T
The Solar King
Just thought I would float this one. Despite my encouraging words on the public side, I do have a couple of concerns.
There is an increasing volume of installations being undertaken for Social Housing providers in large quantities. We have been approached three times this year to undertake roof work and other aspects of installation on such projects (probably for washers), which I have declined to get involved with.
The generosity of the FIT at current rates means it is possible to finance such programmes from its revenues. Minimum finance sum is normally £1m. Has to be this level to get low enough interest rate. Housing associations are also seen as a very safe bet in terms of lending.
This is anecdotal, but I suspect this is an important element driving current volumes. As lead times can be long in getting such projects up and running, we may see a significant leap in volumes as they come to fruition. We have just witnessed a super degression in a higher band where there was insufficient volume. Not wishing to be gloomy, it may not be out of the question in the 0-10kW band.
Interested to know others observations on this. I really hope I am wrong, as accelerated degression would continue until a level was reached where the financial model for social housing was no longer viable.
One other to keep a weather eye on is new build. Allowable Solutions in the dilution of English Building Standards could see significant increases in this market. Currently it is still eligible for FIT. Anecdotally I have also heard of discussion with builders where increasing PV could mean decreasing other interventions and still meet emission standards. The increased cost of PV could be less than the savings in other measures.
Scottish Building standards also change this Autumn, and solar could become almost standard fitment to meet them.
Just hope FIT is removed quickly from new build as they would still have to do it. The FIT itself is also of no benefit to the volume house builder.
There is an increasing volume of installations being undertaken for Social Housing providers in large quantities. We have been approached three times this year to undertake roof work and other aspects of installation on such projects (probably for washers), which I have declined to get involved with.
The generosity of the FIT at current rates means it is possible to finance such programmes from its revenues. Minimum finance sum is normally £1m. Has to be this level to get low enough interest rate. Housing associations are also seen as a very safe bet in terms of lending.
This is anecdotal, but I suspect this is an important element driving current volumes. As lead times can be long in getting such projects up and running, we may see a significant leap in volumes as they come to fruition. We have just witnessed a super degression in a higher band where there was insufficient volume. Not wishing to be gloomy, it may not be out of the question in the 0-10kW band.
Interested to know others observations on this. I really hope I am wrong, as accelerated degression would continue until a level was reached where the financial model for social housing was no longer viable.
One other to keep a weather eye on is new build. Allowable Solutions in the dilution of English Building Standards could see significant increases in this market. Currently it is still eligible for FIT. Anecdotally I have also heard of discussion with builders where increasing PV could mean decreasing other interventions and still meet emission standards. The increased cost of PV could be less than the savings in other measures.
Scottish Building standards also change this Autumn, and solar could become almost standard fitment to meet them.
Just hope FIT is removed quickly from new build as they would still have to do it. The FIT itself is also of no benefit to the volume house builder.
