DECC unveils new solar strike prices for 2015 onwards

The Department of Energy and Climate Change (DECC) has revealed the revised strike prices for large-scale solar.

The new strike prices will be available to developers under the contracts for difference (CfD) scheme from 2015.

Below are the revised strike prices for solar until 2019:

Support for onshore wind has also been reduced, falling from £100/MWh to £95/MWh, while support for offshore wind will enjoy a less steep degression from £155/MWh in 2015 to £140/MWh in 2018.

Commenting on the new strike prices, energy and climate change secretary Edward Davey said: “This package will deliver record levels of investment in green energy by 2020. Our reforms are succeeding in attracting investors from around the world so Britain can replace our ageing power station and keep the lights on. Investors are queuing up to express their interest in these contracts. This shows that we are providing the certainty they need, our reforms are working and we are delivering ahead of schedule and to plan.”

Leonie Greene, head of external affairs at the Solar Trade Association (STA) explained on Twitter how the revised solar strike prices differ from the STA's proposals:

The black line shows what we've actually got. Looks like they've just taken a fiver off across the piece!? pic.twitter.com/uVT5bAtzyA

— Leonie Greene (@LeonieGreene) December 4, 2013

Responding to DECC's announcment on renewable energy strike prices, Greenpeace policy director Doug Parr said: “Today’s cuts to onshore wind and solar support schemes show how quickly the cost of clean energy technologies are falling. Onshore wind farms will power our homes and factories more cheaply than new nuclear stations, and the same is expected of solar.

“Given the increasing affordability of these renewable energy sources, it’s right ministers should now put emphasis on to helping drive down the cost of offshore wind so that the UK can reap the rewards of new turbine factories and thousands of new jobs.”

Speaking to Solar Power Portal, Paul Barwell, CEO of the STA said: “We are disappointed with the strike price in the early years as it is far below the levels we asked for. The transition from ROCs to CfDs requires the higher levels we suggested, particularly when this is an untried and new mechanism. The published levels are lower than what is needed, so we now have to focus on fixing the variables in the mechanism to make it work for solar. That will be a significant task.”

Barwell added: What is bizarre, is that DECC has ignored our request for lower strike prices in the later years. We have provided up to date deployment costs, which are far more accurate than DECC’s existing data. Why give us more than we asked for? Is there an underlying concern that we will be the lowest cost low-carbon technology by 2019?”

Solar Power Portal will update this story with comment as it develops