Ian Holyoak
Posted on 10 Aug 2015

The latest government changes to renewable energy funding

In the last couple of months, the UK government has put forward a variety of changes to key funding mechanisms for renewable energy.   We have reported previously on the closure of the Renewables Obligation to onshore wind and larger solar projects, but on 22 July the Department for Energy and Climate Change has initiated further consultation around the funding for solar PV projects. 

The consultation on cost management of the Renewables Obligation for solar PV projects includes several major changes:

  • Proposal for early closure of the Renewables Obligation for solar PV projects under 5MW
  • Proposal to remove the grandfathering funding for new solar PV projects under 5MW 
  • Revision to the bandings for new solar PV projects

The proposals include the removal of pre-accreditation mechanisms and, shortly, there will be further consultation on feed-in tariff bands for all forms of renewable energy technology.

The consultation on solar PV projects is open only until the 2 September, so final details of the changes will be available in a few weeks time. 

Further, as a result of the recent budget, electricity generated by renewables would no longer benefit from Climate Change Levy (CCL) exemption.  From the 1 August OFGEM cannot issue the exemption certificates which had previously operated to enhance the revenue from renewables projects.

An article looking at some of the detail in the existing and proposed changes will follow from our Renewable Energy team.