Paul Lowenberg

• Comment on: Landlord agrees 1,000-home PV scheme

  Paul Lowenberg's comment | 30/01/2012 10:37 am

  Unfortunately Gavin Rider fails to understand the FiT scheme so desribes the Ascham Homes strategy completely wrong. The FiT scheme pays the landlord for all electricity generated, both that used by the tenant and that sold back to the grid.
  At Ascham Homes we have built our 25 year business model on the assumption that the tenant will use 50% of the energy, but our model is still sustainable if the tenant uses 100% of the energy and we would be delighted if they do.
  
  It is a win/win opportunity. We are able to pay off a 25 year loan used to finance the installation costs at the same time as the tenant gets free use of whatever electricity they are able to use.
  
  We have based our business plan on the assumption that Waltham Forest Council as the landlord will get the Government announced lower FiT rate of 21p per unit of electricity generated, not the higher rate of 43p that was applicable before the cut off date of 12 December. If the Government loses its supreme court challenge and we ultimately recieve the 43p rate, it will mean a larger sum available to the community for regeneration, but this is not the basis upon which we have basis our plans.
  
  In terms of electricity being generated and the savings for each tenant, again Gavin has it wrong. We anticipate that each installation will generate 2060KWh of electricity in the first year. This is in line with best practice European assessments for London. How much of this will be used by tenants will of course depend on personal circumstances. Tenants can maximise the opportunity by ensuring that high use appliances like washing machines are used during the day whenever possible.
  
  The typical tenant energy bill savings of £140 per year is based on them using 50% of the electricity generated at the current average electricity charge in London. How much each tenant's bill will be reduced by depends both on how much total electricity they use in a year and how much of this they get in future from the free Solar produced on their roof. It is entirely possible for the tenant to achieve an overall savings of 25 to 50% in electricity bill.
  
  Finally, it is true that the basis of the solar energy scheme in the UK is that the FiT rate paid is part of the overall costing of electricity in the country. This will have a very small impact on the overall electricity rates charged to consumers, but that is exactly how a market economy should be tweated, is it not? Do we are do we not want to reduce carbon emissions in the UK and at the same time promote community based sustainable solutions?
  
  It is really disappointing that readers of Inside Housing have such a fundamental misunderstanding of the Solar PV scheme.
  
  We are generating clean energy, achieving a significant savings for our tenants, will repay the cost of installation and maintenance of the scheme over its 25 year life and achieve a small but beneficial fund for community regeneration.
  
  Why criticise one of the very few opportunities in the country to implement an effective anti-proverty measure, carbon reduction, community regeneration and job creation?
  
  Paul Lowenberg, Chair of Ascham Homes

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