Renewable Energy Update May 2014: Changes Proposed to Government subsidies
The UK Government announced that it is consulting on closing the Renewables Obligation (RO) scheme to new solar projects over 5MW from next May. This is a significant change to the way that large UK solar projects are funded and will affect many current solar projects as well as those at pre-planning stages now.
Contracts for Difference (CfD), the new funding for large scale solar pv will change how large-scale solar scheme developments are delivered and affect the viability of many schemes.
The indication is that the decision has been based on the amount of large-scale solar PV being developed across the UK and appears to try to limit the public costs associated with large scale PV.
We have already seen many sites land-banked for renewable projects and not progressing. For those that have signed exclusivity agreements, option agreements, heads of terms or contracts and do not have a completed solar farm, many may find that they are not progressing in the time expected, or that they are being offered a different deal now. This is likely to accelerate if the Government’s latest proposals are implemented.
However it is not all bad news, with change comes opportunity.
Incentives are still available for solar pv projects and the UK Government has confirmed its commitment to renewable energy, ground based solar PV and to ‘commercial size’ roof-mounted solar PV.
While the new CfD funded, projects can appear to bemore complex, access to impartial advice will offer opportunities for good projects and incomes from both self-funded and externally funded solar pv.
For those thinking about larger scale solar pv taking professional advice from independent renewable energy specialists can provide reassurance that your have the right project, the right team and the right income and can make the difference between success and failure.
As the UK solar market develops, existing projects can be adapted to offer better prospects and opportunities. With the right advice, income levels can be similar to existing projects and many of the risks can be avoided.
There are also opportunities for smaller, or better, larger solar PV projects and alternative grid or off-grid connections, collaboration with professional investors and developers and improved efficiency alongside with other forms of renewable electricity and renewable heat.
Adamian Green was established in order to focus specifically on fostering investment and development in renewable energy technologies and we provide the necessary professional, landowner, network operator and local authority relationships and project development management expertise to secure viable schemes.
We establish projects and funding and renegotiate terms. We have agreements with a number of leading renewable technology investors and developers on behalf of our clients and have negotiated improved development opportunities, prospects, projects and incomes.
For further information contact us in confidence.