South Facing

Office: No. 1 WHITEHOUSE FARM BUSINESS CENTRE HEMEL HEMPSTEAD HP2 6HG

Contact: CLIVE COLLISON t: 01582 840 445

info@south-facing.co.uk www.south-facing.co.uk

Solar PV installers & Distributors

South Facing - The people who know PV

We are PV specialists - We know how to squeeze every last drop of electricity from a system – to deliver the best return on investment for our clients.

South Facing has been designing and installing turnkey grid connected PV systems for more than 6 years. We offer a full range of PV engineering services.

Our clients include Blue Chip Construction companies, Housing Associations, Local and Central Government, Commercial, Private & Institutional Investors.

What have the UK PV market drivers been

Since we installed our first PV system in 2002, several different government grant schemes have come and gone.

The Major PV demonstration Programme Stream 1 The Major PV demonstration Programme Stream 2 Low Carbon Building Programme Stream 1 Low Carbon Building Programme Stream 2 Low Carbon Building Programme Phase 1 Low Carbon Building Programme Phase 2 Low Carbon Building Programme Phase 2 Extended

These programmes were under funded Their erratic organisation created uncertainty in the marketplace and some customer disappointment.

However thanks to new

building regulations and local

planning conditions, the

requirement for PV has grown

significantly – particularly in

new build public projects such

as social housing, education,

and health.

200 units - local planning requirement for 10% on site

renewables

Commercial Development (10% on site renewables)

Code 6 housing (CSH)

What are the expectations for market development

 We already perceive a trend towards larger projects both planned and already in construction.

 A handful of MW size roof mounted projects in 2010 and more to follow in the run up to the 2012 FIT degression - subject to finance, not easily available at present.

 We predict 100MW per year in 2011  Some predict 500WW per year by 2015

What changes in the market can we expect

This depends very much on the economic fortunes Today's budget cuts will impact severely on the funding of all public projects

Public Projects Central and local government is obliged to make carbon reductions – therefore despite the austerity drive we expect to see public projects increase over time.

We already have several large scale retrofit projects for RSLs in the pipeline

.

What changes in the market can we expect

The Commercial sector is waking up to the PV–FIT With Carbon Reduction Commitments and growing corporate responsibility the PV FIT offers companies the financial mechanism to meet these obligations. We are seeing a steady growth in demand for large scale commercial installations.

Domestic market shows strong demand and will increase as awareness grows.

What changes in the market can we expect

Finance We hope to see the arrival of funding from European Banks and Financial Institutions who already have the financial products & experience of funding for PV FITs. Eventually UK financial institutions will follow

Awareness In Germany, Italy, Spain and other markets it took around two years for awareness to turn into strong demand.

Demand Patterns We expect to see the same demand spikes that have developed in german markets in advance of annual tariff degressions

Module price reductions and inverter supplies normalised from early 2011

Thin Film The long awaited arrival of 3rd generation thin film - ideal for use in the UK diffuse light conditions (2011/12).

How does the UK PV market differ from Europe

In Europe... The FITs have been designed to deliver higher ROIs 30%+ in many cases

In the UK... FIT designed to achieve 5-10% ROI

How does the UK PV market differ from Europe

In Europe... a large proportion of PV is ground mounted (Solar Parks)

In the UK... there will be far fewer ground mounted systems and many more roof mounted.

 High cost of land in the the UK (Especially in the sunnier south)  5MW tariff limit  Lower tariff - for ground mounted systems (that don't feed occupied buildings)  Planning process is slow and costly

How does the UK PV market differ from Europe

In Europe... When FITs started - finance was readily available economic confidence was high the infrastructure grew quickly to meet demand

In the UK... Economic confidence is low and could hold back PV development.

Thin film on raised seam Aluminium

Thin film on steel sheet

How does the UK PV market differ from Europe

In Europe... There is a common standard for Module accreditation

In the UK... We have a pay to enter system – MCS. This restricts choice and keeps out many world class PV modules

Will manufacturers challenge the MCS listings under European competition laws?

Thin film on raised seam Aluminium

Thin film on steel sheet

How does the UK PV market differ from Europe

In the UK... Health & Safety is more rigorous than anywhere in Europe and is strictly policed

This can add to installation costs - through increased welfare provision and more stringent working practices

South Facing - The people who know PV

We are PV specialists - We know how to squeeze every last drop of electricity from a system – to deliver the best return on investment for our clients.

South Facing has been designing and installing turnkey grid connected PV systems for more than 6 years. We offer a full range of PV engineering services.

Our clients include Blue Chip Construction companies, Housing Associations, Local and Central Government, Commercial, Private & Institutional Investors.

South Facing

Office: No. 1 WHITEHOUSE FARM BUSINESS CENTRE HEMEL HEMPSTEAD HP2 6HG

Contact: CLIVE COLLISON t: 01582 840 445

info@south-facing.co.uk www.south-facing.co.uk

Solar PV installers & Distributors