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  BBC 13 Sep 06
Hope shines over solar panel boom
By Clare Davidson Business reporter, BBC News, Sussex and Surrey

Engineer Andy Baxter has long been fascinated by solar energy. Neatly dressed in chequered shorts, his face beams as he describes the process of dismantling and fixing a neighbour's broken solar panel.

"After fitting them for several friends I realised it could be a viable business," he says. So last year, with his wife Amanda, he launched Sussex Solar, which installs thermal systems to heat water.

Global warming

Sussex Solar saw turnover hit £50,000 in its first year. Mr Baxter expects more than double this in 2007, he says as he arrives at Mr and Mrs West's home in Worthing, Sussex, where his firm is installing a panel. In essence, Mr Baxter's company, and others like it, are riding high due to a sharp rise in demand this year.

Growing demand has been prompted by several factors.

"I used to be one of the worst offenders [in environmental terms]," says Rob West, spatula in hand as he prepares bacon butties for Mr Baxter and his two-man team. But "global warming and public opinion" have changed that. Besides, wife Julie adds, "our energy bills were spiralling".

"But its not really the money, more that I want to do my bit," interjects her husband.

Booming business

Such attitudes have created a booming industry, according to Phil Hunt, advisor to the Solar Trade Association.

Geoffrey Williams, a plumber with Sussex-based Riomay, a large solar panel firm that started over 25 years ago, agrees. Mr Williams - who manages one of several teams - said until recently he was overseeing one installation a month. "Now each team is doing two a week." The firm has installed around 1,000 panels in 2006 - or around 12 projects a week - more than double the figure seen a year ago.

Schools, homes and companies, as well as local authorities, prisons and Windsor "where we did panels for the Queen's swimming pool" are among Riomay's clients.

Cowboys and Professionals

While the solar industry has taken off, the industry remains fragmented, both for consumers and installers.

Though Curry's offers off-the-peg panels, most solar installers source different components directly from manufacturers, with parts coming from Japan, Germany or Wales.

Lately this unstructured sector has had trouble meeting demand. "There are more people wanting panels than there are suppliers," explains Mr Hunt.

"The biggest hurdle is the shortage of competent installers," says Mr Hunt, which points to a fundamental, structural problem: the number of places that offer installer courses recognised by the British Plumbers Employment Council are limited.

This has created a situation where "the industry is rife with cowboys" who have "the lion's share" of the market, says Mr Hunt, who recommends the Solar Association's website, which lists accredited installers.

That is what Mr West did, saving more than £4,000 in the process. "The first quote I got for thermal panels was for £9,000," he says. Pay-back At between £3,000 and £5,000 for thermal panels, and government grants in England covering only about 10% of that, solar energy is not cheap.

With annual savings of between £100 to £300, Mr Hunt puts the pay-back time at between 12 and 15 years. Others put it nearer to eight or 10 years.

"But the stereotypical view of solar energy as the preserve of retired couples is no longer true," says Mr Baxter. "It is getting more mainstream."

'Nice feeling'

The repeated hikes in gas and electricity prices by energy suppliers means solar energy is becoming more financially attractive.

Besides, believes Mr Chappell, a Riomay customer in Surrey: "The government is not doing its bit to tackle global warming." Showing off his new boiler and solar panel system, he adds: "We are going to need alternative energy."

The increasing popularity of thermal solar panels seems to illustrate this. Mr Hunt says demand for thermal panels is growing by 20% a year. But the best thing about solar energy, says Rob West, is that "it is such a nice feeling actually doing something about emissions".
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