News Article
Banks Holding Fiscal Progress
Recalcitrant banks are slowing PV uptake by consumers
The refusal of high-street banks to finance solar rooftop arrays is denying the public the full benefits of government subsidies. According to Greg Barker, the Climate Change Minister, the reason for re-arranging the values of feed-in-tariffs (FiTs) for solar arrays was to allow the population at large to benefit from, and engage with, renewable power generation. But according industry experts the refusal of banks to finance solar investments means that only the ‘well-off' can capitalise from government FiT's.
Under the feed-in tariff scheme, individuals or developers who generate power from solar - or other renewable sources - receive payments from their energy supplier based on how much energy they generate to off-set installation costs.
Last month, Mr Barker announced that solar developments over 250kW would have their FiT reduced by 72% because he wanted the money to be spent of domestic solar panels and not commercial generation developments.
“For most home owners they are unable to benefit from the 8 to 10% that the FiT guarantees to domestic generators because they don't have the £12,000 or £15,000 they need to install the photovoltaic panels in the first place,” said Lee Summers, director of Alumet Renewable Technology and EOS Energy.
“Banks do not regard the governments 25 year index-linked, commitment as collateral for a loan. It is totally unfair that only the most ‘well-off' individuals in a community can benefit from solar technology. The feed-in-tariffs are paid for by levies on every energy bill and so every home owner should have the opportunity to access the FiT,” he said.
Despite the refusal of banks to finance solar installations the number of domestic arrays in Britain is climbing dramatically. Mr Summers said that in the past year since the FiT was introduced a striking 28,032 new photovoltaic (PV) arrays had been installed on residential properties in the UK, generating 77.864MW of power.
“It would not be difficult for government to instruct the state subsidised banks to recognise its own feed-in-tariff scheme as suitable collateral,” said Mr Summers.
