The UK government yesterday unveiled wide-ranging plans to cut subsidies to the renewable energy sector, citing costs that were out of control and the need for consumer protection from soaring bills.
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DECC is also proposing to end “grandfathering” – the guarantee that a certain level of subsidy will be provided throughout the lifetime of a renewable energy project once built – from now on.
Daisy Sands, Greenpeace head of energy campaign, said: ” If the proposals to the consultation are implemented the Government will be choosing to protect subsidies to EDF whilst withdrawing support for the communities, businesses and households’ efforts to install solar panels”.
“Let’s get this straight, in the RO [renewables obligation], which is the solar farm’s main support subsidy, it’s costing about three pounds per annum on people’s energy bills – it’s a tiny amount when you compare it with other types of energy, like nuclear for example”.
Large commercial solar roof schemes will too following the Department of Energy and Climate Change’s review on support for renewable energy.
The move came after Amber Rudd, the energy secretary, announced plans to cut off subsidies for solar farms of up to 25 acres in size, vowing to end the “blank cheque” for green energy funded by families on their electricity bills.
It analyses solar’s cost reduction in the past decade and models different scenarios to grid parity in the next five years, enabling the industry to continue to develop as direct subsidies are gradually phased out. “This is totally inadequate – even by the Cabinet Office’s own guidelines – and we believe the government must substantially extend the consultation to ensure meaningful, democratic engagement on these hasty changes”.
Industry body the Solar Trade Association (STA) said the move would hit large rooftop schemes, which the Government has been keen to back, as well as solar farms.
The move is estimated to save the country about £500m per year in 2020/21.
Ind-Ra said it sees a limited possibility of support by way of viability gap funding, greater focus on infrastructure creation for the evacuation of solar power and higher possibility of distribution companies meeting their renewable purchase obligation.
Financial support for renewable technologies is mostly through subsidies paid via energy bills.
“In the winter, at the moment, solar doesn’t really deliver much electricity”, she said.
“Subsidy schemes such as the Renewables Obligation (RO) and small-scale Feed in Tariffs have helped to drive down the cost of renewable energy”.
MPs have accused the government of denying them a say over planned cuts to solar subsidies.
Officials said the plans, which also include curbs for biomass power plants, are needed to rein in rising bills and control spending.
Slashing solar subsidies will threaten nearly 3,000 South West jobs, energy bosses have warned.
Rudd said the changes were “protecting existing investment”.
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Head of External Affairs Leonie Greene added: “Solar farms are close to competitiveness with new gas generation and they account for a very small proportion of expenditure on the Renewables Obligation”.
1 Comment on this Post
William Nesterovsky
Cost of solar panels will become cheaper from year to year. Maybe they decided it too early. But in the future subsidies fol solar panels won’t be needed.