Solar Without Any Hassle Through A Solar Subscription With Energy Shield

Energy Shield is a service which provides solar photovoltaic (PV) and battery systems to UK householders who want the benefits of solar power but who have to date been put off by the costs of installation and the responsibility of ownership. The service has been developed by Effective Energy Group, one of the largest installers of domestic solar in the UK. Energy Shield delivers, installs and monitors solar PV systems for UK householders in exchange for a long- term fixed-price tariff.

Many homeowners have begun to understand the benefits of home solar systems and it is estimated that 1.3m of the UK’s 29m homes (as at August 2023) have already installed solar PV. That still leaves a huge 95.9% of homes still without solar. The Energy Shield service enables those customers who were thinking about solar to access and install an array without the significant capital outlay. Our own internal research from the thousands of customers we have engaged with lists the primary reason not to proceed with a solar array as the ‘capital cost’ – this is understandable given the sheer number of financial responsibilities of a typical UK family living through current inflationary pressures and the cost of living crisis. Energy Shield removes this barrier for those customers.

The Energy Shield service is the first of its kind in the UK to allow homeowners to use energy generated by the solar array on their roof and save money versus the range of tariffs available to them in the open market.

Energy Shield customers will be offered a solar PV array or a solar PV array with a battery depending on their requirements, annual usage and roof size. Customers pay a fixed price for the energy generated from the array.

• For PV only installations, customers pay 15p per kWh for the energy they use from their solar array and 14p per kWh for the energy which is exported to the grid (customers are able to reclaim this by claiming Smart Export Guarantee (SEG) payments from their preferred utility provider). This represents a c40% discount to the current Energy Price Cap which is set at 24.5p per kWh as at the 1st April 2024.
• For PV and battery installations, customers pay 20p per kWh for all the energy generated from the array. Customers are able to use as much of this energy as possible. Any energy which is exported back to the grid can be reclaimed by the customer under the SEG. In addition, the battery has added capability which provide additional savings to the customer. The expected net cost of energy to the customer is 16.3per kWh, a discount of 33% to the current Energy Price Cap as at the 1st April 2024.

In this way customers can make immediate savings and can begin to change their behaviour to match their electricity usage with the output of their array. This allows customers to take more control of their power usage and be safe in the knowledge that their Energy Shield tariff will not be at the mercy of outside influences such as the energy crisis from which the vast majority of homeowners are still suffering. Energy Shield gives pricing certainty over the life of the contract. Not only will this insulate customers from future price fluctuations, but we believe it will also help customers to use their electricity in a much more considered way.

Energy Shield brings a variety of benefits. Here are just some of them;

• Immediate savings – Customers can access immediate savings versus their current utility supply contract
• Quick to install – The installation time of 4-6 weeks will enable savings to be made quickly.
• Easy monitoring – Customers can monitor the output of the array and how much energy they use via a smart meter. The smart meter calculates the energy used and generates a monthly bill.
• Maintenance included as standard – We monitor the performance of the array to ensure it is working at peak capacity. A 20 year warranty and replacement parts are included in the contract.
• Pricing certainty – Energy Shield provides pricing certainty through a fixed tariff.
• Increased property value – the ‘Greener Homes Report’ published by Rightmove in July 2023 concluded that an average UK property which improved their EPC rating from F to C would increase the value of that property by up to £56,000. Installing solar PV is a measure which can improve EPC ratings.
• Encouraging changing behaviour – We believe that customer behaviour is already changing as a result of rising energy costs. Energy Shield will encourage homeowners to manage their energy in the most efficient way which will have positive outcomes both financially and environmentally.
• Doing the right thing – Solar power represents an effective way to reduce reliance on fossil fuels. The environmental and financial benefits are strong drivers for customers, many of whom are well aware of the climate crisis.
• Confidence in technology – Solar PV systems are now seen as an established renewable technology with predictable reliability and performance.
• Future-proofing your property – For those customers who are also thinking about switching to an electric vehicle, solar PV could be a valuable addition which could make the switch more affordable.

Homeowners

All UK homeowners are eligible for Energy Shield although not all roofs may be suitable for solar PV. Energy Shield should appeal to those customers who have been thinking about installing solar for a long time but haven’t yet got round to it for reasons of concern about the initial financial outlay. Homeowners with mortgages are also eligible although the process may take a little longer as approval from the mortgage provider will be required.

Landlords

Energy Shield works well for landlords who want to improve their EPC rating, generate additional revenue from their rental property, potentially increase the value of their property, make their rental property more attractive to prospective tenants and provide additional value to their tenants through a discounted energy deal. Energy Shield includes all monitoring, billing and maintenance so there would be minimal additional administration for landlords to incorporate Energy Shield into their property portfolios.

Local Authorities/Social Housing

Energy Shield is an ideal service for Local Authorities and Social Housing organisations who want to improve the sustainability credentials of their housing stock and also have the potential to generate additional energy-related revenue streams. All stakeholders benefit from Energy Shield through reduced bills, increased sustainability metrics and all delivered with minimal capital outlay and no ongoing maintenance requirement on behalf of the property owner.

Immediate savings are calculated very easily. In the first year, customers pay a price per kWh of 15p for the energy they use. The current Energy Price Cap as at the 1st April is 24.5p per kWh. This means that for every kWh of solar electricity used by the customer will save them 9.5p. If the customer uses 1,500 kWh from the solar array then the annual saving will be £142.50.

In addition, a customer can claim an additional 1p per kWh from the energy exported to the grid which equates to an additional £42 per annum*.

Thus the overall customer benefit per annum is £184.50 based on the assumptions above.

Many factors have led to huge increases in the price of gas and electricity for UK homeowners in the last 24 months including:

• War in Ukraine driving wholesale gas prices
• The UK’s exit from the EU’s internal energy market thereby increasing volatility
• Supply chain issues slowing delivery and increasing costs
• Lack of investment in the UK’s grid and overall energy network
• Confused political strategy around Net Zero and the uncertain role of renewables in that transition.
• Energy price inflation

Towards the end of 2022 the UK government stepped in with a range of countermeasures to stop millions of UK householders from being thrown into fuel poverty. One of these measures sought to reduce the maximum amount an average householder would be obliged to pay for their energy with the government picking up the shortfall.

New legislation came into existence on the 1st October 2022 under the existing Energy Price Cap which limited the average home’s energy bills to £2,500 per annum until April 2023. In effect there was no ‘cap’, the £2,500 figure was a calculation of the average UK home. Many UK homes paid significantly more for their gas and electricity over this period.

While this was a welcome move for some, homeowners were still faced with bills which were at least 100% higher than they were before the energy crisis. From the 1st October 2022 the fixed UK tariff for electricity was set at 34p per kWh. This reduced throughout 2023 and is currently at 24.5p as at the 1st April 2024. While a reduction in the Energy Price Cap is welcome news, the price of electricity is still far higher than the pre-2019 levels. Energy price inflation continues to bite and according to the Office of National Statistics electricity prices have increased by an average of 5.5% each year since 2000.

Many homeowners are still considering what they can do to reduce their bills and guard against the inevitable rise of inflation. This is where Energy Shield can help.

Energy Shield offers the choice of solar PV or solar PV and battery installations. However, it is the intention to grow Energy Shield to a ‘whole house energy saving solution’ which offers insulation, EV charging, Air Source Heat Pumps and a range of other measures. The aim is to provide a managed service for homeowners who benefit from reduced energy costs while moving away from reliance on fossil fuels and making a significant contribution towards a low carbon economy.

Energy Shield customers have two specific contractual obligations.

Firstly, customers are required to agree to lease a portion of the space above their roof for the installation of the solar panels. The lease is a 20-year agreement. There is no direct cost for this except for a £99 onboarding fee paid by the customer to proceed with Energy Shield.

Secondly, a long-term contract (20 years) is signed which agrees the price for the purchase of the electricity by the customer. The price starts at 15p per kWh (PV only) and 20p per kWh (solar with battery) and increases annually with inflation by 2.5%.

At the end of the 20 year period, the lease expires and the installation falls under the ownership of the property. At this point, a well-maintained array should have at least a further 10 years of free generation capacity for the homeowner.

As described above, the lease is set at 20 years and the contract for the sale and purchase of solar power is 20 years. If a customer decides to move home and chooses to cancel the contract then there are 3 options available. Firstly, a customer can novate the contract to the new homeowner. Secondly, the customer can arrange to purchase the array thereby cancelling the existing contract or thirdly, the customer can arrange for the new homeowner to contact us to discuss their preferred options.

Homeowners

We would recommend that interested customers contact us to arrange for a free, no obligation virtual whole home assessment. This will enable us to determine the suitability of the customer’s home and, where eligible, recommend a series of options including Energy Shield.

Landlords

Landlords should contact us to discuss their requirements. We can offer a virtual whole assessment of the properties subject to an understanding of the average annual energy consumption. We can also provide further details about the contractual requirements with the tenant/s.

Local Authorities/Social Housing Organisations

We will be happy to discuss specific requirements for local authorities and social housing associations. Where there is a larger demand in specific geographical locations, there will be the opportunity to provide while labelling and bespoke pricing mechanisms to suit the requirements of the estate owner.