Bluefield Solar Income Fund (BSIF) has shrugged off yesterday’s announcement that Renewables Obligation support for sub-5MW projects is to be closed a year earlier than planned, insisting it will not have an impact on its business.
The Department for Energy and Climate Change (DECC) confirmed its intention to close RO support for sub-5MW projects as of 1 April 2016, a move designed to place an immediate halt on the number of ground-mounted solar farms being developed in the UK.
But in a statement issued to the market, asset management fund Bluefield Solar said that the proposals would have “no impact” on projects currently held within BSIF’s portfolio and that all projects currently being considered by the fund would be eligible for the current RO level of support.
Bluefield Solar is also confident that there will be ample investment opportunities in the sub-5MW project range despite the changes, given how a number of developments are expected to qualify for the proposed grace period.
Yesterday’s proposals include scope for projects to qualify for a grace period providing developers can provide evidence that a “significant financial commitment” had been made prior to 22 July, or if it can proved that problems with the grid outside of the developer’s control had prevented it from being connected in time.
BSIF did however indicate that “further industrial and commercial projects” would make up contribute towards a “material pipeline of potential construction assets up to at least April 2017”, a possible hint towards rooftop installations making up its portfolio in the near future.
BSIF was one of a number of companies to confirm earlier this month that it would be hit by the removal of the exemption for renewables from the Climate Change Levy – as laid out in Chancellor George Osborne’s summer budget – stating that the loss of exemption certificates would result in a 3-4% revenue hit.