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The British government has announced measures to deal with a projected over-allocation of renewable energy subsidies.
World Future Energy Summit (WFES) 2025
Ministers plan to end a government aid programme for small solar projects a year early and will no longer allow small-scale renewables developers to receive a guaranteed price for the electricity they generate.
Solar arrays below 5 MW (bigger solar farms had their support cut in April) will no longer receive renewable obligation certificates (ROCs), which force energy companies to buy from them at a set price.
The government will also change the rules for pre-accredited Feed-in-tariffs (FiTs) so that developers will no longer be guaranteed what they will be paid for the electricity they generate from a project before it is built.
The Department of Energy and Climate Change said that reducing energy bills for hard working British families and businesses and meeting climate goals in the most cost effective way are government priorities. It says that the new measures will “provide better control over spending and ensure bill payers get the best possible deal as the country continues to move to a low-carbon economy”.
Announcing the changes to bring costs under control, Energy and Climate Change Secretary Amber Rudd said: “My priorities are clear. We need to keep bills as low as possible for hardworking families and businesses while reducing our emissions in the most cost-effective way.”
The Solar Trade Association (STA) estimates that the proportion of the renewable obligation taken by solar amounts to just £3 per annual bill.
Leonie Greene, the STA’s Head of External Affairs, commented: “The possible removal going forwards of the guarantee on a set level of support throughout a project’s lifetime once built is a real blow to investor confidence.”