| Growth Capital: It's solar, so good as panel pair beat the tariff Solar panels haven't emitted much sunshine for British industry over the past few months. Staff numbers grew to 20 by the time the Government said last year that it was halving the feed-in tariff to 21p per unit of electricity generated. With six weeks before the subsidy was to be cut, demand "went crazy, says Phil. "Plus, a great deal of people don't know about the history of Government subsidies — they see that they will receive a return of 5%-10% a year from their investment instead of the fact that last year it was more like 15%-20%. " The company now brings in £2 million a year. "Chinese tea was pretty dull and I wanted to do something that was good for the planet," says Joe. "Then when I was travelling with my girlfriend, Julie, in the Himalayas, we came across some DIY micro hydro-electricity generation. It got me researching renewable energy. "We knew it was far too high because some homeowners were making almost windfall-type profits. But the Government acted too fast and failed to consult properly, triggering chaos. " Joju was among groups including Friends of the Earth that took the Government to court over the subsidies. "We won the case, granting the industry a much-needed, if short, breathing space," says Phil. I had thought anything involved with energy would be far out of the realms of a business, but I found out that although all the technology was there with solar PV, it wasn't being widely used in the UK. " But the entrepreneurs say they are used to a "constantly shifting policy framework". This year, strong orders from households and businesses mean they expect Joju to double in size. "Consumers and businesses are seeing their bills go up every year, and no sign that that's going to change. On average, it costs nearly £10,000 to get solar panels, even so, you can expect payback after about 10 years thanks to paying less for your own electricity as well as the Government subsidy. "People are looking around for ways to future-proof their homes against rising bills, and that's what solar panels do," says Phil. "Businesses are wanting to fix their energy costs, and for a lot of local authorities there's a planning requirement to put solar PV onto roofs of new builds. Whatever the Government throws at us, we think that 2012 is going to be an exciting year. But one London company — the first in the capital to receive a licence for solar-panel installations, in 2006 — says it is confident of doubling in size this year. Islington-based Joju Solar, run by brothers Joe and Phil Michaels, claims demand for panels is stronger than ever. Before launching it, Joe had a small business importing Chinese tea and Phil worked as head of legal at Friends of the Earth. " So he joined up with Chris Jardine, a senior researcher at Oxford University's Environmental Change Institute and solar PV expert, sourced the best technology and fitters, and visited local Rotary clubs to drum up business. "In one month, we did three months' worth of business, and there were massive shortages of stock across Europe. With no initial start-up funding, the plan was to use earnings from the first panel installation — to your house of a Lib-Dem councillor — to buy kit and organise installation, working hand to mouth. First-year revenues hit £30,000. The cost of technology is coming in decline too. "We've been installing in police stations, schools, community centres, churches, shopping centres, and warehouses as well as homes," adds Phil. " The duo say the tariff cut wasn't a surprise. Growth Capital: It's solar, so good as panel pair beat the tariff |
Tuesday 6 March 2012
Growth Capital: It's solar, so good as panel pair beat the tariff
