News: Profi le
Independence Day
Over reliance on green government subsidies will fatally
weaken the industry, argues Stephen Knight, Navitron
ith over 500,000 homes and
businesses currently benefi ting
from government incentives
like the Feed-In Tariff (FIT) and
non-domestic Renewable Heat Incentive
(RHI), the eco/clean technology industry has
seen a tremendous jump in the number of
systems installed since the programmes were
introduced.
As a result of this success, many
renewables companies and installers are
now relying on the appeal of government
incentives to sell their products and services
to end-users.
As proven with the shortcomings of and
cuts to recent incentive-driven government
schemes, and how these failings affected
related industries, action must be take to
prevent the bright lights and short-term
gains from infl uencing the success of the
renewables industry.
W
The case against government policies
The demise of insulation specialists is a prime
example of how reliance on public-funded
schemes can have an adverse affect on a
sector’s success.
Prior to the implementation of the Green
Deal during early 2013, many insulation
companies were thriving due to successful
government programmes that provided grants
for insulation measures.
Action must be take to
prevent the bright lights
and short-term gains from
infl uencing the success of
the renewables industry
8 | www.renewableenergyinstaller.co.uk
However, once the Green Deal came into
effect and policies changed, many businesses
were left without the key selling point
they’d been relying on for years. As a result,
installation rates dropped by over 75 percent
over the course of just 12 months.
The double-glazing sector also fell
foul to reliance after pinning their hopes
on the success of the Green Deal – which
was designed to offer loans and cash back
for energy saving installations. During the
introductory year, however, only one home
utilised the Green Deal for double-glazing due
to the policy’s restrictive funding criteria.
We must rethink the
way we sell to refl ect the
ageless benefi ts renewable
technology has to offer
Beware of changes
Currently, the renewables industry is in a
very similar situation to those previously
mentioned, with many solar electricity
companies thriving due to the Feed-In Tariff
and many solar heating businesses pinning
their hopes onto the uncertain success of the
domestic RHI incentive.
Instead, as an industry, we must focus
on changing end-user attitudes about the
benefi ts of sustainability and encourage them
to consider a switch to eco solutions.
At the moment, it seems that most
consumers believe we are selling a way to
earn profi t through the government, which is
not what we do. We sell ways to save money
on utility bills while reducing a building’s
overall environmental impact. Anything else is
an added benefi t.
Future proofi ng: The renewables sector cannot
control its destiny if demand is too closely
linked to government fi nancial incentives, says
Navitron’s Stephen Knight
To remedy this misconception, industry
professionals should focus on emphasising the
amount of money that can be saved on annual
bills instead of how much can be earned
through FIT or RHI incentives; by showing a
building’s current carbon footprint compared
to what it could be reduced to with renewable
technology.
Publicity surrounding government has
clouded consumers’ views on renewable
technologies, creating an unstable market
based around uncertain elements. To fi x this,
we must rethink the way we sell to refl ect the
ageless benefi ts renewable technology has to
offer.
As easy as it is to rely on government
incentives to bring in new business, it’s
just not a sustainable way of growing as an
industry. Instead, installers must sell the idea
of green and savings, along with high-quality
products, positive return on investment and
reliable installations completed by friendly
professionals.
The double-glazing sector
fell foul to reliance after
pinning their hopes on the
success of the Green Deal