I have commented on the Government’s kick in the teeth for the pioneers of renewable energy. Our generated electricity clearly has a far lower worth than newer renewably generated electricity – yet its the same and actually has done far more good for the industry and cost us more than energy coming on stream now!
Now, not content with undermining the renewable energy industry by kicking the pioneers in the teeth, but they are going to do their damndest to kill off some of the the most effective parts of the industry.
At the moment, anybody taking advantage of the Low Carbon Buildings Programme grant scheme can expect a grant of £400 for the installation of a solar water heating system. This can represent a worthwhile 10% rebate on the average cost of £4,000. This money runs out in about two months! Lets say June 2010
In April 2011 there is the new scheme, the Renewable Heat Incentive which pays a rate for energy generated / CO2 saved for systems that generate heat renewably.
So, anybody who has done the minimum of research will see that it will pay them to delay any installation that might miss the LCBP until the RHI comes into effect. Potentially a 10 month gap for installers that will almost certainly drive many into bankruptcy!
Worse than that, the companies that rely on marketing, pressurized selling techniques with significantly overpriced but low quality systems will hardly feel the effect. They will survive while the companies that are working within a tight margin to ensure a high quality fair priced system will fail!
Click here for a full explanation of what is going on and the letter that has been written to Alistair Darling can be seen here
A Note on Sales Techniques.
When I was promoting Solar systems about 5 years ago, after a mail drop I got 600 positive responses out of about 100,000. Actually that is good. Of these responses, each being visited by a technician, no hard sell just a system being promoted on its merits and low price I got 3 sales.
I spoke to a competing company that used pressurized selling. My systems sold for less than £4,000 theirs, using the exactly the same equipment (I was put in contact through the supplier) were generally sold for between £7,000 and £9,000 basically whatever they could talk the customer into paying. They were categorical that they would have converted between 30% and 50% into sales!
The supplier dropped this installer, they were unhappy with their sales methods!
Filed under: energy efficiency, green jobs, mcs, Renewable heat incentive, solar energy, solar heating, solar hot water, solar thermal | Tagged: lcbp, Renewable heat incentive, rhi, solar grants, solar thermal |