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DECC attempts to kill free solar through the back door

Call for Free Solar providers to be removed from unfair multi-installation tariff

HomeSun CEO, Daniel Green, said: “In today’s announcement the new so called ‘Aggregator’ (multi-installation) tariff includes companies who provide Free Solar to individual, private home-owners.

“DECC justified this new lower tariff by saying that companies who own many installations have economies of scale – only having to deal with one multi-home owning landlord and being able to install several homes on the same street on the same day. However, this is simply not true for Free Solar for private, individual homes and DECC knows it.

“We agree with DECC and accept multi-home owning landlords should have a lower tariff but why punish the majority of the population who don’t have multiple homes and don’t have thousands of pounds to invest for years in a solar purchase? These people, who are struggling with their energy bills and are looking for some relief from the Big Energy companies have been deliberately excluded without reason.

“Solar will now become the exclusive plaything of the wealthy who live in the south of England.”

Claire Rogers from Hampshire has a Free Solar panel system on the home she shares with her elderly parents. “Without the free electricity from the panels, my parents would sit in a cold house all day because they would not turn on the central heating for worry about high bills. It is shock to think that if the multi-installation tariff comes in, someone like me would not have been able to get solar panels,” says Claire.

“We call on Ed Davey and DECC to create a fair and just FIT by removing Free Solar providers for separate, individual homeowners from the multi-installation tariff,” concludes Daniel Green.

Notes

• Economies of scale can be applied to consolidators that undertake large housing projects, landlords and people who own many homes because they have only one sale to make and can install on many homes in one day. Then there are companies that supply Free Solar systems to separate, individual private homeowners – this type of company doesn’t benefit from economies of scale because:
  • Free Solar installations are rarely in geographic proximity and cannot be installed as part of a planned work schedule
  • Free solar suppliers are hit with an additional 7% of costs due to paperwork such as conveyancing
  • Each Free Solar customer needs a separate customer relationship with its associated administration costs
  • Unlike the private buyer of solar, the Free Solar provider pays corporation tax on income/profit and has financing and administrative costs
  • The Free Solar provider passes the energy savings onto the customer and gives up the right to any free electricity itself