In the wake of last week’s spending cuts, the Government has placed the onus on the private sector to create jobs and stimulate growth. Business correspondent Andy Richardson looks at how microgeneration companies are playing a part in boosting the North-East economy, as they help to battle climate change.

SINCE the introduction of the Government’s Feed in Tariffs (FiTs) in April, which allow users to sell excess energy back to the National Grid, North-East energy firms have reported a dramatic increase in sales of solar panels to both domestic and commercial customers.

Microgeneration – the smallscale generation of energy and power – could prove to be the key to the region’s economic survival.

The North-East is home to Romag, of Consett, County Durham, one of the country’s leading manufacturers of solar panels; a network of accredited installers who are reporting booming sales and a group of visionary business leaders helping to drive the success of this fledgling industry.

Users who install electricitygenerating photovoltaic (pv) solar panels can earn about £900 in the first year on top of a £140- a-year saving on their bills. Experts estimate that gives payback in about ten years.

The initial cost of installation, which starts at about £10,000 to £12,000, remains prohibitively expensive for many people, but for those who are able to take the plunge, small-scale low-carbon energy generation is being increasingly regarded as a sound long-term investment.

Proposed legislation is also helping to take the industry forward.

From next year, the Renewable Heating Incentive (RHI) proposes to invest more than £850m during the next five years, driving a more-than-tenfold increase of renewable heat over the decade.

Details are still to be confirmed, but the industry is hoping the RHI helps to put low-carbon energy technologies within reach of people on low incomes.

FOR commercial contractors, the Code for Sustainable Homes requires all new-builds to be carbon neutral by 2016, meaning that an increasing number new houses will include some form of microgeneration as standard.

These national initiatives will shift renewable energy from the fringe into the mainstream.

At regional level, North-East low carbon agency Renew has played a significant role in encouraging take-up, while Ian Bloomfield, senior low-carbon officer at Durham County Council, has helped the county lead the rest of the North-East for pv installations this year.

David Bilclough, chairman of North-East building services provider John Dunn Group and regional councillor for the Confederation of British Industry, believes the FiTs have been a “game-changer” in the world of microgeneration, giving the sector a welcome shot in the arm.

He said: “There is no doubt that, prior to the introduction of the FiT, it was difficult to put together a compelling argument that individuals should have this type of thing fitted to existing premises. But the new tariff changed everything.”

John Forth, of Bishop Auckland- based Acis Renewable Energy, reports major expansion plans for next year, with about 60 staff to be taken on over the next six months following a 100 per cent increase in turnover over the past year.

“If someone is in a position to invest about £10,000 then the potential returns of about ten per cent a year from getting solar panels installed makes more sense than leaving it in the bank,” he said.

“The industry is growing at such a rapid rate we are increasing our warehouse capacity and taking on new people to cope. It’s rapidly becoming a North-East success story.”

Aeris Solutions, based in Guisborough, North Yorkshire, has also noted a significant upturn in business over the past six months.

Steve Hewison, who founded the business with Nick Corfield, said: “The industry has huge growth potential.

“Pretty soon, fitting solar panels could be as commonplace as fitting UPVC double glazing.”

Both Acis and Aeris are accredited through the North-East Microgeneration Certification Scheme, which aims to offer buyers the peace of mind that they are dealing with a reputable installer.

Last month, a group of North- East small-scale installers joined forces to share best practice and use their collective strength to bid for large-scale commercial contracts.

The North-East Renewables Alliance (Nera) is the first group of its kind in the UK. Individually, small firms, such as The Insulation Company, in Darlington, and Revolution Power, in Newton Aycliffe, County Durham, typically bid for relatively small contracts, but under the auspices of Nera they could soon be able to compete with big-hitters such as British Gas and EDF Energy.

Professional help is a must for homeowners

WITH DIY superstores now stocking low-cost solar heating panel installation kits, homeowners trying to cope with the prevailing high levels of energy prices are bound to be tempted.

Installing the kits, however, will be beyond all but a minority of highly-competent DIYers, so most will get in a local tradesman to fit them.

The Heating Helpline, a consumer advice service backed by the HVCA, the Governmentrecognised trade association for heating and ventilating engineers, warns homeowners that this can end in disaster, with too many rogue solar heating installers operating in the UK.

Bob Towse, technical consultant to the helpline, said: “Consumer Direct, the Governmentfunded advice service, has received hundreds of complaints from homeowners about their solar heating installations.

“Homeowners should only use reputable tradesmen for such installations.”

Visit heatinghelpline.org.uk to find a reputable engineer, and check that they are accredited.

What’s the alternative?

AS winter approaches, householders are braced for an increase in home energy bills.

This week’s Energy Saving Week is highlighting how homes and businesses can use microgeneration and renewables to generate heat and electricity.

The technologies available include small-scale wind turbines, heat pumps that use the ground, air or water, solar thermal solar panels which collect heat from the sun and use it to heat water, photovoltaic (pv) solar systems and biomass heaters.

The potential benefits include:

● In a gas-heated home, a solar water heating system could save you about £50 a year on gas bills;

● The average household could save about £200 per year on electricity bills by installing a solar pv system;

● A pole-mounted turbine can generate enough electricity to power a house for a year;

● Biomass room heaters are a low carbon alternative to electric heaters or open fires. When replacing electric heating with a biomass boiler, you could save about £410 per year on your heating bills and save nearly ten tonnes of carbon dioxide.

■ All figures are provided by the Energy Saving Trust. For more information, call free on 0800-512012 or visit energy savingtrust.org.uk

The Energy Saving Trust advice centres for the North-East and Cumbria and Lancashire are delivered in the region by Tadea, the not-for-profit energy company for the North of England. For more information about Tadea, visit tadea.com

Would a wind turbine be right for your home?

THE demand for photovoltaic panels has overshadowed other forms of microgeneration, but about 40 per cent of all the wind energy in Europe blows over the UK, making the North-East an ideal area for small domestic wind turbines.

Systems can be mast or roofmounted to produce electricity that helps power the lights and electrical appliances in a typical home. Costs for a roof-mounted system start at about £2,000, with mast systems costing between £14,900 and £22,600. Prime Minister David Cameron had one fitted to his West London home.

To tell if a small-scale domestic wind turbine is right for you, there are a few key questions to consider:

● Are there any large obstacles such as buildings, trees or hills near your home?

Small domestic wind turbines work best in exposed locations, without turbulence caused by these types of obstacles.

● Is your home in a windy area?

To be effective you need an average windspeed of no less than five metres per second.

● Is your home located away from the National Grid?

Small domestic wind systems are particularly suitable for use in remote locations where mains electricity is unavailable.

● Do you need planning permission?

Small domestic wind systems normally do require permission from your local authority, so check before you install.