Solar PV auctions Supporting the SW solar market and unlocking private investment in renewables

Presentation on theme: "Solar PV auctions Supporting the SW solar market and unlocking private investment in renewables"— Presentation transcript:

Solar PV auctions

Supporting the SW solar market and unlocking private investment in renewables

Background

Despite the end of the Feed-in Tariffs and the uncertainties around VAT and the Smart Export Tariff, solar panels are an attractive investment for some people, particularly the relatively well-off with high daytime energy consumption (e.g. retirees and stay-at-home parents)

Example:

4 kW system generating 4,000 kWh per year

Cost ~£4,000

Household uses 50% of energy generated, saving £300 per year

Export earns £50-100/year

11-year payback if paid for from savings rather than financed

Solar auctions

Lower cost = shorter payback

£4,000 = ~11-year payback

£3,600 (10% discount) = ~10 years

£3,000 (25% discount) = <9 years

Bulk purchasing could reduce the cost and encourage more people to invest

Several councils have run solar auctions in the last few years

London (13 boroughs)

Norfolk/Norwich

Suffolk

10-35% cost reductions achieved and ~1,000 installations per auction

How does it work?

Stage

iChoosr

Community Leader(s)

Marketing

Designs engagement letter

Builds local online portal

Contacts 100,000 households identified as potentially suitable for PV and able-to-pay

Expressions of interest

~5,000 register interest and provide details on house

Installer qualification

Takes interested installers through qualification process

Auction

Installers submit price based on registered interest

iChoosr appoints 1-2 installers at agreed price

Offers

Householders given bespoke offer, subject to survey. They amend, accept or decline. ~1,000 accept.

Installation

Installers deliver over 6 months

iChoosr manages independent quality checkers and complaints.

Householder pays on completion.

Completion

Installer fee paid per completed install

Shares fee with Community Leader(s)

Shares installer fee

Costs

£30-40k for marketing (upfront, at risk)

Partially or fully recouped via installer fee paid on each completed install (6 months after auction)

Potential for surplus income if very successful

What about people who can’t afford the upfront cost?

This is an able-to-pay scheme

Householders could pay for panels with finance, but this will reduce the payback

We are in a climate crisis and we need to put solar panels on as many roofs as possible, as quickly as possible. To do that, we need a stable and large solar PV market.

Focusing on able-to-pay helps deliver carbon savings immediately and support local PV installer market

Can we make it happen in Bristol?

A Bristol-only scheme would not be viable, would need to be regional

West of England councils and SW Energy Hub (run by WECA) have been talking to iChoosr, so they seem keen

BEN/BEG haven’t had discussions with any of the councils about it yet

What could BEN/community energy’s role be?

Engagement letter is standardised and iChoosr have good feedback on it so prefer not to mess with working model

Community energy groups could complement this engagement to increase participation

£30k for engagement letter then £5-10k shared between community groups to do more in-depth engagement?

Integrate with existing activities, co-branding as partner?

Could unlock households that have been missed

Could measure success by tracking installs that have come about through/with support of community energy groups?

Relationship building could increase participation in future auctionsOther? Discuss!

Next steps

Discuss and agree potential role for community energy (today)

Arrange meetings with local authorities/SW energy hub to discuss potential role

Questions for discussion

What could community energy’s role be?

What would we need to do that role (funding, resources)

Who needs to