Wrexham’s solar revolution goes forward
Despite the recently announced changes to the FIT regime, Wrexham Council (WCBC) is continuing with its groundbreaking programme to install solar photovoltaic panels on 3,000 of its homes by the end of March 2012.
The business case for the solar PV scheme has inevitably changed as a result of the UK Government’s proposal to cut FITs by 50% from 43.3p to 21p and WCBC will need to mitigate the impact of the reduction in tariff by maximising the number of installations that can be completed before the 12th December FIT reduction date.
The inhouse project team has focussed on the impact of the FIT reduction, and is satisfied that the financial model will continue to deliver a net surplus over 25 years which will be reinvested in housing services in Wrexham.
The Council has always been aware that changes to the FIT were on the horizon. The UK Government has always intended to carry out a full review of FIT, which would result in changes from April 2012 and Wrexham’s procurement exercise and contractual arrangements have been designed to ensure that all 3,000 installations are completed before any changes come into affect.
However, the concern from WCBC is around the timing of the proposed changes. Introducing a change to the tariff from December 12th only provides a short timescale to complete all installations, and of more concern is the fact that the changes come into effect before the formal consultation period ends.
The Council is lobbying as strongly as possible to delay the implementation date to enable Councils, community projects and businesses to minimise their exposure to costs and ensure a ‘softer landing’ in terms of dealing with the impacts of the changes to the tariff.
Looking to the future
Wrexham has put in place a procurement framework which is operational for 4 years. This framework has several companies listed on it, and enables the Council to quickly award a contract should it wish to deliver a solar PV scheme. In future months the Council will therefore be in a strong position to install on more domestic properties or a number of non domestic properties. It is expected that costs of PV equipment will continue to drop, and this may result in the 21p FIT providing an acceptable return as the market matures and develops.
Although the recent FIT announcement is not welcome news, the pro-active, co-ordinated and thorough approach to procurement means that Wrexham is well placed to take advantage of the FIT scheme in future months and years. This means the authority will be able to continue to play a community leadership role and make the most of opportunities offered by new renewable technologies to continue to lower emissions and to improve household energy efficiency across the County Borough.
Contact: Michael Cantwell, climate change and sustainability officer
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