Good Energy has said that its growing share of the feed-in tariff administration market, coupled with new propositions in decentralised energy such as energy storage, has left the supplier in an “exciting position” for the coming year.
Yesterday the supplier published its results for the year ended 31 December 2017, reporting revenue growth of 16.6% to £104.5 million. But its profits slid on the back of increased administration and restructuring costs and Good only reported £0.7 million of profit before tax, nearly two-thirds (63.7%) down year-on-year.
Last year Good announced the shuttering of its renewables development business following the closure of the Renewables Obligation scheme and other subsidies, impacting on the economics of new-build solar and onshore wind.
The true cost of the loss of subsidies was revealed yesterday, with Good announcing it had taken a £3.6 million hit in reduced value of its remaining sites as a result of the “changing conditions” of onshore renewable development.
Two solar would-be solar farms remain on the company’s asset list, however the supplier is now keen to offload these to buyers.
But while the company has offloaded its solar development interests from its core offering, its feed-in tariff administration and services arm continues to go from strength to strength.
Good added more than 99,000 B2B FiT sites to its customer base last year, inching its share of the FiT administration market to 18%. As a result of this continued growth, Good has shifted FiT services into its core business and Juliet Davenport, chief executive at Good Energy, hinted that this could lead towards a wider green energy services play.
“During 2017, through our Fit for Growth programme we have invested in new systems and technology to enhance customer experience, reduced our costs to serve and created a platform for future growth and greater profitability. We have seen growth in our FIT services business and commenced pilot projects to launch our first storage and electrical vehicle charging solutions.
“Good Energy's purpose is to power the choice of a greener, cleaner future together, with our people, our customers and our investors. We believe that the energy market is undergoing fundamental change, where the future value will be in energy services in a decentralised market,” she said.
This could include further behind-the-meter storage applications, building on its maiden installation completed with long-time customer The Eden Project in Cornwall late last year.
“Good Energy's position as an established player in the decentralised energy market leaves us well placed to benefit from these industry shifts. Our vision is to become an expert integrator of green energy services in homes and businesses.
“This is an exciting position for Good Energy. Looking ahead, we expect to perform in line with market expectations in 2018 and that our strategic developments will deliver growth in profitability and in value, plus deliver a green dividend yield over the longer term,” Davenport added.