Big changes for big solar

[TedM]

DECC proposals announced today for consultation - https://www.gov.uk/government/news/...nd-maintaining-investment-in-renewable-energy

• No more ROCs for new solar farms over 5MW from next April (with a transition period for any projects in-progress)
• Roof-mounted and ground-mounted PV to be split in to separate degression bands for 50kW+
• Community PV schemes up to 10MW to be allowed under FiTs
• Allow (actually re-allow, as it used to be OK) grant funded community solar schemes up to 5MW

 

[SpitfireW'sale]

This all seems sensible to me. I expect a lot of the big EPC contractors will be looking to move in to the large commercial roof top market after this if they are not already.

 

[TedM]

Having read the consultation documents in detail I see that the proposed changes in respect of community grants are very minor and will not have a significant effect. They certainly do not roll-back the situation to where we were in 2010 regarding grant funding of PV.

There are also proposals to change the definition of a "community group" but those will be very minor as well.

 

[SibertSolar]

It's been on the cards for sometime imo - DECC 's intention to "unlock commercial rooftop Solar", press/government sound bites on the danger of "uncontrolled growth" of large scale ground-mount solar farms, the likes of Lifghtsource setting up a "commercial rooftop division" etc etc.

 

[TedM]

Just in case it isn't clear those over 5MW solar farms that will be excluded from ROCs from next April (subject to pretty stringent transitional arrangements for projects in progress*) will be able to enter the Contract for Difference (CfD) scheme that is replacing ROCs in the coming years so they will still be getting some subsidy over and above the market price of electricity - although now DECC have announced that the CfD 'market' will be subject to budgetary control.

* you need to provide evidence that shows you have all 4 of: a) a grid connection agreement, b) planning permission, c) evidence of already having spent £100k per MW on project costs, and d) land ownership or leases (not options for these) all in place as of today. If you meet all those then you get a 12 month extension - so a deadline of 1/4/2016 instead of 1/4/2015. It would be quite unusual, I think, if a project had all 4 of those and couldn't also meet the 1/4/15 deadline.

 

[Gavin A]

erm, so they want to promote largescale roof mounted solar, but have done nothing to actually get rid of the 250kW cut off point beyond which the FIT rate drops to well below the ROCS rate.

righto, that will obviously work brilliantly then, and frankly I've absolutely no problem with the current rates for 50-250kWp being subject to degression because the paybacks for high energy using sites are already extremely good, probably far better than is strictly necessary, I just have a problem with the stupid drop for anything above 250kWp.

 

[The Solar King]

In work with DECC the STA identified 15 non financial barriers that were preventing deployment of the mid roof sector. The only other change was to split the 250kw-5mw band at 1mw. There were other detail changes to digression points to make the whole thing work. The non financial barriers covered things like extending PD to 1mw, improving the ROO-FIT process, improvement in grid connection, portability of systems - the list goes on and on.

Guess what? Not a squeak about any on this in the consultation despite the wish by DECC to prioritise mid roof in the recently published Solar Strategy.

In a global context, the attack on over 5mw systems was inevitable. Almost everywhere the rate of deployment outstrips regulatory control. In the UK total deployment is now at 4.65gw and could sail past 6gw by the year end. We may see yet further intervention by DECC before the 2015 deadline.

However, the consultation stinks of political interference. Solar is not running away with the RO budget. Current deployment rates are in line with meeting the 20gw aspiration for 2020. Solar is a disruptive technology. It's sucess is disrupting the case for energy sources cherished by the government - nuclear and shale gas.

another setback, but we will prevail.

 

[Gavin A]

oh noez, we might be in danger of actually doing something to tackle climate change faster than we previously thought possible.... can't be having that now can we.