Aerospace engineers at Strathclyde University are part of an international team aiming to put a solar power station in space and beam the power back down to Earth.

BBC Scotland’s science correspondent Kenneth Macdonald finds out about overcoming bad weather and night time power cuts.

See video clip for more info The making of a Solar Power Space Station

Last week UK energy news focussed on price rises. The International Monetary Fund (IMF) was warned by its internal research team that there could be a permanent doubling of oil prices in the coming decade with profound implications for global trade, while Centrica warned on Friday that the trend for retail energy costs “remains upwards.”

“UK wholesale gas costs are around 15 percent higher for next winter than last, and non-commodity costs – which are also largely outside of our control – are expected to add a further £50 to the cost of supplying the average household this year,” Centrica said in a statement.

Also last week it was reported that three-quarters of customers who have signed up to The Big Switch, launched by consumer group Which?, will save a “disappointing” amount on their energy bills.

The Big Switch aimed to use the collective bargaining power of nearly 300,000 consumers to negotiate cheaper energy tariffs by effectively bulk-buying on behalf of the group. However, critics have pointed out that the winning tariff is actually more expensive than the cheapest already available on the market.

“The Big Switch was a brave and bold move, but the outcome is disappointing,” said Ann Robinson, Director of Consumer Policy at uSwitch.com.

A ray of good news

In contrast to these negative announcements, E.ON has today promised not to introduce residential price rises in 2012. Currently supplying approximately five million domestic customers in the UK, the energy provider wants to provide a “fair and transparent” service.

Dr. Tony Cocker, Chief Executive of E.ON UK, said: “Let me be clear, E.ON will not raise residential prices in 2012. I want every family in the UK to know that we will always do our best to be fair and act in the best interests of our customers. Earlier this year we cut our prices in a way that helped some 75 percent of our customers and I hope that the certainty we’ve given today will show our customers again that we are committed to helping them, and I also hope that it will help to show millions more that if they look to switch they can find in E.ON a company that puts its customers first.

“Unfortunately global energy markets are expected to see an overall trend of rising wholesale prices but as a company we believe in acting fairly, which means cutting prices when we can and never raising prices unless absolutely necessary. We will continue to spare no effort in getting our customers energy fit by insulating homes, installing smart meters and providing advice that makes a real difference. That help and action, combined with the price cut announced in February and the promise we’ve made today, mean that E.ON customers can plan for the future and properly control their energy costs, as well as reducing their consumption.”

What does this all mean for PV?

While E.ON has revealed its intention to effectively freeze domestic energy prices in 2012, consumers will likely remain wary of the future. After all, British Gas instilled confidence in its customers by announcing a 5 percent cut in its standard electricity tariff in January last year, only to follow up with a 16 percent increase in electricity prices and 18 percent rise in gas prices for customers in August 2011.

It seems that no matter how much juggling these companies do, or how hard they try to offer customers the support they need in these times of austerity, prices are not going to decrease any time soon. Oil and gas are only getting more expensive, and this will in turn have a knock-on effect on bills. As a result of this gloomy reality, some UK consumers are turning to renewable power, as they can then generate and consume their own energy – and not rely on the Big Six.

Paul Barwell, STA Chief Executive, explains: “The increase in conventional energy costs is not a blip, but an ongoing upward trend – Centrica is unlikely to be the only supplier to increase energy bills due to the rising costs of wholesale gas. In contrast, the costs of solar power have dropped dramatically in recent months.

“Generating your own electricity from solar panels not only protects homeowners against ongoing fossil fuel price hikes, but, with the feed-in tariff, actually provides a healthy return on investment as well – not to mention the benefits for the environment and our energy security.”

Gaynor Hartnell, REA Chief Executive, continued: “It seems inevitable that the long-term trend in energy bills is upward. The main driver for this is increasing gas and oil prices, but the need to decarbonise and replace ageing infrastructure will have some impact too. Householders as well as businesses will want to protect themselves against this. Producing their own renewable energy, as well as improving insulation and the efficiency of their energy use, is becoming increasingly attractive.”

And, many UK consumers are beginning to realise that renewable energy is indeed a way forward. According to solar company Eco Environments, the interest in solar PV, energy efficient lighting, heat pumps and other forms of renewable technology has increased since the news that renewable energy can help to reduce bill costs spreads.
David Hunt, a Director with the company, said: “Although there is the occasional small price drop, the trend in energy costs is very definitely upwards. As a result, we are seeing an increasing number of homeowners and business owners looking to address their energy costs. The summer months are the best time to do this in order to avoid nasty shocks when the winter bills arrive.
“One of the most popular options at the moment is low energy lighting but there are a range of renewable energy technologies that people can harness to ensure drastic reductions in energy costs.”

Furthermore, even if consumers aren’t able to harvest their own energy, they can do so from alternative sources, such as renewable energy suppliers.

Juliet Davenport, Founder and CEO of Good Energy, the UK’s only 100 percent renewable electricity provider, explained their point of view: “Good Energy is really proud that we’ve been able to keep our electricity prices stable for the last three years and currently have no plans to change them. Our research shows that 57 percent of the fuel used to generate electricity in the UK is imported from abroad. We need more British renewable energy, which is much better for our energy security and will help keep bills down in the future.”

Good news doesn’t travel fast

However, while some consumers are realising how renewable energy can help to reduce their energy bills, more needs to be done to spread this good news. Unfortunately many are hung up on negative messages that have been churned out by the mainstream press, with a disappointing amount believing they have missed the boat. I’ve been speaking with members of the public over the past weeks and the message they are receiving is that Government has killed solar, and it is no longer a viable option in the UK. Yet when the reality of the situation was outlined to them, many were still interested in installing the technology.

“I think we need to get potential customers to understand electricity is going up significantly faster than inflation and with all the troubles in the electricity supply industry, customers have the opportunity to protect themselves from a significant part of these future price rises. The FiT was designed to raise awareness of solar energy and to stimulate a market. Now that has been accomplished we need to push the message that no matter what level of FiT is available, solar is worth having as a contribution to reduce future electricity prices,” explained Ray Noble, PV Specialist with the Solar Trade Association (STA).

“Solar is the fastest growing energy industry in the world and it offers everyone to be in the electricity generation driving seat while protecting themselves from the severe price rises in the future,” he continued.

Meanwhile the Department of Energy and Climate Change told me: “We can’t control global gas prices, but we can help consumers control their bills by shopping around for the best energy deal in the market and by taking energy efficiency measures such as loft and cavity wall insulation – which the Government requires the big energy suppliers to help households with and provide free to some of the most vulnerable consumers.

“In the longer term the Government’s energy policies, including the Green Deal starting later this year and fundamental reforms of the electricity market due in the Energy Bill announced in Queen’s Speech, are designed precisely to make sure that UK homes and businesses are better shielded from the sort of international gas price hikes that we’ve seen hitting UK consumers over the last year or so, by cutting our reliance on imported gas, nurturing a wider mix of home-grown low carbon energy sources, and cutting energy waste.”

So it seems the solution is out there. Solar PV is still a viable technology and can help to reduce rising energy bills. Government is supporting this move, and the informed consumer welcomes it with open arms. It is now up to the industry to make sure the message gets out there before it is too late.

Recent installation figures show that demand has decreased from a four-weekly average of 71MW over the past 12 months to a disappointing 17MW. This drop is thought to be caused by a number of factors, including the introduction of energy efficiency criteria, consumer confidence and the fact that the UK has slipped back into recession. As a result of these figures, many have called on Government to delay the July 1 cuts.

Last night, Climate Change Minister Greg Barker confirmed industry rumours that the tariff cuts could be delayed. ”Having listened carefully to industry, we are looking at scope for pushing back a little the next proposed reduction in solar feed-in tariffs,” he posted on Twitter.

Speaking with the Department of Energy and Climate Change (DECC) this morning, the Solar Power Portal was told that what the Minister has Tweeted in true, and that we can expect the deadline to be moved.

“We have listened carefully to the solar industry and are considering moving the date of the feed-in tariff changes as a result of concerns,” explained a DECC spokesperson.

DECC also confirmed that an official announcement on this will be published shortly along with the results of the feed-in tariff consultation. “We know everyone is keen to see this, so we are working to publish [the consultation] as soon as possible,” the spokesperson continued.

Contrary to reports that the delay is due to Government missing the deadline for announcing the cuts before July 1, DECC has confirmed that it has intentionally held off on publishing the consultation document due to the low installation rates. It has therefore made the decision to move the cut date back.

This news follows the UK trade association’s calls to halt the tariff reductions.

“We are facing an unusual set of challenges right now and it is fundamentally a problem of confidence and perception,” explained Alan Aldridge, the STA Chairman. “We need all champions of solar – in Government, industry and elsewhere – to help us get the message out that solar is still a great investment, particularly with energy bills on the rise again.

“But we also need Government to show real sensitivity to the current situation and work with us to create a stable and growing market.”

Leonie Greene, Head of External Affairs at the Renewable Energy Association commented on today’s news saying, “We’ve been making a case for a delay to the July cuts for a couple of weeks now, so we’re very pleased DECC has been listening to industry. Hopefully this will give industry a chance to kick-start the market.”

Howard Johns, spokesman for the Cut Don’t Kill campaign, said: “It doesn’t matter how we’ve got here – what’s important now is that the government does what’s right for the long term future of solar energy.

“For months the Cut Don’t Kill campaign has been warning that the Government is cutting too far and too fast in the solar sector. Panel installations are 50 percent down on a year ago and over 6,000 jobs have been lost in the industry since last summer. We take no pleasure in being proven right but hope the Government will now take the opportunity to implement solar policy that is sensible and sustainable.”

Earlier this week the British Photovoltaic Association (BPVA), the Micropower Council (MPC), the Renewable Energy Association (REA) and the Solar Trade Association (STA) came together in a bid to form a united front against the feed-in tariff fiasco in support of solar.

During DECC’s oral questions today, Ed Davey confirmed that changes to the solar FiT date “will be a tweak not a massive change.” Davey continued by reiterating that a FiT rate of 21p currently works, insisting that “the message must go out that the UK solar industry is back in business.”

DECC was unable to confirm the exact timescale of the delay; however industry conjecture suggests cuts will come into effect approximately one month later on August 1. A statement on this is also expected shortly.

The Department of Energy

And Climate Change has confirmed that a solar PV installation will count towards reaching a level D EPC requirement. As of April 1, 2012 all new solar PV systems wishing to receive the full feed-in tariff rate available will have to be accompanied with a valid EPC level D. Following mounting confusion, DECC has confirmed that a solar installation will contribute to bringing the property up to EPC level D.

What is an EPC?

An Energy Performance Certificate is a document created by a Domestic Energy Assessor containing information on how to make your home more energy efficient and decrease Carbon Dioxide emissions.

To qualify for solar panel installation, you will need to possess a Level D certificate, of which only 7% of households are eligible to receive. If you do not have a
EPC, this may affect the Feed In Tariff you receive by up to 55%. If you purchase your solar panels before the 31st March 2012, you will not need an EPC, meaning you are entitled to the higher FIT rate without the new EPC requirements.

A DECC spokeswoman said: “A generator must be able to demonstrate as part of their application for FiTs that the building to which the solar PV installation is attached or wired to provide electricity is rated at EPC level D or above. The FiTs requirement doesn’t prescribe how level D should be met.”

DECC clarified that people who want to use solar PV towards obtaining an EPC rating of D would need to “have the solar panel system installed, conduct an EPC and then apply for the FiTs scheme. The EPC must be sent with the documentation relating to registration for FiTs.”

The EPC requirement will apply to any heated or cooled building connected to a solar PV installation, whether residential, commercial or otherwise. That would mean that even if PV is mounted on an unheated barn or shed, the property receiving the electricity would have to hold a level D EPC certificate.

As for ground mounted arrays, if the array feeds into a building for consumption then the property consuming the energy must hold a level D EPC to qualify for the higher tariff.

It is also worth noting that any system over 50kW will not require an EPC certificate, as the consultation only covered systems less than or equal to 50kW.

Why do I need an EPC before getting my Solar Panels?

The introduction of mandatory EPCs is being made to ensure that homes are already efficient before installing solar panels.

So if you would like to reduce the stress and cost of gaining an Energy Performance Certificate and benefit from the standard FIT without the need for a EPC, why not invest in solar power with Love Solar before the 1st April 2012?

To help customers meet the increased cost of reaching EPC level D, some financial support may be available from the Carbon Emissions Reductions Target (CERT) scheme and, from autumn 2012, measures will be largely financeable through the Green Deal.