PV Installers - Profit or not?

[alexpau]

Those within the market that presume (government included ) that prices will continue to tumble for PV installations are presuming to much for example - mounting systems are made from stainless steel or Aluminmum as these are raw materials when have you seen raw material prices fall ? panels part of the reason for cheaper panels now is over production in China which means they have to sell them off also now the americans are slapping a 30% import duty on them there will be more dumped in Europe but then what? once these run out prices will rise, With invertors yep you can purchase cheap one but will they perform and last like SMA etc? the other issue is labour costs in Germany they work on a 1,000 euro gross profit margin typically on a 4Kw system would UK compaines want to or afford to do that?

 

[Noshocks]

Those within the market that presume (government included ) that prices will continue to tumble for PV installations are presuming to much for example - mounting systems are made from stainless steel or Aluminmum as these are raw materials when have you seen raw material prices fall ? panels part of the reason for cheaper panels now is over production in China which means they have to sell them off also now the americans are slapping a 30% import duty on them there will be more dumped in Europe but then what? once these run out prices will rise, With invertors yep you can purchase cheap one but will they perform and last like SMA etc? the other issue is labour costs in Germany they work on a 1,000 euro gross profit margin typically on a 4Kw system would UK compaines want to or afford to do that?

At 1000 euro (£799 GBP) its obvious the answer is no, I could do a board change and put in an outside supply for a garage for that money, with just a years warranty and sleep soundly. The MCS and asociated costs, a large outlay in materials, VAT tieing up cash flow, weather holding you up, the downsides are large. If we have to compete at this level its only the national players that will be left.

 

[SolarCity]

At 1000 euro (£799 GBP) its obvious the answer is no, I could do a board change and put in an outside supply for a garage for that money, with just a years warranty and sleep soundly. The MCS and asociated costs, a large outlay in materials, VAT tieing up cash flow, weather holding you up, the downsides are large. If we have to compete at this level its only the national players that will be left.

Judging by some of the prices that some firms are quoting, they're already below £799

 

[SRE]

Judging by some of the prices that some firms are quoting, they're already below £799

and think they're coining it in too!!

 

[infinity]

would you think £2k profit would be a good margin? What would the expected margin be to allow or all eventualities?

 

[alexpau]

At 1000 euro (£799 GBP) its obvious the answer is no, I could do a board change and put in an outside supply for a garage for that money, with just a years warranty and sleep soundly. The MCS and asociated costs, a large outlay in materials, VAT tieing up cash flow, weather holding you up, the downsides are large. If we have to compete at this level its only the national players that will be left.

The way the Germans do it is different they have work five days a week every week of the year the way I see it is 4,000 euro per week per installation team presuming one install per day

 

[SRE]

German example has potential if the business is there but with an average of one installation per installer for the whole of April somehow I don't think we're operating in the same market!

 

[alexpau]

German example has potential if the business is there but with an average of one installation per installer for the whole of April somehow I don't think we're operating in the same market!

Hey i agree with you unlike the German government the UK government has not been a supporter of the the PV industry since October last year they have created nothing but sceptism and uncertainty in a market with enough work potential for the next ten years. Did you read 40% of all domestic electricity used in Germany this weekend was generated by PV!

After the Nuclear disaster in Japan the German government became more commited to Solar as its a much safer and cheaper option to building Nuclear power plants in this country we cant make our minds up and unless we have a clear stratergy on energy we will wake up one morning and it will be like the 1970,s again with power cuts as our supply networks clapses under the strain

 

[alexpau]

Profit margin is dependant on many factors but be careful on what kit you use and install remember they are good and bad products in this industry like all others for example

The panels have to be efficient and provide enough output to last 25 years
The mounting system has to have Euro approvals and be fit for purpose and installed as per the manufacturers specification
The inverter is the heartbeat of the system this needs to be reliable and efficient and again last a number of years

You dont want to go back again after you have installed the system unless its for maintenance purposes as you will eat into what profit you did make, i have issues with some kits out there at silly cheap prices - the mounting systems have not be designed for the specific roof you are installing in and i garrantee the panels and invertors will not be of the best standards available