The four largest trade associations covering the UK solar market have come together today to argue that solar still represents one of the best investments householders and businesses can make.
Over a quarter of a million domestic solar installations have been registered under the feed-in tariff subsidy scheme since it started in April 2010, totalling over 1.3GW of installed capacity.
But a long-battle over controversial cuts to the popular incentive scheme have undermined confidence in the sector and led to a contraction of demand in recent weeks that has left the sector "stagnant", according to a joint statement from the British Photovoltaic Association (BPVA), the Micropower Council (MPC), the Renewable Energy Association (REA), and the Solar Trade Association (STA).
Demand for new installations has collapsed since the start of April, when changes to the feed-in tariff scheme effectively halved the level of incentives available.
The groups are now arguing that the the public has been left confused by gloomy headlines and a fluctuating policy regime, and that as a result people are not aware that despite cuts to incentives at the start of April well placed installations can still generate rates of return of up to eight per cent - a level far higher than most savings options.
To promote the sector, the bodies have issued a joint statement extolling the benefits of solar photovoltaic (PV) panels, including decreasing electricity costs, creating a new income stream by selling electricity back to the grid, and helping provide a secure source of energy for the country.
They are also arguing that falling panel costs mean a 4kWp system, the largest size for which the highest tariff is available and almost twice the size of the average domestic system, costs less than £9,000 today, whereas just a year ago it would have been priced at over £15,000.
Meanwhile, policies such as the existing Carbon Emissions Reduction Target, and the soon-to-be-launched Energy Company Obligation (ECO) and Green Deal are helping property owners reach an energy efficiency rating of D or above, making their properties eligible for the feed-in tariff incentives.
Gaynor Hartnell, chief executive of the REA, said the financial rewards of investing in solar could still be substantial.
"With gas and electricity prices on the rise yet again, returns for today's investors in solar power are likely to be better than expected," she said.
"By the end of this decade, solar energy costs are expected to fall to the point where it costs the same to generate your own power as it does to buy it from the grid. A technology with this potential is bound to transform our energy future."
Her comments were echoed by Dave Sowden of the Micropower Council, who stressed that "solar PV still offers attractive returns for consumers, in excess of many alternative investment products".
"Improving consumer understanding of solar PV and the Feed-in Tariff scheme is likely to be key to restoring healthy uptake levels," he said. "We are pleased that the policy framework is now on a more stable footing and are optimistic that this will signal a new dawn of consumer confidence in the microgeneration sector."
However, some industry sources remain frustrated that the trade bodies have not done enough to protect the sector as deep cuts to incentives have led to job losses and bankruptcies.
Fears are also mounting that demand could contract still further if the government goes with through with controversial plans to cut incentives again from this July.
Source:http://www.businessgreen.com/bg/news/2174500/trade-bodies-unite-promote-attractive-solar-technology
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