STA sounds deployment alarm as solar hits ‘crunch point’

IMMEDIATE RELEASE: 18 April 2017

 STA sounds deployment alarm as solar hits ‘crunch point’

Official data shows urgent need to drop ‘disproportionately high’ business rates

 The STA has published a summary of current solar deployment [1] at a major crunch point for the solar industry. This was reported in national media over the Easter weekend. The data shows that this year, solar retrofits on existing homes amounted to the equivalent of one roof per MP constituency per week, and the equivalent nationally of only one large factory roof per month.

The end of March heralded the final closure of the Renewables Obligation, the key support scheme for solar farms, as well as the start of shock business rate rises for rooftop solar.  Solar, the UK’s cheapest and most popular source of clean power, also remains excluded from renewables auctions, where included technologies are now bidding for £290 million of new support.

Final official data for the first quarter of 2017 was released on the 7th of April [2] confirming the worryingly low deployment of rooftop solar, just over a year since the start of the new FIT scheme.

STA CEO Paul Barwell said;

With policy crunch points clearly hurting solar this spring we urge Government to act now to stabilise the industry.  Solar power led global renewables growth last year and it has an extraordinary future everywhere. But solar is being needlessly impeded in the UK by shock taxes, red tape and by a serious failure in the only remaining supportive policy. The UK solar industry risks being left behind while other major economies strengthen their stake in a booming world market.

We repeat our call on the Government to table the simple secondary legislation needed to stop the extreme and anti-competitive business rate hike for rooftop solar.”

Today’s data (attached) reveals;

  • Domestic rooftop solar deployment has fallen by 75% in Q1 2017 for domestic schemes compared to average deployment since the FIT began. This translates to a fall from approximately 2,700 installations per week to around 650.
  • Deployment of larger (50kW+) rooftops in Q1 2017 has fallen by 65% compared to average deployment in 2016. The data translates to only approximately one large factory roof installation, like a car factory, per month.

The STA is asking for red tape removal and more accurate official data to help boost the domestic sector. For commercial rooftops, as well as fair business rates, the STA is urging Enhanced Capital Allowances and PPA exemption from the Climate Change Levy.  The failing FIT policy for commercial rooftops also needs to be addressed to smooth the transition to a subsidy-free framework. For utility-scale solar the STA is asking Government to level the playing field and allow competitive access for solar to CfD auctions,

The STA is now concerned about skills & efficiency retention in the sector, given employment had already fallen by an estimated one third last summer [3]. Solar deployment has fallen by 70% since last summer with very worrying implications for sector employment today.

STA CEO Paul Barwell said;

The solar industry has achieved such unprecedented cost reductions and in record time, that, despite clear difficulties, we are not asking for new rooftop subsidies. What we are asking for, and urgently, is fair tax treatment, fixes to a failing policy, less red tape & just a level playing field.

The business rate rises of up to 800% for organisations using their own rooftop solar has been described by the Valuation Office Agency (VOA) themselves as ‘disproportionately high’ [4]. The STA has been urging the Government to level the playing field for solar and follow the business rate exemption given to CHP in 2001.

Commenting on the low deployment in the domestic market Paul Barwell said;

Energy price rises this year will give the domestic market a boost. However, the market is struggling and Government needs to help recovery by removing red tape, such as the requirement to first meet housing standards that only half the country can reach.”

 Commenting on the cliff edge faced by solar farms Paul Barwell said;

It makes no sense to shut the most popular and cheapest clean power out of the energy market. That’s the last thing that consumers and a healthy, competitive market needs.”

 

ENDS

For further information or to request an interview, please contact:

Name: Leonie Greene

Title: Head of External Affairs

Tel: 0203 637 2945 or 07932 720091

Notes for Editors

[1] The STA Q1 Deployment Summary  is available here; http://www.solar-trade.org.uk/wp-content/uploads/2017/02/STA-Solar-Deployment-Briefing-Q1-2017-final.pdf

 

[2] https://www.ofgem.gov.uk/system/files/docs/2017/04/end_of_tariff_period_report_-_tp1_2017.pdf

 

[3] Seeing Through the Gloom, Industry survey with PwC https://www.pwc.co.uk/power-utilities/assets/solar-report-2016.pdf

 

[4] See http://app.voa.gov.uk/corporate/Publications/Manuals/RatingManual/RatingManualVolume4/sect3/f-rat-man-vol4-s3-pn4-Renewable%20Energy.html#P175_4240

 

Background on the Solar Trade Association:

 

The mission of the Solar Trade Association is to empower the UK solar transformation. We are paving the way for solar to deliver the maximum possible share of UK energy by 2030 by enabling a bigger and better solar industry. We represent both solar heat and power, and have a proven track record of winning breakthroughs for solar PV and solar thermal.