Is it time to become an oil installer?
For years now oil has been expensive, driving up the cost of motoring and pushing off-grid homes and businesses to switch to renewables. Times have changed. In June oil was about £74 a barrel and more recent figures stand at £46.55, a considerable saving that is now trickling down to end users.
Apart from benefitting homeowners and drivers, lower oil prices means lower costs for businesses, therefore increasing real wages – energy becomes cheaper, fertiliser becomes cheaper so food becomes cheaper, holidays become cheaper, and so on.
A calculation by the International Monetary Fund suggested that a price fall of 20 per cent would add 0.5 per cent to global growth over the next year. The bad news, however, is that lower energy prices might tip places where inflation is very low into deflation – a profound worry in Europe.
The other bad news may be for renewables, with the cost of oil now comparable to things like biomass, for example, off-grid homes may be less likely to switch, although while the domestic RHI is still in situ, the financial returns of going green are good. We mustn’t loose site of the environmental benefits of choosing renewables either – at some stage oil prices will go up (and eventually this fuel will run out) so let’s not throw in the renewable towel just yet!
For oil heating installers this is undoubtedly good news, with homeowners given renewed confidence in oil as a cost-effective heat source.