Consultation on the level of banded support for new solar PV under the Renewables Obligation

Overview

This consultation was carried out by the Department of Energy and Climate Change. In July 2016, the department merged with the Department for Business and Innovation and Skills to form the Department for Business, Energy and Industrial Strategy.

The consultation sets out the Government’s proposals for reduced support under the Renewables Obligation (RO), to apply from 1 June 2016.  The proposals will affect solar PV generating stations with an accreditation date from 23 July 2015 onwards (and additional capacity added to existing accredited stations that does not take it above 5MW in total installed capacity), unless they are eligible for the specified grandfathering exception, the significant financial commitment grace period or the banding reduction exception.

The consultation also sets out the proposed eligibility criteria for the banding reduction exception that was announced in the December 2015 "Government response to the consultation on changes to financial support for solar PV".  This exception will apply to projects which can demonstrate that a significant financial commitment had been made on or before 22 July 2015.  It will give those projects protection against the reduction in support proposed under the banding review.

Full details of the proposals are set out in the consultation document titled "Consultation on the level of banded support for new solar PV under the Renewables Obligation" -  see the link below.

DECC invites interested parties to submit comments and evidence in response to these proposals, using this e-consultation platform.  Your response will be most useful if it is framed in direct response to the 11 questions posed, though further comments and evidence are also welcome.  Reasoning and evidence to support your answers will be particularly helpful.  If you wish to refer to any long reports as part of your evidence, please identify the relevant sections that you are specifically referring to.

There is also an Excel template if you wish to provide UK-specific evidence on costs - see the link below.

Why your views matter

There is evidence to suggest that the costs to developers associated with the deployment of solar PV have fallen significantly since the last RO banding review in 2012.  This suggests that some solar PV projects will receive more support under the RO than is required for them to deploy.  The Government is therefore carrying out a banding review for solar PV in England and Wales and we are seeking comments on our proposed new support bands.

The Government response to the consultation on changes to financial support for solar PV, published on 17 December 2015, announced the decision to introduce a banding reduction exception.  We are now seeking comments on the proposed eligibility criteria for this exception.

What happens next

Following the closure of the consultation, we will consider the responses and evidence received.  We aim to publish the Government response in spring 2016. 

Subject to the outcome of the consultation and Parliamentary approval, we intend to implement any decision on changes to the banded support and grandfathering for solar PV through legislation, to come into force from 1 June 2016.