Solar In The UK. Where To Next?
The UK Solar industry has enjoyed an expeditious growth over the past 5 years and it's been a ball! It has seen deployment of upwards of 7.5GW and it even challenged and now usurped, the once dominant German market as the principal European driving force in solar PV deployment. Without question, attractive government subsidies have been a prodigious contributor to the party. Additionally, UK subsidy schemes have offered investors and consumers alike, stability and most importantly, an investable certainty across the 20/25 year period of index-linked returns.
But with DECC's July announcement on changes to financial support for solar PV, we are now left in an apparent state of flux. It must be said that the announcement was somewhat of a party pooper! However, don't throw your towel into the ring just yet as the industry continues to flourish! Predictions for total deployment by Q2 of next year should see well over 11GW of operational solar PV installed in the UK. As always has been the case, in such rapid deployment, most of it on the ground agreed but"¦"¦. all is good so far. So, what next?
Well, the industry fights on - of course it does! It is not all death knells and leaps into the abyss!! It is another, major transitional stage without question and with it we shall see many restructures, re-groupings and some shrinkage but, it spurs on the innovation and creativity that this industry is so brilliant at achieving at times like these. Innovation from financiers through to installers "“ UK Solar is at its best when innovating and delivering new ideas. It's all going to be about raising low-cost capital and finding ways to reduce the cost of the product it is delivering.
We are seeing immense possibilities open up in Community Interest Projects through crowdfunding structures, with benefits from Social Investment Tax Relief (SITR) to help this along. We have seen an emergence of residential and commercial solar leases through partnerships between Yeildcos, Utility Companies, EPC's & Developers, especially in the US and this is now coming to Europe and the UK somewhere near you soon!. We have UK businesses already involved in rolling out PPA offerings to commercial and residential rooftop owners next year and potentially, this can and will encompass millions of roofs.
Product innovation, from "˜snap-together' roof mounting systems to hybrid inverters to dedicated power storage battery solutions (big opportunities here), to Smart Meters and PV immersion controllers; these products will enhance and improve the solar PV offering tenfold. These factors will drive up the wider demand for smaller scale solar PV, which in turn will help to create more jobs locally for installers, which will help the distribution and wholesale market to be the major players they were when "˜free solar' rollout programmes were the industry's darling.
One word of warning though, for those looking for business opportunities in Britain (Chinese panel manufacturers especially). You had better get used to the idea of doing things a little differently from now on, if you wish to see your business remain in the UK and the EU generally. All manufacturers need to be creative and open to partnerships that require more than just product alone. Too much has been taken for granted for too long and they need to work more closely with Europe's solar businesses. JV Partnerships are what is required. "We know what we are, but know not what we may become" - William Shakespeare - Hamlet Act 4, Scene 5
