From July 2015 until the end of December the renewable energy industry as a whole was on tenterhooks awaiting the news about the change in Feed-In Tariff and what that would mean for the sector. It was expected that in some cases the Feed-In Tariff would no longer exist after the announcement, and that would have brought severe changes to renewable energy.

But, now that the amendments to the Feed-In Tariff have been released by the DECC we know that it isn’t as bad as what we were expecting. In fact, contrary to popular belief, the changes aren’t that bad at all.

Here are 3 reasons why a solar installation is still a good proposition.

1. Cost of equipment and installation is falling

In the past five years, we have seen a drop in the price of renewable energy equipment, due to the reduction in processing costs and the improvement in conversion efficiencies.

We have been able to pass on the benefit of these reduced costs to our customers. Even with the reduced FIT available, our installations should still offer a return of at least 10% with a pay back period of less than 7 years.

Deutsche Bank says that “total costs could fall another 30-40% over the coming years, with the greatest cost reductions likely to come from improving operating efficiencies.”

According to the report by the International Renewable Energy Agency (IRENA), “cost reduction potentials for solar and wind technologies remain strong. In an era of low equipment costs, particularly for Solar PV and, to a lesser extent, wind, balance of project, operations and maintenance, and financing costs can provide the largest cost reduction opportunities.”

2. Reduced electricity bills

Even if there were no FIT or Export Tariff it still makes financial sense to install PV and generate your own electricity.

Installing PV has the effect of fixing your electricity price at around 0.05 p/kWh for the next 20 years (based upon current installation costs). This is certainly cheaper than the price of electricity today and will certainly be cheaper than the price of electricity in the future.

Another way to look at it is this:

A 50kw PV installation will generate approximately 45,000 kWh per year.

To buy 45,000 kWh of electricity at a price of 10p/kWh is an annual cost of £4,500. Over 20 years this £90,000, on the unlikely basis there is no increase in the price of electricity in the next 20 years.

If you had installed 50kW of PV at a cost of £45,000, and used half the electricity generated, rather than pay out £4,500 a year you would actually receive an annual payment of £920 as well as receiving free electricity. This includes the cost of the installation and the cost of any imported electricity.   

3. Meeting your green goals

As a business, you are always under pressure to make sure that you’re meeting your corporate social responsibility (CSR) goals – which very often means that you have to prove you’re an energy efficient business.

The change in Feed-In Tariff does not have any effect on you meeting your CSR targets. There are still many steps that you can take towards achieving your goals, even smaller ones such as insulation or more efficient lighting. And if you decide to take the leap into a renewable energy technology investment, you’ll earn your green credentials.

Being seen as a business who cares about the environment and is taking steps to make a difference to their energy efficiency does great things for a brands image. Consumers are all becoming increasingly aware of the ethics of businesses that they work with, so it is now more important than ever to ensure that these goals are met.

The next steps…

We understand that as a business you could often be asked to reaffirm why renewable energy is still viable, especially after the change in Feed-In Tariff was announced.

After reading this blog, you have three strong reasons why renewable energy will continue to, not only be viable for your business, but also will be a fantastic asset – despite any change in Feed-In Tariff.

If you’d like more information on how Bowler Energy have helped clients to save money on their energy bills, download our case study pack below.