Right now none of us are any the wiser, what will happen to the subsidies post this DECC consultation period? We don’t know like anyone else.
But what we’d like to see is a simpler structure. The current Export Tariff stifles the roll out of smart metering. So get rid of it. It sounds probably counter-intuitive from a company installing free solar PV as it sounds like its a source of our profit, but frankly we don’t need it for our financing and we want to see this sector of the solar PV market grow. And we’re not greedy. Removing the Export Tariff will help this sector to expand and fully establish itself, we all want this. Sorry banks, we know you need it and it stops your model working but it is what it is. You’ll just have to be a little more inventive or perhaps lower your yield expectations.
At North Star we finance 100% of capex using the Feed-in Tariff only and with FiT levels as they are we can withstand many FiT degressions. As in all liquid markets, markets drive the price. Isn’t this how it should be?
So let’s be sensible about this and not be greedy, the public ultimately pays these subsidies and middle-men are making a [significant] profit from this. This isn’t how a real market should operate.