Every 1GW addition of solar that comes onto the grid, whether large-scale or domestic PV, reduces the wholesale price of electricity by £35 million, according to a Good Energy report, which is expected to come out in the next two weeks.
Paul Barwell, chief executive of the Solar Trade Association (STA), discussed the new report during a session at SEUK today on how recent policy changes will affect UK PV. He said the report findings provide “ammunition” to offer to the Treasury and energy secretary Amber Rudd in the case for providing stronger support for the solar sector.
Barwell said: “So, as far as the hard working British family is concerned, that cost they see being spent on subsidies is actually saved on wholesale price.”
David Pickup, business analyst, STA, said that for the costs of solar to come down, volume is critical and the volume projections put forward by DECC in lieu of their proposed policy changes “are really not credible and will not allow the industry to develop cost reduction in a reasonable time.”
Pickup added: “Particularly in the commercial market, forward looking visibility on tariffs is really important. At the moment I have no idea what the tariff is going to be in six months time […]. It’s just a game changer.”
Barwell said that lobbying the government is key in this respect and the government choosing to allocate more funds to solar energy would come down to political pressure.
The STA is proposing that £100 million of funding for solar from DECC would add just £1 to consumer bills, in their '£1 Plan'.
Meanwhile, Barwell laid out a long list of support schemes and incentives that have been closed or seen cuts in recent years, including changes to the FiT schemes, the RO and the selling off of the Green Investment Bank, among others.
Barwell said: “It does feel like a comprehensive, strategic unwinding of the renewables sector. It’s really important that we continue to push very hard and lobby.”
Sonia Dunlop, head of communications, STA, listed key actions that members of the industry can take including submitting responses to the DECC consultation on the FiT review by 23 October, backing the STA '£1 Plan', joining an action day outside the House of Commons on 21 October and meeting their MPs in person.