No large scale solar farms will be built under the new green energy subsidy system in the next year, it has been revealed.
The industry hit out at “rollercoaster policies” for solar – which it said could be cheaper than gas in a few years – after it emerged neither of the two solar projects which won funding for 2015/2016 in the first renewables subsidy auction of its kind were going ahead.
It means only three of the five solar farms awarded subsidies, paid for through consumer bills, in the auction will be built in the next few years, compared to all 15 onshore wind projects which won payments under the new “Contracts for Difference” scheme.
While some large-scale solar projects will still be built under the grace period remaining from the old “Renewables Obligation” system of subsidies, that programme is now closed to large solar farms – leaving companies struggling, the industry said.
The technology lost out in the auction, which allocated payments to 27 renewable electricity projects, because the scheme favours bigger players over the smaller businesses that are generally behind solar farms and large-scale arrays, industry leaders said.
The industry has criticised the Government for failing to provide a level playing field, with other renewable energy still able to take advantage of the Renewables Obligation until 2017 – although it has been closed to large solar farms.
The Solar Trade Association’s head of external affairs Leonie Greene said the Contracts for Difference register released by the company administering the scheme confirmed the industry’s fears that the two solar schemes would not go ahead.
“That no large solar farms will be built in the next year under either the Renewables Obligation or Contracts for Difference is a tragedy, as we predicted these types of projects could be cheaper than gas in just three years with stable policy support.
“British solar small and medium-sized enterprises are now having to rewrite their business plans, again.
“For an industry that is predicted to be the dominant global energy source by 2050, the UK’s rollercoaster policies are not helping its position.
“We hope that the new government looks at this technology with fresh eyes to develop a fairer and more sensible approach,” she said.
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