generation tariff for early bird New Year market entrants! In such an instance, the annual return would exceed 20%!

New Website for 2012

Over the winter we’ve quietly been working on a brand new website.

In addition to providing product information and solar science educational services we will also publish customer feedback such as collective generation data and satisfaction survey results. Industry and company news; a case history library and special offers complete our ‘easy to navigate’ package. Hopefully up and running by the end of January.

New Opportunities for 2012

We plan to develop the Salop Energy Commercial brand on a number of fronts during 2012. Areas of opportunity include Energy Assessments and Conservation; Industrial Electrical services; Roofing Services and energy-efficient Gas services. For example, we will contract with builders and homeowners to roof/re-roof properties and install solar energy systems as a seamless, one step exercise. We will also conduct professional energy assessments providing energy conservation services at competitive prices.

Whatever we do, we will continue to focus on high customer service standards and fair pricing.

Solar Thermal and the Renewable Heat Incentive in 2012

Have you thought about how of your energy money goes on heating water? Solar Thermal water heating systems seems to have been overshadowed by the attractions of solar PV. Now could well be the time to take a closer look.

Things will change when the Government introduces a payment scheme later this year via its Renewable Heat Incentive. In fact, recently installed Solar Thermal systems will qualify for the scheme, so there’s no need to wait until the scheme goes live. Solar Thermal systems do not take up that much roof space compared to their Solar PV cousins.

We’re experienced installers - children’s’ charity the Longmynd Adventure Camp commissioned us to install two systems in 2011 to reduce reliance on LPG fuel. Both systems will qualify for RHI payments in 2012 and they have plenty of solar hot water for showers and the demands of an industrial scale kitchen!

Green Deal in 2012

Businesses and lower income households should benefit from a new Government finance scheme to help make their premises and homes more energy efficient. In essence the energy saving improvements such as solar energy systems (businesses) loft insulation, cavity wall insulation, low energy light bulbs and secondary glazing will be financed through a Green Deal loan attaching to the electricity meters.

A scientifically founded energy assessment will include the calculation of reduced electricity consumption for each conservation measure. This will result in reduced electricity bills, but in practice participating households will continue to pay electricity bills at their pre conservation measure levels. The resultant overpayments will pay off the loan funding the cost of installing the conservation improvements. Green Deal loans will not attach to people, but to electricity meters, so when someone moves home Green Deal loan details will have to be disclosed.

Salop Energy Commercial will have its own qualified Energy Conservation Assessors to help our clients make the most of the Green Deal opportunity.

Building Regulations and Solar Energy Installations

Updated solar energy installation standards come into force in April. These will include a requirement that Installers ensure that customers’ roofs will be Building Regulations compliant.

Salop Energy Commercial already meets the new standard for roof mounted systems via its Solar Safe Survey with a highly regarded Structural Engineer analysing survey data and issuing compliance certificates. This also comes with £250,000 professional indemnity insurance.

The crucial thing is that a roof is strong enough to support the weight of the solar system for 25 years in variable wind and snow load conditions. Salop Energy Commercial’s experienced roofers know just how crucial this is which is why we actually turned down some solar projects in 2011.

It also means we can seamlessly undertake roof strengthening and improvement works as part of the solar installation process.

Happy New Year
To all our customers, past, present and future