Solaris are experts in the varied skills of PV, project development, design and construction. In 2011 they were involved in some of the UK’s premier solar PV projects – from commercial roof top schemes, to HV embedded generation for the UK’s largest utility companies.
Drawing on UK commercial property expertise and German know-how, they have learned valuable lessons and experience in how to successfully tackle the numerous pitfalls that the nascent UK industry faces.
Here they share some of their experiences from 2011, and lend their thoughts about where the industry is heading. Solaris’ first foray into solar started in 2006 when they formed a JV with Italian Energy company ASA Energy to develop a pipeline of about 20MWp. In the end, they were stopped in their tracks by the Italian energy giant ENEL, which would not allow a close-by connection to the distribution network. This experience had, though, allowed them to develop pan-European ties with experts throughout the supply chain – and especially with German installer B&W Energy (www.bw-energy.de).
In April 2010, the UK government surprised everyone by introducing the infamous Feed in Tariff (FiT) incentive scheme, designed to kick-start the industry by putting it on a level cost playing field with other renewable and conventional power sources. With professional skills in commercial property surveying and development, and fresh from their experiences in Italy, Solaris found themselves perfectly placed – in their own back yard.
The key to early success was the relationship they had developed with B&W Energy. B&W had a turnover of Euro 110m in 2011 – about a 3% German market share – and has been installing for over 10 years. B&W provided the bankability, design and installation expertise. Solaris, based near Heathrow, brought UK customer service and UK property expertise – most projects requiring project development skills as well as technical expertise in planning, land tenure decisions, and structural survey. Whilst they are an accredited UK installer, Solaris admits it couldn’t have done it without B&W, but similarly “B&W’s planned expansion into the UK would not have been possible without us”, says project co-ordinator, Edward Payne. “At that time, there were seemingly no EPC contractors in the UK with the requisite experience”. It’s a relationship which continues to blossom.
When, in April 2011, the new government decided to drastically amend the FiT levels for large scale solar, most companies were neither able to take the financial risk of failure, nor run to such tight timescales. Project developers were, as a result of the government changes, left without contractors to build their sites out. One such project developer was Ennoviga Solar, which had developed project rights to develop PV on Thames Water operational land. They had the rights to develop up to 10MWp, which would drastically reduce Thames’ vast onsite energy consumption. In what would prove to be the UK’s largest onsite ‘embedded’ PV scheme, Solaris was able to step in and commit to these extremely tight timescales, where other contactors could not deliver, and were forced to drop out. To date they have installed over 4MWp, on sites as varied as an overgrown Victorian sewage storm tank, the roof of London’s new desalination plant, and a disused brick filter bed. With the experience gained, they remain involved, holding the O&M contract with the system owners.
“The problems we faced did seem at times insurmountable. Firstly, Solaris and B&W knew that if they could not connect a first phase by July 31st, connection to the lucrative government tariff would not be possible, and we would have to pay to remove the plant!”, says Solaris. It was also necessary to design a bespoke G59/2 grid protection system – one which communicated with Thames Water’s Power Management System. It was also necessary to work alongside on-going operational systems, all the time ensuring of course that Health & Safety was a top priority. “We also massively underestimated the cost of the copper cabling – something that is not always given enough consideration. In just one of our schemes we had 200m of HV cable, and over 200Kms of DC cable run. This nearly broke the project. Solaris is also the sole PV installer for Bristol Water PLC, and is looking to complete installation of a further pipeline for them in 2012.”
What about the future?
It is well publicised that the FiT is in danger of being a victim of its own success. Solaris acknowledge that the industry cannot, yet, operate without this government intervention. But, they remain very upbeat about their role in the UK and Europe, and more generally about the role solar has to play in the renewable energy mix. “For utilities, businesses and landlords, which use large amounts of electricity throughout daylight hours, solar is the obvious choice. Unlike wind – which faces strong public and planning opposition – and so many other technologies, it is easily incorporated into our built environment.
“Arguably of more importance”, they say, “there is a realisation that the best systems – for those [systems] with bankable O&M contracts and lengthy and reliable security of tenure – the investment closely resembles an index-linked bond. Even without a PPA (power purchase agreement) in place, the investment today shows a 4-5% return – a return that arguably exceeds the return for the risk profile. For customers who offset their electricity demand, returns can jump to in excess of 10%. This has not escaped the attention of many of the world’s infrastructure funds – which we expect to provide an exciting future for the industry”.
If you think solar may benefit your organisation – or even if you just wish to learn more about their experiences – feel free to call Solaris on: –
Tel: 01276 686 323 or visit their website: www.solaris-pv.com.
