Posted on: 08/11/2016
The standard method for financing large-scale solar photo-voltaic (PV) schemes in the UK is no longer economically viable, according to the Solar Trade Association’s (STA’s) latest report.
The trade body said that two-thirds of the UK’s 12GW solar capacity has been built using power purchase agreements (PPAs).
Following the Conservative government’s removal of the majority of support for the solar industry, the STA said large-scale solar farms should be allowed to compete in the next Contracts for Difference auction rounds.
David Pickup, the STA’s policy manager and the author of the report, said: “The UK solar industry has been challenged to deliver subsidy free solar but, as our detailed analysis shows, this is not yet possible for mainstream projects.
“Even terrific financial innovation cannot get around hard economics; large-scale solar still needs just a little support from Government to provide consumers with one of the cheapest sources of clean power.
“The industry cannot invest for cost reductions tomorrow without decent market volumes today: a vicious circle.”
> Download the report