To unlock the recovery potential of UK solar, the paper calls for the Government to focus on the following immediate priorities which will boost the ground-mount, commercial rooftop and residential markets respectively:
Maximise Routes to Market and Improve Investor Confidence
Implement a robust Contracts for Difference design to maximise solar deployment, including a sufficient budget for Pot 1 (solar and onshore wind), regular 6-monthly auctions, and no capacity caps.
Implement Green Tax Reform to Ensure Continued Sustainable Growth
Except rooftop solar and battery storage from business rates, in line with government tax treatment of Gas CHP (Combined Heat and Power).
Support Innovation and Energy Efficiency to Improve the UK’s Property Portfolio
Implement high, ambitious new build minimum energy efficiency standards keeping to the timelines set out in the Future Homes Standard consultation.
Provide access to green finance for domestic and commercial entities to install solar and storage through grants, zero interest loans or other fiscal incentives.
The paper outlines a further seven policies that the Government should implement in the medium-term to further unlock the potential of UK solar, including powering the Civic Estate with 100% renewables, scrapping VAT for solar and battery storage, and strengthening the UK’s commitment to carbon pricing.
“Now is the time for the Government to commit to action” said STA Chief Executive Chris Hewett. “A 40 gigawatt target aligns with the recommendations of Britain’s top climate advisors, and the industry is ready to scale up operations to deliver this, with the support of a robust policy framework. Unleashing the potential of solar in the UK would rapidly create thousands of skilled jobs across the country. Our industry can help to spread the green recovery from Land’s End to John O’Groats.”
In 2020 Solar has so far contributed to a record period of 67 coal-free days and counting, generating over 4 TWh since lockdown began. The technology has continued to break records throughout 2020, including contributing to a new lowest carbon intensity record for the grid, set on Sunday 24th May 2020, during a month where solar power met over 11 percent of UK electricity demand. There is approximately 13.5 GW of solar currently deployed in the UK.
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