Support for sub-5MW solar farms could be in line for cuts as part of the Department of Energy and Climate Change’s rumoured “big reset” of green subsidies, according to the Telegraph.
The report follows days of intense speculation that has been fuelled by anonymous cabinet-level briefings which warned that solar was facing sweeping subsidy cuts in order to reign in the costs associated with the Levy Control Framework which is facing a £1.5 billion overspend by 2020/2021.
Solar farms under 5MW can currently claim support under the renewable obligation which has supported a huge upturn in ground-mount developments across the UK, accounting for over 50% of the UK’s solar capacity, catapulting the UK to the top of Europe’s solar market table.
However, the government moved to remove the largest projects (>5MW) from the Renewable Obligation (RO) at the end of Q1, 2015. The newly-elected Conservative government has also removed RO support for all onshore wind developments as part of a pre-election pledge to limit the development of such schemes.
The Telegraph reports that the government will release a consultation over proposed cuts to the sub-5MW solar RO on Wednesday.
It remains to be seen whether the feed-in tariff is also in line for a cut in support as is widely feared among the industry. Amber Rudd confirmed that the government would be making an announcement on the feed-in tariff “shortly”, with the scheme currently the subject of a major review within DECC.