HC 1605 Energy and Climate Change and Environmental Audit CommitteesWritten evidence submitted by Gareth Williams, Caplor Farm
At Caplor we have a diversified rural business that is involved in 700 acres of mixed farming, in addition to property we also have a renewable energy business (Caplor energy) that designs and installs PV equipment for Business, community and domestic. Please see our web site and blog for more company info – link at end e-mail.
1.The date change on PV means that a 20Kw extension to our existing 40kw PV project will now be at a much lower rate of return. This said the financial rate of return is still acceptable, but any lower and it certainly would not allow me to borrow money from the AMC or bank to facilitate the investment – they will not lend on business investment that cannot repay the loans and so they should not.
2.Our PV investment has resulted in a significant reduction in our energy bills. It effectively caps part of our power expenses which is excellent and for once gives us some control over spiralling and soon to be crippling energy costs. The current investment will return about £15,000 per annum to our farm business, so financially this is massive for a small rural business. In addition from an environmental perceptive we are now being challenged by our customers to address carbon and climate issues and effectively being able to run our Potato cold stores on renewable energy is an excellent way in which to address these raising issues. Our next PV system is going to run a cereal crop drying system instead of our existing one that uses LPG gas and diesel – it will save us 1000’s per year on not having to buy in fuel. Again our customers are very pleased. Obviously there is a great carbon footprint benefit from this type of generation.
3.Socially whilst perhaps not creating new jobs – having this form of income is certainly helping to maintain the 5 full time equivalent posts on the farm – As stated the income and the opportunity to keep our customers happy is what will maintain a struggling rural community. PV can offer a genuine benefit to rural income whilst tackling the macro issues of reducing dependency on imported fossil fuels that have an increasingly negative effect on the whole countries balance of trade.
This said, in our sister energy company – this week we are employing over 30 people on a routine basis. 8 of these are under 25 and last year we took on some 6 graduate placement students – as you can imagine in rural Herefordshire this is absolutely vital to a sustainable rural economy. I think we now have over 1 million under 25’s unemployed in the Uk – if the Govt do not get behind the solar industry long term, this will raise massively. In the Uk 25-39000 people have jobs because of solar, it is suggested that short term 10,000 of these will lose jobs. If FIT is not kept high enough to sustain the industry until it reaches grid parity in 5-7 years then all of these will be out of work. If supported then it is believed that over 100,000 will be involved in this industry in the next few years.
4.What we have noticed in our business is that since having started generating our own electric – it has led to a substantial change in our behaviour and attitude towards energy conservation generally. We have reduced fuel consumption in tractors through training and equipment choice, reduced dependence on artificial fertiliser that is hugely demanding on fossil fuels, changed electric use with ventilation and lighting to name just a few. To such a degree has this been the case that we have won several awards - http://www.caplor.co.uk/about-caplor/awards/
5.The govt handling of the FIT review – leaves a lot be desired to say the least. A consultation that is implemented only 6 weeks after it is announced and before the end date probably sums it up really. Agreed the level was too high but this is no way to go about things in a democratic country surely? Also and more important is what it says about our “green govt” and “big society govt” genuine desire to address energy and climate issues and put “power” back in the hands of individuals and community – we surely lag woefully behind the rest of the world. These issues are genuine threats and thus huge opportunities that we seem content to talk about and do very little, whilst countries like S Korea even put us to shame – see http://caplors-blog.blogspot.com/ for more on these types of issues. They must support the FIT until we reach grid parity and be VERY clear about it – simple as that. I genuinely believe they have currently lost massive support over this issue. 61% of households have support for renewable initiatives, that’s a lot of votes!!
6.Pv is great because it is easy to do. Very simple and at all sorts of scale and very unobtrusive. We have a windmill here only 15kw and the fuss and hassle that it has created compared to 40kw of PV is like chalk and cheese. Most people can be involved in PV – 24million households - if half could probably be used then wow! and not to mention the number of business premises, community buildings and farms……….. by contrast there are only 26,000 suitable sites in total in the uk for small scale hydro if the people wanted / could do and if the E agency would allow it. Nobody seems to want windmills in the back yard and A D plants whilst great can hardly be done by any one. PV is fair for all and is physically, socially, environmentally and economically possible which is why the govt need lend more support.
7.In other countries – well, just have a look at a few examples in our BLOG – I could write chapter and verse on this. 50 countries around the world find this the best way forwards and supported by FIT payments
To answer the specific points on the consultation review -I attach the consultation response from Caplor Energy solar company, part of the Caplor group on the FIT Review – This has been circulated and sent to DECC. I’d be interested to hear your thoughts.
Our feeling at Caplor Energy is that
1.The new tariffs as proposed are just about workable if maintained and renewed only in line with panel costs – to give 8% plus return to people who invest in these projects.
2.We feel the damage has already been done with effectively bringing the date forward to 12 December and there is little point spending effort and time discussing.
For us, the big are;
1.A backtrack on the EPC proposal as (if included) this will remove opportunity for some 90% of UK houses without significant investment in the region of £5-7K per house. How could people afford this. Also insulation and energy generation should not be linked.
2.The size of the scheme must be increased the current tiny budget is doomed to run out way before any meaningful quantity of PV is installed in the UK. We have got a little too excited as we have installed several hundred MW – yet internationally we now lag woefully behind other countries, in the states as one example there are single plants with more capacity than the whole of the UK combined. In terms of investment a German single investment into Morocco of some 400 billion euro makes our total FIT for solar at £860 million rather an international embarrassment. For us to develop this industry in the next 5-7 years so that it can reach grid parity we must make a sensible budget available to give people confidence and motivation to invest.
22 November 2011
