What a time for our business! We lobby for higher FiT.
Conergy name saved but factory could fold, domestic RHI launch announced, we seek stability for PV by increasing FiT, Climate Master and AG TECHNIK prepare to challenge market leaders, China still seem to be ignoring duties and BIG six to drive cost through roof
Dear Solarpreneur,
As Anti-dumping duties are just around the corner we are about see huge changes and as such we need higher FiT
I just created the petition “Solar PV Feed-in-Tariff To Go Up After 6 August” and wanted to ask if you could add your name too.
This campaign means a lot to me and the more support we can get behind it, the better chance we have of succeeding. You can read more and sign the petition here:
The title is SOLAR PV FEED-IN-TARIFF TO GO UP AFTER 6 AUGUST and aimed at GREG BARKER DECC read more
As June saw installations jump up to just under 6000 installations in one week, we all clap our hands but knowingly we could forecast the first couple of weeks in July would plunge as those in the know rushed to buy solar beforedegression kicked in. This FiT idea designed by the government Sales Prevention Officer at DECT (Department of Climate Change and Chocolate Teapots) frankly allowed solarprenuers to catch a few sunray’s of their own. A great time to getaway.At this time China based PV manufacturers are not sending the EU vast amounts of modules in fear of 47% average ADD (anti dumping duty) as solar PV systems could face a significant hike in capital costs, following EU decisions to increase anti-dumping duties on imported Chinese panels by this large amount on 6 August.
As 8 out of 10 modules installed today in the UK are from China, we can expect a solar module drought, the amount of EU manufacturers are lower than ever as many have closed or merged and they will increase prices to get back into the black as they have lost money in the race to the bottom for prices.
We are seeing investors forward ordering multi MW farms from EU manufacturers and this will give a challenge to UK installers. Supply & Demand will drive prices up and we should prepare for modules costing .80p per watt in the not to distant future.
This will change the ROI on PV and DECC Degression will be skipped if deployment is below a floor threshold
This is for a maximum of two successive degression periods and that means we will see a a minimum of 3.5% degression every 9 months and this could be a disaster.
Solar panel price rises are here today, if you have a wholesaler that bought large stocks, prepare as they will either run out of stock or decide to have a larger margin at your expense.
If must happen as all manufacturers have absorbed huge losses.
With the recent over capacity situation in the solar panel market reduces due to huge increases in oversupply from China, as well as reduced need due to slashed incentives, we see multi-million pound plants in mothballs, liquidators and companies pulling out of the market altogether. Most solar manufacturers have been running at a loss throughout the last year or two and they will see this as a chance to get into profit. Prepare for large increases in costs and an element of searching for modules if FiT does not fall. If we have falling FiT and high prices it might be time to add something with a juicy domestic RHI to the portfolio next year.
For these reasons I ask you join my petition and that you contact your MP and ask for a freeze on degression and possibly an increased FiT.
.
Should we be on holiday?
Frankly it should not be a good time to be away as selling the concept of solar today is much easier than 4:30pm on a dark December afternoon but hey-ho if FiT causes a roller coaster in our business we might as well go on holiday or focus on a sales & marketing plan to make hay whilst the sunshine’s on our roof top or warms up the soil in readiness for heat pumps taking off with the much awaited RHI for domestic use (we’ll look at this one in a minute).
DECC created an early holiday
Whilst we bask in sunshine I note from my travels that many ‘solarpreneurs’ have chosen this time to impersonate solar panels by inclining themselves on a sun lounger and pointing south. You can spot a solarprenuer as they have insider knowledge about keeping cool in order to enhance performance and have a temperature coefficient serviced by several large cool drinks a day (often impersonating thermal with something added distilled) to keep at 100% efficiency.
This means they might point due south to catch those ‘rays’ but are never too far from a long cool drink and they are therefore something of a hybrid thermal/PV collector.
Creating more business with Pay Per Click
If you are away then well done and (based on criticism from several installers about the length of these emails) at least you have an entire week to read this diatribe!
Should you be reading this from a deckchair then no doubt you are alos keeping in touch with business (even on holiday) with an Apple device or some other technical widget named after fruit. As we all tend to carry a mobile device you might want to also set up some Google AdWords – by seeing this link for Online Advertising by Google
At this time of year the leads can flood in, just set up some very specific long tail Pay Per Click keywords as you will probably know “Long-tail keywords” are typically defined as search queries that contain 3 or more keywords. These terms usually have low search volume and low cost-per-clicks (CPCs), yet they are often overlooked by many PPC marketers. As most of solarprenuer’s are aware it can be costly to have terms such as ‘solar panels’ but spending a little time in the deckchair thinking about search terms that people use could make you a lot of sales for little cost.
Getting rich pickings from Google
A great friend of mine has built a £multi-million sales business using these long tail PPC phrases, his advice was “park your ego at the door” and then he said ” think what the customer types in to Google and not want you want to sell them”. For example we might like to think a surfer of the web seeking solar will search ‘quality solar installer Greater Manchester’ when typing in the customers mindset it might be in fact ‘cheap solar panels Ashton-under-Lyne’ you could do the same unless of course you are not in Ashton and perhaps you might improvise with some town (not county) in a tight area around you.
You can Google for more tips but Google make it easy to get started and in many ways DECT have forced the time to think marketing and sales strategy upon us. My good pal Richard M, is in the same sector, using Google he makes 200+ leads per month within an hours drive (most within 20 minutes), 100 of these become appointments made and 80 of these are appointments kept. What could you do with an extra 80 appointments?
Success in sales comes from converting 50% of our appointments kept into sales
Visiting installers I get feedback of 1 sale in 10 as a conversion ratio, a very successful company averages 1 sale in 8 appointments and I spoke with another who gets better that 1 sale from every two appointments.
What is the difference between these three businesses?
They are in very similar locations, very similar premises, operated by renewable savvy solarprenuers’, seeking to make high quality installations, the business owners all start/finish work at the same time, have holidays at the same time, dress the same and want to build a noteworthy business.
They will all be pleased to spend money on making more sales enquirers and turning these into appointments but frankly only one of these installers should increase spending on marketing.
Unless the solarprenuer is gaining a 1 in 2 conversion from appointment’s kept to sales made they are burning leads which equates to wasting lots of money and need to focus instead on what the business owner who gets better than a 1 in 2 conversion actually does. The focus is only on three things i. appearance ii. manner iii. words.
Once a framework is in place we will replicate the best operator, with 50% conversions of sales appointments, we can afford to out market and obviously outsell those with appalling conversion ratio’s.
If we are converting at 1 in 3 or more then we are now probably scratching our head (or some other part of your anatomy), thinking how do we do that and it is impossible.
It is possible, it can happen in your business if you are open to change
The fact is people are doing it and if you are scratching your head then you need to concentrate on the ‘why’ you are not getting this result in your business and I do have the answer. To get the answer I got in touch with Greg Rigby of Pendle Consultants and you can also get in contact at the website here and we discussed the solar dilemma.
For a few thousand pounds a week, Greg or one of his consultant’s will visit your business and bespoke a sales framework for your business, for another few grand they will train your staff and for another chunk of cash they will possibly recruit a sales team or show you how to only employ winners. It would be the best investment you can make as Greg has put business owners on the Sunday Times Rich List with his know how in the higher end of retail consumer purchase. Or for £25 (£12.50 if you buy today and put in code ’50’)
If your business does not convert one sale from every two appointments you have UI
The dilemma is a feature known as unconscious incompetence (UI) (before you email some angry comment please read on) as to how we get over 50% of our customers to buy.
I often use the analogy of learning how to drive a car to explain this challenge.
First you might not know how to drive a car and which handles do what, you might not even know what a car is and the concept is one that does not bother you and this isunconscious incompetence
You learn about your lack of knowledge and incompetence in this area, you then strive to learn about cars, seek out the dreaded theory test information and how to drive one.
We flick on the wipers when trying idictate an intention to turn right or left from the road. We are scared with, kangaroo hops, messing up three-point or U-turns hill starts, multiple lessons, possibly later failing a driving test or two and that isconscious incompetence
You then learn to stop rolling backwards on hill starts, gain clutch control by watching for the biting point, seek the books on the highway code, can do a three point turn by looking out for the kerb, when actually behind the wheel you think mirror-signal-maneuver and it all works as it should. You now have the know how to operate a car, what handles do what and you are actively learning how to drive a car to the point you are going to pass the driving test. You must however focus a lot on the task or else you’ll make mistakes and this is what we call conscious competence.
Once you have passed your test, gained the needful from DVLA full license department , after driving for perhaps 10,000 or 100,000 miles I hope we can all agree that driving is easy. You don’t need to concentrate as hard as you did anymore, it’s all second nature now. You have the capacity to relax, turn up the radio and even talk on the phone unconscious competence.
Your business is just the same
A car is like a business, it cannot crash unless you get behind the wheel.
Car’s don’t crash- people crash cars and in business it is the same, businesses don’t crash, people (business owners) crash businesses.
Get a conversion ratio of 50% of the sales appointments you keep GUARANTEED*
So back to my chat with Greg, he agreed to look at the sector, for a fee he agreed to do what he does best and that is design a sales & marketing framework for domestic sales of solar. If you would like to convert 50% of your appointments
For one day only I have a 50% off present for you.
It was my 50th last week, to celebrate this I invite you to a webinar, the cost of putting this on is already subsidised by AG TECHNIK to £25 and for today only I will split with you 50/50 and that means £12.50 is the price you pay. Enter promotional code 50 at http://kaizenmorning.eventbrite.co.uk/
With subsiidy from AG TECHNIK, I invested in Greg going on the road, looking at PV and as such Greg Rigby is ready to guarantee results.
What is in it for me?
I will not make a penny directly from you attending, in fact it will have cost me considerably more to put this event on than I will receive and the reason is I know a new sales approach for solar is a must do. We have no option but to make change happen and for that reason- you are invited to Kaizen Morning 改善 Webinar. To see more click here .
My reward will come from your need to close sales at 50% ratio, this will require you hunting down a module not sold to your local cowboy competitor who just sticks a few hundred quid on top of cost prices as Greg will be expecting you to make maximum margins as well as selling to more people
For £12.50 you are guaranteed to have clients agree to buy from you at a ratio of better than 50% on appointments kept and this means 1 client in every two will buy from you if you implement the strategy.
This online event is Saturday morning, 27 July 2013 from 07:45 to 10:00 (BST), yes we did include AG TECHNIK up as sponsor, nobody is required to buy any products and I just know that we will all get an insight to run a business with a considerable improvement to our sales.
Power up your Solar business with Kaizen (改善) business management circleAG TECHNIKSaturday, 27 July 2013 from 07:45 to 10:00 (BST)People are booked an paid at £25 with today’s deal £12.50 if you book within 24 hours Guarantee is in place with the promise from Greg that you will leave his course, able to close 50% of the deals you go on.
What we do know is that figures are the truth, if (say) 2500 PV installations (under 50kW) are what are made in a week and we have (say) 86 counties this equates to 29 installations per week. Some of these might still be investor based FREE or with PPA, some are social landlords and this means the number in your area could be (say) 18-20 installations per week.
If the true market in your county is 20 installations per week, that is the natural size of your current market and you have four options:
a) Conquest more business by stealing market share from your competition and that comes from converting at a higher ratio than they do
b) Enter larger markets by expanding into other counties (risky if you are not converting sales at the highest possible ratio)
c) Take on new sectors (if domestic only then look at commercial or if commercial only seek more from domestic) or new products such adding different renewable technologies
d) Whilst on holiday look in the estate agents window, sell up and buy a deckchair for the beach
Greg says
“having balanced the requirements of the RECC and REA Codes of Practice along with professional sales techniques I have produced a Sales Process for Solar PV that is wholly compliant and will guarantee conversion rates in excess of 50% if the process is followed” This is the last opportunity to book and places are limited. Book here on a first come first served basis. Having watched Greg operating in other sectors I just know this will be your best money spent so far this year.
Looking at the details below might be a help as the truth is a great taskmaster and DECT have been good at keeping score.
Weekly data
Sunday, July 7,
Not our finest week with 3000 UK installers sharing 921 Solar PV installations made in the under 50 kW sector and the installed capacity was some 2,970 (kW)
Sunday, July 14,
The figures for the UK Solar PV installers are a combined weekly total of 1,351 Solar PV installations and the installed capacity was some 4,617 (kW).Great to see some increased numbers and UK solar getting back on track. However we need to look at growing this and frankly our marketing should focus on offers to allow for an incentive to fill the dip in our forward installation planning.
If you are however not away then now is the time to catch your competitor totally unaware and capture market share!
Whether at your desk or reclining on a blue sky holiday it might be the time we could work out what to expect over the next twelve months in the world of solar.
If the sales figures continue to bounce along like this we might all agree we need a new plan.
If we look at the real statistics two things can be established:
a) Very bad week is just under 1000 installations
b) Very best week is say 6000 installations.
The above is in the under 50kW sector.
With all the pain for very little gain, a new way forward is required, without knowing your personal answer for the year ahead, all I can say is you might be thinking like a pioneering solarprenuer brimming with commonsense,(DECC are not as savvy) yet if we look back over the last few years that kind of forethought and solar savvy does not seem to have been always offered up by the government who are a requisite in our business.
Could we therefore look back at DECT (Department of Energy and Chocolate Teapots) to see if they acted with good forethought, down-to-earth, solar savvy, astute business sense or on the other hand have we all become embroiled in the traitorous or even perfidious actions of a naive government.
Based on what we have seen to date, my tounge in cheek thoughts are that we might stand the entire business process on its head as frankly all rationale and commonsense seems to have gone out of the window since Feed in Tariff was invented.
The facts are as clear as the nose on our face, again we can take an overview of certain factors such as the costs of development as well as the production of fossil fuel energy, in the very first instance our old think energy was underwritten with our taxpayers money and this filled the pockets of a few who owned traditional energy companies.
Should we ever build the true costs into the price of all energy, solar power is not just competitive, it’s cheaper.
The day will come with grid parity and the honest results will show through once all (direct or indirect) energy subsidies are removed.
We have a strong market for solar power today. We have a willing market, the necessary technology, and an undisputable imperative to create a cleaner, safer planet. I’m delighted to call to meet installers who are mainly committed to leading a company that delivers the best technology and service.
If we continue to revolutionise solar power generation on a UK scale, one kilowatt hour at a time we will hit those targets and make great businesses.
We should look to finance or creative financing to seek out a new method of selling as we are on the verge of having that robust renewable energy market as
prices from the BIG 6 is set to spiral with RWE NPOWER forecasting the energy bill policy is set to make energy costs rise by 78% between 2013 and 2020.
This kind of increase stops the industry only being here to chase the next subsidy. For the good of our energy future, subsidies for all energy must eventually end and we will need ti educate ourselves with a new pitch to deliver this.
Some say a great industry was literally hung out to dry by allowing conditions to prevail that makes Solar a sector that is now often criticised.
All types of renewable energy offers all parties the greatest opportunity in the history of the world and we are all making this history.
In the longer term we will win but we must know what to expect in the solar market in 2013.
Some of the things we need to look at are facts to see if the industry will stagnate or will it grow exponentially.
If Solar PV manufacturers continue to fold, will they all be acquired and if so what will happen
Will the market regain some stability
Who will emerge as a clear leading brand in the UK
What will China do this year about ADD and how will the change the market
How will the increase in costs of utilities change and how will the change an ever evolving solar market
The above are not questions that I can offer a factual answer as many are being decided
We need to promote a disciplined framework in a rigorous combined with a marketing methods to add value to get more business.
Recommendations are a great scheme all based on our results and our standards of work.
For the domestic sales we simply need to look for the Baby Boomers
The Boomers represent the greatest untapped opportunity for Solar PV marketers, you already understand this and realise marketing to others will not produce the same results. For those solar marketers looking to target a precise offer to the over 50’s, value for money is highly important for Baby Boomers and they are actively comparing prices. Try to demonstrate value for money and they do like quality engineering. They know they are buying electrical goods, placed outside to face the elements for a decade or three and on that basis having a variety of solar products available will allow the Boomer options to be sold up to a better brand.
Don’t assume Baby Boomers are stuck in their ways – as these guys (must remember I became a nifty fifty myself last week) matter and should be front of mind for solar marketers and solar advertisers.
The most surprising research is how the Baby Boomer of today challenges the stereotypes we all apply from what we saw in the prior generation. The 60 year old of today think like a 40 year old of yesterday. For all intents and purposes, this is a group of consumers who would deliver a greater return on investment if we took the time to speak to them in a manner which reflect their stage of life and lifestyle. These are silver haired adventurers, highly active, great networkers, enjoying working in later years.
This is a demographic relatively free from advertising clutter and competition; ripe for an advertiser willing to be brave. Look out for marketing of solar energy has moved from just being a green option for wealthy hippies, following this we sold to financially savvy silver fox investors seeking an alternative to an ISA and now it will be sold as a ‘must have’ to avoid the trap of spiraling energy costs.
Now for the moment we’ve all been waiting for! DOMESTIC RENEWABLE HEAT INCENTIVE
I joined this industry in the days of the Low Carbon Buildings Programme and technologies such Solar Thermal were growing on a steady curve until I went to a conference calledPreparing For The Solar Boom Ahead , between setting up the conference marketing plan and the delivery all that changed.
Keynote speaker was a Mr Hergen Haye, Director of Heat Policy at the Department for Business, Enterprise and Regulatory Reform, he proclaimed Solar Thermal (amongst other domestic technologies) was over in terms of government subsidy and my jaw dropped the floor. I had grafted for two years with display kit, stock, a pallett of brochures and this man declared my business was over until domestic RHI was launched! Then Mr Haye explained we should all look at Solar PV as a scheme would be launched the following year and Solar Thermal companies went to the wall. Last year we lost over 40% of the previous years amount of sales of Thermal as this market continues to go int free-fall.
My agencies with ECOBODS were kicked so far into the long grass with Solar Thermal and Ground Source Heat Pumps that I went on the road selling Solar PV to the domestic market and looked for a new agency. Today I’m delighted to have the Solar Agency of AG TECHNIK in place and can now offer superb EU Solar products with components from world leading German engineering.
Getting back to Mr Haye, whose best intentions might be best discussed with him and not me! In the opinion of some he is a muppet and others a puppet.
He might however be really clever, leaving all of us in renewable energy with his eye in another direction, Hergen Haye found a new position very quickly as BERR fell off the radar, the Department of Energy and Chocolate Teapots enabled Mr Haye to use his knowledge as the Head of New Nuclear at the Department of Energy and Climate Change (DECC) of the British government since 2010. If Mr Haye, just came clean, mentioned a great big U Turn would lead to us all waiting 5 years for domestic RHI, a blip of success for domestic Solar PV, heading us all to Nuclear Power stations and fracking for gas we could have prepared alternative schemes.
What we do know that we have all been grafting, making businesses with what we have, whilst the Civil Servants have been having it large not with bribery of course but some jolly spiffing outings with dinners at the five-star Berkeley, KPMG working with RWE-Npower also took our under fed Mr Haye and his pals to other venues for hospitality enjoyed by the OND’s senior officials include the Reform Club, the Cavalry and Guards Club, the Royal Horseguards hotel, the RAC Club, Roux at Parliament Square, the Naval & Military Club, 1 Lombard Street and the Cinnamon Club . Following this under the table emails were sent between companies and DECC. Frankly I’m not going any further as these are allegations only and I have had some huge companies legal departments on my case already since I started airing my views in these missives when I started casting aspersions on some of the globe’s biggest Solar PV companies getting into trouble and talking about Anti dumping duty in the USA.
Getting back to domestic RHI
We all say ABOUT TIME, with a sigh of relief we can look at what this really means.
What the papers say
Householders will be able to claim hundreds or even thousands of pounds a year for green heating technologies such as solar hot water systems from next year under a flagship renewable energy scheme. But Guardian analysis shows that despite the increases in the government payment levels announced on Friday, it will still take decades to recoup the upfront costs of installing these technologies.
If you have been away on a holiday without internet
The Department for Energy and Climate Change (DECC) last week (Friday 12 July) confirmed the tariffs for the domestic Renewable Heat Incentive scheme – 7.3p/kWh for air-source heat pumps, 12.2p/kWh for biomass boilers, 18.8p/kWh for ground-source heat pumps and at least 19.2p/kWh for solar thermal.
The feedback is varied but in general we should all prepare for business to get back to growth.
During 2010 & 2011 the industry took a nose dive for solar thermal as sales were sinking and now we can get back to some growth. I do expect solar thermal will sell better when incorporated with another technology such as geothermal heat pumps and the like
Our chums in Solar Thermodynamic have not been included as yet and I wonder if this is down to DECC/GemServ being lobbied by the more traditional technologies.
We could also do well to look at the hybrid systems (combined heat pump and boiler) as this will be an interesting combination and might even avoid a ground loop in some situations.
If you are in Solar PV then please do look at getting help toward this exciting new development and think about domestic RHI as this is a catalyst for significant market growth.
Geothermal heat pumps.
As we prepare to develop a network for Climate Master (the world’s larget geothermal heat pump manufacturer), a USA giant in the industry sees this is the time to become the market leader and are developing a new dealer network. TheECOBODS team are inviting installers to apply for dealer status, it is intended that full training will be given and every installation will be signed off to ensure the manufacturers warranty can be issued with confidence. Email for more details on expanding your business with a Climate Masterdealership
Solar Thermal.
AG TECHNIK have developed a range of products for the UK market in addition to Solar PV by Q CELLS, they have a range of full copper plate solar thermal and this means hot water for longer periods thant standard solar collectors. To get more information on the AG TECHNIK hot water range and find out about the installer partner opportunity apply online
With the new tariff levels providing paybacks for some technologies of less than five years it means a lot to be happy about:
Homeowners now have a huge financial reason for investment and you need to get booked onto a course with Greg above although about PV the entire industry needs to innovate to deliver the propositions which they are looking for.
Gte in front of architects, scour planning portals as the self-builders have are now an important customer segment … they are a fast growth buyer for renewable heat, and with and tend to have a few bob for investment or can borrow at good rates. Yogen research shows over 25% of self-builds have some form of microgeneration.
Get in front of the landlords in your area who have a critical role to play in growing low carbon heat. They like investments and the RHI gives them a guaranteed revenue stream which will have increasing appeal.
So using RHI or FiT, we should not per se revolve around the green element, but rather around the praticalities: It is time for solar to be seen as a practical solution, something that we need rather than something green that is nice to have. It is up to the industry to market solar as such, so that people start to see it as a necessity.
Lately I feel hopeful, I see so many signs that there’s this some green shoots beyond a terrible mess happening in the renewable energy industry.
Eventually the day of parity will come and we can escape the need for government subsidy and we are in the right place as the renewables sector is evolving right before our eyes.
That’s how I hope you see the world, rather than the focus on all of the problems, we do have the light at the end of the tunnel (and it is not the bailiff with a torch) as people are very slowly waking up once again to a need for a greener planet.
As a country or as a planet we have crisis. We are in the cycle of recession and just like the all the seasons it is a cycle. Recession is like winter, we need this because things die in winter and things are cleaned out so that there’s room for the new springtime.
In the renewable energy business we are not yet seeing the business springtime, but each business can make the most of the market and do more individually to enter springtime now, but as a sector, we’re right now still in winter and there’s enough crisis within all the technologies.
As renewable energy manufacturers continue to fold,with Conergy solar module and mounting system manufacturing units going to the wall. A sharp operator Daniel Ades, the 32-year-old investment wiz kid has bought the name and sales operation in terms of Kawa Capital Management of Florida
.
Move fast in case the market stagnates, market yourself, get into new geographical areas, seek new product extensions and above all prepare to convert 50% of all the sales meetings you have by getting onto this Kaizen morning and use the code ’50’ to get 50% off the price… go on book now by clicking here
We need certainty of stability, dumping tariffs will lead to greater issues to change the market, the increase in costs of utilities will be big enough to make people blame green energy but things will change for the better in an ever evolving solar market.
Some solarprenuers are already pushed over the edge and others solarpreneurs aren’t and I can promise you, over the next three or four years you’re going to see a lot more crisis and you’re going to see a lot more breakthroughs and on the other side of it, just keep the cashflow under observation to last out and we’ll enter a new springtime that will be worthy of this huge wait. A shorter route does exist by following the theory of Kaizen, you don’t have to reinvent the wheel—learn from the best and do use my subsidised option by
entering the number 50 at this link Enter promotional code it is limited for today only.
Take heart, Solarpreneurs. We have a bright future ahead and tough times only shake the loose apples off of the tree. Hang on!
See you at the top,
Richard
Richard Williams
Founder
Direct dial 01886 880088
GreenDeal.net
Energy Conservation Centre
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Cradley
WR13 5JX
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The new chief executive of Npower, Paul Massara, said: “Energy costs are rising and blames green energy
Npower kick off with a grumble about UK green energy and blame others for blaming them
Prepare for increases in costs as over £1 billion is purported to be spent on power networks to connect up a whole new generation of offshore wind farms. Npower said transportation costs will add an additional £114 to the average domestic bill by 2020.
RWE npower plc (trading as npower) is a UK-based electricity and gas supply generation company, formerly known as Innogy plc.
The new chief executive of Npower, Paul Massara, said: “Energy costs are rising. This is an indisputable fact, and it’s time that all of us involved in energy in the UK are upfront about it.”
He went on: “We are very clear that we do not want to be critical of government – rather, we want to ensure customers have the facts, so that they understand that for this cost, they will get a low-carbon economy, security of supply and warm, insulated homes.”
He said his firm was calling for an end to the energy “blame game” and in return Greg Barker was reported by the FT as saying ” rising global gas prices, not green policies, were pushing up bills”. He said that in 2020, bills would be £166 less than they would be “if we left ourselves exposed to global price shocks, left our homes leaking energy, and left future generations to deal with climate change”.
When you look at UK policy it is not hard to understand uncertainty by RWE as they are forced to close Tilbury Docks in after funding for Biomass was no longer practical Richard@mercantileinvestors.com
The Energy companies do need to put something back but frankly If I was the CEO of a huge power company I would squint at DECC ideas of fighting climate change with the idea of ECO, launched in January this year, which obliges the big six to giveaway gas boilers and insulation for low income households.
The government has said ECO will add £53 to a typical dual fuel bill. But npower said it would add £88 and it is another cost paid by the taxpayer.
The battle has only just begun, next we will see other power companies all jumping on the bandwagon, Ofgem also this month proposed reforms to limit suppliers to offering four core tariffs and to help customers find the cheapest option, changes that are likely to come into effect in December.
Are the power companies and government having a scrap?
I think so!
Conclusion:
Whilst we might be sorry for the energy companies not getting big handouts from UK government it is frankly not the season for handouts and DECC is something of a Chocolate Teapot (perhaps DECT is the right name) with all they say and do.
It is only my opinion that the big 6 are playing tricks, whilst the sun is on our backs, we are warned of price increases and when they come in November we can be sure that we will be reminded of it being everybody else fault not the energy companies.
Energy companies have shareholders and an increase to hike up the revenue stream is all they require so the consumer cannot win unless they buy shares in the BIG 6 and install renewable energy.
The greatest fear about nuclear power plants is a severe accident in the nuclear reactor and many will remember the real issue of Chernobyl. When the whole system or an individual component of a nuclear power plant causes the reactor core to malfunction, it is called a nuclear meltdown. This occurs when the sealed nuclear fuel assemblies that house the radioactive materials begin to overheat and melt. If the meltdown becomes too severe, the radioactive elements within the core are released into the atmosphere and around the area of the power plant. You & I know radioactive materials are highly toxic to all organic life and the Government ignore all saying the geometric design of all reactor cores means a nuclear explosion is impossible and they chose to say only smaller explosions such as the release of steam are possible.
The time might have come when the true dangers have been brought to the surface
The Government today confirmed its intention to substantially increase the third party liabilities of operators in the event of a nuclear incident.
This follows a public consultation held last year on the UK’s proposals to implement changes made to an international treaty on nuclear third party liability – the Paris and Brussels Conventions, to which the UK and most of the other EU countries are signatories
Currently, operator liability is limited to £140m per incident. The UK is increasing this to €1.2bn, to ensure that more compensation will be available to a larger number of claimants in respect of a broader range of damage. This €1.2bn is €500 million more than the minimum necessary under the revised Conventions and the latest huge power companies really see a risk.
How can I say that E.ON and RWE see a risk well they have had the news above and now pulled out of UK nuclear well German energy companies RWE and E.ON have ditched plans to build two new nuclear power stations at Wylfa on the island of Anglesey in north Wales and at Oldbury on the Severn estuary. http://www.horizonnuclearpower.com/
The strange thing is our power comes from countries like France and Germany and they are giving up nuclear power by closing Horizon Nuclear Power which is a UK energy company who said they were developing a new generation of nuclear power stations. It planned to deliver around 6,000 MW of new nuclear power station capacity in the UK by 2025, a programme that is likely to be seen more as crash that might save £15bn of investment and perhaps we can get UK PLC to embrace making great renewable energy products with the best incentive to install.
Having just got back from Milan I can confirm you must have installed an EU made module to get full Feed in Tariff and business is booming.. I even see car brand Lamborghini have a Solar business
We should hope the Nuclear collapse is a positive step toward renewable energy business as the best way forward in the UK.
UK energy policy is at a crossroads as our government’s current work to reform the electricity market will determine the shape of the UK’s power sector for decades to come.
The UK now has a real opportunity to become a world leader in clean, renewable energy all over the UK and later the globe.
We must escape this dominance of high carbon fossil fuel power generation and not jump into an even bigger risk with a dependence on risky nuclear power.
Renewable sources can meet 60% or more of the UK’s electricity say WWF and all by 2030.
By using this amount of renewable energy, we can decarbonise the power sector without resorting to new nuclear power. We will also be able to maintain system security – that is, provide enough electricity at all times to make sure there’s never a risk of the ‘lights going out’.
Around a quarter of the UK’s ageing power generation capacity is due to close over
the coming decade. To ensure system security, we need significant investment in new
electricity generation capacity and to reduce demand for electricity. The government
must also rise to the challenge of climate change, making sure the power sector plays
its full part in meeting the requirements of the Climate Change Act. The Committee on
Climate Change (CCC) has made it clear that UK power generation must be essentially
carbon-free by 2030. The government needs solid, ambitious commitments and targets
to drive investment in sustainable low carbon power generation and avoid locking the
UK into a new generation of high emission unabated fossil fuel plants.
WWF believes that the UK must decarbonise its power sector in an environmentally
sustainable way. For this reason we would prefer to avoid new nuclear due to the
unacceptable risk of a catastrophic accident and the legacy of dangerous radioactive
waste for which there’s no effective long-term storage solution.
In this context, this report aims to answer the key question:
Can the UK achieve a secure, sustainable and decarbonised power sector
by 2030 by shifting away from polluting fossil fuels and nuclear power
to an energy efficient system built around clean and inexhaustible
renewable energy?
