Those who are interested to learn about the fiasco of photovoltaics, a simple search on the internet for the period 2011 – 2014 will bring a plethora of results call photovoltaics "bubble" and a "fiasco".
The titles of the MEDIA, there was a world that was losing money, for the pv of the... people" and the "movement of farmers". For the next few years, the industry of energy had frozen almost completely. The world until today, has a big phobia for the photovoltaic and is very, very suspicious.
Ακόμη και σήμερα, δέκα χρόνια μετά, η πλειονότητα των υποψήφιων πελατών μας στην ΙΩΝΙΚΗ Renewables, αναφέρει ως πρώτες αντιρρήσεις τη «φούσκα» και το φιάσκο των φωτοβολταϊκών, αναρωτώμενοι αν συμφέρουν ή όχι.
What had happened in 2011 in the area of energy? What is the reality? How much money was lost and who lost? There has been a "bubble" and fiasco of photovoltaics? In this article we will try to answer to all these questions, carrying our own experience and our customers at the time and we will present what we have learnt from an era that, in essence, has changed everything today.
The "trap" of supplementary income, and the extra returns that have created the fiasco of the pv
The guaranteed extra income and the returns on investment that reached up to 42% they had created a "fever" of interest for photovoltaics, especially in the period 2007-2009.
Then, all the solar panels were selling power to the grid. The parties they rubbed their hands that they would return on the investment in a very short period of time and I enjoyed so large a guaranteed annual returns.
In particular, a solar 10 kW generated annual revenues of €7.500. Such a sum was a huge incentive to install a photovoltaic system on the roof of his house.
The subsidies of the state and the communicative mechanism for the challenge of interest in combination with the enormous odds, you should θορυβήσουν everyone. At the altar of... money, however, everyone can turn a deaf ear mainly of their own free will. The returns of 42% per year as a percentage supposed to make a noise. Reflected that the situation was not sustainable. Even the candidates, however, stared in the end, how much money you will put in the pocket of the "sure and guaranteed investment".
Wikipedia defines it as an investment in the "commitment of funds for a period of time, which is expected to bring additional funds to the investor". The key word here is "expected". An investor makes an investment which will yield a large profit, less profit, a refund or a loss. The guaranteed and profits are nowhere to be found. And we stress to our customers. On the contrary, there are safer investments and photovoltaics continue to be safe investments even after the big haircut came.
The investments in photovoltaic systems was effective even after the big haircut, of the guaranteed price
The phrases "bubble" and fiasco of photovoltaic focused mainly on the "haircut" that was decided to be held on guaranteed prices. It was the money that they would lose annually to those who have invested in solar panels.
This haircut was very big as it turned out that the extra returns were not viable. In fact, the haircut has reduced the annual yields from 42% to 16%.
Ask anyone who deals with investments that looks a rate of annual return of 16% and he will answer you that it is very big.
This was the new reality and the money that they would lose the investors would be the additional profit that would have been obtained before clipping. For the rest of you interested, I don't, investments in pv had become unprofitable because you previously were 42% and 16%.
Think about it, that in Germany the annual returns that the period was 8% and in our country there were still extra returns.
Fiasco of the pv: €3,000-€4,000 that have lost the Movement of farmers" is no argument that photovoltaic is one of the safest investments
In the era of the "bubble" and the fiasco of the pv, the guy wrote the saturated networks. Saturation would lead to rejections folders licensing photovoltaic parks. Result farmers to lose €3.000 – €4.000 that had been spent for the studies and the testimony of the folder.
This is true today. At the same time is a big argument that photovoltaic is one of the safest investments, and we emphasize that the possibility of our customers.
Today, the cost is approximately €2.000. Mention to any interested party that this is the biggest risk I take for an investment in solar park. There is the risk of rejection of the application so that the money will be lost.
In the case that the file is approved and signed the contract for the sale prices of κιλοβατόρας, then only there will be the installation of a photovoltaic park of 100 kW the cost currently stands at about €some 67,000 in relation to the costs of €160.000 ten years ago.
So the question is, if it considers an interested party big or small the amount of €2.000, which can be lost in the 100% to collect from a park of 100 kW in the amount of €eur 227 500 the next 25 years, with the investment of €some 67,000 interval for the installation of the park only after the approval of the folder, and "lock" the sales price of electricity on the network.
Make it specific investment safe? In our opinion, yes, and let's see an example below from the same company.
Στην ΙΩΝΙΚΗ Renewables, πράττουμε οι ίδιοι ό,τι λέμε στους πελάτες μας
Ως μία εταιρεία που επιθυμεί, όπως όλες, να μειώσει τα λειτουργικά κόστη και να αυξήσει την κερδοφορία της, αναζητούμε συνεχώς τρόπους χρηματοδότησης και επενδύσεων που θα οδηγήσουν την ΙΩΝΙΚΗ Renewables στην ανάπτυξη.
The last time we looked at several investments in order to see which would be the most advantageous with the best risk-reward ratio.
Having to choose from a wide range of investment products, and financial institutions, we have reached a conclusion. How a solar park is currently an investment that will yield annual returns of over 10% with greater security and fewer chances of losses.
So just as we advise and our customers, we decided to proceed with the installation of one of our own solar park. As shown in the following figure, this time in the building, with the bases of the panels have already been installed.
The bankrupt companies pv: When money is not a good adviser, and is missing the quality
During that period of "haircuts", unprofitable photovoltaics and farmers who were losing money, they also came the bankruptcies of many pv companies. These news have increased even more the negative climate that had been created.
The expansion of chinese companies lead to a great reduction in the cost of the equipment. When the profit and money is the only factor assessment and decision-making, once it is spinning boomerang and in the case of photovoltaic led many companies into bankruptcy.
It has nothing to do with whether it was in the solar sector. It wasn't properly structured their business models. Every year, thousands of companies going bankrupt, exactly for the same reasons that declared then and corporations pv.
In the graph below, you can see how France 2018 & 2019 had over 50,000 bankruptcies.
Small profit margins
In our industry, we work with very small percentages of profit. At a price of €some 67,000 for a photovoltaic park, in many cases over 90% are cost of production for a company that procures panels, bases, inverter, etc.
When focused, and the company and the customer only on price, then the profit margins are decreasing, starting with liquidity problems, led to loans, then failed to pay and in the end in bankruptcy. That's what happens in all the bankrupt companies regardless of industry. The customers do not, led to a selection of not-so-quality materials that reduce the efficiency and productivity of photovoltaic them.
Γι’ αυτόν τον λόγο εμείς στην ΙΩΝΙΚΗ Renewables στεκόμαστε στην αξία και τη ποιότητα και όχι στην τιμή. Our prices are competitive but you will surely find cheaper photovoltaic elsewhere. We do not negotiate the quality and the value that we want to give to our customer. Especially for a product that has, for almost 30 years.
Η εμπειρία της ΙΩΝΙΚΗ Renewables και των δικών μας πελατών
In 2011, all experiencing the economic crisis and many people came to the threshold of the decision on if you should invest in something or not.
At that time, in fact, all of "raise" their money from the banks. The stockists of in the house or in their offices. Was fear of the lending of the banks which had risen to dizzying heights.
The law passed for the photovoltaic looked like as a plank of savior for the simple world. With a photovoltaic installation on the roof could sell the electricity produced.
As something new, in the beginning, I had great success and attracted mostly people with quite banked money. The first facility of our company appeared at the level of 10-20 per area the first year with a cost ranging from to €32,000 – €35.000.
The attractive yields and the continued fall in the cost of installation and the first signs of the world who put solar panels on their roofs, were turning more and more people to the solar panels.
The stabilization of installation prices and the first drops in kilowatt prices
Because of the increased demand, increased supply of photovoltaic panels, base and inverter installation costs have stabilized in an amount of between €25,000 and €28.000, with the odds to become even more attractive.
Η απόσβεση της επένδυσης θα επιτυγχάνονταν σε μόλις 4.5 χρόνια και οι εγκαταστάσεις φωτοβολταϊκών συστημάτων είδαν μία ξέφρενα ανοδική πορεία. Στην ΙΩΝΙΚΗ Renewables σε διάστημα μόλις 2.5 ετών εκείνη την περίοδο, είχαμε εγκαταστήσει 34 φωτοβολταϊκά συστήματα. Η αναλογία ήταν μία εγκατάσταση κάθε δύο μήνες.
Then came the infamous legislation that would cut kilowatt prices by about half. Then another one followed with a law that further reduced the prices of the kilowatt hour to €0.08 to €0.12. Photovoltaics now looked unprofitable compared to past prices.
The entrance to the net metering that changed the data
The 2014-2015 began to enter our lives, net metering, which was destined to change forever the data in the field of photovoltaics.
With net metering exchanged the power generated by the energy consumption and in the case of abundance, is stored in the network for three years, or in the event that the production does not cover the consumption, the owner pays only the difference.
In this way, households and business instead of taking out money every year, they could save money by forcing the bills power consumption on them.
In the beginning there were difficulties as well as the depreciation happen in 10 years. With the current reduced rates of installation, however, the damping is achieved much earlier. The net metering photovoltaics are now the ideal solution for homes and businesses.
The lesson, it seems it was a lesson, and for the state. Today, the conditions for the installation of a photovoltaic system is more favorable than ever. We do not know, however, what may happen in the future.
Our customers today, ten years after
The results of our company, all of this is very positive. Especially if we consider that we have been active mainly in the years of the economic crisis and the crisis of the pv.
Thinking always in the best interest of our customers and presenting facts and opinions with honesty and integrity, we have been able to build a particular relationship of trust with our customers.
With the cost price and selling energy, the simple acts of showing a payback within five years. So right now, we have customers who have achieved the depreciation of their investment. Now photovoltaic systems are a part of their annual income.
Even customers who had to be financed through a loan, today ten years later, they see their income increased.
The honest guide from our company, and the mature decisions of our customers, demonstrate, over time, that the pv was a profitable investment for the period of the crisis.
This is the reason why 30% of our clients have expressed interest in setting up photovoltaic park 100kW – 500kW.
All industries and businesses spend upward and downward periods. For us the most important thing is, what values it stands for each company, and if you treat customers with respect or profit.
As a company that started around the same time in the crisis, and indeed in a small town such as Texas, which most people know each other, we couldn't help but to treat our customers with respect and honesty. When we were sitting at the same table we opened our cards all sides and take the appropriate decisions, either positive or negative.
Today, we are pleased that this approach has paid off, and right now we serve all over Greece we are still dealing with all of our customers with the same honesty and respect in every part of the country and if they are.
Φωτοβολταϊκά από την ΙΩΝΙΚΗ Renewables: Δίπλα σας σε κάθε βήμα
Στην ΙΩΝΙΚΗ Renewables διαθέτουμε εμπειρία στη μελέτη και εγκατάσταση φωτοβολταϊκών. Έχουμε εγκαταστήσει φωτοβολταϊκά πάρκα, όπως επίσης φωτοβολταϊκά για κατοικίες και επιχειρήσεις σε όλη την Ελλάδα, ακόμη και σε νησιά. Αναλαμβάνουμε όλες τις διαδικασίες από την πιθανή χρηματοδότησή του, τη μελέτη, την κατάθεση του φακέλου, την εγκατάσταση και παραδίδουμε το φωτοβολταϊκό σας με το κλειδί στο… χέρι.
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