The controversial consultation on renewable energy subsidy cuts ended last week. The government is now evaluating alternative proposals on how to save the solar energy sector.
The problem
The government wants to slash solar installations incentives by up to 87 percent, including cutting support for small wind turbines and anaerobic digestion projects. And if an onslaught of new solar installations eats up budget in the next few months, the government warns of closing the scheme altogether.
Criticism
Proposals have been criticised by industry environmental campaigners and former ministers, with accusations including the catastrophic demise of the solar industry.
Alternative proposals
The consultation has driven new proposals (four outlined below) from leading industry players, all designed to continue renewable energy growth with minimal impact on household bills. Despite different proposals, it seems that the solar industry is united in urging the government to re-think its plans.
The local grid strategy
Produced by: Lightsource Renewable Energy
A ‘decentralised vision’, delivered through a combination of small-scale renewables, smart meters and demand-response initiatives. Short-term governmental support needed but no long-term subsidies.
The £1 rescue plan
Produced by: The Solar Trade Association (STA)
Add £1 to individual household bills in 2019. The plan has gained cross-party support from more than 30 MPs. It requires a higher level of subsidy than that currently proposed by the government but this is covered with the addition of £1 to average consumer bills.
The London skyline scheme
Produced by: Greater London Authority (GLA)
The GLA issues new requirements to ensure that all major developments suitable for solar PV must include solar installations as part of their design. It would also stipulate that private landlords install small-scale solar, particularly on GLA-owned property.
The subsidy-free solution
Produced by: Renewable Energy Association (REA) and KPMG
A range of measures to move solar from dependence on direct subsidy to eligibility for schemes such as enhanced capital allowance tax breaks and introducing net metering systems to further enable solar panel owners to sell their electricity.
A final decision is expected from the government by the end of the year, with any changes potentially taking effect from January 2016.
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