REA Comment on the consultation on the closure of the RO for solar – 22nd July

  • The RO will be closed for solar projects less than 5MW from the 1st April 2016
  • There will be no grandfathering for projects, effective immediately
  • The KPMG report will address the support needed for solar to reach grid-parity

The Government has been trailing their concerns over the projected budget for the Levy Control Framework (LCF) over the last few weeks so the announcements of changes were not unexpected. However, in ending the RO early for solar less than 5MW they are contributing to yet more uncertainty in the industry, especially with the scope of the FiT review not yet released. It is now essential that any considerations/changes in the FiT review do not compromise solar’s ability to achieve grid-parity with a sustainable industry that will sustain itself without support.

The changes to grandfathering in the RO with immediate effect are unprecedented and although the grace period is in place the lack of grandfathering undermines this. This could have an effect on companies’ existing pipelines and the REA will be consulting with its members to assess the impact.

The KPMG report that will be launched on Thursday by the REA, sets out the steps needed to retain a sustainable industry whilst delivering grid parity at the earliest point. It explains how the industry has achieved cost reductions of 70% in the last 5 years and, assuming the industry maintains momentum, is set to achieve further reductions of up to 35% by 2020.

Chief Executive, Nina Skorupska (REA) said:

“The industry is at a critical point as it seeks to reach grid-parity as quickly as possible yet retain the size and scale necessary to become a key contributor to the UK economy.

We will be working with Government to ensure that the sector remains of a sufficient size, capable of delivering cheap, low carbon electricity up to 2020 and beyond”

–ENDS–

For more information or to request an interview, please contact:

Lauren Cook
Solar Policy Analyst
+44 (0) 207 925 3583
lcook@r-e-a.net

Notes to editors

About the Renewable Energy Association (REA)
The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable energy trade association in the UK, with approximately 750 members, ranging from major multinationals to sole traders. For more information, visit: www.r-e-a.net.

With regard to the grandfathering becoming effective immediately, details on the court case when FiT changes were made immediately.

  • Solar is soon to be the lowest cost electricity generator not only in the UK but across the World.
  • Solar contributes towards the UKs security of supply and with a fuel that is free.
  • Solar has no moving parts, produces no emissions and lasts in excess of 35 years.
  • Solar assists the UK in tackling Climate Change and meeting its commitments.
  • Solar presently provides 35,000 jobs with an annual delivery of 3GW each year.
  • Solar is the fastest deploying electricity generator and at a known cost.
  • Public and Communities like solar and will help deliver, and fund, the UKs future electricity requirement.
  • Solar uses the UKs Distribution Network avoiding further main grid upgrades
  • Storage is now developing fast and on a cost reduction path similar to Solar.
  • Solar with energy storage avoids the need for standby generation reducing costs of future electricity supply.
  • UK’s knowledge on both Solar and Storage is transferable to the rest of the World.