The industry has been dogged with uncertainty since the legal battle began in December last year. Friends of the Earth, Solarcentury and HomeSun took the government to court over its decision to cut the tariff rates to 21p before the consultation period was over. The High Court ruled that this was unlawful.

The government appealed, and lost, and then took its case to the Supreme Court. The court’s decision not to allow the government leave to appeal puts an end to the ongoing saga, and will hopefully end the uncertainty that has been so damaging to everyone involved in the industry.

“We are disappointed by the decision of the Supreme Court not to grant permission to hear this case,” said Energy and Climate Change Secretary Edward Davey. “But the Court’s decision draws a line under the case. We will now focus all our efforts on ensuring the future stability and cost effectiveness of solar and other microgeneration technologies for the many, not the few.”

The official statement from the Court said: “Permission to appeal was refused because the application does not raise an arguable point of law of general public importance which ought to be considered by the Supreme Court at this time, bearing in mind that the case has already been the subject of judicial decision and reviewed on appeal and because paragraph 16 of the Court of Appeal’s judgment disposes of the proposed argument based on the subject of the challenge being only a proposal,” read the ruling.

The current FIT rate for small solar systems of 21p per kWh generated, plus 3.1p per kWh exported still gives a rate of return considerably higher than the government’s target of 4.5%. This rate is only available until 30 June 2012, when it will be reduced. All installations after 1 April will ha

Breaking News: Supreme Court rejects government’s feed-in tariff solar appeal

• Occupancy rates (based on the floor area)
• Assumed heating & electricity usage (based on the occupancy rate)
• Average fuel costs

The process for providing an EPC requires a certified assessor performing a site visit then inputting the data into an approved software program. For existing domestic properties, the assessor will look at the dimensions of property, the heating system, and then record details of items including loft insulation, wall insulation and windows. This data will then be fed into a software program that runs a reduced SAP (rdSAP) calculation.

Can the PV system count towards the EPC rating?

The short answer is yes … providing (as covered in an earlier post), the EPC is done after the PV installation and the EPC certificate is provided to the FIT Licensee at the time they process the FIT application.

Given this, a common question I am being asked is – “how many points will the PV system give me when calculation the EPC”. Unfortuanely there is no easy answer to this question as the point gain will vary and will depend on the property and the EPC rating before the installation. The only way to tell for sure is to feed the data into the rdSAP software.

Some other common questions …

• Once the FIT application is processed, you can’t do improvements then re-submit for a higher FIT
• If a property has no EPC, or if the EPC is E or lower – then a 9p/kWh FIT rate applies
• The EPC requirement applies to domestic and non domestic buildings. It also applies to holiday lets.
• If the PV on a barn, which is wired to a house … an EPC needed on the house
• The only EPC exemption is where a customer can “demonstrate that it is not possible to obtain an EPC certificate for the building to which the solar PV installation is attached or wired “

Getting qualified

A typical process for becoming a Domestic Energy Assessor (DEA) is as follows …

• 3 days of initial training – assumes experience of surveying buildings
• Portfolio building – at least 5 surveys on different building types
• 1 day – exam & witnessed assessment

During the process, the assessors will need to become familiar with building features including:

• Types of boilers – controls and efficiency
• Wall construction – solid walls, cavity walls, timber frames
• Roofs – insulation and coverings
• Windows – type and materials
• Utility services – electricity, gas, water
• Central Heating – types and controls

Some calculators are more sophisticated than others and are able to analyse the information from a greater number of variables. For instance, some calculators will be able to factor in issues such as the pitch of your roof and where in the country your installation is based. Some calculators include an environmental impact calculation which allows you to show the reduction in your carbon footprint over the life of the installation. When calculating the rate of return of installing solar panels on the roof, all calculators make the assumption that you will use a company which is certified under the Microgeneration Certification Scheme as this is a requirement for anyone wanting to claim Feed-In Tariffs.

What Information Will I Need?

If you want to use a solar PV calculator, you will need to gather some information in advance to be able to generate an accurate result. For the most basic sites, the information you will need will include your postcode, the direction in which your roof faces and how much space is available for panels. For some calculators, you will also need to know the pitch of your roof. The more accurate the information you supply, the more accurate the results will be. Sites will then usually calculate how long it will take for the cost of the panels to be recouped, the profit over twenty five years and the rate of return. Some sites will also give you a number of scenarios based on the cost and efficiency of a number of different panels. However, calculators will base their results on a number of assumptions which will affect their overall accuracy as bill reductions will depend on your current electricity usage and tariff.

Which Solar Calculator to Use?

Providers of solar PV calculators include the Centre for Alternative Technology which offers an environmental impact calculation, as well as the financial calculator. Solar Guide’s website gives a number of calculations including the earliest payback, the greatest payback and the greatest annual income. This site also allows adjustment for the assumption about the inverter or cable loss, the annual energy price inflation and panel degradation. If your installation site has significant shade coverage, you can choose a calculator such as that provided by Solar Insiders as this includes the ability to factor in how the shade will affect the savings and income generated by the installation. If you opt to invest in solar trackers, which allow the panels to move and follow the sun during the day, then the calculator may underestimate the efficiency of the system.

In response to a misleading article that claimed the Government wants to scrap the 2020 renewable energy target, Secretary of State Edward Davey sent the following letter to the Guardian newspaper:

Over the coming years, 19GW of nuclear and fossil-fuel capacity will come offline in the UK. Sceptics have maintained that the decommissioning of such a large proportion of the island’s capacity would leave a huge shortfall in the national grid that could lead to rolling blackouts sweeping the nation, plunging millions of homes in the dark. However, the research company has predicted that by the end of 2016, the UK will build more than 30GW of power-generation capacity; 10GW of which will be fired by natural gas with the remaining 20GW provided by solar, wind and biomass.

“The U.K. is embarking on an historic shift in its electricity supply, and commentators and critics have continually raised the spectre of the lights going out once again,” said Michael Liebreich, Chief Executive Officer of New Energy Finance. “Our analysis shows that, barring unforeseen circumstances, it is not going to happen.”

It is estimated that the cost of replacing Britain’s ageing power plants and upgrading the nation’s electricity grid could cost UK utilities as much as £200 billion. According to Ofgem, a third of Britain’s fossil-fuel plants will close in the next three years to meet ambitious EU targets for carbon emissions by 2015.

The report estimates that solar PV will play an important role in the short and long-term future of new British generation capacity.

Bloomberg predict that an average of 1.6GW of solar PV will be added each year up to 2016, in spite of the Department of Energy and Climate Change’s newly-announced FiT cuts and cost-control mechanism.

The report forecasts that a continued decline in module prices, improvements in installation efficiency and more sophisticated financing packages will help drive wider adoption of solar PV.

Despite acknowledging Greg Barker’s claim that the UK will achieve 22GW of solar capacity by 2020, the report predicts that the UK will fall short of the Minister for Energy and Climate Change’s ambition by 5GW. The UK will reach Germany’s current level of solar capacity in 2030 after installing 25GW.

The paper concludes that for the next three years the national power grid will have more than enough capacity to meet demand and will continue to meet the nation’s needs past 2020, thanks in large part to renewable capacity.

DECC estimates that around half of UK homes reach level D already. But for those that don’t – and older properties in particular – the change could add extra time, money and hassle into the process of installing solar PV. Homes that fail to reach level D will receive the much lower tariff of 9p per kWh.

We still have some install capacity throughout March. So however energy efficient your home is, you still have the chance to avoid the need to produce a certificate altogether.

Why book now?

With the news that the 21p rate is likely to be temporarily reinstated to 43.3p for installs between 12 December 2011 and 3 March 2011, many customers have rushed to book install slots in that space of time. We’re now unable to book in any more installs before 3 March.

If you’re shopping around, we’d suggest it’s better to install with Solar Advanced Systems after 3 March than to settle for a second-rate install now in the hope of securing the 43.3p rate.

Install between 3 March and 1 July and you’ll receive a guaranteed tariff of 21p per kWh. With our latest pricing that can give returns of up to 10.5% – tax free, inflation linked and guaranteed by the government for the next 25 years.

Install between 3- 31 March and you’ll have the added bonus of avoiding the EPC regulation, and any associated costs that may come with it. You’ll also get your install complete well before July, when there’s likely to be another busy period.

The Government has today announced plans to ensure the future of the Feed-in Tariffs scheme to make it more predictable. Transparency, longevity and certainty are at the heart of the new improved scheme.

The reforms will provide greater confidence to consumers and industry investing in exciting renewable technologies such as solar power, anaerobic digestion, micro-CHP, wind and hydro power.

• Read the full press notice

Written ministerial statement by Edward Davey on reforming the Feed-in Tariffs (FITs) scheme

This Government is committed to promoting decentralised energy and the take-up of small-scale low-carbon technologies by the public and by communities.

The Feed-in Tariffs (FITs) scheme is an important instrument in meeting that commitment, but it needs to be reformed as we want as many people as possible to be able to benefit from the scheme. For too long it has been limited to the lucky few.

So today I am publishing a series of documents which mark a crucial turning point for the FITs scheme. Taken as a whole, this reform package will put the scheme on a predictable, certain and sustainable footing for consumers, and for the businesses delivering these exciting renewable technologies.

• Read the full statement

Feed-in Tariffs consultation documents

• Response to FITs Phase I consultation
• Comprehensive Review of Feed-in Tariffs – Phase 2A: Solar PV cost control (consultation closes on 3rd April)
• Comprehensive Review Phase 2B: Consultation on Feed-in Tariffs – Non-PV tariffs and scheme administration issues (consultation closes on 26th April)
• More about Feed-in Tariffs