Cost of Efficiency - Solar PV and Energy Efficient Homes. Stuart Pocock Chief Operating Officer & Head of UK Solar
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1 Cost of Efficiency - Solar PV and Energy Efficient Homes Stuart Pocock Chief Operating Officer & Head of UK Solar
2 Who we are The REA was established in 2001 as a not-for-profit trade association, representing British renewable energy producers and promoting the use of renewable energy in the UK. The REA helps its members build commercially and environmentally sustainable businesses whilst increasing the contribution of renewable energy to the UK s electricity, heat, transport and green gas needs. Corporate membership of the REA consists of around 750 companies ranging from sole traders, farmers, installers, energy suppliers, service providers, major multinationals, project developers, manufacturers, organics recyclers and composters.
3 Who we are Sector groups Subsidiaries The Wood Heat Association is the UK s largest renewable energy trade body. Our various sector groups enable us to focus on sector-specific issues. Members can join our various groups concentrating on individual renewable technologies, energy market sectors, or application areas. Renewable Energy Assurance Ltd carries out a range of certification and consumer protection activities all of which promote sustainable energy.
4 What we do Publications & newsletters Conferences, Seminars & Workshops Growing technology sectors
5 Solar s popularity
6 Reasons for solar s popularity Provides a return on investment Fit & forget Solar can provide protection against future price rises for the next 50 years Solar installed prices have reduced significantly and continue to reduce Solar allows forward purchase of electricity for 50 years Interest rates negligible (2%) and cheap money to borrow available
7 Solar set to be a major contributor PV is the most popular renewable energy technology in the UK and its deployment is rising rapidly PV is becoming the most competitive new build renewable technology PV will be the first renewable technology to achieve grid parity Phasing out subsidies for PV requires a transition plan to avoid a cliff edge 7
8 Renewable energy costs will continue to fall KPMG UK Solar beyond subsidy the transition
9 Solar cost reduction Solar has reduced in cost by 70% over the past 5 years and is forecast to reduce 20-30% over the next 5 years PV cost reduction is a result of: o Increases in efficiency o Lower costs from mass production o Vertical integration in the manufacturing process As cost continues to fall - soon PV will be competing with conventional power generation technologies
10 Future cost projections Minimum Import Pricing (MIP) means Europe currently paying 10% more than the rest of the world Further efficiency gains in modules will lead to lower costs/watt Balance of systems costs will continue fall Efficiency of the supply chain will lead to further savings
11 Energy storage Will transform how we use energy Shift consumption of onsite generation to when its needed Can solve some grid problems making connection possible Storage with Solar is a game changer
12 Solar and housebuilding Many in the housebuilding industry now familiar with solar The learnings for the builder in this case are:- o Solar not so good on the North facing roofs! o Flashings should not overlap the Solar Cells. o Staining causes reduction in Solar generation. 12 5
13 Aesthetics The appearance of standard solar modules are not liked by all Maximising the roof area, without need to interface with concrete tiles, will be the future roof products East/west roofs as well as partially shaded roofs are also suitable for solar 13 5
14 Standard modules integrated Social Housing development lowest cost solution
15 Integrated non coursed tiles Social Housing lowest cost integrated aesthetic acceptable solution
16 Coursed solar tiles Coursed to match concrete tiles- Solution adopted by low volume Builder
17 Full integration Believed to be the eventual solution for all House roofs
18 Solar canopies communal parking areas Solar Canopies charging of electric vehicles with clean electricity or can be an extension of the buildings Solar electricity supply. 18 5
19 Shading Where shading can t be avoided an assessment as to how much of the array will be affected and at what times of the year should be conducted A design may show it is more cost effective to use a traditional inverter for part of the array and micro inverters/power optimisers for the remainder 19 5
20 Consultation - a review of the Feed-in Tariffs scheme Some of the proposed changes affecting domestic installs from Jan 2016: <4kW solar PV band, now encompassed within the new <10kW band Tariff rate drops from to 1.63p kwh Default tariff degression will be quarterly with further deployment-based (contingent) degression to run in parallel. Result will be removal of many tariffs by Quarterly caps on deployment
21 Key drivers for take-up of Solar Cost Consumer pull Regulation
22 Energy delivery is changing Steve Holliday CEO National Grid said recently. the idea of large power stations for baseload is outdated In the past all consumers got the same. One size fits all. Now one size will not fit all. People will want to interact with energy in many different ways.
23 Thank you Renewable Energy Association 25 Eccleston Place Victoria London SW1 9NF Tel: Web: GROWING THE RENEWABLE ENERGY ECONOMY
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