Solar Needs To Be Crystal Clear

Cast your mind back to a time, twelve to eighteen months ago, when the solar PV industry in the UK was soaring, riding on the crest of a wave generated by substantial government subsidies. Extremely generous Feed-in Tariff rates combined with public awareness campaigns aimed at reducing people's environmental impacts and growing concerns over rising electricity prices to produce the perfect set of circumstances to fuel phenomenal growth in the number of people having solar panels installed on the roofs of their domestic properties.

The growth of the industry was dominated by the development of the domestic market to such an extent that around 80 per cent of an average installer's time would be spent on residential projects "“ with commercial installations and large-scale "solar farms" between them accounting for the remaining 20 per cent. But then the bubble burst. In an 

effort to minimise the distorting effect of subsidies on the international solar PV market, the FiT rate was slashed from 43 pence to 14 pence per kilowatt hour within a year, and a timetable was put in place to eliminate the FiT altogether.

The result has been a radical change in focus for installers and a complete volte-face in the demographic split in the market: now, it is commercial and large-scale installations accounting for 80 per cent of installers' work, and residential projects only 20 per cent. But in spite of this dramatic switch, the residential installation market could reasonably be described as a "sleeping giant" that would be a driving force for industry growth again if woken. 

The considerable untapped potential of this market segment in the UK makes it the biggest single opportunity to be exploited by both existing installers and new entrants into the market.

Consumer knowledge

There remains, however, a substantial obstacle that is preventing the mining of this rich seam of business: over the last year, developments such as the FiT reduction have left the average consumer lacking the clarity they need to take the plunge and invest with confidence in having solar panels fitted to their roof. Providing consumers with that clarity, demystifying the finances and technology involved in domestic solar electricity generation, and connecting once more with the substantial good will that exists towards solar PV as an alternative source of energy are the key challenges facing manufacturers and installers alike as they seek to reignite a market segment that has recently stagnated.

Crucial to getting homeowners excited about solar power again is addressing the misconceptions that have been allowed to creep in to their understanding of features, benefits, and limitations of solar panels "“ and first, and perhaps most pernicious, among these is the notion that the lower Feed-in Tariff rate now in place means that a roof-mounted solar array has become prohibitively expensive. Domestic solar PV installations have been presented as an investment that is losing its lustre, but the fact is that, in percentage terms, the return on investment in the installation of a domestic solar PV array is almost the same now as it was before the deep cuts to the Feed-in Tariff. The greatly reduced cost of the hardware and installation "“ thanks to advances in manufacturing processes, product efficiency, supply chain, and logistics "“ easily makes up for the shortfall in payments returned under the FiT scheme at today's lower rates. And while the raw profit may be lower now, the yield over the 25-year lifespan of a solar PV array still outstrips that of any conventional savings account.

Furthermore, there is a strong case for suggesting that focusing on a loss of additional revenue is to miss the point. Increasingly, attitudes are shifting across the major European markets towards seeing solar PV installations as a means to save money, rather than as a profit driver. The wholesale price of energy continues to rise, and this extra financial burden is inevitably passed on from supplier to consumer in their monthly bills. The long-term investment in photovoltaics represents an excellent way for homeowners to insulate themselves against soaring electricity prices and enjoy a measure of "energy security" as solar panels guarantee them a level of self-generation at a fixed price.

Media and industry misconceptions

The UK's national media have also frequently pointed accusatory fingers at companies offering "free" rent-a-roof schemes for supposedly leaving homeowners burdened with solar arrays from which they cannot profit. But, far from being unscrupulous, these suppliers have helped expose solar PV technology to end users who would otherwise have considered them far beyond their reach. There are, for instance, several schemes in the UK that have worked with local authorities to lift social housing residents out of fuel poverty. Solar PV manufacturers and installers need to shout louder to be heard above the scaremongering and shift the media focus onto the enduring benefits of solar PV technology, regardless of who is footing the bill for the installations.

Meanwhile, solar PV manufacturers and installers "“ as in many highly technical industries that sell to the consumer market "“ can have a tendency to hinder the building of strong relationships with their end users by shrouding themselves in a fog of jargon and acronyms that risks alienating the laymen. From PV, FiT, and ROC, through mono- and multicrystalline, kilowatt-hours, and wafers, to MCS, load factors, and inverters, the industry can represent a minefield of impenetrable techno-babble to the uninitiated. Using the terms that we as solar PV professionals are more than comfortable with, but that are seldom defined in plain English in our dealings with end users, is a sure-fire way to keep them uninitiated. Manufacturers and installers cannot afford to exclude consumers from the conversation when it comes to widening adoption of solar PV solutions "“ the simplest way to blow people's misconceptions about solar PV out of the water is to intensify efforts to clarify and explain concepts and labels the understanding of which are all too easily taken for granted.

Indeed, on a similar note, one might ask why this article refers to "solar PV" throughout "“ there is, after all, only one kind of photovoltaics "“ the conversion of energy from the sun into electricity. But "“ here in the UK, at least "“ there can be a tendency to casually bracket photovoltaics together with solar thermal, the other principal method of providing domestic energy using the sun's rays. To avoid such confusion and ambiguity for the consumer, it may be valuable to make more explicit and straightforward the distinction between "solar electricity" and "solar heat". It does nobody any favours "“ certainly not the manufacturers, the installers, or, ultimately, the consumers "“ to allow this vagueness of nomenclature to persist, condemning the message of the benefits of solar PV to be diluted and impeded from reaching its audience.

Growth industry

Despite all that has happened over the past year or so, solar PV retains a prominent position in the hearts and minds of the UK consumer market as a preferred source of renewable energy for the future "“ research has even shown that UK homebuyers regard solar panels as a more attractive feature in a new home than 

satellite television or good 3G mobile Internet coverage.

Furthermore, the UK government is lending further support to the solar PV industry. The Department of Energy and Climate Change's latest update to the UK Renewable Energy Roadmap in December 2012 included solar PV as a key technology for the first time "“ recognition of the technology's potential to be a significant contributor to the UK energy mix after a year in which installed capacity rose by 560 per cent. DECC has projected that solar PV deployment will reach 7-20GW by 2020, and has underlined its confidence by committing to the development of a Solar Strategy and closer engagement with key industry figures in 2013. Untapping the full potential of the residential consumer market will be crucial to maintaining this impressive momentum, and this official recognition from DECC is an invaluable proof point of the importance of solar electricity that will help the industry do just that.

Admiral Yamamoto might have been fearful at the thought of the sleeping giant rising from its slumber, but for the continued success of the solar PV industry in the UK it will be crucial that the residential installation sector is roused again and filled with the "terrible resolve" to clad domestic roofs up and down the land with solar panels. And for that to happen, the industry needs to work to break down the communication barriers that lead to damaging misconceptions and confusion. Consider this a wake-up call.

© 2013 Angel Business Communications. 

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