Ben Robinson, Director of Dulas

Ben Robinson, Director of Dulas, answers questions on FiTs posed by the Centre for Alternative Technology: 

1. Has the way this has been handled damaged the renewables industry's confidence in the government?
Slightly. As a leader in the renewable energy sector we were aware of the level of expected cuts and how quickly it was likely to be executed. The government should have listened to the industry during the first review and reduced the rates for all system sizes from August 1st. I was surprised to see tariff rates increased following the very first consultation before the scheme was launched and believe that they should have stuck with the very first rates suggested from the outset.  I believe that the new proposed levels will still provide appropriate returns on investment, especially as electricity prices rise and PV product prices reduce, but only if high quality products are installed that perform well over the 25 year Feed in Tariff (FiT) period at least.  My biggest fear is the level of energy efficiency measures that are being proposed from April 2012 onwards in order to receive the FiT.  It has taken many years to educate the public of the difference between solar thermal and solar photovoltaic technologies and this will only help to bring back that confusion if measures to improve thermal performance are bundled together with electricity saving measures. Also, in the area where we are most active (Wales), achieving an EPC level of C is nigh on impossible for a large majority of the existing housing stock without spending many thousands of pounds.  Hopefully, at least the feedback for this area of the consultation will be listened to by the government and changed accordingly for older houses/buildings.

2. Are you worried about the impact the proposed cuts will have on Dulas?
Dulas are a long term player in a long term game and are ultimately waiting for grid parity.  We have obviously benefitted from the increased demand for PV due to the FiT and have employed people to deliver installations, however, these are skilled jobs which fit with our long term objectives. As an organisation we are generally quite cautious about areas of the business that are only driven by government incentives and believe that for sustainable growth the 'sticks' need to be in place alongside the 'carrots'.  Having been active in the UK PV sector since the beginning, installing some of the first grant funded grid connected systems and being a Framework Supplier for Phase 2 of The Low Carbon Building Programme, we are used to the government chopping and changing their incentive schemes and therefore review our business plans annually. 

3. What are you fears about the impact it might have on the solar PV industry in the UK?
In the short term there will be a shortage of product and installation resource as everyone tries to beat the deadline. Investor confidence will have been damaged, with so many changes happening so quickly and we expect job cuts within the businesses that have been set up specifically to take advantage of the generous PV FiT. No doubt many projects will be cancelled and therefore order books will now have gaps in between December 12th and April 1st at least (or until the government decide on the energy efficiency requirements for FiT eligibility). There is now a much bigger risk of low quality product flooding the market along with poor quality installations as businesses attempt to match the return on investment that was available at the older more generous rates.  This could be extremely damaging not just for the industry but for the consumer, public, emergency crews and installers alike because of the significant health and safety risks that are prevalent due to the combination of DC & AC electricity alongside installing metal and glass products often overhead and indeed working at these heights when installing.  

**These are personal opinions written in the user’s language of choice and are not necessarily supported by Cynnal Cymru.**