MSE News: EST cuts solar panels' bill savings estimate

Cardew

John_Pierpoint wrote: »

Cutting the rates and announcing the new details before the end of the period of consultation has been ruled as illegal by the high court, following a challenge by Friends of the Earth and a pair of solar organisations, all working together.

Whilst I agree with the thrust of your post, to be pedantic they haven't actually ruled the the Government's action was illegal; they have allowed the action to be subject to Judicial Review:

Judicial review is the doctrine under which legislative and executive actions are subject to review (and possible invalidation) by the judiciary.

The Government are still going to appeal and even if that fails the implications of the Judicial Review on FIT is still unclear. Given that they have stipulated that there would be a finite sum available for FIT - which has almost run out - it will be a pyric victory for Friends of the Earth if the FIT stays at its current level and the post consultation level is even more savagely cut. Bear in mind it is a consultation period - not a negotiation.

rogerblack

Cardew wrote: »

The Government are still going to appeal and even if that fails the implications are unclear

I note that the consultation is now over - I forget when it was - the 23rd?

The consultation, as part of it, specified that the rate of return that is intended for solar panels under the scheme, in well-situated areas, is 5%.

With the 21p/kWh subsidy, this would be paying around 16000 for a 4kW panel.

As prices are _considerably_ lower than this, one option once things settle out might be that installs up until the 24th get 43p/kWh, and then get _less_ than 21p - as that was the result of the consultation.

Martyn1981

Hopefully the govt will keep on top of the subsidy rate now, and review it regularly.

They were seriously caught out by the reduction in prices, and there is still a lot of slack in the system. The UK wholesale side is still young, and panel prices here are around £1 per watt, whereas the USA are nearer $1 per watt, and Germany well under 1 euro per watt.

If the UK closes the gap quickly, without revising FITs accordingly, then this scheme could lose further respect. I think even a 12 month wait will be far too long this time, a post summer review would be an excellent idea.

Mart.

HalloweenJack

actually wholesale prices are 70p per watt for chinese panels at november prices and german panels are 95p per watt

http://www.solarserver.com/service/pvx-spot-market-price-index-solar-pv-modules.html


mr `i want profit` homesun has no leg to stand on - 31% price reduction year on year.

Martyn1981

HalloweenJack wrote: »

actually wholesale prices are 70p per watt for chinese panels at november prices and german panels are 95p per watt

http://www.solarserver.com/service/pvx-spot-market-price-index-solar-pv-modules.html


mr `i want profit` homesun has no leg to stand on - 31% price reduction year on year.

Cheers, that's a handy site. Those Chinese panel prices you reference are probably what I heard about. Selling for something like 80c / watt or less in Germany, Can't see any reason why our wholesale prices can't catch up soon.

Any argument Homesun had regarding FITs rates has surely now been overtaken by Nov & Dec price drops. Prices of £8k for a 4kWp system are now appearing, half what they were 2 years ago, so seems to justify the new rate.

Remember however that some costs are embedded, so total cost of install won't drop exactly in line with panel prices.

Mart.

HalloweenJack

aye the equipment cost is only part of the total `package` - i would like to find a similar site for invertor wholesale price drops

Martyn1981

HalloweenJack wrote: »

aye the equipment cost is only part of the total `package` - i would like to find a similar site for invertor wholesale price drops

Actually HJ you've got me thinking of lots of things now that should place downward pressure on FITs rates.

Not only will the price of the inverter help, but any small increase in efficiency or reliability, should also improve the overall investment, and thus reduce the need for the subsidy. With warranties steadily growing from 5 yrs to 10, 15 or even 20 - that takes away some long term financial pressures.

Going even further off thread, but I don't think the public need to be persuaded as much now. They are no longer 'risking' large new car money on some 'magic kit'. As more systems go up, the public should have less concerns that need high returns to alleviate. Hard to quantivate, but must be worth a small percentage.

Mart.

Hales1

In a relatively short period the technology will change for the better and those entering into a poor 25 year agreement with little reward will kick themselves. For instance who would wish to be stuck with a brick mobile phone; a low power large computer or an old car?
They will want these panels off their roof but will be stuck with them!