If margins aren't everything, I'd like to see solar installers margins "capped" at about 6%, same as the utility companies - just to ensure that electricity consumers get the best deal.
Would a cap of 6% margin have been acceptable to solar installers in 2010-2012? I bet the margin was many multiples of that a year ago. I'd guess 15% minimum and probably some companies with 50% margins.
I'm pretty sure the gross margin on the panels fitted to my roof was approaching 40%, and net margin well over 20% (3.75kWp, £9k, almost a year ago).
No, 6% wouldn't be reasonable, because we don't turn over enough to justify that on domestic installations so the PROFIT would be too small.
From your previous posts it's evident you wouldn't consider a return of 6% on your investments to be reasonable either.
I have just quoted on a £280000 install and my margin will be considerably less than 6% if I get the job, but the actual PROFIT is enough for me to be comfortable with. I'd love 6% on a turnover like that, 16k for 3 weeks wirk, terific, but it aint gonna happen!!
At 6% margin on domestic the PROFIT would be unsustainable for us.
Margin doesn't feed the kids, profit does.
Also, people do have a choice about which installer they use. If you think an installer is charging too much, use a different one. A year ago companies were quoting 50% more than us and people were still handing them their money. Thats called a free market. If people are daft enough to pay that kind of money out for an inferioir product, thats up to them.
If you want to cap private business, stifle enterprise and small business development like you suggest then thats communism, and that doesn't work, as has been amply demonstrated many times before. If we do go into that kind of environment then forget about living off your investments, you'll be back on the floor of the state owned factory working for a fixed wage and on a 10 year waiting list for your new car.
The reality, despite the Government statements to the opposite, is there is no real choice about energy suppliers. It all ultimately comes from the same place so there is no real competition in marketplace. The profits are massive, R&D minimal. Energy supply in this country is a scandal.