Renewables groups have lauded a spike in solar PV capacity, but warned that subsidy cuts will see new installations dwindle.
Solar PV capacity increased 62 per cent in the 12 months from February 2015, according to figures from the Department of Energy and Climate Change (Decc). However, just 11MW of capacity was deployed in February 2016 which is 92 per cent less than the same month in 2015.
March 2016 saw an influx of smaller solar schemes launched ahead of the closure of the Renewables Obligation (RO) subsidy mechanism. The RO closed to large scale projects last April, causing a major spike in capacity installed in March 2015.
Solar suffered further subsidy cuts this January, when the Feed in Tariff was reformed to pay much lower rates of subsidy to businesses and households installing solar arrays and became subject to a quarterly deployment cap.
Lauren Cook, policy analyst at UK Solar, part of the Renewable Energy Association, said: “This increase [62 per cent] took place under the old policy framework. The government cuts [to the Feed in Tariff] that kicked in this January are beginning to bite – solar PV deployment from January to February 2016 was 92 per cent lower than between January to February 2015.
“We’re looking to work constructively with government to remove the many barriers to solar PV deployment that have been erected since the general election. We are frustrated that these barriers, including the severe cuts to the Feed-in Tariff and proposed tax policy changes, will slow the uptake of solar, and ultimately delay the time it takes to reach cost-parity.”
Solar Trade Association communications and public affairs manager Sonia Dunlop said: “These figures, encompassing the first installations since the Feed in Tariff reductions, reflect how difficult the government’s changes have made things in the market.
“However we are delighted to see there is significant activity at the domestic scale – around 75 per cent of new deployment. It shows that, while challenging, installers are finding ways to make the new rules work, and that consumers who install solar will continue to benefit from home-grown, cost-effective, low carbon energy.”
