U.K. Department of Energy to cut rates for PV under Renewables Obligation to 1.5 ROCs
- In addition to cuts to ROC levels, the DECC has proposed limiting the program to PV plants larger than 5 MW
The U.K.'s Department of Energy and Climate Change (DECC) has proposed cutting rates for solar photovoltaics (PV) under the nation's Renewables Obligation to 1.5 Renewables Obligation Certificates (ROCs), as well as removing plants smaller than 5 MW from the program.
The Solar Trade Association (STA) has condemned these proposals, noting that very little PV had been installed until 2012 under the RO as it had not been financially viable, and also cites the cuts to the nation's feed-in tariff.
"We have delivered really exceptional cost reductions in the solar industry, yet we once again face having the rug pulled from under us," said STA CEO Paul Barwell. "The proposed 25% cut is too big and too soon."
"We understand DECC have concerns about how solar will interact with other renewable technologies under the RO, and how it will influence the budget, but deliberately under-rewarding solar to curtail the industry is definitely not the solution."
Most PV installed under RO in 2012 smaller than 5 MW
The DECC consultation which proposes decreasing the level of support 25% to 1.5 ROCs was published on September 7th, 2012. The second, to remove PV projects smaller than 5 MW, has not yet been published.
STA notes that despite the previous failure of the program, that due to cost reductions the U.K. will see an estimated 500 MW in 2012 under the RO, the majority of which will be smaller than 5 MW.
The STA states that it is setting up a Large Scale PV Group to include installers, developers and investors in order to provide detailed feedback to the government on the consultation.
DECC adding insult to injury
It is hard to imagine what at this point the DECC could do under the Conservative-Liberal coalition government to further alienate the nation's solar industry, making absurd its statements about seeking stability for the industry as well as a stated goal to reach 22 GW of PV.
The DECC's approach to solar has been steep, frequent cuts to various programs, often ahead of schedule and prompting action from the nation's courts, as well as a general absence of policy stability and clarity.
2012-09-11 | Courtesy: STA; image source: A-SUN | solarserver.com © Heindl Server GmbH
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