UK solar incentive cap harming growth


CSA Z462 Arc Flash Training – Electrical Safety Compliance Course

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today

UK Feed-in Tariff 50 kW cap could restrict solar PV installations, as a government policy review shifts renewable energy subsidies, impacting commercial rooftops, schools, social housing, investors, and market growth across the UK and Europe.

 

Key Information

A proposed FIT limit reducing eligibility to 50 kW to curb large PV projects and control subsidy funding.

  • Cuts eligibility from 5 MW to 50 kW for FIT-backed projects
  • Aims to prevent large PV arrays from exhausting subsidy budgets
  • Risks stalling commercial rooftops, schools, social housing
  • Developers consider legal action over abrupt policy change
  • Sharp shifts UK strategy; jobs growth likely to slow

 

A UK government review of incentives for installations generating over 50 kilowatts of renewable energy could harm the economy and stunt a fledgling market, Sharp Corp's UK solar division told Reuters.

 

The government announced a review last month of the so-called Feed in Tariff FIT scheme, which pays per unit of electricity produced from small-scale, low-carbon energy such as UK small wind and micro-PV systems.

It said it could cap the tariff at 50 KW instead of the original 5 megawatts because it is concerned that large-scale solar photovoltaic projects could take a disproportionate amount of available funding or even break the limit on total funding.

Solar developers and investors criticized the plan, and industry voices urged the UK to keep renewable incentives as well, with some seeking to take legal action against the government for changing the policy so dramatically.

Solar panel manufacturer Sharp has a 40 percent share of the UK's small solar market and is concerned about the new cap's potential effects on the British economy.

"We understand the concern and the financial pressures the government is under but there has to be a better figure for UK Plc," international sales manager Andrew Lee said on the sidelines of a conference in London.

"The tariff cap is at 50 KW — one hundredth of what it originally was. This doesn't allow for installations in large commercial buildings, schools and social housing projects as well as small renewable growth in communities which will cut the industry off at its knees," Lee said.

Details of the review are not expected until the summer. At best, the government could announce a transition period to the new cap or reconsider it altogether in line with its aim to support small renewable power schemes, but this is unlikely.

The solar power installation market in the UK is expected to be worth 500 million pounds US $814.3 million a year by 2015, yet UK solar power installations could be curbed by a 50 KW cap, Lee said.

As a result, Sharp has adapted its approach to the UK, which represents 5 to 6 percent of the firm's total market, Lee said.

"We are not going to pack our bags and walk away, but we need to make this work in the UK," he said.

Sharp created 300 jobs at its production plant in Wrekham earlier this year, which will not be affected by the government's review, but it will be hard to create more jobs.

To make sure the UK has a workforce to deliver hundreds of high-quality but affordable solar systems below 50 KW, including modern thin-film cells technologies, the firm also opened a training academy near its production plant.

"There is potential for further growth, not just based on the UK market but on the pan-European market," Lee said.

Demand in Germany has lessened as a result of a feed-in tariff drop and a colder-than-expected winter, reflecting a broader European solar market slowdown, but Lee expects this to pick up before the next feed-in tariff cut in July.

Italy remains the most attractive European country right now for solar power as its market has grown significantly, he said.

 

Related News

Related News

Quebec shatters record for electricity consumption once again

Hydro Quebec Power Consumption Record surges amid extreme cold, peak demand, and grid stress, as…
View more

Duke Energy will spend US$25bn to modernise its US grid

Duke Energy Clean Energy Strategy targets smart grid upgrades, wind and solar expansion, efficient gas,…
View more

Yet another Irish electricity provider is increasing its prices

Electric Ireland Electricity Price Increase stems from rising wholesale costs as energy suppliers adjust tariffs.…
View more

Heatwave Sparks Unprecedented Electricity Demand Across Eastern U.S

Eastern U.S. Heatwave Electricity Demand surges to record peak load, straining the power grid, lifting…
View more

U.S. Launches $250 Million Program To Strengthen Energy Security For Rural Communities

DOE RMUC Cybersecurity Program supports rural, municipal, and small investor-owned utilities with grants, technical assistance,…
View more

The Impact of AI on Corporate Electricity Bills

AI Energy Consumption strains corporate electricity bills as data centers and HPC workloads run nonstop,…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2026 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified