The benefits of solar panels have been called into question after the Energy Savings Trust (EST) reduced the estimated saving on electricity bills to just £70 a year.
The EST had previously estimated the savings to households at around £120 annually.
The admission will be a blow to the growing number of "rent-a-roof" schemes, where households receive free solar panels in return for savings on their electricity bill. However, as many of these schemes lock households into a 25-year contract, many householders are expected to be reluctant to take part for such paltry savings.
Under "rent-a-roof" schemes, the company that installs the panels, which typically cost around £14,000, keeps the income generated from selling the surplus energy back to the grid via the Government's feed-in tariff (FIT) scheme – typically earning more than £1,000 each year.
Launched last year, the FIT scheme means that home owners who install solar panels will receive money for any energy that is generated at home. Payments are index-linked for 25 years and at present generate 43.3p for every kilowatt hour produced by the system, plus an additional 3p per kWh as an "export tariff".
With free solar panel installations, the company that owns the panels will receive the income from the generation and export tariffs from your panels, while the homeowner will benefit from reduced energy bills.
Rosalyn Foreman of the EST said: "We followed trials of other technologies which you'd expect to export much less back to the grid than solar panels, but they showed lower levels of electricity used on site than expected, so we've altered our expectations of solar accordingly.
"While these are typical estimates, it's quite possible that someone could save more than £70 if they were at home in the day or set all their appliances to run in daylight hours."
The news comes after a Which? investigation found that three quarters of solar panel salesmen used "dodgy sales tactics" and misled customers on potential savings. In an undercover investigation, the consumer group found that 75pc of companies overestimated how much energy the solar panels would produce and most of them underestimated how long it would take for the system to pay for itself.
Which? found that the Government's rules to work out energy output did not take into account key factors such as where people live.
More than 28,000 households installed solar panels in the last financial year, with the number growing by 1,000 homes each week.
full article
Sunday, 10 July 2011
Friday, 8 July 2011
'The Days of Cheap Energy Are Over'
Consumers last saw a year of double price hikes in 2008 when energy bills rocketed by £334 or 41% as a result of consecutive rounds of price increases.
For most of us though, today’s news tells us something really important – the days of cheap energy are over and it’s time that we all started to understand what this means for our bills and how we use energy.
Once these hikes kick in the average household energy bill will be an eye-watering £1,193 a year.
This is an all-time high and makes it imperative for customers to start thinking about how they can bring this cost down.
There are two key steps to this – pay the lowest possible price for your energy and cut down on the amount of energy you use.
To pay the lowest price you need to be thinking of going onto dual fuel (this means taking both gas and electricity from one supplier and paying by monthly direct debit.
Suppliers offer attractive discounts for customers doing this.
You could also sign up to an online energy plan – these are consistently the most competitive plans in the market.
In fact, the difference between the cheapest online plan and the most expensive standard plan will be £450 a year from August – that is the equivalent of saving around a third off your yearly fuel costs – an amount well worth saving!
That said, in the face of rising prices many of us will prefer the security of a fixed price energy plan.
Switchers are signing up to fixed price energy plans.
Energy deals can disappear swiftly from the market so people need to act quickly to secure the best deals while they can.
Having sorted out your energy tariff the next thing is to look at how much energy you use.
Energy efficiency is a real buzz term at the moment, but it is a powerful weapon in every household’s armoury when it comes to fighting off high energy prices.
The key thing is to start thinking of these things now and not to leave it until your bills have gone through the roof.
full article
For most of us though, today’s news tells us something really important – the days of cheap energy are over and it’s time that we all started to understand what this means for our bills and how we use energy.
Once these hikes kick in the average household energy bill will be an eye-watering £1,193 a year.
This is an all-time high and makes it imperative for customers to start thinking about how they can bring this cost down.
There are two key steps to this – pay the lowest possible price for your energy and cut down on the amount of energy you use.
To pay the lowest price you need to be thinking of going onto dual fuel (this means taking both gas and electricity from one supplier and paying by monthly direct debit.
Suppliers offer attractive discounts for customers doing this.
You could also sign up to an online energy plan – these are consistently the most competitive plans in the market.
In fact, the difference between the cheapest online plan and the most expensive standard plan will be £450 a year from August – that is the equivalent of saving around a third off your yearly fuel costs – an amount well worth saving!
That said, in the face of rising prices many of us will prefer the security of a fixed price energy plan.
Switchers are signing up to fixed price energy plans.
Energy deals can disappear swiftly from the market so people need to act quickly to secure the best deals while they can.
Having sorted out your energy tariff the next thing is to look at how much energy you use.
Energy efficiency is a real buzz term at the moment, but it is a powerful weapon in every household’s armoury when it comes to fighting off high energy prices.
The key thing is to start thinking of these things now and not to leave it until your bills have gone through the roof.
full article
Thursday, 7 July 2011
Green energy investment hits record global high
Global investment in renewable energy sources grew by 32% during 2010 to reach a record level of US$211bn (£132bn), a UN study has reported.
The main growth drivers were backing for wind farms in China and rooftop solar panels in Europe, it said.
It also found that developing nations invested more in green power than rich nations for the first time last year.
The Global Trends in Renewable Energy Investment 2011 report was prepared for the UN by Bloomberg New Energy Finance.
"The continuing growth in this core segment of the green economy is not happening by chance," said Achim Steiner, executive director of the UN Environment Programme.
"The combination of government target-setting, policy support and stimulus funding is underpinning the renewable industry's rise and bringing the much needed transformation of our global energy system within reach."
n 2010, developing economies spent more on "financial new investment", pumping $72bn into renewable projects compared with the $70bn outlay by developed economies.
China topped the table of investors again, spending $48.9bn - up 28% from 2009. There were also sizeable increases in investment from other developing or emerging economies:
South and Central America: up 39% (from 2009 levels) to $13.1bn
Middle East and Africa: up 104% to $5bn
India: up 25% to $3.8bn
However, the report stated, there was not growth in all sectors. There was a 22% decline in the investment in large-scale projects - such as windfarms - within Europe, where the funding fell to $35bn.
But there was a surge in small-scale projects, such as photovoltaic (PV) solar panels, especially within Germany, where investment in a "micro-solar boom" had increased by 132% to $34bn compared with 2009 figures.
As the renewable technologies continued to mature, the report added, the cost per megawatt (MW) continued to fall. It said that the cost of PV modules had fallen on a per-MW basis by 60% since 2008.
The authors forecasted: "Further improvements in the... cost of energy for solar, wind and other technologies lie ahead, posing a bigger and bigger threat to the dominance of fossil-fuel generation sources in the next few years."
full article
The main growth drivers were backing for wind farms in China and rooftop solar panels in Europe, it said.
It also found that developing nations invested more in green power than rich nations for the first time last year.
The Global Trends in Renewable Energy Investment 2011 report was prepared for the UN by Bloomberg New Energy Finance.
"The continuing growth in this core segment of the green economy is not happening by chance," said Achim Steiner, executive director of the UN Environment Programme.
"The combination of government target-setting, policy support and stimulus funding is underpinning the renewable industry's rise and bringing the much needed transformation of our global energy system within reach."
n 2010, developing economies spent more on "financial new investment", pumping $72bn into renewable projects compared with the $70bn outlay by developed economies.
China topped the table of investors again, spending $48.9bn - up 28% from 2009. There were also sizeable increases in investment from other developing or emerging economies:
South and Central America: up 39% (from 2009 levels) to $13.1bn
Middle East and Africa: up 104% to $5bn
India: up 25% to $3.8bn
However, the report stated, there was not growth in all sectors. There was a 22% decline in the investment in large-scale projects - such as windfarms - within Europe, where the funding fell to $35bn.
But there was a surge in small-scale projects, such as photovoltaic (PV) solar panels, especially within Germany, where investment in a "micro-solar boom" had increased by 132% to $34bn compared with 2009 figures.
As the renewable technologies continued to mature, the report added, the cost per megawatt (MW) continued to fall. It said that the cost of PV modules had fallen on a per-MW basis by 60% since 2008.
The authors forecasted: "Further improvements in the... cost of energy for solar, wind and other technologies lie ahead, posing a bigger and bigger threat to the dominance of fossil-fuel generation sources in the next few years."
full article
Sunday, 26 June 2011
Your definitive guide to turning your home into a power station
Solar power stations have, so far at least, proved expensive follies singularly incapable of producing anything like the energy we so hungrily need. But for ordinary home owners, matters are rather different, as the multitude of solar-panel firms proves.
Indeed, small solar panels on our roofs can actually be a solid earner. It's not that they are any better than their industrial cousins - indeed, the amount of energy they produce would ordinarily be too small to justify their existence. At best, you'll usually only produce half the energy your home requires.
But then the very generous 25-year government Feed-in Tariffs (FIT), or subsidies, come in. This means solar panel owners get paid to have them, to encourage 'green' power.
The government has been heavily criticised for its benevolence: taxpayer groups complain non-solar users - ie, the vast majority of us - are being made to subsidise solar users. Indeed, the first tariff system worked out as the equivalent to a savings account offering more than 11 per cent per year - far more than any bank.
'Had we not acted urgently to reduce tariffs, the whole Feed-In-Tariff scheme would have been entirely swamped,' Climate Change Minister Greg Barker admitted.
The cuts targeted businesses, but for homeowners, solar can still make sense, although set-up costs are high - an installed solar electricity system costs £4,500 to £8,000 per kilowatt of output (we'll come to what that means in terms of power later); which means a standard 2.2kW system is around £12,000 (including VAT).
You'll need to be confident that you're staying put, in other words - the systems only start to pay for themselves after a decade or so. You'll also need to be in the right place - a home in Plymouth produces up to 50 per cent more solar energy than less sun-drenched locations such as Lerwick.
WHAT YOU CAN EARN
Under the FIT scheme, when you install a solar system, you get paid for the amount of electricity it generates, regardless of whether you use that energy (thus reducing your bills), or you sell it back to the National Grid (making money in the process) - so the bigger the system you install, the more money you'll make.
The average home uses roughly 3,400kWh per year: the maths used to calculate output is rather complicated, but roughly a 2.5kWp (kilowatt peak) system will provide just over half your power needs. Average tax-free profits hover around £1,000 per year.
The FIT is fixed for 25 years at the rate they are offering at the time of installation. The price of electricity you 'sell' back to the grid goes up with along with the general price for units of electricity.
'Previously, solar panels did nothing to improve the appeal of a property, but if you can prove your solar panels make a tax-free profit each year, I can see them attracting more than just the sandals brigade,' says Trevor Kent, former president of the National Association of Estate Agents.
Indeed they have piqued people's interest, and companies looking to cash in on the FIT scheme are offering free solar installation to your home. They receive the profit from the FIT while you get a healthy reduction in energy costs. But buying your own panels - even with a loan - makes better financial sense.
THE TWO TYPES OF SOLAR
There are two types of domestic solar technology:
Solar PV (Photovoltaic)
This type generates electricity.
Solar Thermal
This only heats water.
At present, the solar tariffs only apply to solar PV systems, but there are plans to extend these to the simpler and cheaper solar thermal systems, which cost just £3,000-£5,000 each.
SOLAR AND YOUR HOME
So is your home suitable? South-facing is ideal - you'll lose 15 per cent for east or west - as is a 25-45 degree pitched roof and around 30 sq m of roof space (all the energy figures quoted for systems here refer to 'ideal' homes). Shade from trees or buildings will reduce performance.
Planning permission is not generally required as long as it doesn't protrude more than 200mm above the roof line. Restrictions may apply for listed buildings or conservation areas - visit planningportal.gov.uk for details.
HOW ELECTRIC SYSTEMS WORK
With solar PV systems, each panel houses a cell made from layers of semi-conducting material, usually silicon. When light shines on the cell it creates an electric field. Choose between standard roof-mounted panels (the cheapest), built-in panels which sit flush within the roof, or solar tiles, which completely replace traditional tiling. Tiles are more expensive, but costs can be offset if your roof already needs replacing. Prices range from £4,500 to £8,000 per kWp installed.
With either system, a wire leads to a 'solar meter' in your loft which shows you how much money you've earned, then the electricity travels to your home electrical system, or back to the National Grid, where you can profit.
Energy isn't usually stored or saved up for use later. If you don't use it, the energy is sold back to the National Grid. The money you get for this is - slightly - less than what you'll pay per unit on your bills, so if you've got solar, it pays to run high-drain appliances such as washing machines during the day, when your panels will be generating electricity.
HOW THERMAL SYSTEMS WORK
Solar thermal systems employ a series of tubes filled with anti-freeze that are mounted behind glass on the roof. The sun heats the liquid, which is pumped through a coil inside your hot water tank generating temperatures up to 60ºC - perfect for showering. A two-panel system (4 sq m) should provide around 50-60 per cent of your hot water needs.
Although final details are still shaky and subject to change, the Department of Energy and Climate Change (DECC) has indicated that payments of £300 per system, and 8.5p per kWh of heat produced, could be o ffered to people installing solar thermal heating at home.
You'll have to choose between 'flat plate' and 'evacuated-tube' systems. Evacuated tubes are more expensive but o er greater e fficiency. Don't forget, you will still need a regular boiler to top up the hot water at night or on cloudy days.
Budget £3,000 to £5,000 for an installed system - kits start from £1,000, but you will need DIY experience and sca ffolding to install.
full article
Indeed, small solar panels on our roofs can actually be a solid earner. It's not that they are any better than their industrial cousins - indeed, the amount of energy they produce would ordinarily be too small to justify their existence. At best, you'll usually only produce half the energy your home requires.
But then the very generous 25-year government Feed-in Tariffs (FIT), or subsidies, come in. This means solar panel owners get paid to have them, to encourage 'green' power.
The government has been heavily criticised for its benevolence: taxpayer groups complain non-solar users - ie, the vast majority of us - are being made to subsidise solar users. Indeed, the first tariff system worked out as the equivalent to a savings account offering more than 11 per cent per year - far more than any bank.
'Had we not acted urgently to reduce tariffs, the whole Feed-In-Tariff scheme would have been entirely swamped,' Climate Change Minister Greg Barker admitted.
The cuts targeted businesses, but for homeowners, solar can still make sense, although set-up costs are high - an installed solar electricity system costs £4,500 to £8,000 per kilowatt of output (we'll come to what that means in terms of power later); which means a standard 2.2kW system is around £12,000 (including VAT).
You'll need to be confident that you're staying put, in other words - the systems only start to pay for themselves after a decade or so. You'll also need to be in the right place - a home in Plymouth produces up to 50 per cent more solar energy than less sun-drenched locations such as Lerwick.
WHAT YOU CAN EARN
Under the FIT scheme, when you install a solar system, you get paid for the amount of electricity it generates, regardless of whether you use that energy (thus reducing your bills), or you sell it back to the National Grid (making money in the process) - so the bigger the system you install, the more money you'll make.
The average home uses roughly 3,400kWh per year: the maths used to calculate output is rather complicated, but roughly a 2.5kWp (kilowatt peak) system will provide just over half your power needs. Average tax-free profits hover around £1,000 per year.
The FIT is fixed for 25 years at the rate they are offering at the time of installation. The price of electricity you 'sell' back to the grid goes up with along with the general price for units of electricity.
'Previously, solar panels did nothing to improve the appeal of a property, but if you can prove your solar panels make a tax-free profit each year, I can see them attracting more than just the sandals brigade,' says Trevor Kent, former president of the National Association of Estate Agents.
Indeed they have piqued people's interest, and companies looking to cash in on the FIT scheme are offering free solar installation to your home. They receive the profit from the FIT while you get a healthy reduction in energy costs. But buying your own panels - even with a loan - makes better financial sense.
THE TWO TYPES OF SOLAR
There are two types of domestic solar technology:
Solar PV (Photovoltaic)
This type generates electricity.
Solar Thermal
This only heats water.
At present, the solar tariffs only apply to solar PV systems, but there are plans to extend these to the simpler and cheaper solar thermal systems, which cost just £3,000-£5,000 each.
SOLAR AND YOUR HOME
So is your home suitable? South-facing is ideal - you'll lose 15 per cent for east or west - as is a 25-45 degree pitched roof and around 30 sq m of roof space (all the energy figures quoted for systems here refer to 'ideal' homes). Shade from trees or buildings will reduce performance.
Planning permission is not generally required as long as it doesn't protrude more than 200mm above the roof line. Restrictions may apply for listed buildings or conservation areas - visit planningportal.gov.uk for details.
HOW ELECTRIC SYSTEMS WORK
With solar PV systems, each panel houses a cell made from layers of semi-conducting material, usually silicon. When light shines on the cell it creates an electric field. Choose between standard roof-mounted panels (the cheapest), built-in panels which sit flush within the roof, or solar tiles, which completely replace traditional tiling. Tiles are more expensive, but costs can be offset if your roof already needs replacing. Prices range from £4,500 to £8,000 per kWp installed.
With either system, a wire leads to a 'solar meter' in your loft which shows you how much money you've earned, then the electricity travels to your home electrical system, or back to the National Grid, where you can profit.
Energy isn't usually stored or saved up for use later. If you don't use it, the energy is sold back to the National Grid. The money you get for this is - slightly - less than what you'll pay per unit on your bills, so if you've got solar, it pays to run high-drain appliances such as washing machines during the day, when your panels will be generating electricity.
HOW THERMAL SYSTEMS WORK
Solar thermal systems employ a series of tubes filled with anti-freeze that are mounted behind glass on the roof. The sun heats the liquid, which is pumped through a coil inside your hot water tank generating temperatures up to 60ºC - perfect for showering. A two-panel system (4 sq m) should provide around 50-60 per cent of your hot water needs.
Although final details are still shaky and subject to change, the Department of Energy and Climate Change (DECC) has indicated that payments of £300 per system, and 8.5p per kWh of heat produced, could be o ffered to people installing solar thermal heating at home.
You'll have to choose between 'flat plate' and 'evacuated-tube' systems. Evacuated tubes are more expensive but o er greater e fficiency. Don't forget, you will still need a regular boiler to top up the hot water at night or on cloudy days.
Budget £3,000 to £5,000 for an installed system - kits start from £1,000, but you will need DIY experience and sca ffolding to install.
full article
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