At Strategic Energy, we strongly believe PV schemes are ‘community energy projects’ because of their potential to tackle fuel poverty – our schemes can save tenants up to £250 a year in bills.
The ruling may feel like another hammer blow for social housing landlords in their efforts to maximise the feed-in tariff (FIT) for tenants but it is something we were expecting and have subsequently prepared for so there is still cause for optimism.
Our PV model has been created so the FIT is still viable even when the rate drops to 16p/kWh tomorrow (1 August) and sometime thereafter when further cuts to the tariff are imposed.
We have devised a cost neutral, all-equity lease model with Ernst & Young’s energy division and secured financial backing from two sources which means none of the returns from the FIT need to be used by landlords to pay the cost of debt.
Our system allows cash-poor landlords who do not have the capital to invest to still be able to access this renewable energy and pass on the benefits of lower fuel bills to tenants, create local jobs and reduce carbon emissions.