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

Biden administration pushes to revitalize coal communities with clean energy projects

Coal-to-Clean Energy Hubs leverage Bipartisan Infrastructure Law and Inflation Reduction Act funding to repurpose mine…
View more

Climate change poses high credit risks for nuclear power plants: Moody's

Nuclear Plant Climate Risks span flood risk, heat stress, and water scarcity, threatening operations, safety…
View more

Criminals posing as Toronto Hydro are sending out fraudulent messages

Toronto Hydro Scam Warning urges customers to spot phishing emails, fraudulent texts, fake bills, and…
View more

Opinion: Now is the time for a western Canadian electricity grid

Western Canada Electric Grid could deliver interprovincial transmission, reliability, peak-load support, reserve sharing, and wind…
View more

Extensive Disaster Planning at Electric & Gas Utilities Means Lights Will Stay On

Utility Pandemic Preparedness strengthens grid resilience through continuity planning, critical infrastructure protection, DOE-DHS coordination, onsite…
View more

Ex-SpaceX engineers in race to build first commercial electric speedboat

Arc One Electric Speedboat delivers zero-emission performance, quiet operation, and reduced maintenance, leveraging battery propulsion,…
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

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.