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BP Solar Stops Making Residential Solar Panels

July 24, 2011 by Leave a Comment

By Rich Bowden:

bp solar

An old school BP Solar panel - now a collectors item? (Credit: Thomas Springer)

The news that BP Solar will close its global distribution for residential solar panels and related PV products in favour of large scale projects has raised eyebrows amongst solar analysts throughout the world.

The announcement came after the company had been in the business of marketing PV products for thirty years, making it one of the world’s acknowledged leaders in this field. A company spokesperson was reported by wire news agencies as saying late last week that “…we think we can have a much stronger business going forward focusing on developing projects,” as he added that the company is now looking to concentrate its interest in this field.

But what does this mean for Australia? Well not quite as much as other affected countries although there will be some impact, said solar commentators this week. The company had begun scaling back its residential operations in Australia for a number of years before moving its manufacturing operations to Asia several years ago, according to the ClimateSpectator’sGilesParkinson. He added that the company’s market share in these operations had dwindled as a result.

“ A decade ago it was estimated to have had more than 80 per cent of the local market, but holds less than 5 per cent of the market now. Analysts think it has revenues of at least $30 million, and about 20 staff will be affected,” he said.

Speculation has been that BP Solar were unable to compete on price for solar modules with the influx of cheaper models especially from China.

Nigel Morris, director of SolarBusinessServices, friend of SolarQuotes and a former BP Solar employee, explained in a July 21 post. “Although the details behind the divisional closure are scant, it would be a pretty safe bet that the pressure that is being brought to bear on most of the premium brands in the PV market through falling demand, price and margin has taken a big green scalp.”

However as one section of the company’s work winds down, another powers up and this is definitely the case in Australia.

An example of the type of large scale work BP Solar will concentrate on in this country is the 150MW Moree Solar Farm in the NSW Tablelands. The company, as part of a consortium with Fotowatio Renewable Ventures (FRV) and Pacific Hydro, won the government contract in June. The solar farm comes under the federal government’s $1.5 billion Solar Flagships Program, an initiative aimed at providing funding for the construction of a number of solar-generated power stations throughout Australia.

BP Solar’s Tony Stocken, a director of MoreeSolarFarm gave a hint of the company’s priorities when he said in a June company statement following the announcement of the winning tender: “The Moree Solar Farm will pave the way for more utility scale solar power production in Australia by demonstrating that this proven technology has an important role to play helping Australia transition to a low carbon emission future.”

So fret not SolarQuotes readers. BP Solar’s future seems bright – as long as you don’t want their solar panels on your home!

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Filed Under: Rich Bowden, Solar Panels

What Odds a Clean Energy Future for Australia?

July 21, 2011 by Leave a Comment

By Rich Bowden

Two points of interest for SolarQuotes readers raised by the federal government this week over the future of energy in this country, one by the embattled PM and the other by her Climate Change Minister (and some would say a possible successor) Greg Combet.

It was the PM who got the solar ball rolling this week when she visited a blustery Gunning, ACT wind farm (minus the ubiquitous hard hat for once) to open the venture, an enterprise financially backed by Spanish sustainable energy company ACCIONA. [Read more...]

Filed Under: Carbon Tax, Rich Bowden, Solar Policy, Solar Power

Big Solar in Box Seat After Carbon Tax Announcement

July 18, 2011 by 1 Comment

By Rich Bowden

This week’s big ticket news item for the solar industry and its consumers was the fillip given to the sector by the federal government’s long-awaited carbon tax announcement.

While there is some debate over whether or not the carbon price announced last weekend will go far enough to achieve its primary purpose (i.e. significantly decrease the level of carbon emissions in Australia) there appears to be little doubt that the renewable energy incentives attached to the legislation will go a long way towards rejuvenating the renewables sector, particularly solar energy.

“Solar on steroids” was how John Grimes, chief executive of the AustralianSolarEnergySociety (AuSES) described the Clean Energy Future announcement, adding that the solar industry was the real winner to emerge from the package. He focused on the earmarking of $10 billion, half of which will be made available for the renewable sector from a new investment bank, hailing it as a major step forward.

“The $10 billion Clean Energy Finance Corporation (CEFC) – half of which is quarantined for renewable energy – will provide the financial settings that Big Solar projects need to get off the ground,” said Mr Grimes in a July 10 media release.

“AuSES has consistently argued for the establishment of an independent green investment bank, and we are very pleased that this is coming to fruition,” he added.

Of course the government, sensing the importance of getting any deal on renewable energy absolutely right, was out of the blocks in a hurry to promote the package.

Senator Chris Evans spruiked the future of Australian solar energy under the new carbon regime.

“We’ve got enormous potential in solar and wind and wave which has been largely untapped and the impact of the carbon price will make them more competitive,” he said to reporters.

“Companies will be looking for alternative energy and so we’ll see the investment that hasn’t occurred yet that we need to see to change our energy sources.”

So back slaps all round from the solar energy industry? Well yes, particularly if the planned CEFC does provide the impetus the solar industry needs in areas such as research and development. While details have yet to be ironed out regarding loan guarantees to be made available by the loan investment bank, it appears Australia’s “Big Solar” is delighted with the outcome if the reaction from innovative green technology company Greenearth is anything to go by.

Mark Miller, company managing director, was clearly in an upbeat mood in a ProactiveInvestors report of July 12.

“Sunday’s announcement by the Commonwealth clearly supports our strategic diversification into the broader renewable energy market (Greenearth Solar Energy) and in particular the burgeoning energy efficiency sector”, he said.

Will the carbon price package, and in particular its incentives for renewable energy, provide that certainty so desperately needed for solar investors? Is this the fillip that will turbo charge solar power as a viable alternative? Or another false dawn? I’d love to hear your views.

Filed Under: Economics, Global Warming, Rich Bowden, Solar Policy, Solar Power

Australian Researchers Break World Record for Solar Panel Efficiency

July 9, 2011 by 1 Comment

By Rich Bowden

Now this is the sort of news your SolarQuotes.com.au correspondent likes to deliver. After weeks of wading through government reversals on solar feed-in tariffs, reporting on the various sniping at the edges of the solar industry and talking about savage cuts from state and federal governments affecting the Australian renewables sector, here comes a really positive development.

[Read more...]

Filed Under: Efficiency, Solar Panel Technology, Solar Panels

Uncertainty for SA Solar Industry as Parliament Rejects Feed-in Tariff Increase

July 1, 2011 by Leave a Comment

By Rich Bowden

South Australian investors in rooftop solar energy have been left shaking their heads after events in the state capital this week saw the solar feed-in tariff retained at 44c instead of the promised increase to 54c.

On a positive note though, the decision sees the lower rate extended for two years past its original end date later this year.

In a June 24 press release which appeared to blame everyone but his party for the turnaround (the title LIBERALS AND GREENS BETRAY SA HOUSEHOLDS was a giveaway) South Australian Energy Minister Michael O’Brien offers an explanation of sorts.

“The Government reluctantly accepted the [Opposition] amendment to get the legislation through parliament and to give certainty to industry and consumers going forward.”

However far from bringing certainty to South Australia’s solar industry, the decision has left the industry and solar consumers wondering what to expect next. Particularly in light of the same minister’s words in April when he assured all in a media release that “South Australian households and small customers will be guaranteed a payment of 54 cents for each kilowatt-hour of electricity fed into the grid.”

In truth the Labor government was pressured by the Opposition and Greens to extend the scheme past its original concluding date of September 2011 to avoid a sudden massive reduction in demand for rooftop solar panels after the close of the scheme.

South Australia’s Clean Energy Council CEO Matthew Warren said that, while the extension of the term was a welcome move, it underlined the challenges facing the solar industry in South Australia and its knock-on effect on small business.

“… there should be no misunderstanding about the serious impact this legislation will have on the economic viability of many solar installer companies,” said Mr Warren. “Much of the South Australian solar industry is made up of small businesses.”

Warning of tough times ahead for those (especially small) businesses reliant on the demand created by the solar feed-in tariff he added “…some will find ways to adjust to the lower levels of support, many will not.”

Mr Warren did accept the Government’s argument though that the amendments would help to avoid a spectacular falling off in demand after the original cut off date — the so-called “boom and bust” scenario that has dogged the solar industry in Australia.

“This is important for South Australian consumers and the industry. There’s no doubt the industry is disappointed with the severity of the changes, but we are appreciative the Government was open to significantly improving its original legislation,” Mr Warren said.

“Without these amendments there would have been a huge spike in demand for solar after the proposed increase in the feed-in tariff, followed by a big slump when it ended later in this year.”

Clearly the solar industry in South Australia, as elsewhere in Australia, needs some kind of certainty and consistency from its state government so that investment in the future of the iconic renewable industry can be made.

As pointed out by the Clean Energy Council, many small businesses and their employees are reliant on the correct signals of support to come from their government.

Filed Under: Feed In Tariffs, Rich Bowden, Solar Policy, Solar Power, South Australia