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Outcry at Government Proposal to Drop Solar Thermal from UK Renewables Push

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The Government has today published a consultation proposing to end support for solar thermal hot water heating, just as the UK market had started to recover. If the proposals go through the internationally proven technology will be cut out of the Renewable Heat Incentive entirely next year.

This is yet another cut to renewables subsidies after the influential House of Commons Energy and Climate Change committee today heavily criticized the Government for damaging investor confidence in UK energy infrastructure.

The shock proposal comes after repeated statements from Energy Secretary Amber Rudd that renewable heat is the major focus for UK renewables policy given the UK is off track on its 2020 renewables targets. In 2014 green sources provided only 4.8% of the UK’s heat, which puts the UK way behind its self-imposed target of 12% renewable heat by 2020. It also follows warnings by the Committee on Climate Change that greater effort is needed on renewable heat.

Solar thermal is one of the most established and accessible renewable energy technologies with over 350GW of global capacity, considerably more than the global capacity for solar PV. Its applications have expanded into space heating, community heating, district heating, hotels, hospitals and industrial processes. Solar thermal also works effectively alongside other renewables technologies.

Paul Barwell, CEO of the Solar Trade Association commented: “This proposal simply doesn’t make sense. The government acknowledges the many benefits of solar thermal, yet proposes singling it out for the removal of financial support. With UK renewable heat deployment falling desperately behind target, government should be full square behind this technology as part of a strategic plan to permanently bring down heating costs for British families.”

“Discriminating against this globally important technology in the UK would send a terrible message to householders, and it would have very serious ramifications for the British solar thermal sector. Manufacturers of solar thermal equipment, including cylinder manufacturers as well as installers, risk a full scale winding-up of their sector. We are urging government to think again, particularly since sales enquiries are on the rise.”

The technology is therefore popular with social housing associations in the UK to help tackle fuel poverty.

Gordon Watts, Sustainability Manager at South Yorkshire Housing Association said; “The use of solar thermal panels to provide hot water in some of our existing housing schemes helps to keep our customers’ gas bills down, and this technology and other renewables continue to be important options we consider as part of our stock development and improvement plans. Continuation of the Renewable Heat Incentive and the Feed-in Tariff is important for solar thermal and other renewables until these markets more fully mature.”

The proposal is doubly surprising because of the Government’s stated intention in the consultation to ensure less-able-to-pay households can benefit better from the Renewable Heat Incentive scheme. Unlike other renewable heat technologies solar thermal has negligible running costs, can be added to existing heating systems, and its performance does not depend on investing in a highly insulated house, making it particularly well suited to homes in fuel poverty. It also works effectively in built-up urban areas and on smaller roofs, broadening the opportunities for British homes to invest in renewables.

The proposals also put at risk precious domestic manufacturing in renewables as the UK has a number of excellent solar thermal manufacturers such as Viridian in Cambridgeshire, AES in Moray in Scotland, Thermatwin in Manchester and Solar UK in Sussex.

The UK solar industry is particularly aggrieved by the proposals, as the UK solar thermal market, which is dominated by domestic systems slumped during a policy hiatus lastingfrom 2010 to 2014. It was not until the first half of 2014 that the Renewable Heat Incentive was introduced for domestic solar thermal, by which time the market had halved in the UK, leaving the industry in a weakened position to promote sales. Analysis by the STA shows that there has been an 88% increase in monthly solar thermal sales enquiries amongst its membership compared to this time last year.

The justifications for removing solar thermal in the consultation proposal are weak, including survey results that show that most of the homeowners who have already installed solar thermal say they would have done it without any subsidy. However the relatively small size of the current market means that these survey interviews are not representative of a mass market – many homeowners who are currently choosing to go solar are not motivated by financial return.

Solar thermal is well established in colder and less affluent Eastern European countries because of its ability to provide effective renewable heating. For example, per capita, Poland has four times and Slovenia seven times the capacity of solar thermal than the UK. Germany has 20 times the solar thermal per head of population.

Previous analysis by the Solar Trade Association has shown that while solar thermal is already relatively affordable, costs can be reduced significantly given a strong domestic market.

The Solar Trade Association is calling on the government to allow solar thermal to contribute not just to hot water but also space heating (such as central heating systems) and still qualify for the Renewable Heat Incentive, so that the technology can be combined with biomass boilers and heat pumps. Now is the time to ramp up support, not remove it. Red tape has hindered the roll out of solar thermal and the STA is asking Government to remove this.

Energy

Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long will my retirement savings last?”

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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Energy

What Should We Make of The Clean Growth Strategy?

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Clean Growth Strategy for green energy
Shutterstock Licensed Photo - By sdecoret | https://www.shutterstock.com/g/sdecoret

It was hardly surprising the Clean Growth Strategy (CGS) was much anticipated by industry and environmentalists. After all, its publication was pushed back a couple of times. But with the document now in the public domain, and the Government having run a consultation on its content, what ultimately should we make of what’s perhaps one of the most important publications to come out of the Department for Business, Energy and the Industrial Strategy (BEIS) in the past 12 months?

The starting point, inevitably, is to decide what the document is and isn’t. It is, certainly, a lengthy and considered direction-setter – not just for the Government, but for business and industry, and indeed for consumers. While much of the content was favourably received in terms of highlighting ways to ensure clean growth, critics – not unjustifiably – suggested it was long on pages but short on detailed and finite policy commitments, accompanied by clear timeframes for action.

A Strategy, Instead of a Plan

But should we really be surprised? The answer, in all honesty, is probably not really. BEIS ministers had made no secret of the fact they would be publishing a ‘strategy’ as opposed to a ‘plan,’ and that gave every indication the CGS would set a direction of travel and be largely aspirational. The Government had consulted on its content, and will likely respond to the consultation during the course of 2018. And that’s when we might see more defined policy commitments and timeframes from action.

The second criticism one might level at the CGS is that indicated the use of ‘flexibilities’ to achieve targets set in the carbon budgets – essentially using past results to offset more recent failings to keep pace with emissions targets. Claire Perry has since appeared in front of the BEIS Select Committee and insisted she would be personally disappointed if the UK used flexibilities to fill the shortfall in meeting the fourth and fifth carbon budgets, but this is difficult ground for the Government. The Committee on Climate Change was critical of the proposed use of efficiencies, which would somewhat undermine ministers’ good intentions and commitment to clean growth – particularly set against November’s Budget, in which the Chancellor maintained the current carbon price floor (potentially giving a reprieve to coal) and introduced tax changes favourable to North Sea oil producers.

A 12 Month Green Energy Initiative with Real Teeth

But, there is much to appreciate and commend about the CGS. It fits into a 12-month narrative for BEIS ministers, in which they have clearly shown a commitment to clean growth, improving energy efficiency and cutting carbon emissions. Those 12 months have seen the launch of the Industrial Strategy – firstly in Green Paper form, which led to the launch of the Faraday Challenge, and then a White Paper in which clean growth was considered a ‘grand challenge’ for government. Throughout these publications – and indeed again with the CGS – the Government has shown itself to be an advocate of smart systems and demand response, including the development of battery technology.

Electrical Storage Development at Center of Broader Green Energy Push

While the Faraday Challenge is primarily focused on the development of batteries to support the proliferation of electric vehicles (which will support cuts to carbon emissions), it will also drive down technology costs, supporting the deployment of small and utility-scale storage that will fully harness the capability of renewables. Solar and wind made record contributions to UK electricity generation in 2017, and the development of storage capacity will help both reduce consumer costs and support decarbonisation.

The other thing the CGS showed us it that the Government is happy to be a disrupter in the energy market. The headline from the publication was the plans for legislation to empower Ofgem to cap the costs of Standard Variable Tariffs. This had been an aspiration of ministers for months, and there’s little doubt that driving down costs for consumers will be a trend within BEIS policy throughout 2018.

But the Government also seems happy to support disruption in the renewables market, as evidenced by the commitment (in the CGS) to more than half a billion pounds of investment in Pot 2 of Contracts for Difference (CfDs) – where the focus will be on emerging rather than established technologies.

This inevitably prompted ire from some within the industry, particularly proponents of solar, which is making an increasing contribution to the UK’s energy mix. But, again, we shouldn’t really be surprised. Since the subsidy cuts of 2015, ministers have given no indication or cause to think there will be public money afforded to solar development. Including solar within the CfD auction would have been a seismic shift in policy. And while ministers’ insistence in subsidy-free solar as the way forward has been shown to be based on a single project, we should expect that as costs continue to be driven down and solar makes record contributions to electricity generation, investment will follow – and there will ultimately be more subsidy-free solar farms, albeit perhaps not in 2018.

Meanwhile, by promoting emerging technologies like remote island wind, the Government appears to be favouring diversification and that it has a range of resources available to meet consumer demand. Perhaps more prescient than the decision to exclude established renewables from the CfD auction is the subsequent confirmation in the budget that Pot 2 of CfDs will be the last commitment of public money to renewable energy before 2025.

In short, we should view the CGS as a step in the right direction, albeit one the Government should be elaborating on in its consultation response. Its publication, coupled with the advancement this year of the Industrial Strategy indicates ministers are committed to the clean growth agenda. The question is now how the aspirations set out in the CGS – including the development of demand response capacity for the grid, and improving the energy efficiency of commercial and residential premises – will be realised.

It’s a step in the right direction. But, inevitably, there’s much more work to do.

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